Preparation

Cheniere Energy Inc. has received FERC approval to begin site preparation to expand the send-out capacity of its Sabine Pass, LA liquefied natural gas (LNG) receiving terminal to 4 Bcf/d from 2.6 Bcf/d.

Cheniere Energy Inc. on Thursday received FERC approval to begin site preparation that would expand the send-out capacity of its Sabine Pass, LA liquefied natural gas (LNG) receiving terminal to 4 Bcf/d from 2.6 Bcf/d.

Continuing to unload noncore assets for solid profits in preparation for its liquefied natural gas (LNG), gas storage and pipeline projects coming to fruition in the next three years, Sempra Energy announced Monday it has agreed to sell its exploration and production subsidiary, Sempra Energy Production Co. (SEPCO) to PEC Minerals LP for approximately $225 million in cash. Sempra said it expects to close the deal next momth.

In the story titled “El Paso Takes New Precautions in Preparation for Another Active Hurricane Season,” which ran in the April 13 edition of NGI’s Daily Gas Price Index, it was incorrectly reported that El Paso “was forced to sell off assets, issue debt and enter into new credit facilities to maintain liquidity while paying” for hurricane repairs. The hurricane costs were only one of the factors influencing liquidity. Other factors, including oil and gas derivative transactions put in place in prior years, also had an impact, creating the need to sell assets, issue debt and enter into new credit facilities.

While some Gulf of Mexico producers were evacuating rigs and shutting in oil and natural gas production in preparation for Tropical Storm Arlene, natural gas futures traders seemed unshaken Friday as July natural gas settled at $6.932, down 11.3 cents on the day, but 5.2 cents up for the week.

The Energy Information Administration (EIA) released complete details of its new weekly gas storage survey methodology in preparation for the release on Thursday morning of the first weekly gas storage estimates using the new design. The agency also said last week that on Thursday it would revise 16 weeks of previously released weekly gas storage data back to July 4 (see Daily GPI, Oct. 24).

As of late Friday afternoon, 33 platforms and one rig had been evacuated in the western portion of the Gulf in preparation for what was expected to become Hurricane Erika, according to Minerals Management Service. MMS spokeswoman Caryl Fagot pegged Gulf shut-ins at 134.65 MMcf/d of gas and 677 bbl of oil for Friday, which equates to about 0.96% of daily Gulf gas production and 0.04% of daily Gulf oil production.

In preparation for an emergency summit later this week of the National Petroleum Council (NPC) on natural gas issues, the Industrial Energy Consumers of America (IECA) sent Energy Secretary Spencer Abraham a list of short- and medium-term recommendations on how to deal with the “natural gas crisis that is dismantling the nation’s manufacturing base.”

The state of Alaska is conducting an open season for offers to purchase up to 70% of its royalty share of gas to be produced from the North Slope, in preparation for an open season on space in a proposed new pipeline to ship gas south to Canada and the Lower 48. The state expects a pipeline open season will occur in 2002, although not in the first quarter.