Sales

Producers lining up to launch unconventional natural gas developments propelled drilling rights sales in British Columbia to a record C$2.66 billion (US$2.23 billion) for 2008. The new annual high scored by monthly auctions of provincial mineral rights is more than double British Columbia’s previous peak of C$1.05 billion (US$874 million) set in 2007 and a six-fold jump from the previous 10-year average of C$434 million (US$364 million).

Ending a rocky week of commodity and equity market ups and downs that was dominated by news of the bankruptcy of Lehman Brothers Holdings Inc. and the sales of Merrill Lynch and Constellation Energy, October natural gas futures on Friday ended up quietly closing at $7.531, down 9 cents on the day but 16.5 cents higher than the previous week’s close.

BP Canada Energy Marketing Co. and Secure Energy Inc. have struck a long-term natural gas sales agreement whereby BP will purchase up to 67 MMcf/d of gas from the proposed Secure Energy Decatur Gasification Plant to be built in Illinois once the plant becomes operational. Secure Energy will have the option to separately sell gas to industrial customers in the Decatur, IL, area for a portion of its production, and BP has agreed to purchase any gas not sold locally. The Decatur plant would convert 1.4 million tons of high-sulfur Illinois coal into more than 20 Bcf of gas each year. The projected plant construction cost is estimated to be $550 million. The plant is expected to be in operation in the summer of 2011.

A sales and purchase agreement struck Thursday among Qatargas, Shell and PetroChina will lead to the long-term supply of liquefied natural gas (LNG) from Qatar to the Chinese market — and that much less available for import to the United States.

A sales and purchase agreement struck Thursday among Qatargas, Shell and PetroChina will lead to the long-term supply of liquefied natural gas (LNG) from Qatar to the Chinese market — and that much less available for import to the United States.

Shell Energy North America LP announced last week it would discuss potential supply sales from the proposed Broadwater offshore liquefied natural gas (LNG) terminal with large natural gas consumers and distribution companies in Long Island, New York City and southern Connecticut.

Shell Energy North America LP announced Wednesday it would discuss potential supply sales from the proposed Broadwater offshore liquefied natural gas (LNG) terminal with large natural gas consumers and distribution companies in Long Island, New York City and southern Connecticut.

With Hurricane Dean following a more westerly path than first expected, natural gas futures traders were ringing the sales register early and often in Sunday’s overnight Globex session and again during Monday’s regular trading session, peeling almost $1 worth of hurricane premium off the prompt-month contract. September futures reached a low of $6.035 on Monday before closing at $6.040, down a whopping 97 cents from Friday’s close.

PPL Corp. will conduct a sales process for its natural gas distribution business, PPL Gas Utilities Corp., and propane business, Penn Fuel Propane, the company said last week. These businesses represented about 1% of PPL’s overall earnings from ongoing operations in 2006.