Texas

Transwestern reported experiencing a mechanical failure Monday morning in Unit #5 at the P-3 (Pampa) Compressor Station on the Panhandle Lateral in the Texas Panhandle. While the unit is out of service, which is expected to be through Wednesday, Transwestern has reduced the station’s receipt capacity from 220,000 MMBtu/d to about 175,000 MMBtu/d, and delivery capacity has been reduced from 270,000 MMBtu/d to abut 175,000 MMBtu/d. The cuts affect the ANR, Southern Star and NNG [Northern Natural Gas] Gray receipt interconnects, Transwestern said, and there is no flow from the CIG receipt interconnect. It anticipates restoring full P-3 capacity Thursday. Transwestern also notified all Limited Firm Transportation (LFT) customers that LFT service will not be available in the Mainline Thoreau West area Tuesday through Friday.

The gas supply outlook has shifted from a thirst for liquefied natural gas (LNG) imports to reliance on maturing and emerging shale plays in Texas, Louisiana, Arkansas and Pennsylvania; new pipelines and capacity expansions reconfigure continental gas flows; and increasing gas-fired power generation elevates summer demand peaks. Gas storage developers are in the midst of it all.

The gas supply outlook has shifted from a thirst for liquefied natural gas (LNG) imports to reliance on maturing and emerging shale plays in Texas, Louisiana, Arkansas and Pennsylvania; new pipelines and capacity expansions reconfigure continental gas flows; and increasing gas-fired power generation elevates summer demand peaks. Gas storage developers are in the midst of it all.

The Commodity Futures Trading Commission (CFTC) Thursday disputed a published report that said speculators account for about 81% of the West Texas Intermediate (WTI) crude oil traded on the New York Mercantile Exchange (Nymex).

Saying worldwide demand and relatively low prices in the United States have slowed deliveries of liquefied natural gas (LNG) to its Texas terminal, Freeport LNG Development LP is looking to reverse the spigot by seeking permission to export previously imported LNG to Europe and Asia.

Saying worldwide demand and relatively low prices in the United States have slowed deliveries of liquefied natural gas (LNG) to its Texas terminal, Freeport LNG Development LP is looking to reverse the spigot by seeking permission to export previously imported LNG to Europe and Asia.

An investigation of three May 16 natural gas explosions and a fire in McKinney, TX, by the Texas Railroad Commission (RRC) alleges six violations by Atmos Energy Corp. and two by contractor M.J. Sheridan Inc., according to a report released last week.

The investigation of three May 16 natural gas explosions and a fire in McKinney, TX, by the Texas Railroad Commission (RRC) alleges six violations by Atmos Energy Corp. and two by contractor M.J. Sheridan Inc., according to a report released Tuesday.

Vanguard Natural Resources LLC agreed to acquire natural gas properties in South Texas for $53.4 million in cash and stock from an affiliate of the Lewis Energy Group. The properties have estimated net proved reserves of 20 Bcfe, of which approximately 98% is natural gas and 65% is proved developed. Lewis will continue to operate the wells and the undeveloped portion of the properties, which Vanguard and Lewis will jointly develop. Upon closing, Vanguard will assume from Lewis natural gas swaps and collars based on Houston Ship Channel pricing for approximately 85% of the estimated gas production from existing producing wells for the period July 2008 through December 2011. Vanguard expects to finance the cash portion of the acquisition with borrowings under its existing credit facility. The transaction is scheduled to close before the end of July.