Connection

EnCana Corp. affiliate Starks Gas Storage LLC has called on FERC to reconsider an order denying its request for a waiver of the Order 636 unbundling requirement in connection with the development of a 19 Bcf natural gas storage facility in southwestern Louisiana. It also asked the agency to use its certificate case to set new storage policy.

Energy Transfer Partners said it purchased a majority of the entity that owns Houston Pipe Line and related storage assets from American Electric Power Corp. (AEP) for about $825 million. AEP had been planning to sell the assets since last year as part of its strategy to refocus on core regulated operations.

The C$7 billion (US$5.6 billion) Mackenzie Gas Project has put out a message that discoveries have to be big — or very near its route — to qualify for connection to its proposed pipeline for Canadian arctic production.

The C$7 billion (US$5.6 billion) Mackenzie Gas Project has put out a message that discoveries have to be big – or else very near its route – to qualify for connection to its proposed pipeline for Canadian arctic production.

Energy Transfer Partners said it purchased a majority of the entity that owns Houston Pipe Line and related storage assets from American Electric Power Corp. (AEP) for about $825 million. AEP had been planning to sell the assets since last year as part of its strategy to refocus on core regulated operations.

Kenneth Lay, once an icon of the energy industry and toast of Houston’s social community, on Thursday pleaded innocent to 11 criminal charges in connection with his actions at the failed company that he founded, Enron Corp. Lay, who, if convicted, faces charges that in total carry 175 years in prison and a fine of $5.75 million, also was charged by the Securities and Exchange Commission (SEC).

Vector Pipeline LP. announced that a new interconnect between its pipeline and ANR Pipeline Co. has been put into service at St. John in Lake County, IN. The connection is designed to provide natural gas customers in the Midwest and southwestern Ontario additional flexibility and access to natural gas supplies at the Joliet/Chicago Hub. “Existing and future shippers on the Vector and ANR pipeline systems will benefit from this interconnection,” said Craig R. Fishbeck, Vector president. “This will provide ANR customers access to markets in southwestern Ontario and Vector customers additional supply security with access to Midcontinent, Rockies and Gulf Coast supplies on ANR.” Vector said the St. John facilities have a design capacity of 200 MMcf/d. The 42-inch Vector Pipeline, which is a partnership of Calgary-based Enbridge Inc. (45% interest), Duke Energy Corp. (30%), and DTE Energy Co. (25%), transports Western Canadian natural gas from the Chicago-area market hub in Joliet, IL, to the hub at Dawn, ON.

A subsidiary of BG Group plc, which has a long-term contract for 100% (starting in 2005; 80% currently) of the liquefied natural gas (LNG) capacity at the Lake Charles LNG facility in Louisiana, is planning to build a new 40-mile gas pipeline to carry regasified LNG from the terminal to additional pipelines in Louisiana.

The various owners of the Black Marlin Pipeline System, a75-mile long natural gas and condensate gathering system in theGulf of Mexico, have sold the line to Williams Field Services for$9.25 million. The line was purchased from Blue Dolphin Energy, a50% owner, MCNIC Pipeline & Processing Co., a 33.33% owner, andWBI Holdings, Inc., a 16.67% owner. The sale includes related shorefacilities servicing the High Island area. Ivar Siem, chairman ofprimary owner Blue Dolphin, said the company had purchased BlackMarlin in early 1999 “during a period when the system hadexperienced lower throughput volumes due to limited drillingactivity in the High Island area. Since then the activity level hasbeen very high and significant additional reserves have beendiscovered,” Siem added. “This is an opportunity for us to realizegood value for the asset. We can re-deploy a portion of the saleproceeds to other niche pipeline opportunities in the Gulf.”