NGS Energy LP said it intends to raise $310 million in senior secured credit facilities to fund remaining construction and pad gas purchases at Tres Palacios Gas Storage LLC, a new underground salt cavern gas storage facility under construction in Matagorda and Wharton counties, TX. Tres Palacios will have three caverns and will be a high-deliverability, multi-cycle facility with several interconnections and significant storage capacity. Credit Suisse has been retained to raise the financing. The project — which received Federal Energy Regulatory Commission approval in September 2007 (see Daily GPI, Sept. 21, 2007) — would be designed to allow cycling up to seven times a year, with a peak injection rate of 1 Bcf/d and a maximum withdrawal capability of 2.5 Bcf/d. Tres Palacios also plans to construct approximately 42 miles of pipeline that would extend from the facility to interconnections with 12 intrastate and interstate pipelines. The FERC order requires the storage and pipeline facilities to be built and in service within one year. Tres Palacios would be situated among several proposed or existing liquefied natural gas (LNG) import terminals, including Calhoun LNG and Freeport LNG. The project includes a header system that crosses more than 8 Bcf/d of downstream pipeline capacity. Headquartered in Westport, CT, NGS Energy was founded in 2006 to develop a portfolio of high-deliverability storage assets.
Purchases
Articles from Purchases
A Few Rockies/San Juan Points Avoid Further Losses
Prices continued to decline at most points Thursday as moderate weather forecasts in most areas kept a damper on gas demand and storage purchases were insufficient to put a floor under the spot market.
XTO Reports Record Output, Sees Annual Volumes Growing 23%
Strengthened by a series of onshore purchases in key North American natural gas plays, XTO Energy Inc. Wednesday reported record quarterly production, with gas output up 35% from the same period a year ago. Oil and gas output this year now is forecast to jump 23%, and the CEO hinted that more acquisitions may be in the offing.
Revised EIA Annual Outlook to Assess Impact of Energy Bill
Energy Information Administration (EIA) Administrator Guy Caruso will appear before a Senate committee Tuesday to give a revised annual energy outlook (AEO) for the current year.
LADWP Board OKs Half-Billion-Dollar Yearly Gas Budget
The oversight board at the nation’s largest municipal utility earlier in September approved annual budgets for the utility natural gas purchases exceeding $500 million annually in the 2008-2009 fiscal year before tapering off significantly through 2016-2017 with the advent of renewables and a more diversified generation portfolio.
Price Gains Continue Even With Light Heating Load
Purchases for storage injection plays remained the best conjecture that sources could come up with for another day of rising prices at nearly all points Thursday. Heating load remains abnormally light in most areas outside the Rockies, Western Canada and Upper Plains, and attitudes about high storage levels are still bearish.
CenterPoint to Restate Some Financials after Finding Gas Sales Overstatements
CenterPoint Energy Inc. and indirect subsidiary CenterPoint Energy Resources Corp. (CERC) said Friday some transactions involving purchases and sales of natural gas within the gas distribution segment were overstated by $520 million in 2004 and by $430 million in the first nine months of 2005. The companies said the overstatements resulted from not properly eliminating consolidation of the two entities’ financial statements, and the affected results will be restated.
Study: Private Equity Firms Buying Merchant Power Assets at High Discount Rates
The recent wave of asset purchases within the merchant generation sector by private equity firms are at dramatically higher discount rates than those previously seen within the sector and are betting on a recovery in the electric power market, according to a study recently released by Global Energy Decisions LLC.
Loews Purchases Gulf South Pipe for $1.136B
Loews Corp., a holding company whose far reaching businesses engage in everything from cigarette sales to hotel operations, will pay Entergy-Koch LP $1.136 billion for Gulf South Pipeline. Subsidiary Texas Gas Transmission LLC (TGT) will take over operations of the 8,000-mile natural gas pipeline, which transports 2 Bcf/d and provides a total working gas storage capacity of 68.5 Bcf.
Loews Purchases Gulf South Pipe for $1.136B
Loews Corp., a holding company whose far reaching businesses engage in everything from cigarette sales to hotel operations, will pay Entergy-Koch LP $1.136 billion for Gulf South Pipeline. Subsidiary Texas Gas Transmission LLC (TGT) will take over operations of the 8,000-mile natural gas pipeline, which transports 2 Bcf/d and provides a total working gas storage capacity of 68.5 Bcf.
