Constructing

Instead of constructing separate liquefied natural gas (LNG) projects, Shell International Gas Ltd. and Sempra Energy LNG Corp. announced Monday their intention to form a 50/50 joint venture to build, own and operate a single LNG receiving terminal in Baja California, Mexico, in an effort to minimize the impact on the environment there.

Houston’s Manta Ray Offshore Gathering Co. LLC has begunconstructing a major extension to its existing offshore gatheringsystem to complement the Hickory prospect in the Gulf Coastoffshore in Grand Isle Blocks 110, 111 and 116, which is expectedto begin production later this year. The 22.25 mile, 20-inchdiameter pipeline extension will tie into an existing gatheringsystem at South Timbalier Block 292 and extend to the Grand IsleBlock 116 platform. According to Manta Ray, the “strategicposition” will help the company compete for transportation of moregas volumes in the “prolific” area. The extension is sized tohandle the total Hickory volumes as well as the surrounding area’sproduction. Anadarko first announced the Hickory discovery inOctober 1998, and now is drilling additional development wells. Aproduction platform is planned to be moved on location at Block 116later this summer with facilities capable of handling 300 MMcf/d ofnatural gas. Shell Gas Transmission owns 50% of Manta Ray while ElPaso Energy Partners LP owns 25.67% and Marathon Gas TransmissionInc. owns 24.33%.

To assist in the growing demand for electricity in the upperMidwest, Southern Energy Inc. plans to begin construction thismonth of a natural gas-fired plant in Zeeland, MI that will useadvanced natural gas combined-cycle technology and state-of-the-artemission control equipment. Commercial operations are expected tobegin in June 2001, with an initial 300 MW of capacity. Anadditional 530 MW will begin commercial operation by June 2003.

FERC last week found that CNG Transmission Corp. has beenconstructing, converting and interconnecting gas storage wells atits Tioga complex in Pennsylvania without prior Commissionauthorization.

FERC last week found that CNG Transmission Corp. has beenconstructing, converting and interconnecting gas storage wells atits Tioga complex in Pennsylvania without prior Commissionauthorization.

Nicor and Dynegy Inc. have begun construction on a 250 MWgas-fired, peak-demand power generation facility in the Village ofEast Dundee, IL. The two companies said they plan to market theelectricity generated at the Rocky Road Power facility in thewholesale market to investor-owned utilities, electric cooperativesand municipalities when commercial operations get underway thissummer.