Developing

The Long Island Power Authority (LIPA) is developing two new power generation projects for completion by next summer and will announce a third project in December, officials said Thursday. FPL Energy and PSEG Power have been selected to build the two facilities, which would add a combined total of 134.9 MW to enhance Long Island’s ability to introduce competition to its service territory.

With an expectation that the Western Sedimentary Basin of Canada will continue as a key focus for natural gas exploration and development, Calgary-based EnCana Corp. announced Thursday it will construct a 40 Bcf natural gas storage facility in southeastern Alberta. The Countess development, once completed, is expected to increase EnCana’s Western Canadian gas storage by almost 40%, totaling approximately 135 Bcf.

The latest announcements for developing liquefied natural gas (LNG) receiving facilities and related infrastructure in the northern end of Mexico’s Baja California peninsula already has energy planners in the Southwest scratching their heads over where and how the 2.2 Bcf/d already planned — and more in the works — will be transported and consumed. Conventional wisdom says 1 Bcf/d of added capacity — about one and a half projects — centered south of the U.S. border would likely be the maximum volume the market and pipeline infrastructure can handle, according to the California Energy Commission’s leading natural gas planning guru.

The latest announcements for developing liquefied natural gas (LNG) receiving facilities and related infrastructure in the northern end of Mexico’s Baja California peninsula already has energy planners in the Southwest scratching their heads over where and how the 2.2 Bcf/d already planned, and more in the works, will be transported and consumed. Conventional wisdom says 1 Bcf/d of added capacity — about 1 and 1/2 projects — centered south of the U.S. border would likely be the maximum volume the market and pipeline infrastructure can handle, according to the California Energy Commission’s leading natural gas planning guru.

Two major pipeline projects announced last week for Atlantic Canada underline the developing potential of the area, which some are calling a Canadian counterpart to the Gulf of Mexico.

An early test is developing of the U.S. government’s declared intentions to help speed up gas pipeline projects, and of pledges by Canadian authorities to co-operate in cross-border projects. After waiting fruitlessly for a year for U.S. partners to obtain approvals, the Canadian Millennium Project has asked the National Energy Board to give it a last chance to stay alive on the Canadian side and wait for U.S. action.

An early test is developing of the U.S. government’s declared intentions to help speed up gas pipeline projects, and of pledges by Canadian authorities to co-operate in cross-border projects. After waiting fruitlessly for a year for U.S. partners to obtain approvals, the Canadian Millennium Project has asked the National Energy Board to give it a last chance to stay alive on the Canadian side and wait for U.S. action.

PanCanadian Petroleum said it has taken another step toward developing its Deep Panuke natural gas field offshore Nova Scotia by awarding a contract for the front-end engineering design (Feed) study for the project to the ACCENT-Saipem Energy Joint Venture. “Starting the Feed study is a very important milestone as we move towards production at Deep Panuke. The study will include the preliminary design of process equipment, structures and pipelines, and will enable us to determine optimum development plans,” said Larry LeBlanc, PanCanadian’s vice president East Coast operations. “It will also allow us to achieve accurate cost estimates and will provide a project definition suitable for soliciting bids for the detailed design, construction and installation phase of the project.” Deep Panuke is located 155 miles southeast of Halifax. Since 1999, PanCanadian has drilled four wells in the field, each of which tested at rates in excess of 50 MMcf/d. PanCanadian has a 100% interest in the Deep Panuke development. The company plans to file a development plan application for the prospect with the Canada-Nova Scotia Offshore Petroleum Board in the fourth quarter of 2001.

PanCanadian Petroleum said it has taken another step toward developing its Deep Panuke natural gas field offshore Nova Scotia by awarding a contract for the front-end engineering design (Feed) study for the project to the ACCENT-Saipem Energy Joint Venture. “Starting the Feed study is a very important milestone as we move towards production at Deep Panuke. The study will include the preliminary design of process equipment, structures and pipelines, and will enable us to determine optimum development plans,” said Larry LeBlanc, PanCanadian’s vice president East Coast operations. “It will also allow us to achieve accurate cost estimates and will provide a project definition suitable for soliciting bids for the detailed design, construction and installation phase of the project.” Deep Panuke is located 155 miles southeast of Halifax. Since 1999, PanCanadian has drilled four wells in the field, each of which tested at rates in excess of 50 MMcf/d. PanCanadian has a 100% interest in the Deep Panuke development. The company plans to file a development plan application for the prospect with the Canada-Nova Scotia Offshore Petroleum Board in the fourth quarter of 2001.