Pipes

El Paso Energy Partners LP (EPN) reported a 70% jump in second quarter 2002 net income over the similar time period a year ago. The company posted net income of $28.7 million ($0.33 per unit), up from $16.9 million ($0.19 per unit), excluding one-time charges in the second quarter of 2001. Including $5.1 million in one-time charges related to the sale of EPN’s interest in the UTOS pipeline, net income for the 2001 quarter was $11.8 million ($0.04 per unit).

Shell Oil Co. plans to build a dual natural gas and crude oil pipeline project in the deepwater Gulf of Mexico, opening a new transportation corridor for production by 2004. The $87 million project initially would serve the southern Garden Banks area anchored by the 4,700-foot-deep Magnolia development, which is expected to begin production in late 2004. The field is operated by 75% stakeholder Conoco, and Ocean Energy holds the remaining 25% interest.

Two Connecticut-to-Long Island natural gas pipeline projects — the jointly sponsored Islander East Pipeline and an Iroquois Gas Transmission expansion — will face potential delays at the state level as a result of a recent executive order issued by Connecticut Gov. John Rowland, according to the state’s Siting Council. But the pipelines doubt this will hold up their projects at FERC.

FERC staff plans to hold two joint technical conferences later this month with the Department of Transportation’s Office of Pipeline Safety (OPS) and Department of Energy (DOE) to discuss how to rebuild the natural gas pipeline infrastructure and apportion gas supplies in the event of a disaster — natural or otherwise.

Texas Eastern Products Pipeline Company LLC, the general partner of TEPPCO Partners LP, said late Thursday that it has signed a definitive agreement to acquire the Chaparral and Quanah natural gas liquids (NGL) pipelines from Diamond-Koch II LP and Diamond-Koch III LP. TEPPCO said the estimated $130 million transaction is expected to close in February.

Houston-based TEPPCO Partners LP. said Friday that it has closed its previously announced acquisition of the Chaparral and Quanah NGL pipelines for approximately $132 million. Acquired from Diamond-Koch II LP and Diamond-Koch III LP, TEPPCO Partners projects first full-year earnings before interest, taxes, depreciation and amortization (EBITDA) from the systems to be approximately $16 million. The acquisition was first announced in early January (see Daily GPI, Jan. 10).

In an attempt to prod producers and pipeline companies into action on the long-stalled Alaska natural gas pipeline, the Senate comprehensive energy bill (S. 517) — which is due to be debated this week — would authorize the federal government to consider the possibility of a government corporation stepping in to build the mammoth project if the private sector fails to come through.

In an attempt to prod producers and pipeline companies into action on the long-stalled Alaska natural gas pipeline, the Senate comprehensive energy bill (S. 517) would authorize the federal government to consider the possibility of a government corporation stepping in to build the mammoth project if the private sector fails to come through.

The goal won praise but the means failed to draw support when Arctic Resources Co. unveiled the most detailed version yet of its proposal for combined transportation of natural gas from Alaska and Canada’s Northwest Territories. Territorial Premier Stephen Kakfwi described the Arctic plan as mostly a distraction.