LNG terminal co-owned by GE begins operating on Gulf Coast

PASCAGOULA, Miss. - GE Energy Financial Services, a unit of GE. On Oct. 27 announced that its co-owned Gulf LNG regasification and liquefied natural gas storage facility on the Gulf of Mexico has successfully begun operations.

GE made the announcement at a ribbon-cutting ceremony at the facility in Pascagoula, Miss., joined by Gov. Haley Barbour and executives of El Paso Corp.

"After three and a half years of construction, this $1.1 billion facility was completed on-time and on-budget and forms an important part of our nation's energy infrastructure," said Dan Castagnola, a managing director of GE Energy Financial Services in Houston.

"Our co-ownership of this facility reflects GE Energy Financial Services' strategy of supporting long-term, critical infrastructure projects that help meet energy demand and draw on GE's strengths and expertise in energy."

The terminal, operated by a subsidiary of El Paso Corp., is located adjacent to the Bayou Casotte Ship Channel in the Port of Pascagoula on the Gulf Coast. It receives, stores and regasifies imported liquefied natural gas (LNG).

The terminal consists of two 160,000 cubic meter storage tanks with a combined capacity of 6.6 billion cubic feet (Bcf); 10 vaporizers, providing a base send-out capacity of 1.3 Bcf/d; and five miles of 36-inch pipeline connecting to downstream pipelines owned by Gulfstream, Destin, Transco, and Florida Gas Transmission. The pipelines provide access to the Pascagoula Gas Processing Plant operated by BP America Production Co.

The Gulf LNG facility is contracted under 20-year firm service agreements for all of its capacity with a group of LNG producers, including several major oil and gas companies, to support the facility and provide a source of LNG.

Spectra Energy to acquire Bobcat storage assets for $540 million

SAN DIEGO, Calif. - Natural gas pipeline operator Spectra Energy Corp. will spend $540 million to purchase Bobcat Gas Storage properties and a development project from GE Energy Financial Service and Haddington Energy Partners.
Spectra also said it will invest an additional $400 to $450 million to fully develop the facility by the end of 2015, adding that the facility will have a total gas storage capacity of 46 billion cubic feet (bcf).
"This project... is expected to earn returns on capital employed in the 10 to 12 percent range," Spectra CEO Greg Ebel said.
Once Bobcat is fully developed, Spectra's total North American storage capacity will be about 340 bcf, the company said.

Energy Transfer Equity closes deal to acquire Regency GP

DALLAS, Texas - Energy Transfer Equity LP said on May 26 that it has closed its acquisition of the general partner of Regency Energy Partners LP.
The deal means Energy Transfer Equity now owns the general partner of both pipeline firm Energy Transfer Partners LP and natural gas company Regency. Both will operate as separate entities.
In addition, Regency said it has closed on its purchase of nearly all of Energy Transfer Equity's stake in the Midcontinent Express Pipeline, which gives Regency a total of 49.9 percent of the pipeline. The Midcontinent Express Pipeline is about 500 miles long and extends from Oklahoma to Alabama.
Energy Transfer Equity used its preferred units worth about $300 million to buy all of Regency's general partner from an affiliate of GE Energy Financial Services.
The deal was announced May 11.

GE to invest $150 million in partnership with ATP in Gulf of Mexico

HOUSTON and STAMFORD, Conn. - GE Energy Financial Services, a unit of GE, has agreed to invest $150 million in a partnership with Houston-based ATP Oil & Gas Corp. which will own and operate a floating oil and gas production unit in deepwater Gulf of Mexico.
Subject to completion of customary closing conditions, GE Energy Financial Services will invest $150 million for a 49 percent limited partnership stake, its first investment in a floating oil and gas production facility.
ATP Oil & Gas will hold the remaining 51 percent stake and will serve as managing partner.