Precedent

Fayetteville shale gas producer Southwestern Energy said Friday that subsidiary Southwestern Energy Services Co. has signed a 10-year precedent agreement to be a “foundation shipper” on two pipeline laterals and related facilities proposed by Boardwalk Pipeline subsidiary Texas Gas Transmission LLC.

Dusting off an almost five-year-old project, Williams said Friday Transcontinental Gas Pipe Line (Transco) has executed precedent agreements with seven shippers to transport an additional 142,000 Dth/d of natural gas to growing markets in the Northeast from the existing Transco/Cove Point interconnect in Virginia and the Leidy Hub in Pennsylvania. The Sentinel expansion will be operational in November 2008.

Dusting off an almost five-year-old project, Williams said Friday it has executed precedent agreements with seven shippers to transport an additional 142,000 Dth/d of natural gas to growing markets in the Northeast on the company’s Transcontinental Gas Pipe Line (Transco) from the existing Transco/Cove Point interconnect in Virginia and the Leidy Hub in Pennsylvania. The Sentinel expansion will be operational in November 2008.

Fayetteville shale gas producer Southwestern Energy said Friday that subsidiary Southwestern Energy Services Co. has signed a 10-year precedent agreement to be a “foundation shipper” on two pipeline laterals and related facilities proposed by Boardwalk Pipeline subsidiary Texas Gas Transmission LLC.

In a “very significant step-change” that will double its natural gas-heavy reserves, Houston-based independent Edge Petroleum Corp. has obtained a package of wells, natural gas pipelines and related infrastructure, mostly located in its core area of South Texas, for $320 million cash. Together, the wells are producing at a rate of 31 MMcfe/d, of which about 86% is gas.

Northwest Pipeline Group has received binding precedent agreements from four companies for incremental storage service at Jackson Prairie totaling 104,000 Dth/d of firm deliverability capacity and an associated 1.2 trillion Btu of storage capacity.

Total Gas & Power North America Inc. and Chevron Global Gas have signed binding precedent agreements for 100% of the initial capacity for a term of 20 years on the proposed $490 million the Kinder Morgan Louisiana Pipeline, Kinder Morgan Energy Partners LP (KMP) said Monday. As proposed, the pipeline will provide 3.2 Bcf/d of takeaway capacity from the Cheniere Sabine Pass liquefied natural gas (LNG) plant now under construction in Cameron Parish, LA (see Daily GPI, Dec. 16, 2004).

Transcontinental Gas Pipe Line Corp. said it executed precedent agreements for the Potomac Expansion Project with Washington Gas Light Co., Baltimore Gas and Electric and Columbia Gas of Virginia to transport a total of 165,000 Dth/d of gas from receipt points with Pine Needle LNG and East Tennessee Natural Gas in North Carolina to delivery points in Northern Virginia and Maryland beginning as early as November 2007.

TransCanada Corp. is planning a binding open season this month to establish precedent agreements for oil transportation capacity on its proposed 1,870 mile Keystone oil pipeline project from Alberta to Illinois, which includes conversion of a 770-mile section of its natural gas mainline from near the Alberta-Saskatchewan border to just west of Winnipeg, MB.