Tied

San Diego, CA-based Sempra Energy has pushed back indefinitely opening its 17 Bcf Liberty Gas Storage project in Louisiana that is tied to its liquefied natural gas (LNG) receiving terminal in the final months of construction at Cameron, LA, on the Gulf of Mexico. Other than oblique references to construction issues, Sempra offered no details, nor a new target date, for the redeveloped underground salt dome cavern.

With 80% of its production tied to natural gas, EnCana Corp. is turning its back on Alberta and instead will zero in on its burgeoning gas plays in Wyoming and Texas with an eye to build its North American gas output by 7% in 2008. The Calgary-based producer also plans to advance its Deep Panuke gas project offshore Nova Scotia.

With 80% of its production tied to natural gas, EnCana Corp. said Wednesday it will turn its back on Alberta and instead zero in on its burgeoning gas plays in Wyoming and Texas with an eye to build its gas output in North America by 7% in 2008. EnCana also said it plans to advance its Deep Panuke gas project offshore Nova Scotia.

With its Alaska business forever tied to the possibility that natural gas supplies could be curtailed, Agrium Inc. plans to switch its Nikiski nitrogen plant in Kenai, AK, from gas to coal. A final decision on coal plant construction is scheduled for 2008, and if it moves forward, the revamped plant would be operational in late 2011, company officials said.

Lack of above-normal temperatures and tropical disturbance development tied with weakness in the petroleum arena allowed natural gas futures on Monday to continue to explore the downside. After reaching a low of $6.710, September natural gas wound up staging a minor rally in closing out the day at $6.913, still down 35.6 cents from Friday.

A recently filed settlement between Enron and FERC trial staff that resolves certain matters and claims tied to Enron’s actions and transactions in western energy markets over several years [EL03-180, et al.] has come under attack from the Montana attorney general and U.S. Sen. Maria Cantwell (D-WA).

A rash of downed nuclear plants tied with early strength in crude futures sent natural gas futures higher Monday morning, but the run-up proved to be short-lived. After hitting a high of $7.630 in morning trade, May natural gas futures, in unison with crude, dropped off later in the afternoon, settling at $7.244, up 3.4 cents on the day. Even more surprising was that the prompt month’s settle was only 2.4 cents higher than the contract’s $7.22 low for the day.

A decision last month in which FERC reversed its policy on negotiated rates by allowing pipelines to enter into transactions tied to natural gas basis differentials “has now unleashed again a regulatory regime which will permit market manipulation,” BP America Production Co. and affiliate BP Energy told FERC this week.

As previewed earlier in the month, PG&E Corp. reported fourth quarter earnings that soared to $871 million, or $2.04/share, due to a one-time, noncash item of $684 million, or $1.60/share, tied to the utility holding company severing its relationship with its previous merchant energy unit. These results compared to consolidated net income of $37 million, or 9 cents/share, for the fourth quarter of 2003.