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MEMBER PROFILE
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MEMBER NEWS
Paradigm Liaison Services, LLC Acquires SafetyComm Solutions: Expands Service Offerings to Oil and Gas Industry
July 20, 2007 (Wichita, KS) – Paradigm Liaison Services, LLC is pleased to announce its agreement in principle to acquire the assets of SafetyComm Solutions. An established industry leader, Paradigm® is an innovator in public awareness direct mail programs. Well-versed in RP 1162 requirements, Paradigm® provides turnkey public awareness programs to pipeline, transmission, gathering and distribution operators nationwide.
Indianapolis-based SafetyComm Solutions is a complimentary service provider, offering Safety Awareness Training Programs to the oil and gas industry. Different from Paradigm®, SafetyComm services are in the form of face-to-face professional safety awareness training. Offered across the country year-round, SafetyComm pipeline safety awareness training programs target emergency responders, public officials, contractors and excavators.
“The acquisition of SafetyComm is a natural next step in the growth of Paradigm® as we strive to better service the oil and gas industry,” said Mark G. Allen, President of Paradigm®. “We are thrilled to be able to better support our clients’ public awareness efforts by bringing yet another service offering under our roof. With the creation of Paradigm Liaison Services, we now have another value-added program to offer pipeline operators in hopes of enhancing program continuity, execution and most of all effectiveness,” continued Allen.
Currently serving more than 500 pipeline, transmission, gathering and distribution operators nationwide, Paradigm® has been providing public awareness direct mail programs for the oil and gas industry since 2000. Based in Wichita, KS, the company also has locations in Houston, TX and Washington, DC. <www.pdigm.com>
Gulfstream Natural Gas System L.L.C.
Sets Open Season for Proposed Mainline Expansion
TAMPA, Fla.- May 17, 2007- Gulfstream Natural Gas System, L.L.C. announced today that it will conduct an open season from June 1 to August 31 to gauge market interest in an expansion of its existing natural gas pipeline system to serve Florida's rapidly growing natural gas market.
New service from the mainline expansion is anticipated to be available beginning in late 2011, pending Federal Energy Regulatory Commission and other agency approvals.
"The Florida natural gas market continues to experience robust growth at rates far above the national average. We expect this growth will continue through the next decade," said Brad Reese, Gulfstream vice president. "Gulfstream will be fully subscribed in 2009 and this mainline expansion will provide our customers with an opportunity to address their future energy needs with flexible, reliable transportation services for 2011 and beyond."
Up to 750,000 dekatherms per day of incremental firm transportation service will be made available through the open season.
"This project will allow us to economically serve our customers' future natural gas needs while taking Gulfstream to the next level," Reese added. "We have planned this expansion to offer our customers the flexibility needed to meet their service requirements."
Additional open season details will be available on Gulfstream's Web site starting June 1. Shippers desiring to secure capacity will be required to submit a non-binding nomination and a refundable deposit.
Placed into service in May 2002, Gulfstream Natural Gas System L.L.C. is a 691-mile pipeline system with the capacity to deliver 1.1 billion cubic feet of natural gas each day to serve Florida's growing energy needs. The pipeline is a joint development between Williams (NYSE:WMB) and Spectra Energy (NYSE:SE).
Falcon Gas Storage Subsidiary Closes on $335 Million Bank Loan
Facility
HOUSTON--(BUSINESS WIRE)--
Falcon Gas Storage Company, Inc. today announced that its newly created
wholly-owned subsidiary, NorTex Gas Storage Company, LLC, has closed on a
secured $335 million bank loan package for the expansion of its Hill-Lake
and Worsham-Steed gas storage facilities in North Texas.
The financing consists of a $280 million construction and term loan that
will be used to complete the Phase II and Phase III expansions of the
Hill-Lake Gas Storage Facility in Eastland County, as well as the Phase I
and Phase II expansions of the Worsham-Steed Gas Storage Facility in Jack
County. The latter project includes the construction of a 63-mile, 24-inch
450,000 Mcfd take-away pipeline that will traverse through the western
expansion of the Barnett Shale gas play in North Texas.
The construction and term loan also will be used to finance the fabrication
and installation of two 60,000 Mcfd cryogenic gas processing plants designed
to recover up to an aggregate total of 240,000 gallons per day of natural
gas liquids (NGLs) from both gas storage reservoirs; the expansion of crude
oil production operations at both facilities, including an enhanced oil
recovery (EOR) project at Worsham-Steed; and the recovery of crude oil
produced in association with gas storage operations at both locations. The
remaining $55 million in financing consists of a working capital facility
that will be used to purchase, hedge and trade working gas storage inventory
as well as for general corporate purposes.
NorTex Gas Storage Company, LLC, a special purpose wholly-owned subsidiary
of Falcon Gas Storage Company, is the borrower under the bank financing. It
holds title to both the Worsham-Steed and Hill-Lake assets through various
wholly-owned operating subsidiaries. Barclays Capital and WestLB AG acted as
Lead Arrangers and Joint Bookrunners. WestLB also acted as exclusive
financial advisor to NorTex with respect to the structuring of the
financing.
"This new bank financing represents the next big step for us in implementing
our business strategy, following the equity investment by Arcapita in 2005,"
said Falcon President and CEO John M. Hopper. "We've been involved for over
six years in gas storage development and operations activity in North Texas.
The financing will allow NorTex to complete the full-phase expansions at
both Hill-Lake and Worsham-Steed, as well as construction of a new 450,000
Mcfd take-away pipeline in the Barnett Shale, in order to meet the growing
demand for high-deliverability, multi-cycle (HDMC) gas storage services and
gas transportation services in the rapidly expanding North Texas energy
market. It also will enable NorTex to fully exploit the extraordinary
economic potential of the Hill-Lake and Worsham-Steed storage reservoirs by
expanding the gas processing, natural gas liquids, and crude oil production
activities NorTex conducts in association with its gas storage operations in
North Texas."
About Falcon Gas Storage Company, Inc.
Through its wholly-owned subsidiaries and affiliated companies,
Houston-based Falcon Gas Storage Company is one of the largest independently
owned developers and operators of high-deliverability, multi-cycle (HDMC)
natural gas storage capacity in the United States. Falcon's NorTex Gas
Storage Company subsidiary owns and operates more than 27 Bcf of gas storage
capacity and 750,000 Mcfd of deliverability at its Hill-Lake and
Worsham-Steed gas storage facilities, as well as 450,000 Mcfd of gas
transportation capacity, serving Dallas/Ft. Worth and the Waha and Carthage
Market Hubs. Through its MoBay Storage Hub LLC affiliate, Falcon also is
developing a 50 Bcf HDMC gas storage project in southern Alabama with 1.0
Bcfd of injection and withdrawal capacity. Falcon subsidiaries also are
involved in crude oil production, including enhanced oil recovery, natural
gas processing and liquids production, and gas, crude oil and NGLs trading.
About Arcapita Bank B.S.C.
Arcapita operates out of three offices, in Bahrain, Atlanta and London,
where it employs 236 people. It has a balance sheet footing of $2.8 billion
(as of September 30, 2006) and has completed 58 investments with a total
transaction value of over $18 billion in its four lines of business:
corporate investment, real estate investment, asset-based investment and
venture capital.
Plantation Pipe Line and Central Florida Pipeline Announce Change in Ultra- Low-Sulfur Diesel (ULSD) Specification
Dec. 13 -- Plantation Pipe Line Company and Central Florida Pipeline Company, both subsidiaries of Kinder Morgan Energy Partners (NYSE: KMP), announced today that they will raise the sulfur specification for ultra-low-sulfur diesel (ULSD) at their pipeline points of origin from 8 parts per million to 10 parts per million effective Jan. 1, 2007 (pipeline cycle #1). The increase was made possible by changes in operating procedures and infrastructure and is expected to immediately benefit our customers.
Additionally, Plantation is evaluating the possibility of allowing the transportation of a biodiesel blend (B2 to B20) along the mainline system from Baton Rouge, La., to Greensboro, N.C. The companies believe this service may be feasible because Plantation can utilize separate pipeline systems to segregate blended biodiesel from products sensitive to contaminants (such as aviation turbine fuel and military JP-8). Parties interested in exploring this opportunity may contact Mark Evans, director of business development, at (713) 369-9393 for further information.
Bay Gas to Build Two New Caverns
By George Talbot, Business Reporter, Mobile Register, October 05, 2006--Bay Gas Storage Co., a fast-growing subsidiary of Mobile-based EnergySouth Inc., said Wednesday it will carve out a pair of new natural gas storage caverns near McIntosh to help meet rising demand from across the Southeast.
The two caverns will have a total capacity of 10 billion cubic feet of natural gas and will be constructed inside an underground salt dome about 40 miles north of Mobile in southeast Washington County.
Each will connect to nearby interstate pipelines operated by the Houston-based Transcontinental Gas Pipe Line Co. and the Birmingham-based SONAT Inc.
Construction of the caverns is contingent on state and federal regulatory approvals, and on customer demand, according to the company. Bay Gas said it would invite potential customers to bid on the caverns' storage services beginning today through Nov. 3.
The cost of the project was not disclosed. Bay Gas said it expected to have the caverns completed and in service by fall 2009.
"We believe additional market opportunities for salt-dome storage services exist in the Mid-South region and along the East Coast," said Greg Welch, president and chief executive officer of Bay Gas.
Bay Gas currently operates two caverns in the McIntosh salt dome and is nearing completion of a third. The two existing caverns are operating at their full capacity of more than 6 billion cubic feet. Each have direct connections to interstate pipelines operated by Florida Gas Transmission Co. and Gulf South Pipeline Co., both based in Houston.
The third cavern now under construction will add another 5 billion cubic feet when it is completed next summer, according to the company. That project will cost Bay Gas about $60 million, but the new capacity already is fully committed to a group of customers including BP Energy Co. and Progress Energy Florida Inc.
Gas storage has become big business for EnergySouth, the parent company of Mobile Gas Service Corp., which distributes gas to about 100,000 customers in and around Mobile.
Bay Gas today accounts for about 40 percent of EnergySouth's earnings, according to the company. EnergySouth reported net income of almost $14 million last year, up 10 percent from 2004, according to Securities and Exchange Commission filings.
EnergySouth is a "terrific, terrific business," primarily because of its gas storage component, said Peter Ricchiuti, who follows the company as assistant dean of the A.B. Freeman School of Business at Tulane University in New Orleans.
"They get very, very good rates for (gas storage), and the demand for it is incredibly high," said Ricchiuti, founder and director of the Burkenroad Reports, a securities research program.
The McIntosh salt dome extends about four miles deep and a mile wide, and the beer bottle-shaped caverns are nearly as massive. The third cavern, now under construction, will be 1,200 feet deep -- roughly the height of the Empire State Building in New York -- and nearly 250 feet wide.
The fourth and fifth caverns will make gas storage "the dominant driver of earnings growth for EnergySouth," said Dean Liollio, a Houston native who joined the company as president and chief executive officer in August, replacing John Davis.
Shares of EnergySouth (Nasdaq: ENSI) rose $1.23 Wednesday to close at $34.94.
(Press-Register Business Reporter Kaija Wilkinson contributed to this report.)
SWS First Response
SWS has opened a new Service Center in Nashville, Tennessee. This service center, located just outside of the downtown area, is a fully equipped response center for conducting emergency response, remediation, vacuum truck and other related industrial services. The geographic location will literally connect the dots between the Decatur and Paducah Service Centers to reduce emergency response time in that region. The new facility includes 11,500 square feet of warehouse and office space along with a storage yard and generous parking. Located minutes from I-65, I-40 and downtown, SWS looks forward to providing services to new clients and continuing efforts to serve current clients with interests in the Nashville and surrounding areas.
Celebrating their 16th year since incorporating in 1990, Southern Waste Services, Inc. d/b/a SWS First Response (SWS) has grown from a small local environmental firm, to one of the premier emergency response and environmental service contractors in the country. Currently operating from 16 service centers in Florida, Georgia, Alabama, Kentucky, and Tennessee, SWS employs more than 150 personnel and operates over 100 pieces of rolling stock.
GulfStream Phase IV Expansion
Gulfstream Natural Gas System, L.L.C., announced it executed an agreement with Progress Energy to provide 155,000 dekatherms of natural gas per day of firm transportation capacity to serve Progress's Bartow Power Plant in Pinellas County, Fla.
The expansion project, known as Gulfstream's Phase IV Expansion, is the first project to increase Gulfstream's original mainline capacity. The project includes construction of approximately 17.5 miles of 20 inch diameter pipeline that will connect the existing Gulfstream pipeline to the Bartow Power Plant. The project also will require the installation of additional compression in Coden, Ala., and Manatee County, Fla.
Falcon's MoBay Storage Hub Files Certificate Application with FERC
MoBay Storage Hub, Inc., a subsidiary of Falcon Gas Storage Company, Inc., has applied to the Federal Energy Regulatory Commission (FERC) for a Certificate of Public Convenience and Necessity under Section 7 of the Natural Gas Act seeking authorization to develop and operate the MoBay Storage Hub Project in Southern Alabama. MoBay, to be connected to the Gulfstream, Transco, Gulf South, and Florida Gas Transmission pipelines, will provide open-access, high-deliverability, multi-cycle natural gas storage and hub services at market-based rates to the Gulf Coast region. The strategic location of this project near multiple interstate pipelines will add much needed flexibility to the existing gas infrastructure, and MoBay's storage facility design will provide secure supply during deepwater supply disruptions caused by hurricane activity.
Ecology and Environment, Inc. (E&E) Awarded $15MM Contract
E & E was recently awarded a five-year, $15-million Basic Ordering Agreement for Architect-Engineer Hazardous Toxic and Radioactive Waste (HTRW) Environmental Services within United States Environmental Protection Agency (USEPA) Region VI Boundaries.
SGR Holdings, LLC
SGR Holdings, LLC announed its wholly-owned subsidiary, SG Resources Mississippi, LLC (SGRM) has begun construction on Phase I of the Southern Pines Energy Center, a new salt-dome natural gas storage project located in Greene County, Mississippi. Phase I of the high-deliverability Southern Pines Energy Center storage facility has been designed to provide 8 billion cubic feet (Bcf) of natural gas storage capacity. The project is estimated to begin service in the summer of 2007. SGRM plans a Phase II development starting in 2006 , which will add a second 8 Bcf cavern on the 80-acre Southern Pines site.
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