Operated

Irving Oil Ltd., which has operated the deepwater terminal Irving Canaport in New Brunswick since 1970, has applied for a permit to add a liquefied natural gas (LNG) terminal to the site, located about 60 miles from the U.S. border. The proposed project, which would cost about C$500 million to construct, would give Canaport, which has a current total tank capacity of 12.5 MMbbl, the ability to receive LNG cargoes and vaporize the LNG for send-out over the pipeline grid.

Irving Oil Ltd., which has operated the deepwater terminal Irving Canaport in New Brunswick since 1970, has applied for a permit to add a liquefied natural gas (LNG) terminal to the site, located about 60 miles from the U.S. border. The proposed project, which would cost about C$500 million to construct, would give Canaport, which has a current total tank capacity of 12.5 MMbbl, the ability to receive LNG cargoes and vaporize the LNG for send-out over the pipeline grid.

Kinder Morgan Liquids Terminals LLC is expanding its Houston area facilities, considered among the largest independently operated liquids terminals complexes in the world. The Kinder Morgan Energy Partners LP subsidiary, based in Houston, said it would spend $16.3 million to add 830,000 bbl of capacity within the next year and also enhance its docking facilities to meet customer expansion requirements and improve service.

A unit of Williams has sold an interest in a central Utahnatural gas property to Texaco Exploration and Production Inc. forapproximately $8 million. The non-operated interest includes 32producing wells and more than 30,000 net acres in the Ferroncoalbed methane play in Emery and Sevier counties. Williams saidthat Texaco is already the operator on most of the propertiesincluded in the transaction. “We’re designing our reserve basearound Williams’ infrastructure and merchant activities,” saidBryan Guderian, vice president of exploration and production forWilliams. “This allows us to support other parts of Williams’energy business, such as gathering and processing and trading. TheFerron assets simply fell outside our plan.”

Coral Power LLC will supply the natural gas and collect thepower output of a 900 MW generating station to be built andoperated by Tenaska Alabama II Partners L.P., a limited partnershipcomprised of affiliates of Tenaska Inc. The two companies announcedyesterday they had executed an energy conversion agreement for thefacility to be located near Billingsley, AL. Coral plans to marketthe power throughout the Southeast. It is the second of this typeof agreement between Coral and Tenaska. The first was signed inAugust, 1999 for an 845 MW Tenaska Gateway Generating Station inRusk County, TX. The initial financing process for the project willbegin early next year with construction slated to begin in thesummer of 2001 and be completed for summer 2003.

California’s natural gas purchasing program for about 120 stateoperated facilities, totaling more than 14 Bcf, annually has beenpostponed until June 7 and revised due to increasingly uncertainmarket conditions, according to the head of the state’s buyingprogram in the state General Services Department. Bids in therevised program are due from the state’s seven pre-approved biddersby 8:30 a.m. on the 7th. Sempra Energy Trading is the currentsupplier.

California’s natural gas purchasing program for about 120 stateoperated facilities, totaling more than 14 Bcf, annually has beenpostponed until June 7 and revised due to increasingly uncertainmarket conditions, according to the head of the state’s buyingprogram in the state General Services Department. Bids in therevised program are due from the state’s seven pre-approved biddersby 8:30 a.m. on the 7th. Sempra Energy Trading is the currentsupplier.

Continuing its strategy to be a heavy hitter in the Gulf Coast natural gas liquids market, Enterprise Products Partners LP of Houston last week acquired Tejas Natural Gas Liquids LLC from Shell Oil affiliate Tejas Energy LLC and signed a long-term gas processing agreement with Shell for its entire bounty of Gulf of Mexico gas production. The deal was announced in April.

Forest Oil Corp. of Denver reported a significant gas discoveryat High Island 116 in the Gulf of Mexico. High Island 116 is 54.75%owned and operated by Forest and 45.25% owned by Louis DreyfusNatural Gas Corp. Initial production from the recently drilled B-2well is expected in November. Forest Oil is engaged in theacquisition, exploration, development, production and marketing ofgas and crude oil in North America. Forest’s principal reserves andproducing properties are in the United States in the Gulf ofMexico, Louisiana, Texas and Wyoming and in Canada in Alberta andthe Northwest Territories.