CenterPoint Energy Gas Transmission Co. (CEGT), an indirect subsidiary of CenterPoint Energy Inc., has contracted to construct compression and pipeline facilities to serve a new power plant with up to 480 MW of capacity being built by Southwestern Electric Power Co. (SWEPCO), a subsidiary of American Electric Power, in Washington County, AR. The CEGT facilities will be constructed in eastern Oklahoma and northwest Arkansas. SWEPCO is constructing two simple-cycle natural gas-fired combustion turbines, with a combined capacity of 170 MW and scheduled for completion in July. Another two combustion turbines, with a combined capacity of 170 MW, are scheduled for completion in December. The facilities required to meet the demand will be built in two phases. Phase I, expected to be in service in the third quarter, will consist of 2,300 feet of 12-inch diameter pipe and a delivery meter station at the power plant. Phase II activities include the addition of a 15,000-hp mainline compressor station near Poteau, OK, along with 15.5 miles of 24-inch diameter pipeline looping of CEGT’s Line OM-1. CEGT expects to file an application for Phase II with the Federal Energy Regulatory Commission and anticipates an in-service date in the second quarter of 2009. Terms of the contracts are confidential.
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Industry Briefs
ReoStar Energy Corp. has completed the sale of its 30% interest in the Tri-County Gas Gathering System to Cimmarron Gathering LP, an indirect subsidiary of Copano Energy LLC, for about $15 million cash. “This sale allows ReoStar to focus on its core area of exploration in the Barnett Shale and provides us with the capital to acquire additional leasehold in the same area,” said ReoStar CEO Mark Zouvas. “The original purpose of building and owning the pipeline was to ensure access and prompt delivery of produced gas. However, in conjunction with the sale, ReoStar, through its affiliate, Rife Energy Operating Inc., negotiated a new gas gathering contract that mitigates our original concerns.” Fort Worth-based ReoStar has more than 20,000 acres of leasehold in Texas (Barnett and Corsicana) and Arkansas (Fayetteville), and drilling rig interests.
Industry Brief
ReoStar Energy Corp. has completed the sale of its 30% interest in the Tri-County Gas Gathering System to Cimmarron Gathering LP, an indirect subsidiary of Copano Energy LLC, for about $15 million cash. “This sale allows ReoStar to focus on its core area of exploration in the Barnett Shale and provides us with the capital to acquire additional leasehold in the same area,” said ReoStar CEO Mark Zouvas. “The original purpose of building and owning the pipeline was to ensure access and prompt delivery of produced gas. However, in conjunction with the sale, ReoStar, through its affiliate, Rife Energy Operating Inc., negotiated a new gas gathering contract that mitigates our original concerns.” Fort Worth-based ReoStar has more than 20,000 acres of leasehold in Texas (Barnett and Corsicana) and Arkansas (Fayetteville), and drilling rig interests.
GAO Urges FERC to Share Info on Probes, Monitoring Activities
Although federal regulators have a limited, indirect role in overseeing natural gas prices, the Government Accountability Office (GAO) last Tuesday called on FERC to keep state regulators, other government officials and the public regularly informed about the agency’s oversight activities that are aimed at ensuring a manipulation-free natural gas market.
GAO Urges FERC to Share Info on Probes, Monitoring Activities
Although federal regulators have a limited, indirect role in overseeing natural gas prices, the Government Accountability Office (GAO) on Tuesday called on FERC to keep state regulators, other government officials and the public regularly informed about the agency’s oversight activities that are aimed at ensuring a manipulation-free natural gas market.
CenterPoint to Restate Some Financials after Finding Gas Sales Overstatements
CenterPoint Energy Inc. and indirect subsidiary CenterPoint Energy Resources Corp. (CERC) said Friday some transactions involving purchases and sales of natural gas within the gas distribution segment were overstated by $520 million in 2004 and by $430 million in the first nine months of 2005. The companies said the overstatements resulted from not properly eliminating consolidation of the two entities’ financial statements, and the affected results will be restated.
Sempra Unit Completes Sale of Michigan, Louisiana Gas Storage Assets
Sempra Energy announced late Thursday that it completed the sale of its indirect subsidiary with two natural gas storage facilities, Bluewater (MI) Gas Storage and Pine Prairie (LA) Energy Center, for $250 million, to publicly traded Plains All American Pipeline, LP, and Vulcan Capital.
Cheniere Seeks New Funding for LNG Projects
Cheniere Energy, Inc. announced late Friday that its indirect, wholly owned subsidiary, Cheniere LNG Holdings, LLC has engaged Credit Suisse to arrange a proposed $500 million Senior Secured Term Loan Facility. Holdings owns Cheniere’s 100% equity interest in Sabine Pass LNG, LP. and Cheniere’s 30% limited partner equity interest in Freeport LNG Development, LP., each of which owns an LNG receiving terminal project that is currently under construction.
MidAmerican Proposes to Build the Alaska Portion of Pipeline to the Lower 48
MidAmerican Energy Holdings Company (MEHC) Chairman and CEO David Sokol joined Alaska Gov. Frank Murkowski in Fairbanks Thursday in announcing a preliminary filing with the state for favorable tax treatment to build the Alaska portion of a 4.5 Bcf/d gas pipeline to deliver North Slope natural gas to markets in the Midwest.
MidAmerican Proposes to Build the Alaska Portion of Pipeline to the Lower 48
MidAmerican Energy Holdings Company (MEHC) Chairman and CEO David Sokol joined Alaska Gov. Frank Murkowski in Fairbanks Thursday in announcing a preliminary filing with the state for favorable tax treatment to build the Alaska portion of a 4.5 Bcf/d gas pipeline to deliver North Slope natural gas to markets in the Midwest.
