Understanding

American Electric Power (AEP) and Allegheny Energy last Wednesday said they signed a memorandum of understanding (MOU) to form a joint venture to build and own significant new electric transmission assets within the PJM Interconnection. The agreement calls for the two utilities to build the first half of a 550-mile, $3 billion 755-kV transmission superhighway that was proposed by AEP in January 2006.

A consortium composed of South Korea’s national oil company KOGAS, Korean-based LG International and Houston-based EMS Group have signed a memorandum of understanding (MOU) to operate the liquefied natural gas (LNG) facility being developed near Port Lavaca, TX, in Point Comfort.

A consortium composed of South Korea’s national oil company KOGAS, Korean-based LG International and Houston-based EMS Group have signed a memorandum of understanding (MOU) to operate the liquefied natural gas (LNG) facility being developed near Port Lavaca, TX, in Point Comfort.

A memorandum of understanding (MOU) that would give Sound Energy Solutions (SES) exclusive development rights for its Long Beach, CA, liquefied natural gas (LNG) import terminal is set to expire the end of this week, and the oversight board of the Port of Long Beach is considering whether to extend the agreement. Both sides told NGI that regardless of what the Harbor Commission does, permitting and environmental review work by both sides will continue on the project.

Duke Energy Gas Transmission (DEGT) and CenterPoint Energy Gas Transmission (CEGT) signed a memorandum of understanding Thursday to develop a massive natural gas pipeline system that would stretch from the supply basins in West Texas to the metropolitan Pittsburgh, PA, area, providing western producers greater access to midwestern and eastern markets.

BP announced last week that it signed a memorandum of understanding with Brass LNG in Nigeria to purchase two million metric tons a year of liquefied natural gas (LNG). The deal, which is expected to be concluded later this year, will cover a 20-year period starting in 2010. The LNG will be delivered by Brass and used by BP to supply markets in the Atlantic basin, particularly the United States and United Kingdom. Under the flexible contract, LNG also may be delivered to other existing LNG markets and a number of proposed new terminals that BP and its partners are seeking to develop in New Jersey, Texas, elsewhere in the U.S. and in Italy. The new LNG supply will compliment BP’s equity LNG from Trinidad, Australia, Indonesia and Abu Dhabi, which will make up the majority of its portfolio, together with LNG from Egypt and third-party purchase agreements with Oman and Qatar.

Kinder Morgan Energy Partners LP and Sempra Pipelines & Storage on Wednesday announced they have entered into a memorandum of understanding (MOU) to develop a 1,500-mile interstate natural gas pipeline that would link producing areas in the prolific Rocky Mountain region to market areas in the upper Midwest and eastern United States.

In another strong endorsement, subsidiaries of EnCana Corp. and Entrega Gas Pipeline Inc. have entered into a Memorandum of Understanding (MOU) to support Kinder Morgan Energy Partners LP (KMP) and Sempra Pipelines & Storage’s 1,500 mile Rockies Express natural gas pipeline project. The pipeline, first proposed in August (see Daily GPI, Aug. 18), would be the largest domestic gas pipe proposal in more than 20 years, delivering growing gas supplies from the Rocky Mountains to upper Midwest and eastern U.S. markets.

The heads of FERC and the Commodity Futures Trading Commission (CFTC) are due to sign a memorandum of understanding Wednesday in which they will pledge to coordinate requests to companies when seeking information about regulated natural gas and electric transactions, a FERC spokesman said.