><<>><<>><>><<>><<>><<>><<>><<>><<>><<>><<>><<>><<>><<>><<>><<>><<
      <>><<____________Volume 109:58_March_01_2010________________><<><><>><
           >><<<<_____Editor: Charlie Bartholomew, kryopak@qwest.net_____<>><<
><<>><<>><>><<>><<>><<>><<>><<>><<>><<>><<>><<>><<>><<>><<>><<>><<
March_01_2010
Alaska In-state gas demand may overtake contract
Australia Coal Seam Gas Surat Gladstone Pipeline
California LNG Truck Fueling Expansion
Marcellus Shale Anadarko, Mitsui agree to venture
March_01_2010
Nat Gas and Coal Production 2002 – 2009 Rky Mtn Region
Navistar's Natural Gas for MaxxForce 13 Truck Engines
Navistar a 400-mile range natural gas engine
Australia Coal Seam Gas Surat Gladstone Pipeline.
2/26/10 arrowenergy.com
The Surat Gladstone Pipeline will connect Arrow Energy’s vast coal seam gas resources in the Surat Basin with a proposed liquefied natural gas (LNG) facility at Fisherman’s Landing in Gladstone: a wholly-owned subsidiary of Arrow Energy Ltd (Arrow), created specifically to deliver this Project.

The Project involves the planning, construction and commissioning of a 660 mm diameter buried high-pressure steel gas transmission pipeline which will deliver coal seam gas (CSG) from the Surat Basin near Dalby in south-eastern Queensland, to a proposed liquefied natural gas (LNG) plant at Fisherman’s Landing, Gladstone. The proposed LNG plant will be built by Liquefied Natural Gas (LNG) Ltd, an entity separate to SGP and Arrow Energy.

The chosen route heads generally north from the Kogan area through the local government areas of Dalby, Banana, North Burnett and Gladstone. The route continues to the west of the Barakula State Forest to the north of Chinchilla and avoids environmentally sensitive areas, such as essential habitats, endangered and threatened ecosystems and communities, and remnant (native) vegetation wherever possible.  From a point east of Callide, the route heads north-east and follows the Queensland natural gas pipeline for the remaining 64 km into Gladstone. The Premier has announced that the State will be developing the Callide Infrastructure Corridor (CIC), a 200 m wide common infrastructure corridor to contain a number of gas pipelines from the Callide area into Gladstone. The final 23 km of the route is within the Gladstone State Development Area (GSDA) Infrastructure Corridor.

Construction will require a right-of-way (ROW) width of 30m for clear and grade, trenching and spoil placement, pipeline stringing, welding and laying. It is anticipated that construction of the pipeline will start in 2011, with first gas supplied to the Fisherman’s Landing LNG Plant in late 2012. Full capacity is expected from the beginning of 2013.
The Project will make a significant contribution to the local, regional, state and national economies, both in the construction phase and through its operational life. It will also provide employment, business and industry opportunities benefiting the wider economy.

Southern California LNG Truck Fueling Expansion
Infrastructure to Support Regional Goods Movement
SEAL BEACH, Calif., Feb 23, 2010 (BUSINESS WIRE)
-- Ten-Station Network in Urban Centers and Along Major Truck Routes Is First Phase of Clean Energy's Planned Southwest LNG Trucking Corridor -- plans to expand its existing network of liquefied natural gas (LNG) truck fueling stations in Southern California this year beyond its current two LNG stations located at the Los Angeles/Long Beach ports complex. New or upgraded Clean Energy LNG fueling facilities are planned for strategic points along truck transport routes in the California cities of Los Angeles, Commerce, Industry, Fontana, Riverside, Tulare, Barstow, and Otay Mesa/San Diego. This hub of stations will form the backbone upon which Clean Energy intends to expand its LNG fueling efforts into the Southwestern region of the United States.

The Southern California network will enable goods to be transported via clean-burning natural gas trucks within local urban areas and along regional goods-movement corridors. Trucks will be able to transport goods from the Los Angeles and Long Beach ports, deliver them to distribution centers, and take the goods directly to stores in local communities.

"This augmented LNG truck fueling capability plays a key role in the creation of a full-scale Southwest LNG truck-fueling corridor. We plan to connect this group of LNG fueling stations in Southern California to Northern California, Arizona, Nevada and Utah," said Andrew Littlefair, Clean Energy President and CEO. "The development of the new station infrastructure is a direct response to the increased demand for natural gas fuel we have observed, as major trucking companies secure and deploy LNG-powered trucks at the Los Angeles and Long Beach ports and throughout the region," Littlefair added.

Adjacent to the ports complex, Clean Energy operates the world's largest public LNG truck fueling station. Located on a 2.7-acre site, the station is the second that the Company has opened in the area to serve natural gas-powered port drayage trucks. The first, operational since December 2007, is located nearby in Carson, CA.

These two LNG stations were specifically designed by Clean Energy to support the goals of the San Pedro Bay Ports' Clean Air Action Plan and Clean Truck programs. These programs call for the retirement or conversion of old diesel trucks entering the ports in favor of new cleaner-burning and alternative-fueled trucks.

Natural gas vehicle fuel provides lower emissions than gasoline and diesel, including up to a 23% reduction in greenhouse gases in medium-and heavy-duty trucking applications. The domestic natural gas used by the trucks also reduces America's dependence on imported oil.

Nat Gas and Coal Production 2002 – 2009 Rky Mtn Region
By DUSTIN BLEIZEFFER - Star-Tribune energy reporter |February 21, 2010

Natural gas production in the Rocky Mountain region doubled to 8 billion cubic feet per day from 2002 to 2009, with Wyoming leading the way. During the same period, Wyoming annual coal production spiked by more than 15 percent to nearly 430 million tons.

Alaska In-state gas demand may overtake contract
February 18, 2010 By Tim Bradner Morris News Service-alaska, Alaska Journal of Commerce
Natural gas demand for space heating and power generation over the next decade or so appear to fit comfortably within a 500 million cubic feet-per-day limit the state of Alaska has accepted for gas for Alaska communities from a gas pipeline built by TransCanada Corp., according to a study of in-state gas demand commissioned by TransCaanda.

The wild card, however, is potential future industrial demand for natural gas from plants that would most likely built in Southcentral Alaska. There is strong interest in industry using gas because jobs are created that pay high wages and the plants provide significant tax base for local governments.

Any significant new development of natural gas-based industry, such as if the liquefied natural gas plant near Kenai, is expanded or a new development occurs, such as a gas-to-liquids plant, it could push the in-state demand up to 1 billion cubic feet per day, which exceeds the limit in the contract with TransCanada. The state agreed to the limit as part of its Alaska Gasline Inducement Act contract with TransCanada, in which the pipeline company accepted a number of state conditions for a pipeline in return for a $500 million state subsidy and the limit to gas taken off for use within Alaska.  If there are good prospects for industrial development that would exceed the limit the state will be presented with a thorny problems in having to negotiate a change in the contract with TransCanada.
The pipeline company wants to limit the gas "off-take" in Alaska to keep as much gas volume as possible flowing the entire length of the pipeline. That is important to the economic viability of the pipeline and TransCanada's ability to finance its construction.
It's also likely that new gas reserves will be found on the North Slope that will allow the pipeline to be expanded and making more gas available for in-state use, state officials point out.

The in-state gas study assumes a continuation of gas production from gas fields in the Cook Inlet region at an average of about 150 million cubic feet per day.
Northern Economics Inc., an Anchorage-based consulting company, led the team doing the in-state gas demand analysis for TransCanada. Science Applications International Corp. and the University of Alaska Anchorage's Institute of Social and Economic Research were also part of the team.

TransCanada is required to do the in-state demand study as part of its application to the Federal Energy Regulatory Commission to conduct an open season for its pipeline project this summer. The Denali pipeline group, which is developing a competing pipeline project to TransCanada's proposal, has said that it will use the Northern Economics study as a part of its open season application to FERC later this spring. The study is a public document. Denali is not bound by the limits on local gas deliveries because the company has not signed an AGIA contract and is receiving no state funds.

The study led by Northern Economics estimated future gas demand with a series of probabilities. For example, residential and commercial space heating is estimated to require 100 million to 150 million cubic feet of gas daily with a high degree of certainty over the next 10 to 15 years but that could also reach 175 million to 200 million cubic feet per day under certain circumstances.

Similarly, gas demand for power generation is estimated at 90 million cubic feet per day with some certainty in the five- to 10-year timeframe, but the amount could drop in the years beyond if a large hydroelectric project is built, such as a project on the upper Susitna River north of Anchorage or one at Lake Chakachmna, on the west side of Cook Inlet.

Industrial demand could stay essentially at current levels if no new gas-based industry is developed, but if two or three projects are built that demand could reach 1 billion cubic feet per year in 15 years, the study shows. The industrial demand estimates do not include gas needed for a large liquefied natural gas (LNG) plant at Valdez which would "anchor" a pipeline to Valdez, an option which TransCanada will offer in its open season this summer along with a pipeline to Alberta.

If the Valdez pipeline is built the development of the LNG plant at that city is a given because that pipeline would be built only to serve such a plant.

Mainly, the industrial demand possibilities considered in the study are mainly in the Matanuska-Susitna Borough and Kenai Peninsula Boroughs that would be served by a spur pipeline from the big pipe, whether to Alberta of Valdez.

Possible projects include the continuation, or an expansion, of the LNG plant now operating near Kenai, a possible restart of the Agrium fertilizer plant also near Kenai (the plant is now closed) and a gas-to-liquids plant that would use the Fischer-Tropsch chemical process to convert natural gas to high-value liquid fuels for sale on the U.S. west coast or in export markets.
Tim Bradner can be reached at tim.bradner@alaskajournal.com.

Navistar a 400-mile range on natural gas engine
By Jill Dunn 2/20/10 www.etrucker.com

Navistar has entered an agreement with Clean Air Power to develop a Navistar 2010 MaxxForce 13 big bore engine to run on natural gas and diesel for the North American market. Clean Air Power developed Dual-Fuel combustion technology, allowing heavy-duty diesel engines to operate on a combination of diesel and natural gas. The new product initially will be aimed at the regional haul truck market with a goal of achieving a 400-mile range.  Clean Air Power will invest $1.5 million to develop the concept over the next 10 months. During this time, in preparation for production and the next development stage, Navistar and Clean Air Power will seek federal grants for full production.
More information is available at www.navistar.com and www.cleanairpower.com.

Navistar's Natural Gas for MaxxForce 13 Truck Engines
Hybrid Energy Holdings Reports Demand Increasing

February 18, 2010
Hybrid Energy Holdings, Inc. expects additional demand for Natural Gas based on the recent announcement by Navistar, Inc. that it is developing a Natural Gas model for is popular MaxxForce 13 Engines. Navistar's announcement was reported to be necessary to meet increased customer demand for flexible few options. Navistar, Inc. is a holding company whose subsidiaries and affiliates produce International brand commercial and military trucks, MaxxForce brand diesel engines, IC Bus brand school and commercial buses, Monaco RV brands of recreational vehicles, and Workhorse brand chassis for motor homes and step vans. It also is a private-label designer and manufacturer of diesel engines for the pickup truck, van and SUV markets.

Natural gas burns more cleanly than other fossil fuels. It has fewer emissions of sulfur, carbon, and nitrogen when it is burned; it leaves almost no ash particles. Being a cleaner fuel and available domestically, without the need for importing foreign oil, are considered the main reasons that the use of Natural Gas has grown so much.
This customer demand in the trucking industry comes on the heels of recent Ford and Honda's natural gas passenger and taxi cab announcements; and validates the Company's aggressive Natural Gas portfolio. To meet these growing demands, Hybrid Energy recently announced its latest acquisition of 9 properties that consistently deliver profitably with strong recurring current and historical cash-flows. This important expansion of the company's portfolio results in 35,000,000 BCF of known reserves and delivers an estimated $30,000,000 of shareholder value in active reserves and an additional estimated $145,000,000 in yet untapped reserves of current properties. The Company will provide timely updates as to the progress of this and other Natural Gas acquisition initiatives.

About Hybrid Energy Holdings
Hybrid Energy Holdings (HEH) acquires and operates profitable energy companies with strong historical cash-flow and sustainable profitability. HEH may acquire promising nascent energy technology or technology rights as portfolio enhancing assets. HEH's acquisitions are focused primarily on traditional and proven fuel production and the latest in energy conservation and power co-generation technologies. HEH's fuel production acquisitions provide expertise in the recovery of oil and gas reserves in both mature and marginal fields. The company's operational teams deliver production improvements and developmental and low risk exploration as part of its acquisition strategy for it fuel producing subsidiaries. HEH's primary business strategy is the acquisition of diverse, profitable energy related assets that provide synergistic profits and revenue enhancements across all portfolio companies. HEH believes its combination of acquisition profitability and mitigated-risk funding structures provides ongoing portfolio viability and long-term shareholder equity appreciation.
The company maintains its web site at: www.HybridEnergyHoldings.com

Marcellus Shale Anadarko, Mitsui agree to venture
By MARC LEVY 2/18/10 HARRISBURG, Pa.
The production of natural gas from tightly compacted shale in the U.S. is attracting more capital from around the world.

Japanese conglomerate giant Mitsui & Co. said that it will take a $1.4 billion stake, or 32.5 percent, in Anadarko Petroleum Corp.'s assets in the Marcellus Shale gas field that stretches from Pennsylvania into New York.  Mitsui said Tuesday that it expects to invest up to $4 billion in a venture, which it hopes will produce as much as 460 million cubic feet of natural gas per day.  "This just validates that everybody around the world is interested in this play," Anadarko CEO Jim Hackett said Tuesday on CNBC.

Last month, Chesapeake Energy Corp., based in Oklahoma City, and a subsidiary of France's Total SA formed a $2.25 billion joint venture that gives Total access to the Barnett Shale natural gas field in north Texas.

Manuj Nikhanj, vice president of the Calgary-based investment research firm Ross Smith Energy Group, said the sheer size of the shale fields appeals to the world's largest companies. Plus, international and foreign energy companies also can learn how to exploit shale and bring that knowledge to other basins around the world where development hasn't started yet, Nikhanj said.

Geologists and energy companies have known about the gas trapped in shales for decades, but the cost to tap them was prohibitive until recently when new exploration techniques became available.  "The U.S. gas market has never seen such a sharp turnaround in expectations as happened with the emergence of shale gas," said Richard Nehring, president of Nehring Associations in Colorado Springs, Colo., which provides information on oil and gas field production to the exploration industry. "It is a big thing and it is something that emerged very quickly. It upset a lot of investment apple carts."

Mitsui invests in and owns companies in a range of industries around the world, including power plants, freight and textiles, as well as liquefied natural gas and natural gas exploration. It previously partnered with Anadarko in Mozambique and Indonesia.
Anadarko, based in Houston, has gas interests in more than 700,000 acres in northern Pennsylvania, and is the largest leaseholder in Pennsylvania's state forests.  Anadarko expects to drill more than 4,500 wells in the coming years. To date, there are about 1,100 Marcellus Shale wells drilled in Pennsylvania. About half of them are producing, according the Marcellus Shale Coalition, an industry group.