Morgan

Industry Brief

After more than 17 years of trading for Morgan Stanley, TeamLevine has left the global financial services firm to form the independent brokerage, Powerhouse. Based in Washington, DC, the new company works with clients to protect profit margins and grow their business by designing and implementing hedging strategies, while focusing on price risk management using energy futures and related financial instruments. Powerhouse says its clients represent nearly all sectors of the energy supply chain, from producers to downstream distributors and retailers. Customers include gasoline marketers seeking to protect retail margins, diesel fuel distributors offering fixed and capped prices, and energy users who worry that the latest headline will affect their fuel bill. Powerhouse also serves natural gas marketers and electric utilities with risk from energy price uncertainty. Team Levine members Alan H Levine, Elaine E. Levin, David A. Thompson and Brendan Burke began trading as Powerhouse in January, and the brokerage added its hundredth new account in February. “Reactions from the marketplace have been overwhelmingly positive. As an independent firm, we can be more nimble, and offer more highly tailored services and support to our customers,” said Levin, president of Powerhouse. “This is especially important given recent volatility in gasoline prices.” The Powerhouse team, with 80 years of experience in the energy marketplace, is led by Chairman and CEO Levine, who has expertise in petroleum and natural gas pricing, transportation and supply in world energy markets. Levine was part of the group that initiated the heating oil contract for Nymex in 1977-1978. The company can be contacted at info@powerhouseTL.com or by phone at (202) 333-5380.

March 18, 2013

Industry Brief

KW Express LLC a partnership of Kinder Morgan Energy Partners LP (KMP) and Watco Companies LLC, has entered into a long-term agreement with Mercuria Energy Trading Co. Inc. to construct a 210,000 b/d crude-by-rail project at the Greens Port Industrial Park on the Houston Ship Channel. The project will allow Mercuria Energy Trading Inc. to source crude from various locations, including Cushing, OK, West Texas, the Bakken Shale area and Western Canada for delivery by rail into the Houston Ship Channel for distribution to various refiners via pipeline and barges. The facility will have the capability to unload and load up to three unit trains per day of crude oil and condensate as well as provide for up to 100,000 b/d of barge loading capacity. KW Express will own 85% of the project and, together with Watco, operate the project once completed. Mercuria will own the remaining 15% interes

February 26, 2013

Kinder Morgan Readies $12B Project Slate

Across the Kinder Morgan companies more than $12 billion worth of expansion projects and joint ventures (JV) have been identified. One of them, conversion of a portion of the El Paso Natural Gas Co. (EPNG) pipeline to oil service is advancing, and a natural gas pipeline opportunity is on the radar, said CEO Richard Kinder.

January 21, 2013

Eagle Ford Capex May Surpass World’s Most Expensive Energy Project

Over the next three years capital expenditures (capex) in the Eagle Ford Shale could top the projected spending for the Kashagan project in Kazakhstan, now the world’s most expensive standalone energy project, according to an analysis by Wood Mackenzie.

December 10, 2012

El Paso Offering Capacity to Mexico

Kinder Morgan’s El Paso Natural Gas Co. LLC (EPNG) is holding a binding open season for a proposed new pipeline that would extend from its South Mainline System near Tucson, AZ, to the U.S.-Mexico border near Sasabe, AZ.

October 19, 2012

Industry Briefs

Friday morning Kinder Morgan Inc.’s Tennessee Gas Pipeline lifted a critical day 1 operational flow order (OFO) that had been in effect for balancing parties downstream of its Station 249 in zones 5 and 6 (see Daily GPI, Aug. 31).

September 4, 2012

Tennessee New York Compressor Outage Affecting 200,000 Dth

Kinder Morgan Inc.’s Tennessee Gas Pipeline late Wednesday declared a critical day 1 operational flow order (OFO) effective 9 a.m. Thursday due to a force majeure event at its Compressor Station 249 in Carlisle, NY.

August 31, 2012

NGPL Force Majeure Follows Texas Panhandle Fire

Kinder Morgan Inc. Wednesday morning declared a force majeure on a portion of its Natural Gas Pipeline Company of America (NGPL) natural gas pipeline in North Texas while media reports said “a massive orange haze” from a fire filled the area sky in the Texas Panhandle.

June 7, 2012

Industry Briefs

Kinder Morgan Inc. and El Paso Corp. have received all regulatory approvals required to close their merger, which is scheduled for May 24. The deadline for El Paso shareholders and equity award holders to elect the form of consideration they wish to receive in the merger is 5 p.m. EDT May 23. The deal was announced last fall (see Daily GPI, Oct. 18, 2011) and received antitrust clearance with a condition that some assets be divested (see Daily GPI, April 20; March 19).

May 11, 2012

Industry Briefs

Based on a preliminary count of votes, El Paso Corp. shareholders have overwhelmingly voted in favor of a merger with Kinder Morgan Inc. About 70% of outstanding El Paso common shares were voted, and of these more than 95% were in favor of the merger. El Paso CEO Doug Foshee said closing is anticipated in the second quarter. The company plans to file a Form 8-K with the Securities and Exchange Commission with the final voting results as soon as they are available. The deal is moving forward with the reluctant blessing of a Delaware business court judge who recently admonished Foshee and Goldman Sachs Group Inc. for “disturbing” behavior that led to the transaction (see NGI, March 5; Oct. 24, 2011).

March 12, 2012