Integrated

Although it is an obscure footnote in the state’s draft update to an Integrated Energy Policy Report, Sempra Energy’s Southern California Gas Co. utility is proposing to look for new indigenous natural gas supplies in and around its extensive underground storage fields in otherwise depleted oil/gas areas in Southern California. A request is before the California Public Utilities Commission to set up a rate procedure to reward utility retail customers if the utility finds any commercial-sized amount of gas.

Although it is an obscure footnote in the state’s draft update to an Integrated Energy Policy Report, Sempra Energy’s Southern California Gas Co. utility is proposing to look for new indigenous natural gas supplies in and around its extensive underground storage fields in otherwise depleted oil/gas areas in Southern California. A request is before the California Public Utilities Commission to set up a rate procedure to reward utility retail customers if the utility finds any commercial-sized amount of gas.

El Paso Natural Gas last week filed an application to expand its system by 502 MMcf/d through an integrated project that would involve the use of existing pipeline facilities, the acquisition of transportation capacity on other pipelines, the construction of a new interconnect and the conversion to natural gas service of a crude oil pipeline.

Calgary-based Husky Energy Inc., one of Canada’s largest integrated producers, better known for a portfolio of heavy oil prospects, last week announced a two-year extension of a farm-out and joint venture agreement with privately held Trident Exploration Corp. to develop natural gas from coal (NGC) and coalbed methane (CBM) in central Alberta. The agreement calls for another 120 wells to be drilled over the next two years in the Fenn Rumsey area.

Calgary-based Husky Energy Inc., one of Canada’s largest integrated producers, better known for a portfolio of heavy oil prospects, on Tuesday announced a two-year extension of a farm-out and joint venture agreement with privately held Trident Exploration Corp. to develop natural gas from coal (NGC) and coalbed methane (CBM) in central Alberta. The agreement calls for another 120 wells to be drilled over the next two years in the Fenn Rumsey area.

Major integrated oil company leaders and energy ministers from 25 natural gas producing countries around the globe converged on Washington last week for an OPEC-like summit to promote cooperation in a worldwide LNG market predicted to rival the oil market. The United States will be the dominant consumer.

NUI Corp. stunned the financial community on Friday by announcing that it will sell the entire integrated natural gas business within the next few months. CFO A. Mark Abramovic said the board of directors considered a sale in the best interests of all stakeholders going forward because of credit downgrades and “adverse business conditions.”

NUI Corp. stunned the financial community on Friday by announcing that it will sell the entire integrated natural gas business within the next few months. CFO A. Mark Abramovic said the board of directors of the New Jersey-based firm considered a sale in the best interests of all stakeholders going forward because of credit downgrades and “adverse business conditions.”

Cutting the dividend to fund growth has become more common among integrated energy companies and utilities in recent months, but changing circumstances and new tax laws could reverse that policy, according to a report issued Thursday by CreditSights analysts.