natural gas

When the National Conference of Weights & Measures (NCWM) met earlier this month, it failed to recommend the continued use of gallon-equivalent measurements to use liquefied natural gas (LNG), as a transport fuel, prompting concern by the American Gas Association (AGA), congressional members and other stakeholders.

Breitburn Energy Partners LP agreed Thursday to buy out onshore rival QR Energy LP in a transaction valued at $3 billion that would create the largest domestic upstream master limited partnership (MLP) focused primarily on oil.

Physical gas for Friday delivery was a mixed market on Thursday with a few modestly higher quotes in the Gulf Coast mostly outweighed by broader declines in the Northeast, Mid-Atlantic, Great Lakes and Midcontinent.

The Maryland Board of Public Works has approved a wetlands license for Dominion Resources’ liquefaction and export project at the Cove Point LNG terminal in Calvert County, MD. The vote was 3-0 to grant the license, which enables Dominion to construct a pier on the Patuxent River in order to transport equipment for the liquefaction facility’s construction. Analysts following the project’s progress at the Federal Energy Regulatory Commission have said they expect a decision from the Commission by the end of August (see Daily GPI,June 13). The U.S. Department of Energy last year issued Dominion a conditional license for LNG exports to countries without a free trade agreement with the United States (see Daily GPI,Sept. 12, 2013). And Dominion has received regulatory approval for exports from the Maryland Public Service Commission.

Encana Corp. spinoffPrairieSky Royalty Ltd. posted a C$23.9 million profit (C$1.00/share) from May 27 to June 30 in its first financial report. Funds from operations were C$31 million (C24 cents/share), while revenues totaled C$37.2 million. Production averaged 15,664 boe/d, weighted 46% natural gas, 44% crude oil and 10% liquids. Working capital at the end of 2Q2014 was C$57.4 million. PrairieSky’s C$1.46 billion market debut on the Toronto Stock Exchange was better than expected and the biggest in Canada in 14 years (see Shale Daily,May 29). The Calgary operator was created from 5.2 million acres of legacy land in Encana’s Clearwater portfolio that stretches from Southern Alberta to the U.S. border.

Protect Colorado, an industry-backed citizens campaign against two proposed statewide oil/natural gas drilling local control ballot measures (Initiatives 88 and 89), has launched a website urging voters to reject the measures. The measures, backed by U.S. Rep. Jared Polis (D-CO), follow an abandoned move for a legislative compromise on the issue (see Shale Daily, July 17). The website is aimed at fighting “arbitrary and unnecessary” ballot measures that jeopardize private property rights and could hurt the state’s economy. Gov. John Hickenlooper and U.S. Sen. Mark Udall (D-CO) oppose the initiatives.

Spot gas for Thursday delivery worked lower in Wednesday’s trading, with stout double-digit losses up and down the East Coast. New England and the Mid-Atlantic were especially hard hit, but Marcellus points also fell.

The U.S. government’s funding and partnerships with the energy industry have helped develop energy technologies much faster than the private sector could have done alone, leading to benefits sooner than may have been possible, according to the American Energy Innovation Council.

Downeast LNG (DELNG) has made its prefiling request with FERC for its $2 billion bidirectional liquefied natural gas (LNG) terminal proposed for Robbinston, ME.