Quanta Services names O'Neil president, COO
Quanta Services Inc. has named James F. O'Neil to serve as president and COO. In this new position, O'Neil will oversee Quanta's operations and strategic initiatives across the electric power, natural gas, renewable energy, telecommunications, broadband cable and wireless industries.
O'Neil, who most recently served as a senior vice president, joined Quanta in 1999. Prior to joining Quanta Services, O'Neil spent 19 years with Halliburton where he held various positions that encompassed responsibility for the Gulf of Mexico operations, deepwater development and health, safety, and the environment.
He received a bachelor's degree from Tulane University in New Orleans.
NEB, Canadian Offshore Petroleum Board ink pipeline MOU
A memorandum of understanding signed by the National Energy Board (NEB) and the Canada-Nova Scotia Offshore Petroleum Board (CNSOPB) makes the regulation of pipelines more efficient and effective.
The construction, operation, decommissioning, abandonment and removal of offshore pipelines falls under the jurisdiction of both the NEB and CNSOPB. This new agreement reduces regulatory overlap by setting clear criteria for areas where cooperation can occur, such as: data sharing, emergency management, monitoring and enforcement, and staff exchanges.
The NEB is an independent federal agency that regulates important parts of Canada's energy industry. Its purpose is to promote safety and security, environmental protection, and efficient energy infrastructure and markets in the Canadian public interest, within the mandate set by Parliament in the regulation of pipelines, energy development and trade.
The CNSOPB is the independent joint agency of the Governments of Canada and Nova Scotia responsible for the regulation of petroleum activities and resources offshore Nova Scotia.
MarkWest CEO Semple gains chairman seat
MarkWest Energy Partners LP has made Frank M. Semple chairman of the board of directors. Semple will continue in his current position as president and CEO.
In addition, the board elected John M. Fox, who preceded Semple as chairman, as lead director. Fox will preside at executive sessions of the non-management directors and at full board meetings when the chairman is not present, serve as the principal liaison between the independent directors and the chairman and CEO, consult and work with the chairman to schedule board meetings and develop and approve board agendas, and perform such other duties as the board may determine from time to time.
MarkWest Energy Partners LP is a master limited partnership engaged in the gathering, transportation, and processing of natural gas; the transportation, fractionation, marketing, and storage of natural gas liquids; and the gathering and transportation of crude oil.
Tenaska Capital Management closes $2.4B private equity fund
Tenaska Capital Management LLC, an affiliate of Tenaska Inc., has closed TPF II LP, with more than $2.4 billion of committed capital. TPF II is the follow-on fund to the $838 million Tenaska Power Fund LP closed in 2005.
TPF II's investment professionals will invest in the following sectors of the US energy industry: power generation (including renewables); natural gas storage, pipeline and other gas midstream assets; and natural gas and power infrastructure goods and services.
Investors in TPF II include global financial institutions, endowments and public and private pension funds.
Greenhill & Co. LLC acted as placement agent and Debevoise & Plimpton LLP acted as legal counsel for TPF II.
NiSource, MarkWest plan natural gas midstream services expansion in West Virginia
NiSource Inc. unit Columbia Gas Transmission Corp. and MarkWest Energy Partners LP intend to jointly expand natural gas gathering and processing services to support increased production volumes in the Appalachian Basin of central West Virginia.
They are currently in discussions with several natural gas producers regarding plans to provide new gathering and processing services near Columbia Gas' Cobb aggregation system in Kanawha, Jackson, and Roane counties of West Virginia.
The expansion includes MarkWest's expansion of its Cobb gas plant, which will increase the total processing capacity to roughly 70 MMcf/d by mid 2009.
The natural gas liquids recovered at the Cobb gas processing plant will continue to be fractionated at MarkWest's Siloam fractionation, marketing and storage complex, which is in the final stages of a significant expansion.
The expansion would also include Columbia adding horsepower to its existing Cobb compressor station and installing new field gathering and compression facilities to bring new gas volumes to the Cobb gas processing plant.
Columbia Gas Transmission Corp. is an interstate gas transmission and storage company. NiSource Inc. is engaged in natural gas transmission, storage and distribution, as well as electric generation, transmission and distribution.
Chesapeake secures transportation capacity for Fayetteville production
Chesapeake Energy Corp.'s wholly-owned subsidiary, Chesapeake Energy Marketing Inc., has entered into a 10-year agreement for firm transportation of 375 million cubic feet per day (MMcfd) of natural gas and an option to transport an additional 125 MMcfd on the Fayetteville Express Pipeline, a new 42-inch, 187-mile pipeline system to be constructed by Kinder Morgan Energy Partners LP and Energy Transfer Partners LP.
The pipeline system that will transport natural gas from Chesapeake' Fayetteville Shale play in Arkansas will originate in Conway County, Arkansas, continue eastward through White County, Arkansas, and terminate at an interconnect with Trunkline Gas Co. in Quitman County, Mississippi.
The pipeline project is expected to be in service by late 2010 or early 2011.
GE Oil & Gas expands pipeline solutions staff, services in Calgary
GE Oil & Gas has expanded its PII Pipeline Solutions technical staff and engineering analysis services in Calgary on behalf of Canadian pipeline operators.
GE increased its pipeline data analysis department by 17 people in 2008 and its integrity engineering department to nine, full-time desk engineers, including a data software engineer to enable the newly enhanced levels of pipeline support services for its Canadian customers.
In 2008, GE's Calgary based operation also improved its pipeline crack management tools and related services as well as its PICA (post-inspection crack assessment) and PIDA (post inspection dent assessment) solutions with the introduction of GE's new generation of caliper tools.
The company has also introduced the new MagneScan, the next-generation of magnetic flux leakage (MFL) pipeline inspection technology.
Originally developed by PII Pipeline Solutions and now a commonly used non-destructive method for inspecting gas pipelines, high resolution MFL tools utilize magnetic fields to detect corrosion and other faults in pipelines.
GE's new MagneScan boasts improved magnetizer design and advanced sensor technology.
BJ Services bags inspection contract for Italy's National Gas Pipeline
BJ Services Co.'s pipeline inspection services group has been awarded a contract to provide in-line inspection services to Snam Rete Gas on the National Gas Pipeline Network, which transports gas throughout Italy.
Snam Rete Gas, an ENI Group company that owns and operates Italy's national gas pipeline system which extends over 31,000 kilometers, awarded the contract to BJ Services earlier this year. The two-year contract, which features a two year option to renew, is scheduled for completion in 2010.
Galsi, Snam Rete agree on pipeline commitment for Italy
Galsi and Snam Rete Gas have signed an agreement that confirms the mutual commitment to, and sets out the conditions for, the construction of the Italian section of the new pipeline importing gas from Algeria to Italy, via Sardinia.
The Galsi project includes the international undersea section, from the Algerian coast to the south of Sardinia near Cagliari, and the Italian section comprising the overland section crossing Sardinia and a new undersea section to Tuscany (near Piombino), where the pipeline will be connected to the Italian national transport network.
The pipeline will be approximately 900 kilometers in length overall, of which 600 km will be offshore and at a maximum depth of around 2800 meters between Algeria and Sardinia. The initial transport capacity will be 8 billion cubic meters a year.
Galsi will develop the engineering and obtain the main permits and authorizations required, and Snam Rete Gas will build the pipeline and subsequently manage the gas transport activities.
El Paso Pipeline Partners to acquire additional interest in CIG, SNG
El Paso Pipeline Partners LP has agreed to acquire an additional 30% interest in Colorado Interstate Gas Co. (CIG) and an additional 15% interest in Southern Natural Gas Co. (SNG) from El Paso Corp. for $736 million. The acquisition will increase El Paso Pipeline Partners' interest in CIG to 40% and its interest in SNG to 25%.
"We are delighted to announce the partnership's first acquisition from El Paso Corporation," said Jim Yardley, president and CEO for the general partner of El Paso Pipeline Partners. "Based solely on our current backlog of committed growth projects, we expect to achieve 8- to 10-percent average annual growth in distributable cash flow through 2012."
In conjunction with the acquisition, El Paso Pipeline Partners has made a $175 million private placement debt offering with an average annual rate of 7.6%, due 2011 through 2013. At closing, the acquisition will be financed with the private placement, $65 million from the partnership's existing revolving credit facility, a $10 million note to El Paso and 27,761,611 common units, all of which will be issued to El Paso.
With the issuance of the additional units, El Paso's ownership of limited partner units will increase from 65% to 73%. The general partner will acquire 0.6 million general partner units for $10 million, maintaining its 2% interest.
The conflicts committee engaged Tudor, Pickering, Holt & Co. to act as its financial advisor and to render a fairness opinion.
OGE, Energy Transfer sign JV
OGE Energy Corp. and Energy Transfer Partners LP have entered into an agreement to form a joint venture combining OGE's Enogex midstream business with ETP's interstate operations as well as its midstream operations in the Rocky Mountains.
The joint venture, ETP Enogex Partners LLC, will be jointly owned and managed by ETP and OGE on a 50/50 basis. The parties are contractually obligated to take various actions to facilitate an initial public offering of ETP Enogex Partners following the closing of the transaction, including the creation of a master limited partnership structure.
OGE will contribute to ETP Enogex Partners 100% of its ownership interest in Enogex LLC and ETP will contribute 100% of its ownership interests in Transwestern Pipeline Co. LLC and ETC Canyon Pipeline LLC and its 50% interest in Midcontinent Express Pipeline LLC.
ETP Enogex Partners will initially be led by an executive management team including Delaney and Warren; Danny Harris, senior vice president and COO of OGE Energy; and Mackie McCrea, president and COO of ETP.
OGE Energy Corp. was advised by UBS Investment Bank, and Energy Transfer was advised by Credit Suisse.
TransCanada Pipeline buys Bison Pipeline
TransCanada Corp. has acquired Bison Pipeline LLC from Northern Border Pipeline Co. The assets of Bison Pipeline LLC include executed precedent agreements as well as regulatory, environmental, and engineering work completed to date on the Bison Pipeline Project (Bison).
Bison is a proposed 289-mile pipeline from the Powder River Basin in Wyoming to the Northern Border Pipeline system in Morton County, North Dakota. TransCanada is also developing the Pathfinder Pipeline Project, a 625-mile, interstate natural gas pipeline that would extend from Meeker, Colorado to Morton County, North Dakota where it would interconnect with the Northern Border Pipeline system.
TransCanada will provide shippers on the proposed Bison Pipeline the opportunity to transport their production on the larger Pathfinder Project. Pathfinder has received significant shipping commitments that are subject to certain conditions and TransCanada is currently working with Pathfinder shippers to satisfy these conditions.
If these conditions cannot be met in a timely manner, then TransCanada, as part of the purchase arrangement with Northern Border, has agreed, subject to certain conditions, that it will proceed with the smaller Bison Project.
"The work completed to date on the Bison Project complements the significant advances we have made on our Pathfinder Pipeline Project," said Hal Kvisle, president and CEO of TransCanada. "This acquisition ensures that, either via Pathfinder or Bison, TransCanada will provide transportation services for US Rockies producers who are interested in moving their growing natural gas production to US Midwest markets."
Spiecapag wins new contract in Colombia
Pipeline contractor Spiecapag, a subsidiary of Entrepose Contracting, has been awarded a 70 million euro contract in Colombia by Pacific Rubiales Energy Corp. and Ecopetrol SA.
Obtained within the framework of a joint venture between Spiecapag and Ismocol, this new contract concerns the construction of the 235 kilometer, 24 inch pipeline between the Rubiales Oil Field, located in the Meta Province of Colombia, and the Monterrey Station, located in the Casanare Province. The total contract has a value of €123 million.
The pipeline will be built by Oleoducto de los Llanos Orientales SA, a special purpose vehicle organized for the pipeline project owned 35% by Pacific Rubiales and 65% by Ecopetrol. Canadian-based Pacific Rubiales owns 100% of Meta Petroleum Ltd., a Colombian oil operator which operates the Rubiales and Piriri oil fields in the Llanos Basin in association with Ecopetrol SA, the Colombian national oil company.
Entrepose Contracting specializes in the design and construction of industrial projects in the oil, gas, and energy sectors and shallow water operations.
Enbridge, BP to transport Canadian Oil across US by 2012
Enbridge Inc. and BP Pipelines (North America) Inc. have entered into an agreement to develop a new delivery system to transport Canadian heavy crude oil from Flanagan, Illinois, to Houston and Texas City, Tex., using a combination of existing facilities and new pipeline construction where required.
The new delivery system is expected to be in service by late 2012 with an initial total system capacity of 250,000 b/d into the Gulf Coast. Enbridge and BP intend to use the BP #1 System and other existing pipelines north of the Cushing, Okla. crude oil hub with some new pipeline construction south of Cushing, to connect to markets in Houston and possibly Nederland, Tex.
Initial receipts at Flanagan, where the system would interconnect with Enbridge Energy Partners' Southern Access pipeline, would be approximately 140,000 b/d with deliveries to Gulf Coast markets. The remaining 110,000 b/d would originate from interconnecting pipelines at Cushing.
A BP Pipelines affiliate is expected to be a significant committed shipper on the proposed system. Enbridge and BP Pipelines would make capacity available to other potential shippers on terms competitive with other Gulf Coast delivery proposals through commercial arrangements targeted to be concluded this fall. Terms will be subject to approval by applicable regulatory authorities.
The two companies plan to operate the pipeline system by way of a joint venture, subject to completing final agreements and securing other required approvals.
Enterprise signs agreements and plans pipeline expansion in Barnett
Enterprise Products Partners LP and its affiliates have signed new long-term agreements with major producers in the Barnett Shale region that will utilize roughly 900 million cubic feet per day of capacity on the partnership's 1.1 billion cubic feet per day Sherman Extension natural gas pipeline.
The partnership is expected to construct a pipeline that will transport new supplies of natural gas produced from the Barnett Shale in Tarrant and Denton Counties, Texas to the Sherman Extension pipeline.
The 178-mile Sherman Extension is a major expansion of Enterprise's Texas intrastate natural gas pipeline system that provides additional transportation capacity for production from the Barnett Shale and North Texas region. The Sherman Extension is expected to be completed in the fourth quarter of 2008.
To accommodate growing natural gas production from the Barnett Shale, Enterprise will build a new 40-mile supply lateral that will extend from the Trinity River Basin north of Arlington to an interconnect with the Sherman Extension pipeline near Justin, Tex.
This new pipeline will consist of 30-inch and 36-inch diameter pipeline designed to provide up to 1 bcfd of natural gas takeaway capacity for producers in Tarrant and Denton counties. This new pipeline will also have a lateral to provide transportation services for natural gas produced from the Newark East field in Wise County. These new pipelines are anchored by long-term agreements with major producers and are expected to be in service in the third quarter of 2009.
KMP acquires pipelines from Knight for $116M
Kinder Morgan Energy Partners LP has acquired two pipeline systems from Knight Inc., the private entity which owns the general partner of KMP.
The purchase includes Knight's one-third interest in the Express-Platte crude oil pipeline systems that run from Alberta to Illinois and a jet fuel pipeline that serves the Vancouver, British Columbia, airport. KMP paid Knight nearly 2 million KMP units (roughly $116 million) for the assets.
As a result of this transaction all Kinder Morgan Canada assets are now part of KMP.
Enterprise, TEPPCO, Oiltanking plan Texas Offshore port and pipeline
Enterprise Products Partners LP, TEPPCO Partners LP, and Oiltanking Holding Americas Inc. have formed a joint venture to design, construct, own, and operate a new Texas offshore crude oil port and pipeline system to facilitate delivery of waterborne crude oil to refining centers along the upper Texas Gulf Coast.
The Texas Offshore Port System (TOPS) project would include an offshore port, two onshore storage facilities with approximately 5.1 million barrels of total crude oil storage capacity, and an associated 160-mile pipeline system with the capacity to deliver up to 1.8 million b/d of crude oil. Development of the offshore port system and onshore infrastructure is supported by long-term contracts with Motiva Enterprises LLC and an affiliate of Exxon Mobil Corp.
Demand for TOPS is being driven by planned and expected refinery expansions along the upper Texas Gulf Coast that are anticipated to add roughly 425,000 b/d of capacity beginning in 2010, as well as expected increases in general ship traffic at onshore ports.
Affiliates of Enterprise, TEPPCO, and Oiltanking each have a one-third ownership in the new joint venture and expect to invest nearly $600 million each in the initiative, which, subject to obtaining certain regulatory approvals and permits, is scheduled to begin service in the fourth quarter of 2010.
Fluor wins $3.8B BP Whiting modernization project
Fluor Corp. was awarded multiple contracts by BP America for its Whiting (Ind.) Refinery modernization project. Fluor is responsible for overall program and construction management, engineering, procurement, fabrication and construction.
Fluor recently completed front-end engineering and design and began detailed engineering and construction in July 2008 with a projected completion date of fourth quarter of 2011. Fluor's engineering, procurement and fabrication scope will include a new gas oil hydrotreater, significant upgrades to a crude/vacuum unit, and the upgrade and modernization for the utilities and offsites.
When complete, the modernization project will increase the Whiting facility's gasoline production by 1.7 million gallons per day and will equip the refinery to process increased amounts of secure Canadian crude oil.
MarkWest buys gathering assets from Petroquest for $41.3M
MarkWest Energy Partners LP completed the acquisition of gathering assets primarily located in Pittsburg County in Southeast Oklahoma from Petroquest Energy LLC for $41.3 million. MarkWest will invest up to an additional $15 million in 2008 and $13 million in 2009 to support the development of Petroquest's Woodford Shale and coal bed methane initiatives.
Petroquest is the primary producer supporting these gathering systems, which are currently producing roughly 45MMcf/d. Petroquest has over 31,000 net acres dedicated to these gathering assets and currently has three drilling rigs operating in this area.
MarkWest Energy Partners LP is a growth-oriented master limited partnership engaged in the gathering, transportation, and processing of natural gas; the transportation, fractionation, marketing, and storage of natural gas liquids; and the gathering and transportation of crude oil.
Enbridge extends eSimOptimizer solution
Enbridge Energy Partners LP, an independent midstream natural gas company, has entered into a contract with eSimulation Inc. to deploy the eSimOptimizer real-time process optimization solution at the Avinger and Longview gas processing plants.
The eSimOptimizer solution calculates optimal process targets for the plant based on current operational conditions, equipment capability, commodity pricing, and producer contracts.
TEPPCO increases credit facility, expects no impact from Semgroup bankruptcy
TEPPCO Partners LP's total borrowing capacity under its revolving credit facility has been increased from $700 million to $950 million. The facility matures in December 2012.
In addition, the company confirmed that its subsidiary, TEPPCO Crude Oil LLC, is listed as one of the unsecured creditors in the bankruptcy filing by SemGroup LP and certain of its North American subsidiaries.
Through an existing netting agreement for crude oil sold to and purchased from a subsidiary of SemGroup, TEPPCO's credit exposure has historically been minimal. A review of the bankruptcy filings is still ongoing, but based on historical arrangements TEPPCO does not expect any future material impact as a result of the bankruptcy nor does it expect any future material credit exposure to SemGroup. SemGroup has represented less than 3% of the partnership's current crude oil gathering volumes.
TEPPCO Partners LP, a publicly traded partnership with an enterprise value of nearly $5 billion, is a diversified energy logistics company. TEPPCO owns and operates assets that facilitate the movement, marketing, gathering, and storage of various commodities and energy-related products. The partnership's midstream network is comprised of roughly 12,500 miles of pipelines that gather and transport refined petroleum products, crude oil, natural gas, liquefied petroleum gases, and natural gas liquids.
Regency Energy Partners raises $200M to fuel growth
Dallas-based Regency Energy Partners LP has agreed to raise $200 million of common equity. The company will issue roughly nine million common units to affiliates of GE Energy Financial Services, funds managed by Kayne Anderson Capital Advisors LP, RCH Energy Partners, Swank Energy Income Advisors LP, Lehman Brothers MLP Opportunity Fund LP, and certain other institutional investors. GE Energy Financial Services is the owner of Regency's general partner.
Net proceeds of $204 million from the issuance will be used to repay indebtedness under Regency's revolver and to fund upcoming growth opportunities
Regency Energy Partners LP is a growth-oriented, midstream energy partnership engaged in the gathering, contract compression, processing, marketing and transporting of natural gas and natural gas liquids.
Tidelands offered extension on Burgos Hub pipeline permits
Tidelands Oil & Gas Corp. has been granted an extension from energy regulators in the US and Mexico on the company's planned international Burgos Hub project.
The Burgos Hub is a natural gas project that, once completed, will be able to transport gas to and from South Texas and Northern Mexico. On May 21, the US Federal Energy Regulatory Commission granted Sonora Pipeline LLC an extension to build and operate the Burgos Hub project. Sonora is a wholly owned subsidiary of Frontera Pipeline LLC, which is 20% owned by Tidelands.
US regulators granted the permit extension in order to give the company more time to line up parties in Mexico to take advantage of commercial use of the gas storage facilities. Sonora has until July 10, 2010, to complete the project in South Texas.
On May 29, Mexico's Energy Regulatory Commission granted a one-year extension to Terranova Energia S. de RL de CV to file its final cost and income proposal. Terranova is responsible for developing the international pipeline on the Mexico side. Terranova is also owned by Frontera.
Tidelands executives requested the one-year extension with Mexican regulators because the company is waiting for the results of energy reform legislation currently under debate among Mexican lawmakers. The results could affect the company's natural gas storage facility permit application.
San Antonio-based Tidelands develops natural gas pipelines and storage and receiving facilities.
New ExxonMobil project commercializes NGL in Nigeria
An affiliate of Exxon Mobil Corp. has begun operations of a $1.3 billion project in Nigeria to produce and sell natural gas liquids (NGL). Operated by Mobil Producing Nigeria Unlimited the East Area Natural Gas Liquids II project involves the recovery of 275 million barrels of MGL from associated gas produced in East Area reservoirs.
Major components of the project include an offshore natural gas liquids extraction complex, more than 125 miles of new natural gas and NGL pipelines and expansion of the existing onshore Bonny River Terminal for fractionation of the liquids into commercial products and offloading. The East Area NGL II project will produce at its peak about 50,000 bbls of NGL per day.
Approximately $220M of the total project financing was completely arranged through Nigerian banks.
The project is located approximately 17 miles offshore Nigeria and on Bonny Island, Nigeria. Mobil Producing Nigeria (51% interest) is operator of the project with co-venture partner Nigerian National Petroleum Corp. (49%).
PetroNeft raises $17.3M to construct new pipeline
PetroNeft Resources plc, 100% owner of Stimul-T, the sole owner and operator of Licence 61, Tomsk Oblast, Russian Federation, has placed 34,527,141 new ordinary shares, raising roughly US$17.3 million.
The funds will be used in combination with the US$80 million Standard Bank debt facility to develop PetroNeft's portfolio of four oil fields and exploration assets contained within Licence 61, Tomsk Oblast, Russia.
Current projections for the first two fields, Lineynoye and West Lineynoye, estimate initial production rates of 4,000 b/d in 2009, rising to 14,000 b/d in 2012.
In addition, the funds will be used to manage field development issues, infrastructure and development costs, ongoing business development and finally general corporate overheads.
The placing is being executed in two tranches and has been arranged by Davy and KBC Peel Hunt.
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