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News in brief Gulfstream begins Florida pipeline construction
Mainline pipeline construction has begun on Gulfstream Natural Gas System’s 110-mile mainline extension, lengthening the pipeline’s reach from Central Florida to the state’s east coast and doubling its service area, Gulfstream said July 16.
The expansion is expected to be completed in December. In May 2002, Gulfstream first placed its large-diameter transmission pipeline into service, providing Florida with its first new natural gas transportation source in more than 40 years.
According to the Florida Public Service Commission, Florida’s power generation needs are expected to more than double in the next decade. Gulfstream said it can deliver more than 1 billion cubic feet of natural gas per day to fuel new and expanding natural gas markets across the state. Marathon-Rosneft deal may be on hold Rosneft, the Russian state-owned oil firm, has suspended talks with Marathon Oil Corp. on a joint venture, news agencies report.
Sergei Alekseyev, Rosneft vice president, was quoted by both Reuters and Bloomberg as saying his company had suspended talks with Marathon.
Rosneft had said in late 2002 that the two companies were looking at cooperation on selling Russian crude in the United States. Then last May, Marathon bought Khanty Mansiysk Oil Corp. for $280 million. That led to speculation in the Russian press that Rosneft and Marathon could form a joint venture for development in western Siberia.
Such a venture would be similar to the deal in which Lukoil and ConocoPhillips agreed to develop the Timan-Pechora area.
The Khanty Mansiysk deal was a return for Marathon, and the company has said it’s interested in expanding its presence in Russia. Earlier, Marathon bowed out of the country by trading its Sakhalin interests to Shell. Husky lands gas assets in takeover deal Husky Energy has snared some prized natural gas assets in the Deep basin area of northwestern Alberta by acquiring privately held Temple Exploration for C$115 million.
The deal, which closed July 15, gives Husky proven reserves of 21.4 billion cubic feet of gas, 7.6 bcf equivalent of gas liquids and probable reserves amounting to 11.8 bcf of gas and 3.8 bcf equivalent of liquids.
Husky’s proven reserves entering 2004 were 2.06 trillion cubic feet of gas, plus 381 bcf of probable reserves.
Husky President and Chief Executive Officer John Lau said in a statement that the assets give his company a good opportunity to grow its gas production in the Deep Basin over the next two years.
Kazakhstan police probe British, Canadian gas firms Kazakhstan financial police said July 20 they are investigating allegations British Gas company BG Karachaganak Distribution and its subcontractor Orensal illegally exported gas worth US$2.7 billion to Russia.
The Anti-Economic Crime and Corruption Agency said in a statement the alleged illegal exports were carried out over the past few years and the companies are suspected of failing to pay Kazakhstan’s government more than 730 million tenge (US$5.4 million) in taxes for the exported fuel.
The agency said the investigation might take up to eight months.
It also said it was investigating Canada-based PetroKazakhstan for allegedly making an illegal profit of 13 billion tenge (US$96,300) between August and September 2003 through price fixing.
—News briefs from several sources, including Petroleum News contributing writers Gary Park, Ray Tyson and Allen Baker
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