The Federal Energy Regulatory Commission indicated that it may cease processing Calais LNG’s proposal to build a proposed $1 billion liquefied natural gas (LNG) import terminal and associated pipeline project in light of the loss of a key financial backer. “We are aware of the recent events regarding Calais LNG Project Co. LLC’s loss of original investor GS Power Holdings LLC, and the expiration of its option to purchase agreement for the project site. As a result, we are assessing whether it remains appropriate for Commission staff to continue to process your applications,” wrote Jeff Wright, director of FERC’s Office of Energy Projects, in a letter order [CP10-31, CP10-32]. In July Calais LNG announced that GS Power Holdings, a key financial backer, had pulled out of the project (see NGI, Sept. 27). The Maine Board of Environmental Protection at the time agreed to a Calais LNG request to put its permit request on hold until December to give the company time to line up financing and gather information required by state regulators. The proposal seeks to site the import terminal on the St. Croix River in Calais, ME. The terminal would have three storage tanks and the capacity to deliver 1 Bcf/d of revaporized LNG to the 20-mile, 36-inch diameter Calais Pipeline, which would interconnect with Maritimes & Northeast Pipeline in Princeton, ME.
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FERC Signals It May Stop Processing Calais LNG Project
FERC has indicated that it may cease processing Calais LNG’s proposal to build a proposed $1 billion liquefied natural gas (LNG) import terminal and associated pipeline project in light of the loss of a key financial backer.
Economy, Prices Send Rockies Gas Output Plummeting
BP plc’s U.S. arm plans to cease natural gas drilling in La Plata County, CO, for at least six months to pursue development opportunities elsewhere in the United States, the company said Thursday. The news comes as western states reported that gas output fell by double digits in 2009 from 2008.
Economy, Prices Send Rockies Gas Output Plummeting
BP plc’s U.S. arm plans to cease natural gas drilling in La Plata County, CO, for at least six months to pursue development opportunities elsewhere in the United States, the company said Thursday. The news comes as states across the country reported that gas output fell by double digits in 2009 from 2008.
Researcher: Alberta Development Opponents Unlikely to Organize
Groups opposed to industrial development in northern Alberta — including oil and gas drilling and pipelines — are unlikely to cease their legal and illegal efforts to stop it. However, “extra-legal obstruction” of development won’t become widespread unless the groups join forces, which isn’t likely, a researcher has found.
Ocean Energy Updates 3Q Production Guidance
Ocean Energy Inc. said last week that it has decided to cease exploration activity on two international oil and natural gas blocks and use the freed up resources on more profitable endeavors. In addition, the Houston-based independent energy company updated its second half guidance for production volumes.
Ocean Energy Updates 3Q Production Guidance
Ocean Energy Inc. said Monday that it has decided to cease exploration activity on two international oil and natural gas blocks and use the freed up resources on more profitable endeavors. In addition, the Houston-based independent energy company updated its second half guidance for production volumes.
El Paso: Enron’s Woes Unlikely to Have ‘Domino Effect’
Even if the once high-flying Enron Corp. should cease to exist, either by being declared bankrupt or by being swallowed by Dynegy Corp. or another competitor, it is unlikely that this would have a significant “domino effect” on other companies in the energy business due to their limited financial exposure to Enron, El Paso Corp. executive Ralph Eads told Wall Street analysts Wednesday.
FERC Aid Sought in Restoring $750 Price Cap in CA
Morgan Stanley Capital Group Inc., a power marketer, is seekingan emergency cease and desist order directing the California ISO’sgoverning board to overturn its decision reducing the power pricecap to $500/MWh and to restore the temporary $750 cap. It furtherhas asked FERC to stay the ISO’s price-cap authority, and to stripit entirely of that power when an existing resolution expires inOctober.
El Paso Seeks Delay on Capacity-Allocation Plan
While most regulated companies have called a cease-fire at FERCduring the holidays, El Paso Natural Gas and its principaldetractors — Amoco Production and Burlington Resources Oil &Gas — are hard at work. For starters, the pipeline has asked theCommission to give it until February to submit a proposal forrevising its controversial capacity-allocation procedures.
