Separation

Linde North America has broken ground for an air separation unit (ASU) plant in La Porte, TX, part of a $200 million investment that is to include a gasification train and supporting facilities. The German-based The Linde Group unit, set to begin operations in 1Q2015, would be the largest single site investment in plant and equipment to date in the United States. Oxygen and nitrogen produced by the ASU would supply gasification assets at the Texas site, converting natural gas into syngas and constituent products such as carbon monoxide, hydrogen and carbon dioxide, which are used to produce methanol, downstream chemicals and cleaner transportation fuels (see related story). The syngas products would be served by pipeline to a “key” customer, the company said. “Coupled with our unique portfolio of industrial gas and hydrocarbons technology, engineering and operations capabilities, the new plants will allow Linde to better serve the petrochemicals industry that is being driven to new heights by the shale gas revolution,” said Linde North America President Pat Murphy.

Chesapeake Energy Corp. on Friday has offered a “voluntary separation program” for some of its employees as part of efforts to improve efficiencies and reduce costs. The layoffs, the third round since June, would remove about 2% of Chesapeake’s workforce of nearly 12,500.

Air Liquide Industrial US LP plans to build an air separation unit in northwestern North Dakota to supply nitrogen to industrial customers, specifically those involved in growing Bakken Shale operations. The unit is expected to be operational by the end of 2012. The French company supplies gases that include nitrogen and carbon dioxide to North American producers to support drilling operations and increase resource recovery. “We are positioning ourselves to better serve existing customers and to capture new business opportunities in North Dakota, especially in the Bakken oil reserves,” said Air Liquide’s Mark Lostak, president of the company’s U.S. arm. “The potential throughout this region is significant, and we are prepared to meet the growing demand for nitrogen to develop these important domestic energy resources.”

Shale plays figured prominently in the third quarter performance of Denver-based QEP Resources as the company grew production by about 20% from the year-ago period.

As part of its planned separation from Duke Energy, Duke Energy Field Services (DEFS) on Tuesday sold its wholesale propane logistics company, Gas Supply Resources (GSR), to master limited partnership DCP Midstream Partners LP for $77 million in cash and partnership units.

Following on the heels of its merger with El Paso Corp.’s GulfTerra Energy Partners LLP last month, Enterprise Products Partners LP announced last week it is restructuring its board of directors so that most of the general partner’s directors are independent. Enterprise merged with GulfTerra, El Paso Corp.’s energy partnership, in mid-December (see Daily GPI, Dec. 16, 2003).

Perhaps emboldened with shakeups in corporate board rooms across the country, some Exxon Mobil Corp. shareholders have called for the roles of chairman and chief executive officer to be separated. Lee Raymond has held the dual roles since Exxon and Mobil merged in November 1999; he had held both roles at Exxon before the merger.

Ignoring protests from some shareholders who want a complete separation from Dynegy Inc., ChevronTexaco Corp. Tuesday offered its strongest public endorsement to date, writing down a total of $631 million in second-quarter earnings related to its stake in the marketer, and reiterating that all of its U.S. natural gas agreements remain in place and will remain in place for at least the near term. ChevronTexaco’s profits were down 78% compared to the second quarter a year ago, and part of the loss related to a $531 million special-item charge for the company’s investment in Dynegy’s common and preferred stock to its estimated fair value as of June 30, 2002, and $100 million related to its share of Dynegy’s own writedown.

Ignoring protests from some shareholders who want a complete separation from Dynegy Inc., ChevronTexaco Corp. Tuesday offered its strongest public endorsement to date, writing down a total of $631 million in second-quarter earnings related to its stake in the marketer, and reiterating that all of its U.S. natural gas agreements remain in place and will remain in place for at least the near term. ChevronTexaco’s profits were down 78% compared to the second quarter a year ago, and part of the loss related to a $531 million special-item charge for the company’s investment in Dynegy’s common and preferred stock to its estimated fair value as of June 30, 2002, and $100 million related to its share of Dynegy’s own writedown.