Golden Pass Products LLC, a joint venture by Qatar Petroleum International and ExxonMobil, has submitted an application to the U.S. Department of Energy (DOE) to export liquefied natural gas (LNG) from the Golden Pass LNG receiving terminal at Sabine Pass, Texas, the company announced August 17.
The proposed project involves construction of natural gas liquefaction and export capabilities at the existing Golden Pass LNG facility. It would have the capacity to send out approximately 15.6 million tons of LNG per year. New infrastructure required to export will be located on the existing property, which currently contains two berths for LNG tankers, five storage tanks and access to the Golden Pass pipeline. The expanded facility would then have the capability and flexibility to both import and export natural gas.
If developed, the company said the project would represent approximately $10 billion of investment on the Gulf Coast, generating billions of dollars of economic growth at local, state and national levels and millions of dollars in taxes to local, state and federal governments. The project would generate approximately 9,000 construction jobs over five years with peak construction employment reaching about 3,000 jobs, according to the company.
The application filed with the DOE is to export natural gas to nations that have existing free-trade agreements (FTA) with the U.S. A similar application is planned for non-FTA countries.
Interior releases alternative Alaska oil plan
Secretary of the Interior Ken Salazar outlined a proposed plan that will allow for additional access for oil and gas development in the National Petroleum Reserve in Alaska (NPR-A), as well as developing infrastructure to bring supplies online that are environmentally safe.
The plan will be presented as the preferred alternative for the NPR-A Integrated Activity Plan and Environmental Impact Statement (IAP/EIS) later this year, the Interior Department announced August 14.
According to a public statement, the approximately 11.8 million acres that would be available for leasing are estimated to hold approximately 549 million barrels (bbl.), discovered and undiscovered, economically recoverable oil and approximately 8.7 trillion cubic feet (Tcf) of discovered and undiscovered economically recoverable natural gas.
The plan, the announcement explained, allows for the possibility of pipelines and related infrastructure to be built in the NPR-A to accommodate potential future offshore oil and gas production in the Beaufort and Chukchi Seas. The plan does not predetermine whether pipelines and infrastructure can or should be built, and any such proposal would be the subject of a comprehensive environmental analysis and a separate decision-making process, as required by law.
Enbridge names new president and CEO
Enbridge Inc. has appointed Al Monaco as president and chief executive of Enbridge, effective October 1. Monaco is currently a member of the board of directors. Patrick D. Daniel will retire as chief executive and will also retire from Enbridge's board of directors. Monaco said Enbridge's priorities moving forward will include executing its $17 billion in secured capital investments and developing new business platforms.
Keystone XL opens Nebraska field office
TransCanada Corp. officially opened its Keystone XL field office in Norfolk, Nebraska, August 8.
According to local media reports, the office will be the base of TransCanada's operations in the area, and the center of the company's push to get the northern leg of the pipeline project under way. At the Norfolk office, TransCanada officials will gather information from landowners and prepare documents for the Nebraska Department of Environmental Quality in anticipation for the pipeline's revised route.
A Keystone XL Project representative said a number of Norfolk's services were key in the placement decision, including its central location and amount of housing choices.
Norfolk, one report said, was also TransCanada's operations base during the construction of the first Keystone pipeline in 2009.
New president, CEO at Alliance Pipeline
Alliance Pipeline Ltd. has named Terrance Kutryk president and chief executive, the company announced August 16.
Kutryk most recently served as senior vice president, midstream and refined products with Husky Oil Operations Ltd., where he was responsible for Husky's global commodity marketing, logistics and trading, storage, refining and upgrading business, pipelines, cogeneration, retail and wholesale operations, asphalt marketing, product supply and distribution and new ventures. Kutryk is also board chairman for Sultran Ltd. and Pacific Coast Terminals Company Ltd.
Kutryk will succeed Murray Birch, who retired in July.
Alberta calls for pipeline safety review
The Province of Alberta has called for a safety review of its network of oil and natural gas pipelines.
According to local reports, the province, along with The Energy Resources Conservation Board (ERCB), have requested an independent third-party review of the area's pipeline integrity management in response to pipeline incidents and the safety of pipelines located near bodies of water.
Through the requested reviews, the ERCB aims to determine if regulatory requirements remain relevant and to identify areas of improvement.
All reviews are expected to be complete no later than November 30.
DCP Midstream announces management changes
DCP Midstream LLC has appointed Wouter van Kempen president and chief operating officer. Van Kempen, president of DCP's gathering and processing business unit, also will now lead the company's marketing and logistics business unit, which includes natural gas liquids (NGL) and gas marketing, and gas and crude oil logistics. Van Kempen will continue to report to Tom O'Connor, chairman and chief executive of DCP Midstream.
"Wouter has a tremendous track record of growing businesses and building value for customers and investors, and I am excited to work even more closely with Wouter to deliver on the exciting opportunities that lie ahead for the DCP enterprise," O'Connor said in a release.
Prior to serving as president of gathering and processing, van Kempen was president of the Midcontinent business unit and chief development officer for the combined enterprise. Prior to joining DCP in 2010, he was president of Duke Energy Generation Services. Van Kempen joined Duke Energy in 2003 as managing director of mergers and acquisitions before becoming vice president of mergers and acquisitions
"I am honored and excited for this challenge to lead all of DCP's operations and corporate functions. I look forward to continue to work with all of our talented senior management team to deliver even more success in the months and years to come and to continue to grow our footprint as we execute on over $4 billion of growth projects. We have been creative in introducing both midstream and downstream solutions for our customers and will continue to build much needed gas processing capacity and NGL infrastructure to meet the country's energy needs. We will continue to balance growth with our unwavering emphasis on operational excellence and safety in all we do," van Kempen said.
Also, the firm's DCP Midstream GP LLC unit announced its chief executive and president, Mark Borer, plans to retire at the end of 2012.
Borer will continue to work in an advisory role through March 2013 to ensure a smooth transition.
The board of directors appointed Bill Waldheim president. Waldheim is currently president of the natural gas liquids, gas, and crude oil logistics business unit for DCP Midstream LLC, a position he has held since 2011.
Getty Petroleum to abandon fuel storage tanks
A New York bankruptcy judge has granted Getty Petroleum Marketing permission to empty and abandon a group of fuel storage tanks, provided the company follows certain conditions.
According to a Law360 report, Getty sought approval to abandon 22 storage tanks located in New York, New Jersey and Pennsylvania, after Chapter 11 proceedings failed to result in reorganization for the company.
U.S. Bankruptcy Judge, Shelley C. Chapman, ordered 18 of the 22 tanks emptied, capped and all fuel lines removed, the report said. Getty's four tanks located in Staten Island, N.Y., will require more caution.
Getty and its subsidiaries filed for Chapter 11 last December in the hopes of restructuring the company.
GTI receives CEC contracts, opens new office
The California Energy Commission (CEC) recently awarded the Gas Technology Institute (GTI), a research and development organization serving energy and environmental markets, with two new contracts totaling $3.5 million. GTI will develop new combined heat and power (CHP) and waste heat recovery technologies at industrial facilities in California.
In order to support these and other initiatives, GTI has opened a satellite office in Davis, California. This new office will focus on GTI's expanding efforts with local utilities, the CEC and other regional players
GTI received a grant of $1.8 million in Public Interest Energy Research natural gas funding from CEC to develop and demonstrate a fuel-flexible, hybrid-generation CHP system that can use natural gas and biogas produced by anaerobic digesters at wastewater treatment plants and landfills. The system will be designed to produce reliable and efficient thermal and electric energy for on-site use, while also enabling cost-effective compliance with California Air Resources Board (CARB) 2007 emission standards for distributed generation.
The City of San Bernardino and other GTI partners, including Southern California Gas (SoCalGas), will provide $887,000 in matching funds to support the project. The targeted completion date for the demonstration is March 2015.
GTI also received a $1.73 million grant to demonstrate an innovative technology that converts waste heat in high-temperature (above 900ºF) exhaust gases into electricity on an average-sized industrial furnace. The new technology would fill the gap in the market for a cost-effective heat recovery system that effectively converts waste heat in high-temperature exhaust gases into electricity by generating heated water that drives an Organic Rankin Cycle Engine (ORCE) generator. Target completion date for the system demonstration is October 2014.
Sunoco moves forward on Permian Express Phase I
Sunoco Logistics Partners LP announced that it has enough binding shipping commitments to proceed with Phase I of the Permian Express Pipeline.
According to an August 21 Reuters report, the company said it has enough shippers for the 90,000 bbl. per day pipeline to begin operations in the first quarter of 2013.
The pipeline will run from Wichita Falls, Texas, to Sunoco's Nederland Terminal, which has over 22 million bbl. of crude, petroleum products and feedstock storage capabilities.
Phase II of the system will increase the flow to 150,000 bbl. per day in the late 2013.
AltaGas completes Blair Creek facility expansion
AltaGas Ltd. announced August 21 the completion of the Blair Creek, British Columbia, facility expansion, which will provide processing capacity to producers developing the liquid-rich Montney resource play.
The Blair Creek expansion will add 50 million cubic feet (MMcf) per day. The volumes represent approximately a 5% increase in total gas processing throughput and will add $8 to $10 million of annual EBITDA. The expansion is underpinned by long-term contracts with three active producers in the area.
Polaris pipeline system enters commercial service
Inter Pipeline Fund announced that its Polaris pipeline system has entered commercial service for Alberta's Kearl oil sands project owned by Imperial Oil Resource Ventures Ltd.
With the commencement of linefill and wet commissioning activities, Inter Pipeline is now generating cash flow under a 25-year diluent transportation agreement with Imperial. Imperial has contracted for 60,000 bbl. per day of firm ship-or-pay transportation capacity on the Polaris pipeline system. Under the shipping contract, Inter Pipeline will earn approximately $36 million of EBITDA on an annual basis for the next 25 years.
The Polaris system previously formed part of Inter Pipeline's Corridor oil sands pipeline system. The Polaris pipeline system is currently being expanded under a $1 billion capital program to provide diluent service to the Christina Lake, Narrows Lake and Foster Creek projects owned by Cenovus and ConocoPhillips.
Upon completion, capacity on the Polaris system is expected to increase from approximately 120,000 bbl. per day to 820,000 bbl. per day. Inter Pipeline has announced long-term shipping arrangements representing approximately 50% of total expansion capacity and is aggressively pursuing opportunities to attract new third party shippers to the system.
Global Infrastructure Partners adds former El Paso executives
Global Infrastructure Partners (GIP) announced that James Cleary, former president of El Paso Corp. Western Pipeline Group, has joined GIP and will focus on identifying and managing investments involving natural gas, crude oil and other liquids pipeline assets.
Cleary, an executive with 25 years of experience in the interstate pipeline industry, will be joined by Thomas Price and Pat Johnson, both of whom had been part of the pipeline executive team at El Paso, and Derek Wedel who had been a senior engineering and construction manager at El Paso. The executives will be based initially in Colorado Springs, Colorado.
Crosstex names senior vice president of Ohio River Valley
The Crosstex Energy companies, Crosstex Energy LP and Crosstex Energy Inc., announced that Paul A. Weissgarber has been named senior vice president of Ohio River Valley, effective immediately.
Previously, Weissgarber served as a Crosstex consultant since December 2011, specifically to assist with the development of the partnership's oilfield water and natural-gas-to-liquids businesses. He was instrumental in the recent acquisition of the Partnership's Ohio River Valley business.
"Paul will lead the efforts to maximize the investment of our new Ohio River Valley business as we aggressively pursue growth in this area," Barry E. Davis, Crosstex president and chief executive said in a company release.
Most recently, Weissgarber was a principal at Ernst & Young from 2009 to 2011 and held senior executive positions, including Global and Americas Advisory Oil & Gas sector leader.
CINGSA, Marathon increase storage facility volumes
Marathon Oil Corp. and Cook Inlet Natural Gas Storage Alaska (CINGSA) announced a resolution toward meeting CINGSA's base gas supply shortfall, the companies announced August 24.
Marathon's wholly owned subsidiary, Marathon Alaska Production LLC, has already begun transferring gas from its storage facility at the Kenai Gas Field to CINGSA's nearby storage facility.
"We appreciate Marathon's offer to sell additional gas volumes that help CINGSA meet our 'base gas' requirements. Given the nature of the two companies' storage facilities, these gas transfers will result in a net increase in gas deliverability for the winter peak demand period thus increasing confidence in meeting winter peak energy needs this year," Colleen Starring, vice president, CINGSA, said in a company release.
Spectra Energy appoints new board member
Spectra Energy Partners LP announced the appointment of William T. (Bill) Yardley as a new director to the board of its general partner.
Yardley, group vice president, Spectra Energy Transmission, Northeast, is responsible for Spectra Energy's commercial activities in the Northeast U.S. Prior to this position, he served as vice president, marketing and business development, with a Spectra Energy predecessor company.
Yardley currently serves on the board of the Northeast Gas Association and is a member of the Leadership Council of the American Gas Association. He will replace R. Mark Fiedorek, group vice president, Spectra Energy Transmission, Southeast.
NiSource names executive VP, CEO for NIPSCO
NiSource Inc. announced August 29 that Jim L. Stanley will join the company as executive vice president and group chief executive for Northern Indiana Public Service Co. (NIPSCO), a NiSource-owned utility serving more than 786,000 natural gas customers and 457,000 electric customers across the northern third of Indiana.
Stanley succeeds Jimmy D. Staton, who has led both NIPSCO and NiSource's gas transmission and storage (NGT&S) operations. With Stanley's appointment, Staton will serve exclusively as executive vice president and group chief executive for NGT&S.
Stanley comes to NiSource after serving in a variety of senior executive positions in the utility industry, most recently as senior vice president and chief distribution officer for Duke Energy's U.S. electric business. Previously, he served as president of Duke Energy Indiana, the state's largest electric service provider. His 35-year career with PSI Energy, Cinergy and Duke Energy includes assignments in a variety of departments from accounting to human resources to operations management. Stanley will be based in Merrillville, Indiana.
Continental Refining secures Sunoco crude oil supply contract
Continental Refining Co. has secured an oil supply contract with crude oil supplier Sunoco Partners Marketing & Terminals LP and Regal Fuels. The contract will eliminate any disruptions in supply of crude oil for Continental's Kentucky refinery operations, the company announced August 28.
Continental purchased the then-closed closed Somerset, Kentucky, refinery in December 2011, and immediately began updating the industrial process plant's operations. Reopened, the Continental plant is the only oil refinery within a 170-mile radius, which results in significantly decreased transportation costs.
"This contract marks an important step in the advancement and efficiencies taking place at Continental," Demetrios Haseotes, Continental's chief executive, said in a release. "Sunoco's substantial assets and resources provide Continental with a consistent supply of crude oil to the refinery."
Continental will receive crude oil by truck, rail, pipeline and barge at the refinery. The terminal will also provide enhanced logistics for clean products in south central Kentucky and northern Tennessee.
Valero to convert Aruba refinery to terminal operation
Valero Refining Co.-Aruba NV, a subsidiary of Valero Energy Corp., notified employees of the Valero Aruba Refinery that Valero has decided to further reduce operations and reorganize the site as a refined products terminal, the company announced September 4.
"We believe that Aruba has the assets to compete as a world-scale crude and refined products terminal," Valero chairman and chief executive, Bill Klesse, said in a release. "With both deepwater berths and smaller berths, the terminal will have the flexibility to load the very largest crude ships. In addition, the scale and mixture of tankage will permit commercially attractive storage opportunities for our customers. Aruba's proximity to growing markets and its business-friendly political environment make it an ideal location for our new terminal operations."
Terminalling activities, however, will require a considerably smaller workforce. The reorganization and reduction in workforce is expected to be complete before the end of 2012. Valero will continue to supply jet fuel, gasoline, diesel and fuel oil to the island, as well as engage in third-party terminal services. In this terminal operations mode, Valero will continue to be a significant employer in Aruba, and will continue to invest in Aruba with facility improvements and dock and tankage upgrades.
Enbridge to invest $600 million to support Toronto gas-distribution growth
Enbridge Inc. announced September 6 it has committed up to $600 million to expand Enbridge Gas Distribution's natural gas distribution system in the greater Toronto area to meet the area's growth demands. The project is subject to approval by the Ontario Energy Board (OEB).
"Over the last 20 years, Enbridge Gas Distribution has almost doubled its total number of customers across Ontario from 1.1 million in 1992 to 2 million in 2012," Guy Jarvis, president, Enbridge Gas Distribution, said in a release. "The proposed upgrade project will enable us to serve current and anticipated growth in our customers' needs, enhance our flexibility to avoid customer impacts due to disruption of physical supply, and provide options to access additional supply sources for our customers."
The proposed project will consist of two segments of pipeline and related facilities to upgrade the existing distribution system that delivers natural gas to the Canadian municipalities of Toronto, Brampton, Mississauga, Vaughan, Richmond Hill and Markham. The new lines would provide sufficient internal delivery capability within the Toronto area to allow EGD to meet the needs of its growing base of customers.
Enbridge expects to file an application with the OEB in the coming months. Earlier this year, as part of the OEB's "Leave to Construct" process, Enbridge hosted public open houses in communities near the potential pipeline routes to share information about the project with the public and to gather feedback to incorporate into its application.
Florida's PSC approves pipeline improvement rider
The Florida Public Service Commission (PSC) approved two petitions allowing three Florida natural gas companies to recover their costs for hastening pipeline replacement within 10 years, the PSC announced August 14.
"The PSC is committed to working with Florida's natural gas utilities to maintain a safe and reliable pipeline infrastructure that meets consumers' daily needs," PSC Chairman Ronald A. Brisé, said in a release. "An added by-product from the utilities' energy infrastructure improvements is an immediate economic development boost in their service territories."
According to the PSC, the Peoples Gas System's Cast Iron/Bare Steel Replacement Rider will accelerate the replacement of cast iron and bare steel distribution pipes on its system. Cast iron is subject to corrosion, which in turn can lead to cracking if exposed to mechanical pressures such as excavation or heavy road traffic.
A joint petition filed by the Florida Public Utilities Company and the Florida Division of Chesapeake Utilities Corp. received commission approval for Gas Reliability Infrastructure Programs (GRIPs). GRIPs, a proposed industry program, permits a gas utility to recover the cost of accelerating the replacement of bare steel pipeline with polyethylene (plastic) pipeline.
An annual mechanism to track savings in operations and maintenance expense and depreciation is required for both pipeline improvement programs. The U.S. Department of Transportation has urged natural gas utilities to replace these older facilities as a safety measure.
New Dallas-area law firm to serve pipeline clients
Dallas energy attorney Vince Murchison has formed a boutique practice, the Murchison Law Firm, focused on regulatory, operational and transactional matters for the energy pipeline industry.
Murchison has more than 20 years of large-firm experience representing energy clients, and most recently served as partner in the Dallas office of SNR Denton, where he advised numerous clients on regulatory and business matters in pipeline transportation and storage.
"The timing is right to take on this challenge and enhance the legal services we can offer to existing clients and other energy companies involved in upstream and midstream development and production," Murchison said in an August 20 release. "This segment of the energy industry is extremely active from the standpoint of construction and investment, but it also faces increasing regulatory scrutiny over project safety, environmental concerns, right-of-way issues and other factors that align with my experience."
Murchison has experience in regulatory compliance, project development, operations, risk management, integrity management and maintenance.
International energy law attorney joins Steptoe & Johnson
Steptoe & Johnson PLLC announced August 21 that Philip D. Vasquez, BBA, JD, LLM, has become joined the firm. Vasquez joins the firm's energy law team working out of the firm's Southpointe, Pennsylvania, and Houston offices. Vasquez will assume leadership of the firm's international oil and gas practice.
Vasquez joins the firm after spending the past four years as an independent international legal consultant advising U.S. energy interests seeking energy development opportunities in Latin America, Central Asia and the Middle East. Vasquez recently acted as a legal advisor to the Ministry of Mines of the Islamic Republic of Afghanistan concerning legal issues arising in the development of that nation's oil and gas resources. He also has substantial experience with energy development transactions in Mexico and South America.
Crestwood Gas Services Names VPs
Crestwood Midstream Partners LP has announced that its general partner, Crestwood Gas Services GP LLC, has named Heath Deneke as senior vice president and chief commercial officer and Steven Dougherty as vice president and chief accounting officer.
Both report to Robert Phillips, Crestwood's chairman, president and chief executive of Crestwood's general partner. Prior to joining Crestwood, Deneke served in various management positions at El Paso Corp. for the past 16 years. Most recently, he was vice president, project development and engineering within the pipeline group managing over $6.7 billion of pipeline, storage, compression and liquefied natural gas terminal projects as well as an annual pipeline maintenance budget of more than $300 million. Dougherty was formerly director of corporate accounting at El Paso since 2001. Prior to joining El Paso, Dougherty was a senior audit manager at KPMG LLP.
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