![](media/image1.jpeg){width="8.5in" height="3.5027777777777778in"}U.S.
DEPARTMENT OF ENERGY

**Office of Energy Assurance**

**ENERGY ASSURANCE DAILY**

**January 21, 2005**

**Highlights / Major Developments**

# First New U.S. LNG Terminal Since 1982 Contracts for First Gas for March 2005

The newest U.S. liquefied natural gas terminal will receive its first
cargo in March when a shipment from Malaysia arrives, the company said
on Thursday. Excelerate\'s \$700 million project is the world\'s first
offshore LNG terminal. There are four existing onshore LNG terminals in
the United States, though none has been built since 1982. Reuters, 1529
January 20, 2005

**Electricity\
**

# AES's 485 MW Gas-fired Alamitos 5 Unit in CA Returns to Service Jan 21

Reuters, 1351 January 21, 2005

# 

**Edison's 294 Gas-fired Sunrise Plant in CA Shut on Jan 21**

Reuters, 1409 January 21, 2005

# 

**Ameren's 1125 MW Callaway Nuke Exits Short Term Outage Jan 21**

In Missouri, Ameren\'s Callaway nuclear plant started to exit a
short-term outage and ramped up to 1 percent of capacity by early
Friday. The unit shut on Jan. 19 due to a minor electrical problem.\
Reuters, 1346 January 21, 2005

# 

# AES's 227 MW Gas-fired Huntington Beach 4 in CA Shut on Jan 20

Reuters, 1409 January 21, 2005

# Exelon's Clinton Nuke in Illinois Ramped up to 69 Percent of Capacity by Jan 20

Exelon Nuclear reduced the unit on Jan. 18 to fix a tube leak in the
main condenser.\
Reuters, 1401 January 20, 2005

**CMS\'s Palisades Nuke in MI exited an outage Jan 20**

The plant ramped up to 90 percent of capacity by early Thursday, up from
4 percent on Wednesday. The unit shut on Jan. 9 due to lowering main
condenser vacuum. Reuters, 1401 January 20, 2005

**Sempra Calif. Elk Hills Power Plant Back**\
California-based energy company Sempra Energy\'s 549-megawatt Elk Hills
natural gas-fired power station in California returned to service by
late Wednesday, the California Independent System Operator said in a
report. The station shut by early Wednesday for planned and unplanned
reasons.

# Reuters, 0808 January 20, 2005

# 

# Reliant's 741 MW Gas-fired Ormond Beach 1 in CA Shut on Jan 19

Reuters, 1409 January 21, 2005

**Petroleum\
**

**Valero Puts New Sulfur Recovery Unit into Service**\
Oil Daily, January 21, 2005

**ExxonMobil\'s Baytown Hydrocracker Return Delayed 10 Days**\
Exxon Mobil Corp. on Friday filed with regulators to delay by 10 days
the start-up of a hydrocracking unit at its 557,000 barrel per day
Baytown, Texas, refinery. Hydrocracking unit 1, which was taken down for
turnaround on Jan. 5, will come back on Jan. 30, according to a filing
with the Texas Commission on Environmental Quality.

Start-up is expected to finish on Feb. 1.

Reuters, 0841 January 21, 2005\
\
**Update- Safety Board Rejects Statoil Plan to Restart Field in North
Sea**

The Norwegian Petroleum Safety Authority rejected Statoil ASA\'s plan to
resume full production from its Snorre A field in the North Sea, nearly
two months after a gas leak shut it down. The agency said Friday that it
wants more data from the already approved restart of about half the
production before allowing full flows from Snorre A and the adjacent
Vidgis field, which have a combined capacity of 205,000 barrels of oil
per day.

<http://biz.yahoo.com/ap/050121/norway_statoil_1.html>

**Update - Oil sands output to average 110,000 b/d during repairs:
Suncor**

Suncor Energy said Thursday it will be forced to operate its oil sands
facility near Fort McMurray, Alberta, at less than half its normal rates
until sometime in the third quarter of 2005 while repairs are made to an
upgrader unit damaged heavily in a Jan 4 fire. The company, in a
statement, said output from the facility should average 110,000 b/d
until repairs are completed, down from a typical rate of 225,000 b/d.
\"(Production) should return to full rates sometime during the third
quarter,\" the company said. To mitigate the impact of the lost
production, Suncor said it will advance \"as many maintenance projects
as possible,\" including all, or a significant portion of, a planned
shutdown of Upgrader 2 initially scheduled for the fall. The Oil Price
Information Service reported that the problem with Suncor's production
could crimp U.S. supply of diesel fuel in PADD IV (Mountain States).

<http://www.platts.com/Oil/News/8045880.xml?S=n>

OPIS Price Watch Alert, 1438 January 21, 2005

**\
**

**Natural Gas**

**\
Lack of Access, Infrastructure Hurts Industry, Says Panel**\
Without new liquefied natural gas (LNG) facilities and Arctic gas
pipelines from Alaska and the Mackenzie Delta, North American gas supply
won\'t grow more than 25 Tcf, and without more access to gas supplies
from the Rocky Mountains, there may even be a decline, Don Santa,
president of the Interstate Natural Gas Association of America (INGAA),
said this week.\
Natural Gas Intelligence, January 20, 2005

**LNG Terminal Likely In Oregon, State Official Says**\
With four different proposals in the early, informal stages of
development for siting liquefied natural gas (LNG) terminals in Oregon,
at least one and maybe two of the terminals eventually will be built,
Michael Grainey, the head of the state energy department, told an energy
conference in Seattle Thursday. He added that 140 miles of new natural
gas transmission pipelines in the state helps make these proposed
projects more feasible.

# Natural Gas Intelligence, January 20, 2005

[http://powermarketers.netcontentinc.net/newsreader.asp?ppa=8kowu%5DZllhlprmRUfb%7D38%7Dbfek%5Cv](http://powermarketers.netcontentinc.net/newsreader.asp?ppa=8kowu%5DZllhlprmRUfb}38}bfek\v)

**\
Terror Fears Emerge as Roadblock to US LNG Terminals: Officials**

Advocates of increasing US imports of liquefied natural gas Thursday
acknowledged that public fear of terrorist attacks on LNG facilities is
posing a major and largely unwarranted impediment to siting new onshore
terminals. Heightened security concerns in the wake of the Sept 11,
2001, terrorist attacks have focused on LNG more than on other
potentially hazardous cargos, panelists at the Platts Natural Gas
Outlook conference in Houston, Texas, said. Deborah Resley,
international gas consultant for D R & Associates in Houston, said
accounts of the potential vulnerability of LNG tankers and land-based
terminals to terrorist attacks \"have received an abnormal amount\" of
press coverage. \"The concern is disproportionate to the risk,\" agreed
Chadbourne & Parke LNG consultant Daniel Rogers. Rogers said that while
the terrorist threat to LNG facilities is fairly new, the global LNG
industry has had an exemplary safety record.\
[http://www.platts.com/Natural%20Gas/News/9957360.xml?S=n](http://www.platts.com/Natural Gas/News/9957360.xml?S=n)
<http://biz.yahoo.com/prnews/050120/to290_1.html>

**Other News**

Nothing to report.

**Energy Prices**

+-------------------------------+-----------+-----------+------------+
|                               | **Latest  | **Week    | **Year     |
|                               | (1        | Ago**     | Ago**      |
|                               | /21/05)** |           |            |
+-------------------------------+-----------+-----------+------------+
| **CRUDE OIL**                 | 48.31     | 48.01     | 35.53      |
|                               |           |           |            |
| **West Texas Intermediate     |           |           |            |
| US**                          |           |           |            |
|                               |           |           |            |
| \$/Barrel                     |           |           |            |
+-------------------------------+-----------+-----------+------------+
| **NATURAL GAS**               | 6.43      | 6.45      | 6.26       |
|                               |           |           |            |
| **Henry Hub**                 |           |           |            |
|                               |           |           |            |
| \$/Million Btu                |           |           |            |
+-------------------------------+-----------+-----------+------------+

> Source: Reuters

**This Week in Petroleum** from the Energy Information Administration
(EIA)

[*http://tonto.eia.doe.gov/oog/info/twip/twip.asp*](http://tonto.eia.doe.gov/oog/info/twip/twip.asp)

Updated on Wednesdays

**Weekly Petroleum Status Report** from EIA**\
**[*http://www.eia.doe.gov/oil_gas/petroleum/data_publications/weekly_petroleum_status_report/wpsr.html*](http://www.eia.doe.gov/oil_gas/petroleum/data_publications/weekly_petroleum_status_report/wpsr.html)

Updated after 1:00pm (Eastern Time) on Wednesdays

**Natural Gas Weekly Update** from EIA

[*http://tonto.eia.doe.gov/oog/info/ngw/ngupdate.asp*](http://tonto.eia.doe.gov/oog/info/ngw/ngupdate.asp)

Updated after 2:00 pm (Eastern Time) on Thursdays