Option

EnCana on Wednesday withdrew its regulatory plan to develop the Scotian offshore Deep Panuke project, and said it will instead submit a new plan within six months after drilling two successful exploration wells at the natural gas play.

Tractebel LNG North America LLC, the largest supplier of liquefied natural gas (LNG) in the United States, and Oslo, Norway-based Bergesen, one of the world’s leading shipping companies, announced Tuesday the launch of a new 138,000 cubic meter LNG vessel that will begin making deliveries for Tractebel under an exclusive, long-term charter.

Canadian-based Cypress Hills Resource Corp. and its partners have entered into a farm-in and option agreement with a private Alberta company to re-enter and deepen an existing well in the Lone Pine Creek area of Alberta. The exploration farm-in covers seven sections of land and will target a seismically defined Swan Hills reef complex, with reserves reported to be in excess of 10 MMboe per section in some fields. The parties plan to begin drilling operations as soon as all regulatory approvals are received. The total cost of the project to drill, complete and equip a successful well will be approximately C$750,000, and Cypress Hills will be participating for a 20% working interest in the project. In conjunction with this project, Ted Fostey of Calgary has been appointed president and has been appointed to the board of directors. Cypress Hills also announced that with the farm-in, it expects to soon complete two private placement financings to raise up to C$350,000, which were announced earlier this year.

Westar Industries Inc. plans to sell outright or sell an option to purchase its 45% stake in Tulsa-based Oneok Inc., which declined an offer from Westar in late August to buy back its stock. The uncertainty over Oneok’s future ownership profile, as well as its heavy debt load, prompted Moody’s Investors Service to downgrade Oneok’s credit rating Thursday.

Westar Industries Inc. said Thursday it will sell outright or sell an option to purchase its 45% stake in Tulsa-based Oneok, which declined an offer last week to buy back its stock (see Daily GPI, Aug. 23). The uncertainty over Oneok’s future ownership profile, prompted Moody’s Investors Service to downgraded the company’s credit rating Thursday.

Although it remains optimistic about being able to delay having to post billions of dollars worth of collateral triggered by a series of recent ratings downgrades, NRG Energy last week wasn’t able to rule out the possibility of having to file for bankruptcy if it falls short in its ongoing efforts to obtain waivers or modifications of the massive collateral requirements facing the Xcel Energy subsidiary.

Cheniere Energy has acquired an option to purchase a third land site for a liquefied natural gas (LNG) import terminal in Texas. The site near Sabine Pass, TX, will be used to build a receiving terminal that would deliver up to 1 Bcf/d of gas into the interstate pipeline grid. Cheniere had previously announced the acquisition of options for sites with port authorities at Freeport and Brownsville, TX, and still plans to line up a fourth site.

Cheniere Energy has acquired an option to purchase a third land site for a liquefied natural gas (LNG) import terminal in Texas. The site near Sabine Pass, TX, will be used to build a receiving terminal that would deliver up to 1 Bcf/d of gas into the interstate pipeline grid. Cheniere had previously announced the acquisition of options for sites with port authorities at Freeport and Brownsville, TX, and still plans to line up a fourth site.

Rep. Lindsey Graham (R-SC) last Wednesday unveiled legislation seeking to promote nuclear power as a viable energy source by making it eligible to receive the same benefits as other zero emissions power generating facilities and spurring utilities to complete unfinished nuclear reactors, among other things.