Weighs

As tensions between Iran and the western world increase, the country’s threat to shut down the Strait of Hormuz weighs increasingly on energy markets. While most of the attention has focused on what a closure would mean for oil transport, analysts at Raymond James & Associates Inc. said last week on a percentage basis, the implications would be greater for liquefied natural gas (LNG) shipments.

As tensions between Iran and the western world increase, the country’s threat to shut down the Strait of Hormuz weighs increasingly on energy markets. While most of the attention has focused on what a closure would mean for oil transport, analysts at Raymond James & Associates Inc. said Monday on a percentage basis, the implications would be greater for liquefied natural gas (LNG) shipments.

Nearly two-thirds of Pogo Producing Co.’s Gulf of Mexico (GOM) production, equaling 23,000 bbl/day of crude and 33 MMcf/d of natural gas, continues to be shut in as a result of recent hurricane-related damages, and the losses will affect output in the fourth quarter and possibly longer, the company said Tuesday.

Attorneys for the California Public Utilities Commission (CPUC) indicated last week that they are reviewing FERC’s denial of rehearing of its decision in the Sound Energy Solution (SES) liquefied natural gas (LNG) terminal proposed for the Port of Long Beach, CA. FERC asserted exclusive federal jurisdiction over the proposed LNG receiving terminal (see NGI, June 14, May 24, May 3, April 26). The CPUC has 60 days to make a federal district court filing on the issue.

Attorneys for the California Public Utilities Commission (CPUC) indicated Monday that they are reviewing FERC’s denial of rehearing of its decision in the Sound Energy Solution (SES) liquefied natural gas (LNG) terminal proposed for the Port of Long Beach, CA. FERC asserted exclusive federal jurisdiction over the proposed LNG receiving terminal (see Daily GPI, June 14). The CPUC has 60 days to make a federal district court filing on the issue.

Weighing progress toward completion of the Enron Bankruptcy case, Moody’s Investors Service last week assigned a speculative grade B1 senior secured rating to Transwestern Pipeline Co.’s $400 million term loan, a B1 senior implied rating, subject to review of final documentation, and said the outlook is positive.

Weighing progress toward completion of the Enron Bankruptcy case, Moody’s Investors Service assigned a speculative grade B1 senior secured rating to Transwestern Pipeline Co.’s $400 million term loan, a B1 senior implied rating, subject to review of final documentation, and said the outlook is positive.

U.S. Rep. John E. Peterson (R-PA) is considering introducing a bill that would bar new construction of natural gas-fired power generation facilities and would establish a seven-member independent commission to undertake a “comprehensive analysis” of gas supply and demand issues in the United States.

A spate of selling followed Thursday’s runaway 36-cent screen rise, as traders took profits ahead of the weekend and July natural gas futures sank 13.6 cents to close at $5.805 Friday. Meanwhile the 12-month strip slipped 8.4 cents to close at $5.821. At 60,140, estimated volume was weak.