Indicated

The Federal Energy Regulatory Commission indicated that it may cease processing Calais LNG’s proposal to build a proposed $1 billion liquefied natural gas (LNG) import terminal and associated pipeline project in light of the loss of a key financial backer. “We are aware of the recent events regarding Calais LNG Project Co. LLC’s loss of original investor GS Power Holdings LLC, and the expiration of its option to purchase agreement for the project site. As a result, we are assessing whether it remains appropriate for Commission staff to continue to process your applications,” wrote Jeff Wright, director of FERC’s Office of Energy Projects, in a letter order [CP10-31, CP10-32]. In July Calais LNG announced that GS Power Holdings, a key financial backer, had pulled out of the project (see NGI, Sept. 27). The Maine Board of Environmental Protection at the time agreed to a Calais LNG request to put its permit request on hold until December to give the company time to line up financing and gather information required by state regulators. The proposal seeks to site the import terminal on the St. Croix River in Calais, ME. The terminal would have three storage tanks and the capacity to deliver 1 Bcf/d of revaporized LNG to the 20-mile, 36-inch diameter Calais Pipeline, which would interconnect with Maritimes & Northeast Pipeline in Princeton, ME.

FERC has indicated that it may cease processing Calais LNG’s proposal to build a proposed $1 billion liquefied natural gas (LNG) import terminal and associated pipeline project in light of the loss of a key financial backer.

Although most points continued to drop Monday, mild firmness at several points created a mixed market and indicated slightly more firmness than on the preceding Friday when all points were down. Except for high temperatures with peaks from the mid 90s to the mid 100s forecast for Tuesday from the Southeast through the desert Southwest, most areas were expected to have relatively moderate temperatures around 90 or lower.

Natural gas futures market weakness continued to reign on Monday as the prompt-month contract recorded a two-month low before closing out the regular session at $4.309, down 15.8 cents from Friday’s finish.

The head of the federal agency overseeing offshore drilling indicated Tuesday that the moratorium on deepwater drilling in the Gulf of Mexico (GOM) could be lifted in advance of its Nov. 30 deadline, an agency spokesman said.

The head of the federal agency overseeing offshore drilling indicated Tuesday that the moratorium on deepwater drilling in the Gulf of Mexico (GOM) could be lifted in advance of its Nov. 30 deadline, an agency spokesman said.

After generally leveling off Wednesday, the market recorded small gains at a large majority of points Thursday. Forecasts indicated that chillier conditions would be returning in some areas by the end of the weekend, although nothing like a revisitation of the frigid cold snap that dominated late December and the first half of January was expected.

Faced with a widening budget deficit that some analysts place above $20 billion in the new year, California Gov. Arnold Schwarzenegger indicated that he is revisiting a proposal to expand offshore drilling in order to generate more than $200 million of revenues. A proposal to open drilling offshore Santa Barbara County early in 2009 was rejected by the State Lands Commission.

Colorado Republican Senate Minority Leader Josh Penry, who has indicated his plans to run for governor in 2010, and fellow Republican state Rep. Cory Gardner have asked the Colorado Oil and Gas Conservation Commission (COGCC) to extend the allowed time to hold a natural gas and oil drilling permit to provide “long-term certainty” for companies willing to invest in the state.