February Newsreel: Gas Growth Supports NE Renewables; Pace, Ridge Global Ally; Crosstex Acquires Intracoastal

Natural gas supplies are also growing as the production areas upon which the Northwest depends are large and prolific. Improvements in technologies have made huge natural gas reserves across North America available for development which were previously inaccessible. In 2009, the Potential Gas Committee increased its estimate of natural gas reserves available for production by almost 40%, the largest increase in the 44-year history of the organization.

The network of gas pipelines and storage sites linking the region’s consumers to natural gas supplies is sufficient to serve regional needs. System expansions are market driven and have historically occurred appropriately with regard to type, size and timing. A number of projects are under development to enhance reliability and ensure the region has access to the supplies it needs to serve growing demand.

A copy of the 2010 Northwest Gas Outlook can be viewed and/or downloaded at www.nwga.org.

Pace, Ridge Global Ally On Energy, Industrial Markets
Pace Global Energy Services and Ridge Global have created a strategic alliance to offer joint services to the energy and industrial markets. Pace, an energy consulting firm, and Ridge Global, an international security firm led by former U.S. Secretary of Homeland Security Tom Ridge, will offer services including comprehensive risk management support, strategic security planning for energy infrastructure, and energy asset due diligence.

Crosstex Energy Acquires Intracoastal Pipeline From Chevron
Crosstex Energy, L.P. of Dallas has acquired the Intracoastal Pipeline, a 60-mile natural gas liquids (NGL) pipeline, from Chevron Midstream Pipelines, a subsidiary of Chevron Corporation, for $10 million. The Intracoastal Pipeline, which extends from Patterson to Henry in southern Louisiana, connects to Crosstex’s Pelican processing plant and accesses other third-party processing plants in the region. NGLs produced at Crosstex’s Pelican plant flow through the Intracoastal Pipeline to Crosstex’s Cajun-Sibon NGL pipeline.

EGPI Firecreek Acquiring Sierra Pipeline Natural Gas Gathering System
EGPI Firecreek, Inc. of Scottsdale, AZ will acquire the Sierra Pipeline Gathering System and the Sierra Pipeline Company. Sierra Gathering was previously owned by Koch Corp. and includes 2,076 miles of pipeline and gathering systems located primarily in Oklahoma, Kansas and Indiana.

The pipeline was originally created to transport oil and has more than 28,000 wells within close proximity for utilization, production and transportation. The pipelines also are capable of developing, gathering and transporting natural gas. EGPI said it will aggressively analyze, explore and exploit all potential revenue streams for the pipeline.

The estimated value of the assets is about $16 million but a 2009 appraisal estimates overall potential value exceeding $150 million once the property is utilized to its production capabilities.

Energy Transfer Names New Directors
Dallas-based Energy Transfer Equity, L.P. announced that Dan L. Duncan, Ralph S. Cunningham, and Marshall S. (Mackie) McCrea were appointed as directors of the general partner of ETE. McCrea was also appointed to the board of directors of Energy Transfer Partners, LLC, its general partner.