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Increasing demand for gas storage space highlighted by record demand from power generation this summer and near-record working gas levels this season has prompted Westport, CT-based NGS Investments LLC to propose three new high-deliverability gas storage projects.

In a message to shippers Tuesday, Southern Natural President Jim Yardley highlighted the pipeline’s winter achievements following significant damage from last fall’s hurricanes. He said all firm transportation and storage service requests and nearly all interruptible requests were honored. A system-wide operational flow order (OFO) was required on only one gas day. And gas supply flowing through the offshore system in the Gulf of Mexico and the Toca, LA, compressor station, both of which were damaged heavily by Hurricane Katrina, is at or above pre-Katrina levels. Working storage inventory also is at historically high levels and likely will end the winter at levels well above last year, Yardley said. Meanwhile, repair work is expected to be completed at the end of April on remaining damaged laterals in the Gulf and on damaged compressor engines at Toca. Repairs to the Olga compressor station, southeast of New Orleans, have not been made.

A Government Accountability Office (GAO) report issued last week, which highlighted the failure of the Bureau of Land Management (BLM) to keep close tabs on public challenges of agency permitting and leasing decisions, revealed that BLM “[is] operating a program here with lackadaisical oversight,” said a spokesman for the House Resources Committee.

A Government Accountability Office (GAO) report issued earlier this week, which highlighted the failure of the Bureau of Land Management (BLM) to keep close tabs on public challenges of agency permitting and leasing decisions, revealed that BLM “[is] operating a program here with lackadaisical oversight,” said a spokesman for the House Resources Committee.

Coming off of a year highlighted by milder than normal weather, El Paso Energy Partners LP. reported a 51% increase in 2001 pro forma cash flow, as measured by adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA), of $161.4 million compared with $107.0 million in 2000. Pro forma net income, which also excludes non-recurring items, was $61.8 million ($0.58 per unit) for 2001 — more than triple the $20.5 million (loss of $0.03 per unit) in 2000. The company’s net income was $55.1 million ($0.38 per unit) for 2001 and includes non-recurring charges of $6.7 million ($0.19 per unit) primarily related to asset sales in 2001.

American Electric Power highlighted the benefits of wholesale energy marketing in its second quarter financial results, which came in at $0.89 per share, an 85% increase from the same quarter in 2000. Wall Street had expected earning of 70-89 cents/share, with a consensus estimate of 78 cents/share, according to Thomson Financial/First Call. Revenue increased 78% to $14 billion.

The U.S. Minerals Management Service (MMS) last week highlighted the economic incentives for deep gas exploration in its final notice for the Western Gulf of Mexico (GOM) Lease Sale 180 and Sale 178, Part 2, to be held concurrently on Aug. 22 in New Orleans. The sales include an incentive to drill for deep gas deposits located in the shallow water shelf area of the Gulf.

The U.S. Minerals Management Service (MMS) highlighted the economic incentives for deep gas exploration in its final notice for the Western Gulf of Mexico (GOM) Lease Sale 180 and Sale 178, Part 2, to be held concurrently on Aug. 22 in New Orleans. The sales include several initiatives to increase domestic oil and natural gas production.

Kinder Morgan, Inc. (KMI) last week completed one of the keymoves that highlighted its merger with KN Energy in July. Thecompany announced that it intends to contribute more than $700million of assets to its publicly traded master limitedpartnership, Kinder Morgan Energy Partners LP (KMP). The assetsincluded are the Kinder Morgan Interstate pipeline system (formerlyKN Interstate Gas Transmission), a 49% interest in Red CedarGathering and a 33% interest in Trailblazer Pipeline.