Date: Sat, 10 Feb 2007 11:43:53 -0800
From: "JODY MCCAFFREE" <mccaffrees@verizon.net>  View Contact Details View Contact Details   Add Mobile Alert
Subject: Two Energy Company's Stop Developments:
http://www.bammm.org/REQUEST_TO_WITHDRAW.htm
To: Undisclosed-Recipient@,
Two Energy Company's Stop Developments:  ------ We're Next............Keep the Faith!!!
 
1) A NOTE from Glen:  
 
COBB ENERGY REQUEST TO WITHDRAW IT'S SITE CERTIFICATE FROM THE OREGON DEPARTMENT OF ENERGY
Subject: Check out Energy Facility Siting Announcements and Notices

Click here: Energy Facility Siting Announcements and Notices COB ENERGY FACILITY
 
or go to: http://www.oregon.gov/ENERGY/SITING/COB.shtml
 
JODY,
 I  have been sent a letter from the state saying one of the major gas fired power plant proposals has been stopped by the applicant.
 
 This is very new news, Friday 2-2. The power plant would have been a major user of natural gas in Oregon.
The plant was to be supplied by the same pipeline that the Pacific Connector is proposed to be connected too.
 
 This is a very big sift in the energy picture in the Northwest. I do not know why this happened, we need information as soon as possible to understand the market and the future outlook.
 
 Of all the information I look at this is by far the biggest impact on the LNG and pipeline projects in the state of Oregon. LACK OF CUSTOMERS.
 
Glenn R Archambault
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2)
http://thechronicleherald.ca/Business/557836.html
Anadarko out of gas
Strait area groups disappointed as company mothballs LNG project
By MICHAEL TUTTON

Business groups in Port Hawkesbury expressed disappointment Wednesday over news that Anadarko Petroleum has officially written off its investment in a liquefied natural gas terminal.

Al Walker, chief financial officer for Anadarko, told financial analysts Tuesday that the company has taken a $111-million charge against its fourth quarter 2006 earnings for the terminal at Bear Head, along the Strait of Canso.

After mentioning the company had taken a $178-million writedown from projects in Venezuela, Walker noted the project in Cape Breton was also officially being taken off the books.

"We also took a $111-million charge for the Bear Head project, which we are in the process of mothballing," he said.

Dan Fougere, president of the Strait Area Chamber of Commerce, said it’s unfortunate that the proposed LNG project will be mothballed as there were hopes for hundreds of jobs in the region.

"When I hear that news it’s disappointing, but not surprising to us . . . We’ve been watching and observing, but the writing may have been on the wall for a while," he said.

However, Fougere said he believes there’s still potential for development at the location.

He said his understanding is that Anadarko is going to continue to look for a partner to supply natural gas to the terminal.

Fougere said if that attempt fails, others may step in to make a proposal.

"We see tremendous potential for the Bear Head site as a petrochemical site down the road," he added.

The $700-million project has been on unsteady ground over the last year because of the company’s inability to secure a long-term gas supply.

A $125-million deal to sell the project to private equity firm US Venture Energy fell through last September, and there has been no other buyer emerge since then.

A spokesman for McNally International Corp., the Hamilton company slated to build a marine terminal at Bear Head, said he believes that portion of the project remains unchanged.

"To our mind nothing has changed in the last year. Nothing we’ve been informed of anyway," said project manager Jeff Starchuck. "We’re just going to build a dock for them."

The firm had originally planned to spend over $700 million and have the terminals operating by 2008, in time for planned expansion of the Maritimes and Northeast Pipeline by Duke Energy.

The lack of a firm supply of liquefied natural gas has been a hurdle that has hampered other East Coast projects.

Energy industry experts predict many North American projects seeking the gas will fail to obtain the fuel over the next few years.

Experts at Boston-based Cambridge Energy Research Associates estimate there are over 70 planned LNG projects, with a capacity of 73 billion cubic feet of gas, yet current projections estimate there supplies will be limited to 50 billion cubic feet by 2012.

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http://www.capebretonpost.com/index.cfm?sid=1680&sc=13

Anadarko Petroleum writes off Bear Head
Still some speculation about other interested buyers

Thursday, February 8, 2007

By By Wes Stewart
Cape Breton Post

BEAR HEAD — Strait area businesses continue to hold out hope for a regasification terminal.

Petroleum giant Anadarko Petroleum of Houston, Tex., this week announced it has written off its investment in Bear Head LNG project in Richmond County, a wholly owned subsidiary, and will now mothball the site.

The company had planned to build a $500-million LNG terminal and have it supplying natural gas to the Maritimes and Northeast pipeline in 2008. The company slowed construction after it failed to secure a long-term stranded gas supply.

Strait Area Chamber of Commerce president Dan Fougere said what the company has released is its fourth-quarter results, which included its investment in the Bear Head project.

“They do indicate they will continue to look for a partner to develop the site and hopefully bring a gas supply to (Bear Head).”

Fougere admitted this latest turn of events is certainly not good news for the LNG proposal as presented by Anadarko.

“We continue to see that site as a strategic asset for the Strait area. There is infrastructure development there, permitting done, design plans for a marine infrastructure, laydown and foundation work done for storage tanks.”

The best use for the site would be a liquid natural gas facility, but it is also suited for other petrochemical-related industries, he said.

“There has been some noise lately about a potential oil refinery in the Strait area; it’s early in the game but in the fullness of time we do expect to see some type of petrochemical development at the Bear Head site,” Fougere added.

He is not surprised by the latest development, they had a potential sale last July that came apart and that sent a definite signal to the community. They have been pursuing but unable to secure a gas supply for some time.


The company has taken a $111 million charge against its 2006 earnings.

Last year, the company announced it had secured a buyer, private equity firm US Venture Energy, to sell the partially built project for $125 million.

That sale fell through within months and there has been speculation about other interested buyers.

The Point Tupper project has already spent $110 million on site development, concrete work for the tanks and permitting for the project.



wstewart@cbpost.com