CMS Trunkline Gas Co. has received FERC approval to abandon offshore facilities and facilities located in Texas and Louisiana, transferring them to its gathering affiliate, CMS Trunkline Field Services (CP97-83). A companion order voted out by the Commission at its regular meeting Wednesday designated those facilities as gathering, rendering them exempt from the Commission’s jurisdiction under the Natural Gas Act (CP97-84).
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PG&E Corp.’s Harquahala Almost a Reality
PG&E Corp. moved another step closer to full approval of itsproposed 1,040 MW natural gas-fired plant to be located in MaricopaCounty, AZ. The Maricopa County Board of Supervisors unanimouslyapproved a special use permit for the pending electric generationfacility to be positioned near Phoenix.
Denbury Picks up TX, MS Acreage
Denbury Resources Inc. has picked up almost all of the working interests in the West Mallalieu and Olive Fields located in southwestern Mississippi and another 14,000 acres in the Barnett Shale gas play in Texas, acquisitions expected to bring the Dallas-based company opportunities for oil and natural gas reserves and production growth.
Industry Briefs
Corridor Resources Inc announced on Monday that flow testing of the McCully No. 2 well located northeast of Sussex, New Brunswick, Canada has been completed. The test resulted in a stabilized natural gas flow rate of 2.2 MMcf/d at a flowing tubing head pressure of 2,100 pounds per square inch (psi) following a three-day flow period. Corridor said initial analysis of the well’s production performance indicates that it is capable of flowing gas at a rate of 4.1 MMcf/d at the design separator pressure of 400 psi. The McCully No. 2 well is currently shut- in for pressure build-up analysis. The well’s development is under a 50/50 joint venture partnership with the Potash Corp. of Saskatchewan Inc., with Corridor acting as the operator. Following completion of testing operations at the McCully No. 2 well, Corridor plans to workover, re-complete and re-test the McCully No. 1 well. The company said it also plans on completing the third McCully well by late May. Corridor is a junior oil and gas exploration company, headquartered in Halifax, Nova Scotia, with interests onshore in New Brunswick, Prince Edward Island and Quebec and offshore in the Gulf of St. Lawrence.
Industry Briefs
Bangor Gas said it has started deliveries to Bucksport EnergyLLC located at International Paper’s paper mill in Bucksport, ME.Under a 15-year contract with Hydro Quebec Energy Services, BangorGas will deliver 48 MMcf/d of gas to the new 174 MW cogen, whichwill produce power and steam for the mill. The plant is a jointventure between International Paper and Hydro Quebec. With the mainlateral to serve the plant now in place, Bangor Gas said it willfocus on developing a distribution system to serve residential andcommercial customers in Bucksport
Elwood Energy, Aquila Sign Long-Term PPA
Elwood Energy LLC, located about 60 miles southwest of Chicago,has signed a multi-year power plant sales agreement with AquilaEnergy for the output of Elwood’s phase II expansion of itsgas-fired peaking facility. When the Elwood, IL facility becomesoperational next summer, it will double the capacity of itsexisting 600 MW merchant facility, bringing the total capacity to1,350 MW.
Industry Briefs
Conectiv sold the southern regional division of ConectivServices, which is located in southern Delaware and easternMaryland, to the unit’s employees. Terms of the sale were notdisclosed. The southern division provided new construction,replacement, service and maintenance of heating, cooling, andplumbing services for residential and commercial customers. Themove continues Conectiv’s previously announced plan to exitbusinesses it no longer considers strategic, and seek a partner forits telecommunications business, and focus on its core mid-meritand power delivery segments. Earlier this year, Conectiv announcedthe sale of the northern and mechanical divisions of ConectivServices and the sale of its Conectiv Thermal joint ventures inCalifornia and Nevada. Conectiv is focused on two core energybusinesses: Conectiv Power Delivery, which provides energy serviceto more than one million customers in New Jersey, Delaware,Maryland, and Virginia; and Conectiv Energy, which includes powertrading and a growing portfolio of “mid-merit” power plants.
PG&E Corp.’s Harquahala Almost a Reality
PG&E Corp. moved another step closer to full approval of its proposed natural gas-fired 1,040 MW natural gas-fired plant to be located in Maricopa County, AZ. The Maricopa County Board of Supervisors unanimously approved a special use permit for the pending electric generation facility to be positioned near Phoenix.
Industry Brief
Frederickson Power acquired a partially built gas-fired 249 MWelectricity generating facility located in Fredrickson, WA from theBonneville Power Administration for $25.1 million. FredericksonPower is a partnership between Westcoast power and EPCOR PowerDevelopment Corporation. “Completion of the Frederickson Powerproject will provide an alternative to existing hydro-electricpower facilities that can not meet increased demand,” saidWestcoast Power President Jeff Meyers. “It will produce energysafely and efficiently with a preferred fuel source which supportsefforts to improve local air quality and addresses climate changeconcerns.” The plant is expected to cost $160 million and has acomercial operation date set for the middle of 2002.
Industry Briefs
McMoRan Exploration has agreed to sell its 35% interest in theBrazos Block A-19 field and its 50% interest in the unexploredBrazos block A26, both located in the western Gulf of Mexico. ShellOffshore has signed an agreement to purchase both interests for $70million. Shell plans on drilling a new well on Brazos A-19 in thenear future. McMoRan’s CEO Richard C. Adkerson said, “We are verypleased with the sale of the Brazos properties. This transactionprovides us significant near term financial resources for use inour expanded oil and gas exploration program in the Gulf ofMexico.” Both fields are approximately 75 miles southwest ofGalveston, TX.