• Barclays: Russian Gas Tied to Spot Prices May Increase U.S. LNG Imports

• Spectra Energy to Continue to Growing Through Diversity
• New EPA Rules Would Favor Gas-Fired Power Generation Over Coal-Fired
• Marcellus Already Drilled Plenty in NY; Not a Threat to Water Supply

• Energy Transfer Partners: Turned Corner in Q4 2009
• February Frac Spread: Butane and C5+ Only NGLs with Margin Growth
• ONEOK Signs Long-Term Deal for Frac Capacity at Targa Plant
• Final Countdown to GPA Convention Begins

• Conway Ethane Margins Improve 10%

• Butane Prices Up 2% at Both Conway and Mont Belvieu

• Sempra Energy to Acquire Mexican Pipeline Assets from El Paso Corp.

• Nabucco Pipeline Continues to Face Headwinds

Spectra Energy to Continue to Growing Through Diversity

Spectra Energy Corp. posted US$217 million net income in the fourth quarter of 2009, up 10% from the same period in fiscal year 2008. This improvement was due to new projects being brought online as well as improved commodity prices for Western Canada in the quarter.

New EPA Rules Would Favor Gas-Fired Power Generation Over Coal Fired

Bernstein Research senior utilities analyst Hugh Wynne says EPA attempts to curb greenhourse-gas emissions could be an unexpected boon for gas consumption.

Marcellus Already Drilled Plenty in NY; Not a Threat to Water Supply

“…The major amount of the Marcellus play will not be underneath the New York City water supply anyway….”

Energy Transfer Partners: Turned Corner in Q4 2009

Energy Transfer Partners’ earnings for the fourth quarter of 2009 were up US$139.3 million to $477.1 million compared to the previous year’s quarter. Earnings for the fiscal year rose by $104 million to $1.5 billion from fiscal year 2008.

February Frac Spread: Butane and C5+ Only NGLs with Margin Growth

Frac spread margins fell throughout the month of February as both natural gas feedstock prices and natural gas liquids (NGLs) prices dropped during the course of the month. Only two heavier NGLs – butane and C5+ – posted margin gains over the course of the four weeks.

 

ONEOK Signs Long-Term Deal for Frac Capacity at Targa Plant

ONEOK Partners LP signed a 10-year agreement for 60,000 barrels per day (b/d) of fractionation capacity at Cedar Bayou Fractionators LP’s Mont Belvieu, Texas facility.

Final Countdown to GPA Convention Begins

The 89th Annual Gas Processors Association (GPA) Convention is just weeks away and is set to take place from March 21-24 in Austin, Texas. Robert Bryce, author and managing editor of Energy Tribune, will give the keynote speech Wind Power Isn’t ‘Green’ and Other Energy Heresies.

Conway Ethane Margins Improve 10%

Mont Belvieu natural gas liquids (NGLs) frac spread margins were more improved this week than their Conway counterparts, although the two largest margin improvements for any single NGL were both recorded at Conway.

Butane Prices Up 2% at Both Conway and Mont Belvieu

Once again natural gas liquids (NGLs) prices were stronger at Mont Belvieu compared to NGL prices at Conway, as the only negative for Texas prices was a slight drop in the price of propane while Conway saw both propane and iso-butane prices fall this week.

Sempra Energy to Acquire Mexican Pipeline Assets from El Paso Corp.

El Paso Corp. reached an agreement to sell its 50% interest in the 23.4-mile Samalayuca and 70.8-mile San Fernando natural gas pipelines and the 117.4-mile Burgos liquefied petroleum gas (LPG) pipeline, as well as 100% ownership in the 14,000 horsepower (hp) Naco compression station and the seven-mile Agua Prieta pipeline to Sempra Energy for US$300 million.

Nabucco Pipeline Continues to Face Headwinds

The proposed Nabucco natural gas pipeline is creeping closer toward becoming Europe’s version of the United States’ proposed North Slope pipeline in Alaska – a project that many can agree has merit, but complicated negotiations as well as market dynamics continue to create headwinds against both.

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