Potentially

Calling it dangerous and potentially harmful to its ability to finance natural gas pipeline safety upgrades, Pacific Gas and Electric Co. (PG&E) last week filed a formal reply to California regulators, strongly rejecting a safety staff recommendation of a $2.25 billion for the utility’s part in the Sept. 9, 2010 pipeline rupture and explosion in San Bruno, CA.

Members of the Pittsburgh Presbytery voted to end a one-year moratorium on shale development, a decision that could potentially open property from the organization’s 150 churches to Marcellus Shale oil and gas leasing.

Calling it dangerous and potentially harmful to its ability to finance future natural gas pipeline safety upgrades, Pacific Gas and Electric Co. (PG&E) last Friday filed a formal reply to state regulators, strongly rejecting a safety staff recommendation of a $2.25 billion for PG&E’s part in the Sept. 9, 2010 pipeline rupture and explosion in San Bruno, CA.

After disconcerting Utica Shale production figures were released earlier this month by Ohio regulators, industry analysts said they were disappointed with the results of the first two test wells Halcon Resources Corp. drilled in the play, and EV Energy Partners (EVEP) said it is continuing to look for buyers interested in its holdings there.

Golden Pass Products LLC and its backers, Qatar Petroleum International (QPI) and ExxonMobil Corp., have struck a framework agreement for the sale of potentially the full 15.6 million tonne per annum (mtpa) output of the proposed Golden Pass natural gas liquefaction and export project in Sabine Pass, TX.

The United States has completed its bilateral consultations with Japan for the country’s membership in the Trans-Pacific Partnership (TPP). If ultimately approved, membership is seen as potentially aiding U.S. liquefied natural gas to Japan (see Daily GPI, March 19). “Since November 2011, the United States has been engaged in consultations with Japan focused on Japan’s readiness to meet the TPP’s high standards for liberalizing trade and investment, and to address specific bilateral issues of concern in the automotive and insurance sectors, as well as other Japanese non-tariff measures,” said Acting U.S. Trade Representative Demetrios Marantis. “…[W]e are pleased to welcome Japan’s participation in the TPP negotiations pending a consensus agreement among the current TPP members and the completion of our respective domestic processes.” Through the TPP, the United States and 10 Asia-Pacific countries are seeking to negotiate a next-generation, regional trade agreement.

Magnum Hunter Resources Inc. is in talks with three parties for the potential sale of Eagle Ford Shale assets as part of plans this year to sell $400-500 million of assets. An announcement is expected soon, according to the company. During a recent conference call, CEO Gary Evans said all three Eagle Ford bidders have made offers in the same price range. Two are offering all cash and one is offering cash and equity, he said. “So from our perspective, it doesn’t really matter who ends up with it. But we do feel like we will have an announcement on that in short order,” he said.The company also is considering selling assets in the Pearsall Shale as well, and assets in the Williston Basin and potentially in Kentucky, Evans said.

The Barnett Shale’s natural gas production potential is “slowly declining;” however, total resource recovery from the granddaddy of shale plays is expected to be three times what has been produced to date, according to research conducted by the Bureau of Economic Geology (BEG) at The University of Texas at Austin and funded by the Alfred P. Sloan Foundation.

Five years from now, Montney Shale gas could have a pathway to the British Columbia (BC) west coast and potentially lucrative Asian gas markets via a C$5 billion pipeline project announced by TransCanada Corp. on Wednesday.