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Gold/Mining/Energy : LNG -- Ignore unavailable to you. Want to Upgrade?

To: Dennis Roth who wrote (132)	7/11/2004 10:25:23 AM
From: Dennis Roth	Respond to of 919

DKRW Plans 1.3bcf/d LNG Plant in Sonora, Mexico rigzone.com New LNG plant proposed for northern Mexico petroleumnews.com

To: Dennis Roth who wrote (132)	9/26/2004 11:41:35 AM
From: Dennis Roth	Respond to of 919

El Paso Corporation and DKRW Energy Enter Agreement to Build Sonoran Pipeline prnewswire.com HOUSTON, Sept. 23 /PRNewswire-FirstCall/ -- El Paso Corporation (NYSE: EP) and DKRW Energy LLC, through their wholly owned subsidiaries El Paso Blue Atlantic US, Inc. and Sonora Pacific Mexico, announced today that they have entered into a joint agreement to develop up to 350 miles of natural gas pipeline infrastructure to be built within Sonora, Mexico by 2008. The pipelines will transport natural gas provided by Sonora Pacific LNG, a 1.3 billion-cubic-foot-per-day LNG facility proposed for Puerto Libertad on the Gulf of California. The pipeline will initially distribute natural gas to Naco, Hermosillo, Guaymas, Ciudad Obregon, and Navojoa. An export line through Nogales, Arizona would interconnect with the El Paso Natural Gas (EPNG) interstate pipeline system at the Mexico/United States border. The natural gas would then be transported into the EPNG mainlines for further distribution in the western United States markets. "El Paso is pleased to increase its activity in Mexico by partnering with Sonora Pacific Mexico on this project," said Stephen C. Beasley, president of El Paso's Eastern Pipeline Group. "This will be a significant North American pipeline construction project, serving important growing markets in the state of Sonora as well as the western United States." "This agreement is an important step in the development of Sonora Pacific LNG," said Tom White, DKRW Energy managing partner for the project. "Coupled with our land purchase and the Cooperation Agreement recently executed with the state of Sonora, we are putting together the foundation of a very successful project." DKRW's equity interest in the new Mexican pipeline system will be available to natural gas suppliers and other investors as the project proceeds. Within the next several months, DKRW plans to market throughput capacity and equity in the terminal and secure all necessary federal state and municipal permits. "The permitting process is moving very smoothly due to our Cooperation Agreement with the state of Sonora and the veteran team of professionals we have working to secure the appropriate permits at the federal, state, and municipal levels," White said. Initial operations are targeted for the 2008 time frame. A total of 500 million cubic feet per day (MMcf/d) of natural gas is expected to be consumed in Sonora, primarily in the power generation sector, while 800 MMcf/d is planned to be shipped to the United States. The project will positively impact air quality in the region through the conversion of 1,200 megawatts of existing residual fuel oil burning power station capacity in Sonora to cleaner-burning natural gas. El Paso Corporation provides natural gas and related energy products in a safe, efficient, dependable manner. The company owns North America's largest natural gas pipeline system and one of North America's largest independent natural gas producers. For more information, visit elpaso.com . DKRW Energy LLC is a Houston-based energy infrastructure company focused on providing new and unique solutions to 21st century energy challenges. DKRW Energy business lines include LNG, coal-to-liquids, and wind power. Additional information can be found at dkrwenergy.com . Cautionary Statement Regarding Forward-Looking Statements This release includes forward-looking statements and projections, made in reliance on the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The company has made every reasonable effort to ensure that the information and assumptions on which these statements and projections are based are current, reasonable, and complete. However, a variety of factors could cause actual results to differ materially from the projections, anticipated results or other expectations expressed in this release, including, without limitation, the ability to implement and achieve our objectives in the long-range plan; the timing of the completion of the internal review of the reserve revisions, and the extent and time periods involved in any potential restatement of prior years' financial results; potential impact of any restatement of financial results on our access to capital (including borrowings under credit arrangements); changes in reserves estimates based upon internal and third party reserve analyses; the uncertainties associated with the outcome of governmental investigations; the outcome of litigation including shareholder derivative and class actions related to the reserve revision and potential restatement; and other factors described in the company's (and its affiliates') Securities and Exchange Commission filings. While the company makes these statements and projections in good faith, neither the company nor its management can guarantee that anticipated future results will be achieved. Reference must be made to those filings for additional important factors that may affect actual results. The company assumes no obligation to publicly update or revise any forward-looking statements made herein or any other forward-looking statements made by the company, whether as a result of new information, future events, or otherwise. SOURCE El Paso Corporation; DKRW Energy LLC Web Site: elpaso.com dkrwenergy.com

To: Dennis Roth who wrote (132)	9/12/2005 12:11:33 PM
From: Dennis Roth	Respond to of 919

Report spotlights Mexico-U.S. energy project September 12, 2005 mexidata.info By Kent Paterson The scramble for energy in both the United States and Mexico will likely intensify the push for increased energy production and transportation in and around the border region. A new report by the Santa Fe, NM-based E-Tech International consulting firm reviews one long-planned project in Sonora state that could receive a shot-in-the-arm from the energy crunch. Authored by E-Tech International Director Richard Kamp, the report examines the general economic and environmental issues surrounding a proposed liquefied natural gas (LNG) regasification facility for Puerto Libertad, Sonora, on the Gulf of California. Planned by Houston-based DKRW Energy, the plant will supply LNG to both Sonora and Arizona if it is constructed. A pipeline that could possibly cut across the international border in the Nogales region will be used to deliver the US-destined product. A second pipeline would snake south toward the Hermosillo, Sonora, market. Expected to be supplied daily by at least two tankers carrying LNG, about 1.0 billion Cubic Feet per Day of product will be handled at the projected terminal. According to E-Tech International, DKRW Energy owns land already zoned for LNG in Puerto Libertad but still lacks authorization from the Mexican Federal Electricity Commission (CFE), Ministry of the Environment (Semarnat), Ministry of Labor, Ministry of the Interior, and the local fire department. Quoted in the report, DKRW Energy partner David Ramm expressed the intentions of his company to forge ahead with the necessary environmental permits. Although it's uncertain whether Mexican residential consumers will benefit, big consumers of DKRW's LNG could include Guaymas sardine factories and a Ford plant in Hermosillo. Financing and marketing still need to be worked out for the terminal to be a reality but construction could begin next year and be completed by 2009. While not giving an exhaustive analysis of the all the potential environmental impacts stemming from the proposed LNG facility, E-Tech International's report provides a sketch of some of the issues at stake. The LNG terminal is planned for a community, Puerto Libertad, which already has seen its share of environmental degradation from a large thermoelectric plant operated by the CFE. In the construction of the Puerto Libertad thermoelectric, the Mexican government drained and scraped the surrounding land, destroying a mangrove estuary. To generate electricity, the plant uses combustoleo, a cheap, tar-distillate from the Mexican national oil company's refining process. The Montreal-based North American Commission for Environmental Cooperation estimates the Puerto Libertad plant emits 67,300 tones of sulfur dioxide annually, but air-pollution expert Kamp pegs the figure at probably more than 100,000 tons per year. If DKRW launches its LNG project, the existing thermoelectric plant could be converted to a user of much cleaner LNG. In contrast to the burning of combustoleo, E-Tech International's Kamp asserts that the ambient air regasification process planned by DKRW is environmentally benign. Broader concerns arise, however, over the global warming effect of methane released by LNG, according to Kamp. Since the LNG will be shipped into Puerto Libertad, a key environmental consideration is the possible impact of ship traffic on the marine life of the Gulf of California. Called the "aquarium of the world” by Jacques Cousteau, and recently declared a World Heritage Site by the United Nations, the Gulf (also named the Sea of Cortez) is known for its incredible biodiversity. Some native species are endangered, and rare blue whales are known to prowl the Gulf's waters. Kamp says a broad range of ecological concerns will have to be addressed in an environmental impact statement submitted to Semarnat. Other developments in the works for the Puerto Libertad area will have an environmental and social impact in addition to the planned LNG terminal. Arizona Clean Fuels is contemplating an oil port, and a 100,000-person community complete with a NASCAR racetrack is on the drawing board for nearby Liberty Cove. South of Puerto Libertad, lands desired for a coastal highway meant to boost tourism are in dispute between the Sonoran state government and the indigenous Seri people. Violence reportedly broke out earlier in the year between the Seri and police. The E-Tech International report cites another potential problem associated with the construction of a LNG terminal: the threat of catastrophe from either an accident or terrorism. Fears center on the flammability of an escaped cloud of gas, a disaster Kamp contends is best avoided by an offshore LNG terminal. The report's author says DKRW is not considering putting its plant offshore at the moment. Kamp adds he has "no answer" for whether there would be any environmental advantage to an offshore terminal — as opposed to hazardous emergency response — but the dilemma pf public safety versus ecological preservation is clearly "an important issue" to address in an environmental impact statement. (Note: In its report, E-Tech International also reviewed the Arizona Clean Fuels project briefly mentioned in this story. That project will be the subject of an upcoming FNS story.) Frontera NorteSur (FNS) Center for Latin American and Border Studies New Mexico State University Las Cruces, New Mexico ____________________ (Kent Paterson is the Editor of Frontera NorteSur. Reprinted with authorization from Frontera NorteSur, a free, on-line, U.S.-Mexico border news source. FNS can be found at frontera.nmsu.edu