Cheniere, Total sign 20-year LNG export agreement

Cheniere Energy Partners LP announced that its subsidiary, Sabine Pass Liquefaction LLC, has entered into a liquefied natural gas (LNG) sale and purchase agreement (SPA) with Total Gas & Power North America Inc., under which Total has agreed to purchase 91,250,000 per million British thermal units (MMBtu) of LNG annually plus 13,500,000 MMBtu of seasonal LNG volumes upon the commencement of train five operations. These volumes represent approximately 2 million tonnes per annum (mtpa) of the approximately 4.5 mtpa of nominal capacity of train five being developed at Sabine Liquefaction.

Sabine Liquefaction is currently developing five liquefaction trains adjacent to the Sabine Pass LNG terminal on the Sabine River in Louisiana. The first two trains are under construction and the third and fourth trains are expected to commence construction in 2013.

Under the agreement, Total will purchase LNG on an FOB basis, under which LNG will be loaded onto Total’s vessels, for a purchase price indexed to the monthly Henry, Louisiana, gas hub price, plus a fixed component. The SPA has a term of 20 years from the date of first commercial delivery for train five, and an extension option of up to 10 years. Deliveries from train five are expected to occur as early as 2018.

Jackson to leave EPA

Lisa P. Jackson released a statement announcing her intentions to resign from her post as administrator of the U.S. Environmental Protection Agency (EPA).

Jackson is expected to leave her cabinet position in early 2013. Leading the list of potential replacements are Bob Perciasepe, deputy EPA administrator, who will take over the agency on an interim basis; and Kathleen McGinty, a former head of Pennsylvania’s Department of Environmental Protection and a protégé of former U.S. Vice President Al Gore.

Torrent Energy to provide NGL processing services

As drilling reaches an all-time high in liquid- rich shale plays, the need for processing equipment has become critical. A new provider of modular and mobile natural gas liquid (NGL) processing equipment —Torrent Energy Services—has been established to respond to this unprecedented demand.

Torrent provides both upstream and midstream gas processing services for NGL recovery, fuel gas conditioning and hydrocarbon dew-point control. The Dallas-based company has regional offices in Central Texas, Denver and the Rockies. Additional offices will open throughout 2013 to support drilling activity throughout the U.S.

Alerian makes adjustments

Alerian announced that Holly Energy Partners LP has been added to the Alerian MLP Index, while Inergy LP was removed from the index.

Alerian noted that the 50 constituents of the index will be rebalanced on a floatadjusted, capitalization-weighted basis in accordance with the existing index methodology. Additions to and deletions from the index do not reflect an opinion by Alerian on the investment merits of the respective securities, the company noted.

Separately, Alerian added PVR Partners to its Alerian MLP Infrastructure Index, while removing Crosstex Energy LP.

Anadarko advances Mozambique LNG project

Anadarko Petroleum Corp. announced that it has reached Heads of Agreement (HOA) with Eni SpA, establishing foundational principles for the coordinated development of the common natural gas reservoirs spanning both Mozambique’s Offshore Area 1 (operated by Anadarko) and Offshore Area 4 (operated by Eni).

The HOA is designed to facilitate a work program whereby the two operators will conduct separate, yet coordinated, offshore development activities, while jointly planning and constructing common onshore liquefaction facilities in the form of an LNG park in the Cabo Delgado Province of northern Mozambique.

In addition, multiple front-end engineering and design contracts have been awarded for both onshore LNG construction and offshore installation.

Pangea LNG submits non-FTA export application with DOE

Pangea LNG BV announced that its wholly owned subsidiary, Pangea LNG (North America) Holdings LLC, has filed an application with the U.S. Department of Energy (DOE) requesting multi-contract authorization to export LNG from its proposed facility in South Texas to any country with which the U.S. does not have a Free Trade Agreement (FTA) in effect.

This is another step in the process of developing a new LNG export terminal on a 550-acre site fronting the north shore of Corpus Christi Bay. Earlier, Pangea filed an application with DOE seeking export authority to FTA countries. Pangea is seeking authority to export up to 8 million metric tons per year of LNG, equal to approximately 400 billion cubic feet (Bcf) per year of natural gas.

The South Texas LNG Project is being designed in two phases, each capable of producing 4 million tons per year and storing approximately 250,000 cubic meters of LNG. Pangea’s schedule calls for the project to be in operation by 2018.

Natural gas for the project will be supplied by customers through an associated pipeline that will likely connect to nine major interstate and intrastate transmission pipelines.

Propane industry calls for alternative fuel tax extension The National Propane Gas Association (NPGA) urged Congress to embrace taxcredit extensions for alternative fuels, underscoring its importance to America’s energy security and employment objectives, in a letter to the House of Representatives Ways and Means Committee.

“All of these provisions positively impact the economy, creating jobs, benefiting consumers, encouraging market-based environmental stewardship and promoting American-made fuel,” Richard Roldan, NPGA’s president and chief executive, stated in the letter. The propane industry includes more than 3,000 companies and employs 40,000 employees.

“We’re at a crossroads in American energy policy,” said Roldan. “Propane is an important part of our comprehensive energy strategy, and it’s time for Congress to adopt a comprehensive tax extenders package that will allow businesses to plan ahead and empower consumers to embrace alternative fuels.”

ETP, Regency Energy completes Lone Star Gateway Pipeline

Energy Transfer Partners LP and Regency Energy Partners announced that the Lone Star West Texas Gateway NGL Pipeline is now in service. The 570-mile, 16-inch pipeline will transport NGLs produced in the Permian and Delaware basins in West Texas to Mont Belvieu, Texas.

The West Texas Gateway NGL Pipeline has an initial capacity of approximately 209,000 barrels (bbl.) per day with the potential to increase capacity.

ETP also announced that the Lone Star Fractionator I in Mont Belvieu is now in service. The 100,000 bbl. per day NGL fractionation facility owned by Lone Star will handle NGL barrels delivered from several sources, including the Gateway NGL pipeline. Fractionator I is the first of two fractionators, both with 100,000 bbl. per day of capacity, that Lone Star is placing in service. Fractionator II is scheduled to be completed in fourthquarter 2013.

Seaway Pipeline expansion completion annouced

Seaway Crude Pipeline Co. LLC announced completion of its expansion from approximately 150,000 bbl. per day to approximately 400,000 bbl. per day in January. In order to complete the remaining pump station connections, transportation service was briefly suspended on the 500-mile, 30-inch diameter pipeline. Seaway is a 50/50 joint venture owned by affiliates of Enterprise Products Partners LP and Enbridge Inc. In addition to the pipeline that transports crude oil from the Cushing, Oklahoma, hub to the Gulf Coast, the Seaway system is comprised of a terminal and distribution network originating in Texas City, Texas, which serves refineries locally and in the Houston area. The Seaway system also includes dock facilities at Freeport and Texas City.

Study: Nearly 1 million LNG heavy vehicle sales projected globally

A new study by Pike Research foresees the sale of some 930,000 new trucks and buses powered by natural gas fuel between 2012 and 2019 globally. Pike senior research analyst Dave Hurst said “in most cases, the higher incremental cost of a natural-gas vehicle [versus a cleandiesel vehicle] is typically recovered, due to lower fuel costs, within two to seven years.” LNG will grab market share in longerrange heavy vehicles—400 miles or more— while heavy vehicles traveling 150 to 300 miles daily are more likely to tap compressed natural gas (CNG) supply, according to the study.

“The worldwide breakdown of refueling stations for these two types of natural gas is 117 LNG refueling stations versus 20,233 CNG refueling stations,” Pike says. “About 45% of the LNG refueling stations are located in the U.S. even though China has the largest annual sales for LNG-fueled trucks, with 3,020 vehicle sales in 2012,” according to the company.

PEOPLE

Rose Rock Midstream announces new board member

Rose Rock Midstream LP announced that Robert E. Dunn has been elected as the newest member of the Rose Rock Midstream board of directors.

Dunn currently serves as president and chief executive of Prism Midstream LLC. In 2000, he founded Prism Gas Systems. That company was acquired by Martin Midstream Partners in 2005, where he continued as senior vice president until 2012.

Miller named vice president of Dominion East Ohio Dominion Resources announced that it promoted Scott C. Miller, vice presidentbudgeting, business planning and market analysis, to vice president at its Dominion East Ohio subsidiary.

Miller joins the Dominion East Ohio leadership team during a period of significant growth. This includes substantial investments in regulated infrastructure as well as business- development opportunities related to natural gas and NGL production in the Utica shale production area of eastern Ohio.

Separately, Dominon Thomas F. Farrell II, chairman, president and chief executive, received the Distinguished Leadership Award from the Edison Electric Institute (EEI), an association of shareholder-owned electric companies representing about 70% of the U.S. electric power sector.

Dawood names new director of midstream services

Dawood Engineering Inc. named Todd Suplita as the director of midstream services. Suplita will be responsible for client management, project management and business development aspects within the midstream sector of Dawood Energy Services.

With 15 years of experience in the midstream industry, specifically in the Mid- Atlantic region, Suplita will be based out of Dawood’s Pittsburgh regional office in Canonsburg, Pennsylvania.

Board director retires from TransCanada

TransCanada Corp. announced the retirement of John A. MacNaughton as a director of TransCanada. MacNaughton served as a member of TransCanada’s board of directors since 2006 and the chair of the Governance Committee since 2009.

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