Briefs

FERC has set Dec. 3 for a technical conference in Anchorage, AK on its proposed regulations governing the conduct of open seasons for the Alaska Natural Gas Transportation System. The Commission’s action comes after President Bush signed into law last month a bill that provides for an $18 billion federal loan guarantee for the construction of the remaining 1,600 miles of the project. FERC expects to issue a proposed rule by about Nov. 18. The public would have until Dec. 17 to comment on FERC’s notice of proposed rulemaking. The law requires FERC to complete the regulations by Feb. 10, 2005.

Houston Exploration Co. said Friday it has completed its purchase of producing properties in the shallow waters of the Gulf of Mexico (GOM) from Orca Energy LP and BP Exploration & Production Inc. The combined purchase price of the properties was $145 million for 79 Bcfe. The assets are more than 80% natural gas and encompass 14 fields that are near existing operations in the GOM, the company said. Houston Exploration funded the transactions with a combination of cash on hand at the time of closing and debt from its revolving bank credit facility. In addition, as a result of the acquisitions, the company’s banking group has increased the available borrowing capacity for the organization to $400 million from $340 million.

Sempra Energy Solutions, the retail marketing arm of San Diego-based Sempra Energy, announced that it dedicated the first phase of a new combined heat/power generating plant at the sprawling $900 million Food and Drug Administration headquarters complex in Silver Spring, MD. Sempra Solutions has a 20-year contract with the FDA under the federal energy department’s performance-based contracting program. Called White Oak, the consolidated FDA headquarters will include three million square feet of space on 130 acres and will be developed over 10 years. The energy plant is being developed in phases as a natural-fired cogeneration facility. The specific terms or value of the energy supply contract were not disclosed, but Sempra finances the centralized energy plant equipment and installation with no up-front cost to the federal agency, getting paid annually through the energy savings, which are estimated by the GSA to be about $2.5 million annually for the 6,200-employee complex in which all of the 14 buildings are interconnected.

Houston Exploration Co. said Friday it has completed its purchase of producing properties in the shallow waters of the Gulf of Mexico (GOM) from Orca Energy LP and BP Exploration & Production Inc. The combined purchase price of the properties was $145 million for 79 Bcfe. The assets are more than 80% natural gas and encompass 14 fields that are near existing operations in the GOM, the company said. Houston Exploration funded the transactions with a combination of cash on hand at the time of closing and debt from its revolving bank credit facility. In addition, as a result of the acquisitions, the company’s banking group has increased the available borrowing capacity for the organization to $400 million from $340 million.

FERC on Tuesday said it will issue on Nov. 18 proposed regulations governing the conduct of open seasons for the Alaska Natural Gas Transportation System. The Commission’s action comes nearly two weeks after President Bush signed into law a bill that provides for an $18 billion federal loan guarantee for the construction of the remaining 1,600 miles of the project. The public would have until Dec. 17 to comment on FERC’s notice of proposed rulemaking, with issuance of a final rule scheduled for Feb. 9. The Commission also plans to hold a technical conference around Dec. 6-10 at a site to be determined in Alaska to receive comment on the proposed open-season regulations.

FERC on Tuesday said it will issue on Nov. 18 proposed regulations governing the conduct of open seasons for the Alaska Natural Gas Transportation System. The Commission’s action comes nearly two weeks after President Bush signed into law a bill that provides for an $18 billion federal loan guarantee for the construction of the remaining 1,600 miles of the project. The public would have until Dec. 17 to comment on FERC’s notice of proposed rulemaking, with issuance of a final rule scheduled for Feb. 9. The Commission also plans to hold a technical conference around Dec. 6-10 at a site to be determined in Alaska to receive comment on the proposed open-season regulations.

Las Vegas-based Southwest Gas Corp. Wednesday warned its customers in the northern half of Nevada about potentially high retail gas rates this winter. The gas-only distribution utility attributed the higher gas costs principally to the fact that wholesale gas demand is growing faster than new supplies, keeping the prices at historically high levels. The utility, which also has gas utility operations in California and Arizona, said it expects bills for the average residential customer using 96 therms to climb from $86 last December 2003 to $122 this December. The figures include a pending increase now before the Public Utilities Commission of Nevada.

Las Vegas-based Southwest Gas Corp. Wednesday warned its customers in the northern half of Nevada about potentially high retail gas rates this winter. The gas-only distribution utility attributed the higher gas costs principally to the fact that wholesale gas demand is growing faster than new supplies, keeping the prices at historically high levels. The utility, which also has gas utility operations in California and Arizona, said it expects bills for the average residential customer using 96 therms to climb from $86 last December 2003 to $122 this December. The figures include a pending increase now before the Public Utilities Commission of Nevada.

The Energy Minister of Trinidad and Tobago told Reuters that the government plans to reopen three existing contracts with Atlantic LNG, the country’s main liquefied natural gas (LNG) exporter, because it has not seen any financial gain from the diversion of several LNG cargoes to the higher priced market in the United States from markets in Spain. Energy Minister Eric Williams said the government plans to reopen but not renegotiate contracts for Trains 1, 2 and 3. Williams told Parliament on Monday that reopening the contracts would give the country an opportunity to increase its economic return from LNG. He said that although cargoes have been diverted to the more lucrative U.S. markets, the revenue that has been sent back to Trinidad is the same as if the shipments had gone to Spain. “We are about to seek to close that loophole, a substantial loophole, that is why we wish to reopen contracts,” he said, according to Reuters. The three LNG processing trains have a total capacity of nearly 10 million tonnes per year. A fourth train is under construction and set to come on line next year. It will increase the production capacity to more than 15 million tonnes a year. Atlantic LNG is owned by BP, BG Group, Repsol, Tractebel and the National Gas Co. of Trinidad and Tobago.