MANATEE, Fla. - Manatee County commissioners said on Sept. 3 that they will support a compromise route for the proposed Port Dolphin pipeline, but only with conditions. Among them: That the county be allowed to remove high-quality beach sand in the natural gas pipeline’s proposed path before it is built.
That’s the position the county plans to submit to the U.S. Coast Guard, which is taking public comment on a draft environmental study of Port Dolphin Energy LLC’s $1 billion proposal.
The company wants to put a platform 28 miles from shore, where ships would unload liquefied natural gas. The gas then would be shipped through the pipeline, which would come ashore at Port Manatee and connect with existing land pipelines for distribution.
County and Longboat Key officials initially objected to the pipeline’s original proposed route because it would cross prime sources of sand for beach renourishment. The company later agreed to move the pipeline farther north but not far enough in the eyes of town officials, who continue to explore possible legal action.
“We are pleased that there is a potential resolution for us to move sand out of the way in advance,” said Bruce St. Denis, Longboat Key’s town manager.
Port Dolphin officials also have said they are willing to help the county get the sand by paying the permitting costs, estimated at $400,000 to $500,000, as well as sharing in the dredging costs, said Charlie Hunsicker, the county’s natural resources director. The Florida Department of Environmental Protection also has indicated a willingness to reduce the permitting process from two or three years to as little as one year, he said.
Wednesday, September 9, 2009
Tuesday, September 8, 2009
Quanta Services to acquire pipeline service company Price Gregory
HOUSTON - Quanta Services, Inc., on Sept. 3 announced that it has agreed to acquire privately held Price Gregory Services, Inc., a leading natural gas and oil
transmission pipeline infrastructure service provider in North America, in a
cash and stock transaction valued at approximately $350 million.
Under the terms of the agreement, Quanta will issue approximately 11.1 million shares of Quanta common stock, valued at $250 million, and will pay approximately $100 million in cash, subject to adjustment, to the stockholders of Price Gregory.
Price Gregory is the leading energy infrastructure services provider of its
kind, specializing in the construction of large-diameter transmission
pipelines.
The acquisition of Price Gregory strongly positions Quanta as a leader in the North American energy transmission infrastructure market and will enable the company to take advantage of the positive long-term outlook for the natural gas industry.
"The acquisition of Price Gregory is a strategic move that will significantly
expand the scale and scope of Quanta's existing natural gas operations. We are
confident that the additional resources, expertise and client relationships
that Price Gregory brings will support our efforts to capture attractive
opportunities in the natural gas pipeline infrastructure market, which is
projected to grow significantly in the next decade and beyond," said John R.
Colson, chairman and chief executive officer of Quanta.
Prior to the global economic downturn, Price Gregory achieved revenues of more
than $1.41 billion and earnings before interest, taxes, depreciation and
amortization (EBITDA, a non-GAAP measure) of $258 million for the year ended
Dec. 31, 2008. Price Gregory is expected to achieve revenues between $1.1
billion and $1.2 billion and EBITDA between $170 million and $190 million for
the year ended Dec. 31, 2009, and revenues between $700 million and $900
million in 2010.
transmission pipeline infrastructure service provider in North America, in a
cash and stock transaction valued at approximately $350 million.
Under the terms of the agreement, Quanta will issue approximately 11.1 million shares of Quanta common stock, valued at $250 million, and will pay approximately $100 million in cash, subject to adjustment, to the stockholders of Price Gregory.
Price Gregory is the leading energy infrastructure services provider of its
kind, specializing in the construction of large-diameter transmission
pipelines.
The acquisition of Price Gregory strongly positions Quanta as a leader in the North American energy transmission infrastructure market and will enable the company to take advantage of the positive long-term outlook for the natural gas industry.
"The acquisition of Price Gregory is a strategic move that will significantly
expand the scale and scope of Quanta's existing natural gas operations. We are
confident that the additional resources, expertise and client relationships
that Price Gregory brings will support our efforts to capture attractive
opportunities in the natural gas pipeline infrastructure market, which is
projected to grow significantly in the next decade and beyond," said John R.
Colson, chairman and chief executive officer of Quanta.
Prior to the global economic downturn, Price Gregory achieved revenues of more
than $1.41 billion and earnings before interest, taxes, depreciation and
amortization (EBITDA, a non-GAAP measure) of $258 million for the year ended
Dec. 31, 2008. Price Gregory is expected to achieve revenues between $1.1
billion and $1.2 billion and EBITDA between $170 million and $190 million for
the year ended Dec. 31, 2009, and revenues between $700 million and $900
million in 2010.
Friday, September 4, 2009
Latent hurricane damage investigated in Eugene Island pipeline accident
HOUSTON - Investigators are assessing whether latent damage from recent hurricanes contributed to the Eugene Island pipeline leak in the U.S. Gulf of Mexico in July, a federal pipeline agency spokesman said on Sept. 1.
Damon Hill, spokesman for the U.S. Department of Transportation's Pipeline and Hazardous Materials Safety Administration (PHMSA), said the issue is an ongoing concern after recent active seasons featuring several strong storms.
"We do know that a lot of pipelines were affected in the Gulf from past hurricanes, especially when Katrina and Rita came. There were a lot of after-effects," said Hill, whose agency is leading the inquiry.
The U.S. Minerals Management Service, part of the investigation team, acknowledges the possibility of undetected damage after offshore oilfields were raked by storms, notably Ivan in 2004, Katrina and Rita in 2005 and Gustav and Ike in 2008.
"So far, we have not seen a trend of damage showing up later. Of course, with back-to-back storms, it may be hard to determine," said Eileen Angelico, spokeswoman for MMS.
Pipeline operator Shell Pipeline, which has said it expects to have the line repaired and back in operation by late September, declined comment on potential causes.
Damon Hill, spokesman for the U.S. Department of Transportation's Pipeline and Hazardous Materials Safety Administration (PHMSA), said the issue is an ongoing concern after recent active seasons featuring several strong storms.
"We do know that a lot of pipelines were affected in the Gulf from past hurricanes, especially when Katrina and Rita came. There were a lot of after-effects," said Hill, whose agency is leading the inquiry.
The U.S. Minerals Management Service, part of the investigation team, acknowledges the possibility of undetected damage after offshore oilfields were raked by storms, notably Ivan in 2004, Katrina and Rita in 2005 and Gustav and Ike in 2008.
"So far, we have not seen a trend of damage showing up later. Of course, with back-to-back storms, it may be hard to determine," said Eileen Angelico, spokeswoman for MMS.
Pipeline operator Shell Pipeline, which has said it expects to have the line repaired and back in operation by late September, declined comment on potential causes.
Thursday, September 3, 2009
Energy Transfer Partners completes Texas, Colorado pipelines
DALLAS - Energy Transfer Partners, L.P. announced on Aug. 31 the completion of the 160-mile Texas Independence Pipeline. This new natural gas pipeline increases the Partnership`s take away capacity in Texas by an incremental 1.1 billion cubic feet per day.
Energy Transfer operates the largest intrastate pipeline system in Texas, with nearly 8,000 miles of pipeline in the state.
Energy Transfer has also completed the Rulison expansion project in Colorado.
The 42-inch Texas Independence natural gas pipeline serves the Bossier and
Barnett Shale natural gas resource plays in east and north central Texas.
Originating just west of Maypearl, Texas, and ending near Henderson, Texas, the
Texas Independence Pipeline connects the Partnership`s existing central and
north Texas infrastructure to its east Texas pipeline network. With the addition
of compression, the project may be expanded to transport natural gas volumes in
excess of 1.75 billion cubic feet per day.
"The completion of the Texas Independence Pipeline is another exciting milestone for us as it is our third 42-inch natural gas pipeline in Texas that allows
natural gas from Waha, the Barnett Shale and Bossier Sands to reach markets
throughout east and southeast Texas," said Roy Patton, senior vice president -
commercial, Energy Transfer Partners. "While we continue to build necessary
infrastructure in the Fort Worth Basin, our efforts remain equally focused on
expanding our system into other emerging natural gas fields, including the
Fayetteville and Haynesville, where previously announced pipeline projects
proceed as scheduled. We want to take our leadership position in the Barnett
Shale and leverage that in these new areas in order to continue to offer our
customers the unparalleled market access they have come to expect from us."
The Rulison expansion project includes the 10-mile, 24-inch Rulison pipeline and
the Holmes Mesa compressor station in Garfield County, Colo. These projects
are designed to increase the capacity of the Partnership`s South Parachute -
Rifle pipeline system. The project will also create a new outlet for producers
to access the Meeker processing plant at the White River Hub.
The Rulison pipeline will initially add more than 70 million cubic feet per day
of capacity, with the ability to expand to more than 200 million cubic feet per
day in the future. The Holmes Mesa compressor station has more than 9,000
horsepower of compression.
Energy Transfer operates the largest intrastate pipeline system in Texas, with nearly 8,000 miles of pipeline in the state.
Energy Transfer has also completed the Rulison expansion project in Colorado.
The 42-inch Texas Independence natural gas pipeline serves the Bossier and
Barnett Shale natural gas resource plays in east and north central Texas.
Originating just west of Maypearl, Texas, and ending near Henderson, Texas, the
Texas Independence Pipeline connects the Partnership`s existing central and
north Texas infrastructure to its east Texas pipeline network. With the addition
of compression, the project may be expanded to transport natural gas volumes in
excess of 1.75 billion cubic feet per day.
"The completion of the Texas Independence Pipeline is another exciting milestone for us as it is our third 42-inch natural gas pipeline in Texas that allows
natural gas from Waha, the Barnett Shale and Bossier Sands to reach markets
throughout east and southeast Texas," said Roy Patton, senior vice president -
commercial, Energy Transfer Partners. "While we continue to build necessary
infrastructure in the Fort Worth Basin, our efforts remain equally focused on
expanding our system into other emerging natural gas fields, including the
Fayetteville and Haynesville, where previously announced pipeline projects
proceed as scheduled. We want to take our leadership position in the Barnett
Shale and leverage that in these new areas in order to continue to offer our
customers the unparalleled market access they have come to expect from us."
The Rulison expansion project includes the 10-mile, 24-inch Rulison pipeline and
the Holmes Mesa compressor station in Garfield County, Colo. These projects
are designed to increase the capacity of the Partnership`s South Parachute -
Rifle pipeline system. The project will also create a new outlet for producers
to access the Meeker processing plant at the White River Hub.
The Rulison pipeline will initially add more than 70 million cubic feet per day
of capacity, with the ability to expand to more than 200 million cubic feet per
day in the future. The Holmes Mesa compressor station has more than 9,000
horsepower of compression.
Wednesday, September 2, 2009
Kinder Morgan buying Crosstex gas assets for $266 million
HOUSTON - Kinder Morgan Energy Partners LP said on Aug. 31 that it will purchase the natural gas treating business of Dallas-based Crosstex Energy LP and Crosstex Energy Inc. for about $266 million.
The deal, which is expected to close in the fourth quarter, will make the Houston pipeline transportation company the largest provider of contract-provided treating plants in the United States.
KMP is purchasing approximately 290 amine-treating and dew-point control plants predominantly located in Texas and Louisiana, with additional facilities in Mississippi, Oklahoma, Arkansas and Kansas. The transaction will make KMP the largest provider of contract-provided treating plants in the United States.
“We are pleased to have the opportunity and financial strength to grow our company even during difficult economic times,” said Richard D. Kinder, chairman and CEO of KMP. “We look forward to offering natural gas treating services to our Texas intrastate customers and to other producers in various supply basins, including the rapidly developing shale plays.
The deal, which is expected to close in the fourth quarter, will make the Houston pipeline transportation company the largest provider of contract-provided treating plants in the United States.
KMP is purchasing approximately 290 amine-treating and dew-point control plants predominantly located in Texas and Louisiana, with additional facilities in Mississippi, Oklahoma, Arkansas and Kansas. The transaction will make KMP the largest provider of contract-provided treating plants in the United States.
“We are pleased to have the opportunity and financial strength to grow our company even during difficult economic times,” said Richard D. Kinder, chairman and CEO of KMP. “We look forward to offering natural gas treating services to our Texas intrastate customers and to other producers in various supply basins, including the rapidly developing shale plays.
Tuesday, September 1, 2009
Plains All American acquiring Vulcan Capital share in natural gas storage venture
HOUSTON - Plains All American Pipeline, L.P. and Vulcan Capital on Aug. 28 announced that they have executed definitive agreements under which a subsidiary of PAA will acquire Vulcan Capital's 50 percent indirect interest in PAA Natural Gas Storage, LLC (PNGS).
The aggregate purchase price of $220 million consists of $90 million cash, 1.9 million PAA common units valued at $90 million and deferred contingent cash consideration of up to $40 million. The contingent consideration is subject to achievement of certain events and performance milestones expected to occur over the next several years. The transaction is expected to close on Sept. 3, 2009.
As a result of the transaction, PAA will own all of the natural gas storage business and related operating entities, which will be accounted for on a consolidated basis.
The Partnership has historically accounted for its 50 percent indirect interest in PNGS under the equity method. At closing, PAA will repay the joint venture's outstanding project finance debt using joint venture cash and borrowings under its revolving credit facility. As of June 30, 2009, the joint venture had approximately $450 million of debt and approximately $52 million of cash.
The aggregate purchase price of $220 million consists of $90 million cash, 1.9 million PAA common units valued at $90 million and deferred contingent cash consideration of up to $40 million. The contingent consideration is subject to achievement of certain events and performance milestones expected to occur over the next several years. The transaction is expected to close on Sept. 3, 2009.
As a result of the transaction, PAA will own all of the natural gas storage business and related operating entities, which will be accounted for on a consolidated basis.
The Partnership has historically accounted for its 50 percent indirect interest in PNGS under the equity method. At closing, PAA will repay the joint venture's outstanding project finance debt using joint venture cash and borrowings under its revolving credit facility. As of June 30, 2009, the joint venture had approximately $450 million of debt and approximately $52 million of cash.
U.S. natural gas storage near to full, worries of further price deflation grow
U.S. energy companies have been stuffing extra gas into salt caverns, aquifers and depleted oil wells. By the time winter heating demand starts to empty these reservoirs, analysts predict they will be brimming with record amounts of the fuel, possibly growing so full that gas backs up into pipelines.
The prospect of not enough storage could further deflate U.S. gas prices that have recently traded at seven-year lows.
Storage in the gas-rich producing region that stretches from Alabama to New Mexico has hit a record 1,074 billion cubic feet more than two months before the traditional end of the gas injection season.
The region is home to the Henry Hub, the Louisiana delivery point for gas futures on the New York Mercantile Exchange, where gas for October delivery on Aug. 26 traded at $3.27 per million British thermal units.
Options traders have recently stepped up bets that prices will fall below $2 per mBtu by then, and spot gas could drop even further if producers have nowhere to store their output.
The prospect of not enough storage could further deflate U.S. gas prices that have recently traded at seven-year lows.
Storage in the gas-rich producing region that stretches from Alabama to New Mexico has hit a record 1,074 billion cubic feet more than two months before the traditional end of the gas injection season.
The region is home to the Henry Hub, the Louisiana delivery point for gas futures on the New York Mercantile Exchange, where gas for October delivery on Aug. 26 traded at $3.27 per million British thermal units.
Options traders have recently stepped up bets that prices will fall below $2 per mBtu by then, and spot gas could drop even further if producers have nowhere to store their output.
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