Reduction

To repurchase more shares, accelerate its debt reduction program and to give it “enhanced firepower” for future exploration, Pioneer Natural Resources Co. on Thursday announced that it has sold the revenue associated with 2% of its reserves (20.5 MMboe) for about 8% of their enterprise value under two volumetric production payments (VPPs) totalling $593 million.

A reduction in generating resources, resulting from potential risk factors such as an aging number of power plants, environmental regulations, as well as financial uncertainty in the market, could bring about deficit electricity conditions in certain areas of New England within the next two to four years, ISO New England (ISO-NE) said on Thursday.

Sonat has experienced another unscheduled outage of unknown duration at Olga Compressor Station in southeast Louisiana. It required a reduction in interruptible receipt (A-1 and/or IT) capacity on the 26-inch Main Pass Area line effective with Tuesday’s intra-day 1 cycle. The latest outage is the fourth in a series over the past couple of months (see Daily GPI, April 1, March 17 and Feb. 13).

Sonat reported experiencing an unscheduled outage at its Olga (LA) Compressor Station that required a reduction in interruptible receipt (A-1 and/or IT) capacity on the 26-inch Main Pass Area line, effective with Tuesday’s evening cycle nominations until further notice. Repair plans are being developed, the pipeline said, but the duration of the outage is unknown at this time.

The 350 Bcf reduction in Sable Offshore Energy Project (SOEP) gas reserves estimates taken by Shell Canada and Pengrowth Energy Trust is a big disappointment for the companies, the gas industry and the province of Nova Scotia, but analysts now believe Sable producers could team up with EnCana and possibly other exploration companies — Canadian Superior and El Paso, for example — to maintain production and improve long-term development economics.

The 350 Bcf reduction in Sable Offshore Energy Project (SOEP) gas reserves estimates taken by Shell Canada and Pengrowth Energy Trust is a big disappointment for the companies, the gas industry and the province of Nova Scotia, but analysts now believe Sable producers could team up with EnCana and possibly other exploration companies — Canadian Superior and El Paso, for example — to maintain production and improve long-term development economics.

Florida Gas Transmission has begun unscheduled maintenance on one of the two compressor units at its Transco St. Helena interconnect in South Louisiana, requiring a reduction of capacity at the point to 15,000 MMBtu/d starting Wednesday. Current estimates indicate that the unit will be down for seven to eight days, FGT said.

Dual proposals by Michigan Consolidated Gas (MichCon) to lower commodity costs and raise distribution charges will in the long run increase monthly gas bills for the typical residential customer by 7% on an annualized basis.

Dual proposals by Michigan Consolidated Gas (MichCon) to lower commodity costs and raise distribution charges will in the long run increase monthly gas bills for the typical residential customer by 7% on an annualized basis.