FERC should consider developing a model — one that is closer to those used by other federal enforcement agencies — for cracking down on individual traders who repeatedly manipulate energy markets, Commissioner Philip Moeller said Thursday.
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An infrastructure to produce liquefied natural gas (LNG) may be one of the initiatives to emerge from a developing process in Wyoming to forge a deeper, broader energy-environmental foundation, according to Gov. Matt Mead’s policy director.
The American Petroleum Institute (API) has launched a television and print ad campaign in Washington, DC, and in several states to drive home the importance of a favorable tax code in developing domestic domestic oil and natural gas and creating jobs. “Taxes on the industry are a key energy issue, and, as our Election Day polling showed, voters are skeptical about targeting the industry for higher taxes. To encourage members of Congress who are part of that conversation with voters, we’re launching new television and print advertising inside the [Washington, DC] beltway and in selected states,” said Khary Cauthen, API senior director of federal relations. Both the print and television ads will run for two weeks in the DC area, as well as New Mexico, North Carolina, Virginia, Arkansas, Alaska, Colorado and Louisiana. President Obama has proposed eliminating $4 billion annually in tax breaks for oil and gas producers. “Raising our taxes is not the answer. We already are taxed at a higher rate than [many] other industries,” an API spokesman said.
Total Gas & Power Ltd. has signed a deal to sell to South Korea’s Korea Gas Corp. (Kogas) 0.7 million metric tons per year of liquefied natural gas (LNG) for 20 years from Cheniere Energy Partners LP’s Sabine Pass Liquefaction LNG export terminal in Louisiana. The LNG would be lifted following startup of the terminal’s third train, which is scheduled for commissioning in 2017, Total said.
It’s no exaggeration that the shale gas boom has “momentous” implications and it is “revolutionary” in an historic perspective, according to ExxonMobil Corp.’s Paul Greenwood, who spoke Tuesday at the LDC Gas Forum Midcontinent meeting in Chicago.
Dallas-based Bridger Logistics LLC, a division of Bridger Group LLC, plans to join Midland, TX-based Advantage Pipeline LLC in developing its Pecos River Pipeline project, which will transport oil from the Delaware Basin to markets in the Gulf Coast and Midland. The pipeline will originate near Pecos, TX, and terminate in Crane, TX, where it will connect to the Longhorn Pipeline — owned by Magellan Midstream Partners LP — and Centurion Pipeline LP’s Crane Station. Once fully operational, the pipeline will have an initial capacity of 150,000 b/d and consist of more than 75 miles of trunkline. Bridger Transfer Services LLC will develop lateral extensions, gathering stations, origination stations and truck offloading facilities. The pipeline is scheduled to be operational by 1Q2013.
Cheniere Energy Partners LP has struck commitments for $3.4 billion to fund the costs of developing, constructing and placing into service the first two liquefaction trains of the Sabine Pass LNG liquefaction project, it said. Sabine Pass Liquefaction is finalizing definitive loan documents with lenders and is working on commitments of about $200 million with additional institutions. The credit facility is expected to be closed by the end of the month. “Including the recently announced $2 billion of equity commitments [see Daily GPI, May 25], we have now received financial commitments of approximately $5.4 billion for the construction of trains 1 and 2 of our liquefaction project,” said CEO Charif Souki. “Our ability to access a very large credit facility will significantly reduce our costs of financing during construction. We expect to reach a final investment decision and issue notice to proceed to Bechtel upon meeting all conditions precedent under the financial agreements…” Sabine Pass is the only proposed U.S. liquefaction project to have been granted authority to export to non-free trade agreement countries (see Daily GPI, April 17).
Kinder Morgan Energy Partners LP’s (KMP) Crude/Condensate pipeline (KMCC) has entered service, carrying crude oil and condensate from the Eagle Ford Shale of South Texas to the Houston Ship Channel.
With an eye for the developing shale potential in Kansas, Irvine, CA-based startup New Western Energy Corp. said Wednesday it has obtained a 90% working interest in the 550-acre Smith Oil & Gas Lease in Chautauqua County, KS. The interest is in acreage that sits adjacent to 1,700 acres that New Western holds in the B&W Oil & Gas Lease.
A recent study that showed the percentage of wells in Pennsylvania with pollution events has declined, thanks at least in part to the state’s regulation of hydraulic fracturing (fracking), contained “significant errors and distortions” that undermine its conclusions, according to an analysis released by the Public Accountability Initiative (PAI), a nonprofit research organization based in Buffalo, NY.