Project

Charlotte, NC-based Piedmont Natural Gas has completed its purchase of North Carolina Natural Gas (NCNG) and a 50% interest in the EasternNC project from Progress Energy, which is divesting its gas distribution business to focus on its core electric distribution service.

Stingray Pipeline Co. LLC’s gas pipe system, a joint venture of Shell Gas Transmission LLC and Enterprise Products Partners LP, has contracted with its first deep shelf natural gas customer in the Gulf of Mexico (GOM). Stingray officials said the system will provide natural gas transportation services for Unocal’s Harvest deep shelf development, which is currently producing more than 45 MMcf/d.

The White House Council on Environmental Quality and the Task Force on Energy Project Streamlining have scheduled a meeting on Aug. 26 in Denver to discuss the formation of the Rocky Mountain Energy Council (RMEC), a state-federal partnership that would look for ways to streamline government handling of renewable and nonrenewable energy production and transmission projects. The RMEC is expected to have its first meeting before the end of the year, according to a Federal Register notice.

The White House Council on Environmental Quality and Task Force on Energy Project Streamlining has scheduled a meeting on Aug. 26 in Denver to discuss the formation of the Rocky Mountain Energy Council (RMEC), a state-federal partnership that would look for ways to streamline environmentally government handling of renewable and nonrenewable energy production and transmission projects. The RMEC is expected to have its first meeting before the end of the year, according to a Federal Register notice.

Dynegy Inc. on Tuesday launched a major junk bond refinancing project, as well as a long-awaited stock restructuring to pay off a credit line with ChevronTexaco Inc., its largest shareholder. If the transactions are completed as envisioned, Dynegy’s debt maturities would be “significantly” reduced over the next few years, including a portion of its recently restructured $1.66 billion credit facility and the secured financing of its Midwest generation assets.

South Texas Project (STP) nuclear power plant officials revealed Thursday that ultrasonic testing has confirmed small vertical cracks in the two instrumentation tubes inside the Unit 1 reactor vessel. The tubes had exhibited seepage in late April during a scheduled refueling and maintenance outage.

If at first you don’t succeed, try, try again could be Tri-Valley Corp.’s motto when referring to its Sunrise Natural Gas Project near Delano, CA. The Bakersfield, CA-based company reported Thursday that it has logged in excess of 2,000 feet of gas-saturated diatomite/porcelanite in its Sunrise-Mayel No. 2HR horizontal redrill. Tri-Valley said the well has all the log and geologic features expected and is scheduled for hydraulic fracturing in late June to liberate the natural gas at what Tri-Valley management expects to be commercial rates. The latest move comes as the third attempt by Tri-Valley to unlock what independent engineers have projected as a potentially immense amount of natural gas in place in the tight McClure Shale formation beginning at about 5,800 feet. The company noted that Independent reports on the nearly 300 vertical net feet of pay in the McClure Shale section show 40% porosity with 70% gas saturation, which calculates to about 80 Bcf of gas in place per 160 acres. On its own, Tri-Valley has mapped some 6,600 acres of closure on its leasehold and speculates as much as 3.3 Tcf of gas may be contained in the prospect area. In March, the company failed to produce at commercial rates at its Sunrise-Mayel No. 2H natural gas well because the zone had clay content that could swell and block gas delivery (see Daily GPI, March 7). The company notes there is still risk of commerciality and will give no estimate of how much might be recoverable until it has completed and tested the rate of gas deliverability from the well.

Sempra Energy Trading has filed for a permit with the Michigan Public Service Commission (MPSC) to develop a natural gas storage facility in St. Clair. In conjunction with the permit application, the company also has launched an open season for the 27 Bcf facility, named Bluewater Gas Storage LLC, that will extend through June 30. The company expects commercial operation to begin in April 2004.

Sempra Energy Trading has filed for a permit with the Michigan Public Service Commission (MPSC) to develop a natural gas storage facility in St. Clair. In conjunction with the permit application, the company also has launched an open season for the 27 Bcf facility, named Bluewater Gas Storage LLC, that will extend through June 30. The company expects commercial operation to begin in April 2004.