Venture

The proposed Sempra Energy-Shell joint venture North Baja, Mexico, liquefied natural gas (LNG) project has the best chance among current ones proposed in Mexico to actually come to fruition, but even it still faces some major questions, according to a U. S.-based expert monitoring energy developments in Mexico.

Capgemini Energy LP, a joint venture formed by Capgemini America Inc. and TXU Corp., began operation on Thursday with a complete leadership structure drawn from both parent companies. TXU signed a $3.5 billion, 10-year agreement in May with Capgemini to form the new company. Under the agreement, about 2,700 employees will be transferred from TXU to Capgemini. TXU will own less than 3% of the company and will have the right to sell all of its interest when the contract ends. The company will provide information technology, call center, billing, human resources, supply chain and accounts payable, and finance and accounting services to TXU and other energy companies. Capgemini selected Bob Pryor, its former president of outsourcing services, as its CEO. Elizabeth Lavalley, who most recently served as TXU’s senior vice president of information technology, will be the company’s COO.

Capgemini Energy LP, a joint venture formed by Capgemini America Inc. and TXU Corp., began operation on Thursday with a complete leadership structure drawn from both parent companies.

Shell Exploration & Production Co. last week ramped up production from its joint venture Llano field in the Gulf of Mexico, located about 200 miles southwest of New Orleans in 2,600 feet of water. The well is producing 26 MMcf/d of natural gas and 10,500 bbl of oil from one well, and a second well is planned to be on production later this month. Shell is operator and holds a 26.5% interest, Amerada Hess a 50% interest and ExxonMobil Corp. holds the remaining 22.5% interest. The field, which is located in Garden Banks 385 and 386, produces through an 11.5 mile sub-sea flowline to Shell’s Auger Platform. Processing capacity of 25,000 bbl/d and 75 MMcf/d is reserved for Llano. The subsea system consists of two wells tied back to Auger via a pipe-in-pipe looped flow line. Llano is Shell’s second project to use 15,000 pounds per square inch (psi) subsea equipment. Total development costs were approximately $215 million, and the project was completed on time and within the allocated budget.

Shell Exploration & Production Co. has ramped up production from its joint venture Llano field in the Gulf of Mexico, the company said Monday. The Llano field, located about 200 miles southwest of New Orleans in 2,600 feet of water, is producing 26 MMcf/d of natural gas and 10,500 bbl of oil from one well, and a second well is planned to be on production later this month.

Saltville Gas Storage Co. LLC, a joint venture of NUI Corp. and Duke Energy Gas Transmission, is holding a 30-day open season to test market interest in about 1 Bcf of firm gas storage capacity that is being developed at the companies’ new storage facility in Saltville, VA.

Saltville Gas Storage Co. LLC, a joint venture of NUI Corp. and Duke Energy Gas Transmission, is holding a 30-day open season to test market interest in about 1 Bcf of firm gas storage capacity that is being developed at the companies’ new storage facility in Saltville, VA.

Teco Energy is well on the way out of its liquidity crisis, but is considering reinforcing its position with the sale of its merchant energy unit including its two just-completed giant power projects, the 2,145 MW Gila River power station in Arizona and the 2,200 MW Union Power Station in Arkansas.

Stingray Pipeline Co. LLC’s gas pipe system, a joint venture of Shell Gas Transmission LLC and Enterprise Products Partners LP, has contracted with its first deep shelf natural gas customer in the Gulf of Mexico (GOM). Stingray officials said the system will provide natural gas transportation services for Unocal’s Harvest deep shelf development, which is currently producing more than 45 MMcf/d. Unocal constructed a 12-inch gas pipe from the Harvest development to connect to Stingray’s 36-inch pipeline, which offers the producer five downstream takeaway pipeline options. Enterprise CEO O.S. “Dub” Andras said the Harvest field was the first deep shelf gas discovery in the GOM to connect to the Stingray system, but noted that Stingray also will be transporting gas from the deepwater Gunnison development. The Harvest discovery is located at West Cameron Block 44 in 30 feet of water. Unocal owns a 41% working interest and is the operator. The other owners include Marlin Energy Offshore LLC (formerly Duke Energy Hydrocarbons LLC), 37%; The Williams G. Helis Co. LLC, 20%; and Houston Energy LP, 2%.