Construct

Industry Briefs

Freeport LNG Development LP has filed an application with FERC to construct the first of four proposed liquefied natural gas (LNG) receiving terminals along the Gulf Coast. The first, estimated to cost about $400 million and tentatively operational by early 2007, would be built in Freeport, TX. Freeport LNG, which is 60% owned by privately held Freeport Investment, is also partially owned by two Houston-based independents, Cheniere Energy Inc., with 30% interest, and Contango Oil & Gas Co., which owns a 10% interest (see NGI, March 10). Cheniere originally acquired the Freeport site, which has a 20-year lease, and has already conducted technical, feasibility, marketing, engineering and environmental studies there. In addition to its interest in the Freeport project, Cheniere has also secured options on three other sites for LNG receiving terminals in Sabine Pass, LA, and two in Texas, located in Corpus Christi and Brownsville. Cheniere said the second LNG facility may begin the FERC filing process early next year.

April 7, 2003

Proposed Gulf Coast LNG Project Moves to FERC

Freeport LNG Development LP has filed an application with FERC to construct the first of four proposed liquefied natural gas (LNG) receiving terminals along the Gulf Coast. The first, estimated to cost about $400 million and tentatively operational by early 2007, would be built in Freeport, TX.

April 1, 2003

Brooklyn Firm Proposes 1,100 MW Facility to Serve NYC by 2006

TransGas Energy Systems LLC (TGE) is seeking permission to construct and operate a 1,100 MW combined-cycle generation facility in Brooklyn, NY, which could deliver wholesale power to load pockets in Brooklyn, Queens and Manhattan beginning in 2006.

January 6, 2003

Shell, Enterprise Plan New Deepwater Pipeline in Western Gulf

Shell Gas Transmission LLC. and the operating partnership of Enterprise Products Partners LP. announced plans Tuesday to construct and install a $40 million natural gas pipeline in the western Gulf of Mexico. The new 41-mile, 16-inch pipeline is expected to be ready to transport gas production beginning as early as November 2003 from the deepwater Gunnison development operated by Kerr-McGee Oil & Gas Corp.

September 18, 2002

Industry Brief

Kerr-McGee Corp. and partner Ocean Energy Inc. have selected Technip Offshore Inc. to construct the world’s first cell spar for the development of the Red Hawk deepwater field in Garden Banks block 877 in the Gulf of Mexico. First production from the natural gas field with estimated proven reserves of more than 250 Bcf is expected in the second quarter of 2004. Located in 5,300 feet of water, Red Hawk will be Kerr-McGee’s deepest development to date. Kerr-McGee Oil & Gas Corp., a subsidiary of the Oklahoma City-based company, operates Red Hawk with 50% interest, and Ocean Energy holds the remaining 50%. Luke R. Corbett, Kerr-McGee CEO, said, “This new cell spar technology will allow us to capitalize on our deepwater prospects by reducing the reserve threshold needed for an economical platform development in deep waters.” The innovative cell spar, which is the third generation of spar technology, will have an initial daily production capacity of 120 MMcf, with ultimate capacity of 300 MMcf. It will measure 64 feet in diameter and 480 feet in length. The design includes seven tubes, each 20 feet in diameter, with a center tube surrounded by the other six tubes, all connected by structural steel. The deck will be 110 feet by 132 feet. Construction is expected to begin in the fourth quarter of 2002.

August 27, 2002

BP Unit Files Application with WA Regulators for 720 MW Plant

A unit of BP PLC has submitted an application with the Washington State Energy Facility Site Evaluation Council to construct and operate a 720 MW, natural gas-fired cogeneration facility in the state. Of note, BP Westcoast Products LLC is not closing the door on bringing in another company to participate in the management, development and construction of the plant in exchange for an equity interest once BP Westcoast obtains a permit.

June 24, 2002

FERC OKs Alternative to Wheeler Ridge Point in CA

FERC has given Kern River Gas Transmission the go-ahead to construct an alternative delivery point to the constrained Wheeler Ridge point in southern California, which would provide shippers with as much as 500 MMcf/d of additional take-away capacity.

February 4, 2002

FERC OKs Alternative to Wheeler Ridge Point in CA

FERC has given Kern River Gas Transmission the go-ahead to construct an alternative delivery point to the constrained Wheeler Ridge point in southern California, which would provide shippers with as much as 500 MMcf/d of additional take-away capacity.

January 29, 2002

Alaska Pipeline Proposals Set for Two-Day Hearings

Though natural gas prices have been sliding in the last few months, plans to construct an Alaskan natural gas pipeline into Canada and the Lower 48 are moving to the fast track, as producers and business groups, eager to move the process forward, push their proposals this month during a two-day hearing in Anchorage.

July 9, 2001

Islander Pipeline Project Filed at FERC

Islander East Pipeline Co. LLC., a joint venture of subsidiaries of Duke Energy and KeySpan Corp., filed an application with FERC to construct 50 miles of interstate gas pipeline that will transport gas to growing markets in Connecticut, New York City and Long Island, NY. First announced in late January (see NGI, Feb. 5), the 250 MMcf/d pipe is expected to be in service in 2003.

June 25, 2001