Heats

Drawing a legal distinction between facilities and companies developing them, the California Public Utilities Commission Thursday unanimously instituted an investigation of the proposed liquefied natural gas (LNG) receiving terminal in Long Beach Harbor, including the determination that the Mitsubishi Corp. subsidiary proposing to build the terminal is a “public utility” under California law and must gain CPUC approval to build the project.

Even in the midst of a brewing international oil crisis and the state’s skyrocketing gasoline prices at the pump, Californians are expanding their organized opposition to proposed offshore liquefied natural gas (LNG) terminals along the state’s southern Pacific Coast. Hoping to head off the ground swell, One proponent already has scheduled community information meetings later this month in Oxnard and Malibu, CA, the onshore entry point for a terminal 22 miles offshore.

Even in the midst of a brewing international oil crisis and the state’s skyrocketing gasoline prices at the pump, Californians are expanding their organized opposition to proposed offshore liquefied natural gas (LNG) terminals along the state’s southern Pacific Coast. Hoping to head off the ground swell, One proponent already has scheduled community information meetings later this month in Oxnard and Malibu, CA, the onshore entry point for a terminal 22 miles offshore.

The race to build a liquefied natural gas (LNG) import terminal in the Bahamas with a pipeline to the coast of Florida got a lot tighter last week as AES Corp. got final FERC approval for its Ocean Express project, and FPL Group, parent company of Florida’s largest electric utility, bought an option to become a partner in El Paso’s Bahamas LNG/pipeline project.

One day after Kinder Morgan Energy Partners LP (KMP) and Nicor Inc. announced plans for a joint pipeline project from the Rockies to the Midcontinent, Enbridge Inc., part owner of Alliance and Vector pipelines, reported that it is considering a 1 Bcf/d straight shot out of the Rockies to Chicago. Also throwing its hat into the Rockies ring (again), Kern River Gas Transmission said it is considering another 500 MMcf/d expansion of its line to California.

Last week began with a couple of energy industry heavyweights announcing preliminary deals for liquefied natural gas (LNG) supplies to be brought to proposed terminals along the North Baja Pacific coast in Mexico and ended with Sempra Energy’s CEO promising to build the first LNG terminal there.

After etching a 33-cent gain and propelling the market through key resistance Thursday, natural gas bulls cooled their heels Friday in a session that was more about position squaring ahead of the weekend than it was about market direction. At the closing bell the September contract was down 4.5 cents at $5.037. However, by closing above $5.00, the market ratified Thursday’s bull move, potentially setting the stage for more advances this week.

One day after a rival project was announced, Enbridge Inc., part owner of Alliance and Vector pipelines, reported that it is considering constructing the Beacon Pipeline — a 1 Bcf/d pipeline from the Rockies to Chicago. The proposed $1.2 billion, 900-mile pipeline, which was first announced in rough draft form in late June, would come from either the Powder River Basin or Cheyenne, WY to Chicago with a possible northwest extension back to Opal (see Daily GPI, June 27).

Confirming rumors that have circulated since late April, proponents of the Mackenzie gas pipeline project announced last Wednesday that TransCanada PipeLines Ltd. has stepped in to be the financial backer of the Aboriginal Pipeline Group (APG), which holds a one-third interest in the pipeline and production project, in exchange for an option to buy a share of the pipeline.