San Francisco-based Pacific Gas and Electric Co. (PG&E) was one of 10 utilities selected this year as part of the Dow Jones Sustainability North America Index, created 10 years ago to track financial performance of leading sustainability-driven companies. PG&E contends that the inclusion makes it a leader in “managing economic, environmental and social issues.” It also operates in a state where political leaders from the governor on down and energy regulators subscribe to the assumption that alternative energy approaches can result in both environmental mitigation and economic opportunity. PG&E joined other utilities including Entergy, Duke, Progress Energy, Xcel Energy Inc. and TransAlta on the North American index. Entergy was the only utility included on the 2008 Dow Jones Sustainability Global Index. PG&E emphasized that earning a spot in the Dow Jones index reflects what it called a “long-standing commitment” to corporate social responsibility, including environmental sensitivity, employee health/safety, corporate governance, corporate philanthropy and community involvement. PG&E CEO Peter Darbee said “never before has there been a clearer line of sight between corporate social responsibility and creating lasting value for stakeholders. Leading companies today have to focus as much or more on how they arrive at their bottom line as they do on the bottom line itself.
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Greg Ebel, currently Spectra Energy CFO, has been selected to succeed Fred Fowler as president and CEO when Fowler retires at the end of the year. Ebel also was elected to the board of directors. “Some time ago, Fred advised the board of his intention to retire at the end of this year,” said Spectra Chairman Paul Anderson. “We are announcing his successor at this time to allow for a smooth transition and to allow Greg the opportunity to develop the company’s 2009 budget and underlying strategy for 2009 and beyond that he will be responsible for delivering. Fred will continue to be responsible for delivering the company’s 2008 commitments.” Fowler said he would set up an office of the CEO to include Ebel to coordinate the transition. Before becoming Spectra CFO, Ebel served as president of Union Gas Ltd., Spectra Energy’s Canadian natural gas distribution company. He previously was Duke Energy’s vice president of investor and shareholder relations from 2002 to 2005 and prior to that was managing director of mergers and acquisitions. From 1998 to 2002 Ebel was vice president of strategic development for Westcoast Energy. He also has worked at the World Bank in Washington, DC, and in the Canadian government.
BG Group Strikes 20-Year Pacific Basin LNG Deal
Singapore’s Energy Market Authority (EMA) selected BG Group to supply up to 3 million metric tons per year of liquefied natural gas (LNG) to the Singaporean market for up to 20 years.
BG Group Strikes 20-Year Pacific Basin LNG Deal
Singapore’s Energy Market Authority (EMA) selected BG Group to supply up to 3 million metric tons per year of liquefied natural gas (LNG) to the Singaporean market for up to 20 years.
Industry Briefs
Borrowing a page from federal officials, Anadarko Petroleum Corp. has selected the Oil & Gas Asset Clearinghouse to host a lease sale auction later this month to market all of its unleased holdings in the Fayetteville Shale and Smackover play in Arkansas. Lease sales are commonly used by state and federal agencies to market drilling rights. This lease sale will be the first of its kind for a publicly held entity, according to the clearinghouse, which will market and advise Anadarko about the sale. Anadarko will offer the right to lease about 250,000 gross (206,000 net) acres throughout the state. About 170,000 net acres are considered to be in the natural gas-rich Fayetteville Shale fairway; another 5,000 acres lie within the Smackover play in southern Arkansas. The assets will be offered under predetermined lease terms, which will be available prior to the auction through the clearinghouse. Royalties retained by Anadarko will be 12.5-15%, with primary lease terms ranging from five to 10 years. The hybrid auction will be held Nov. 14-15 at the Sheraton North Houston Hotel in Houston and via the Internet. The auction will begin with the sale of Anadarko leases followed by other oil and gas properties owned by various sellers including Chevron Corp., EOG Resources Inc., McClymond Ltd., Reed Partners, Rudman Partnership, Samson Resources and Whiting Petroleum. For more information on the properties to be offered, visit www.ogclearinghouse.com.
Industry Brief
The engineering and project management company AMEC plc said it has been selected by the U.S. Fish and Wildlife Service (FWS) to prepare an environmental impact statement (EIS) of a 17-state, multi-species habitat conservation plan proposed by NiSource. The EIS will be “of unprecedented magnitude in the natural gas industry,” AMEC said. NiSource proposed the habitat conservation plan for its 17,000-mile network of natural gas pipelines, storage fields, compressor stations and appurtenant facilities stretching from Louisiana to Maine. AMEC’s scope of work will include the scheduling and facilitation of stakeholder consultation and public comment meetings, database management, geographical information system services, establishment of the administrative record, creation and production of all EIS documents and overall support to the FWS, including the evaluation of mitigation and conservation measures to enhance and protect species populations and their habitats.
Anadarko to Lease Arkansas Properties in First-of-Its-Kind Sale
Borrowing a page from federal officials, Anadarko Petroleum Corp. has selected the Oil & Gas Asset Clearinghouse to host a lease sale auction in November to market all of its unleased holdings in Arkansas.
Oneok Inks 3-Year Transportation, Storage Management Deal with FirstEnergy
Oneok Inc. said it has been selected to provide subsidiaries of FirstEnergy Corp. with natural gas supply and gas management services for three natural gas-fired power plants. Under the three-year contract, Oneok Energy Services will serve as the exclusive gas commodity and services provider to FirstEnergy Generation Corp.’s power plants in Richland and West Lorain, OH, and Sumpter, MI.
Industry Briefs
FirstEnergy Corp. sold its retail gas marketing business, FirstEnergy Solutions, to Amerada Hess Corp. on Friday. FirstEnergy Solutions supplied gas to 1,900 commercial and industrial customers in selected areas within Ohio, Western Pennsylvania and West Virginia. Terms of the deal weren’t released. Akron, OH-based FirstEnergy holds seven electric utility operating companies with 4.4 million customers in Ohio, Pennsylvania and New Jersey.
Industry Briefs
A consortium of major Canadian-based oil and gas companies have selected Calgary-based CGI Group Inc. to build and maintain a sustainable production accounting method that could be used by the companies over the next two decades. Devon Energy-Canada, EnCana Corp., Husky Energy and Talisman Energy signed a co-venture contract for an undisclosed amount whereby CGI will build, maintain and enhance a single accounting method to be used by the energy companies. CGI said the method would be designed to increase efficiency, improve the quality of information by providing end users more time for data analysis and ultimately result in the ability to make better business decisions. The new system will be available to other oil and gas companies that operate in Canada. Terry Johnson, senior vice-president of CGI’s western Canada operations, said the CGI expects other oil and gas companies ” to embrace and implement this leading edge solution.” CGI is one of the largest information technology services firms in North America, and it currently serves more than 700 petroleum companies and natural resource trust management organizations worldwide.