operators

Enterprise Products Partners LP became one of the largest liquids storage operators in the country with the acquisition of a natural gas liquids and petrochemical liquids storage business from Diamond-Koch, L.P. and Diamond-Koch III, which are owned by affiliates of Valero Energy and Koch Industries Inc. The purchase price was $129 million in cash.

Despite the holiday, storage operators finally opened the floodgates during the first week of the year in response to extremely cold weather, particularly in the Northeast and Southeast. The American Gas Association (AGA) reported a 190 Bcf withdrawal from storage for the week ending Jan. 4, the first withdrawal this season that has exceeded the previous year’s pace.

Despite the holiday, storage operators finally opened the floodgates last week in response to extremely cold weather, particularly in the Northeast and Southeast. The American Gas Association (AGA) reported a 190 Bcf withdrawal from storage, the first withdrawal this season that has exceeded the previous year’s pace. The number far exceeded last year’s 167 Bcf weekly withdrawal and was much bigger than the five-year average for the week of 137 Bcf. But it knocked only a smidgen (23 Bcf) off the year-on-year storage surplus.

Hanover Compressor completed its previously announced acquisition from Schlumberger Ltd. of the Production Operators Corp. natural gas compression business as well as ownership interests in certain joint venture projects in South America and related assets for $761 million. Schlumberger received $270 million in cash, $150 million in long-term subordinated notes and 8.7 million shares of newly issued restricted Hanover common stock having a nominal value of $283 million. It also is entitled to receive a distribution of up to $58 million upon the occurrence of certain events relating to one of the joint ventures acquired by Hanover in the transaction. Hanover management reconfirmed its belief that the transaction will add annual revenue and EBITDA of at least $200 million and $90 million, respectively, within one year. As a part of a five-year alliance, Schlumberger has agreed to hold its ownership stake in Hanover for at least three years. In addition, Hanover has agreed to add a senior executive of Schlumberger to its board of directors. The initial designee is Rene Huck, president of reservoir evaluation and development for Schlumberger Oilfield Services. The transaction considerably enhances Hanover’s position in the global compression services and gas handling industry, significantly extends its reach and anticipated growth in large, newly opened markets overseas, and adds 900,000 hp to its compression fleet and an additional 800,000 hp through the South American joint ventures. “We believe this accretive multi-faceted transaction will generate strong revenue growth for Hanover over the next five years,” said Hanover CEO Michael J. McGhan.

Gross production from the largest Powder River Basin coalbed methane operators, joint partners Western Gas Resources Inc. and Barrett Resources, hit a year-end target of 200 MMcf/d in mid-December, then exceeded that goal by producing 206 MMcf/d in the last two weeks of the year. Now the producers are crossing their fingers that pending permits to further ramp up production gain approval by Wyoming regulators.

Gross production from the largest Powder River Basin coalbedmethane operators, joint partners Western Gas Resources Inc. andBarrett Resources, hit their year-end target of 200 MMcf/d inmid-December, then exceeded that goal by producing 206 MMcf/d inthe last two weeks of the year. Now the producers are crossingtheir fingers that pending permits to further ramp up productiongain approval by Wyoming regulators.

One of the world’s leading independent power plantdeveloper/operators, Arlington, VA-based AES Corp., announced thisweek that it will try to re-power two old units among its coastalmix of California power plants under the state’s newly createdfast-track power plant siting process. The goal is to have an added450 MW of baseload capacity available next summer.

The Department of Transportation’s Office of Pipeline Safety(OPS) has issued an industry-wide bulletin advising operators andowners of gas transmission pipelines to review their monitoringprograms and operations for detecting the presence of internalcorrosion on their systems.

New York Board of Trade reached an agreement last week to “makewhole” all floor operators whose funds were used to meet marginobligations of Klein and Co. Futures Inc.