Project

Kinder Morgan Energy Partners LP reported that the 133-mile Kinder Morgan Louisiana Pipeline project went into service on Sunday, two days after receiving the green light from FERC (see Daily GPI, June 22).

The U.S. Department of Energy (DOE) has dropped its opposition to natural gas development within a half-mile of the Project Rulison nuclear blast site in Colorado. However, Garfield County, CO, commissioners Monday voted to ask DOE to drill some test wells before any new energy development is allowed closer to the site.

Having dialed back on new project activity in 2007-2008 due to high costs, Royal Dutch Shell plc replaced 97% of production in 2008 on an organic basis while its business has migrated toward being weighted 50-50 natural gas vs. oil. Going forward, Shell executives said the company plans to leverage the global recession in seeking cost advantages while building reserves and infrastructure to take advantage of longer-term growth.

A Sempra Energy unit, Sempra Pipelines & Storage, on Wednesday launched an open season to test the market interest for up to 1 Bcf of firm natural gas capacity at its Bay Gas storage project near McIntosh, AL. Responses are due by March 26, and service is to start April 1, Sempra said. It is seeking nonbinding bids for three years or longer.

Having dialed back on new project activity in 2007-2008 due to high costs, Royal Dutch Shell plc replaced 97% of production in 2008 on an organic basis while its business has migrated toward being weighted 50-50 natural gas vs. oil. Going forward, Shell executives said the company plans to leverage the global recession in seeking cost advantages while building reserves and infrastructure to take advantage of longer-term growth.

The watchdog group Project on Government Oversight (POGO) issued a report Wednesday calling on Interior Secretary Dirk Kempthorne to abolish the Minerals Management Services’ (MMS) royalty in-kind (RIK) program following the disclosure last week of drug use and sexual misconduct by employees within the program.

Another project was added to the recent spate of pipeline proposals last week when WBI Holdings Inc. subsidiary Williston Basin Interstate Pipeline Co. (WBIP) announced plans to develop the Bakken Pipeline, a 100-mile pipe designed to transport gas from the fast-growing Bakken Play in northwestern North Dakota and northeastern Montana to an interconnect with Alliance Pipeline.

Another project was added to the recent spate of pipeline proposals late Monday when WBI Holdings Inc. subsidiary Williston Basin Interstate Pipeline Co. (WBIP) announced plans to develop the Bakken Pipeline, a 100-mile pipe designed to transport gas from the fast-growing Bakken Play in northwestern North Dakota and northeastern Montana to an interconnect with Alliance Pipeline.

California regulators last Thursday approved a second phase expansion to the Lodi Gas Storage (LGS) project’s Kirby Hills unit. The Kirby Hills Phase II expansion is expected to provide about 12 Bcf of working gas capacity.