The commissioning ceremony was held in the presence of the Czech Prime Minister Petr Necas, deputy Minister of Energy of the Russian Federation Anatoly Yanovsky, Chief Executive Officer of RWE AG Peter Terium, the CEO of Czech gas transport system operator NET4GAS Thomas Kleefuss, representatives of different government bodies of Germany and Czech Republic.

Starting at the exit of the OPAL pipeline near Brandov on the Czech-German border, the pipeline passes through the Czech Republic to Bavaria, where it joints into the German gas transportation system. The total length of the pipeline is 166 kilometres. Its major purpose is transit of natural gas to Germany and providing domestic consumption of Czech Republic. It has designed option of reverse gas flow as well. The pipeline serves for improving gas supply to the Czech Republic and the European Union as a whole, opening a new way of transporting the russian gas to Western Europe and increasing overall flexibility of the European gas transportation system.

The construction of the Gazelle Pipeline started in October 2010. The total cost of the project amounted to 400 mln. Euro, investor being the Net4gas company. Gazelle’s capacity is as high as 30 bcm gas per year – over three times as much as annual gas consumption in the Czech Republic.

• The Gazelle gas pipeline commissioned in the Czech Republic

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The Mazatlan Pipeline project, with an estimated investment of approximately US$400 million by TransCanada, will begin at El Oro and end in Mazatlan, in the state of Sinaloa. The 24-inch diameter pipeline will be approximately 413 kilometres (257 miles) long and have contracted capacity of 202 million cubic feet a day. The pipeline is expected to be in service in the fourth quarter of 2016. It will interconnect with the El Encino-to-Topolobampo Pipeline (Topolobampo Pipeline) that TransCanada was awarded the contract to build, own and operate last week at an estimated cost of US$1.0 billion. Construction of the two new pipelines is supported by 25-year natural gas transportation service contracts with the CFE.

“We are pleased to be working with the government of Mexico on new natural gas infrastructure that will bring its cleaner-burning natural gas to businesses and residents,” said Russ Girling, TransCanada’s president and chief executive officer. “These new projects build on our experience developing safe and reliable pipelines in Mexico and across North America.”

TransCanada built, owns and operates the Guadalajara and Tamazunchale natural gas pipelines in central Mexico and will soon break ground on a Tamazunchale Pipeline Extension.

• TransCanada Wins Additional US$400-Million Contract to Build New Natural Gas Pipeline Infrastructure in Mexico

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TransCanada expects to invest approximately US$1 billion in the Topolobampo Pipeline project, which is supported by a 25-year natural gas transportation service contract with the CFE. The 30-inch diameter pipeline will be approximately 530 kilometres (329 miles) long and have contracted capacity of 670 million cubic feet per day. It is anticipated the project will be in-service in the third quarter of 2016.

“Mexico’s government is engaged in a comprehensive plan to expand the nation’s electrical grid and generating capacity, and much of that generation will be natural gas-fired,” said Russ Girling, TransCanada’s president and chief executive officer. “This award is another example of TransCanada’s commitment to help develop Mexico’s energy infrastructure in a sustainable and cost-efficient manner.”

The Topolobampo Pipeline begins in El Encino, in the state of Chihuahua, and terminates in Topolobampo, in the state of Sinaloa, interconnecting with other pipelines that are expected to be built as a result of separate bid processes by the CFE.

“This project is a response to a CFE invitation to bid. As Mexico makes the transition from fuel oil to cleaner-burning natural gas, there will be additional opportunities for TransCanada,” Girling said. “These opportunities are consistent with our strategy to build long life infrastructure, underpinned with long-term contracts.”

Girling said TransCanada has welcomed the opportunity to bid on a number of CFE pipeline proposals through a transparent, fair and comprehensive process. TransCanada has already built and is operating the Guadalajara and Tamazunchale pipelines and will soon break ground on a Tamazunchale Pipeline Extension.

• TransCanada Awarded Contract to Build US$1 Billion Natural Gas Pipeline in Mexico

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The Moomba-191 shale well is flowing natural gas at a stabilised rate of 2.7 mmscf/d from the Roseneath, Epsilon and Murteree shale targets. Santos initially announced success at Moomba-191 in its interim report in August.

Santos Vice President Eastern Australia, James Baulderstone, said the Moomba-191 shale well was another milestone for Santos’ Cooper Basin unconventional gas program, which began in 2004.

“The connection of the Moomba-191 well is a significant step forward as we work to unlock the vast unconventional potential of the Cooper Basin,” Mr Baulderstone said.

“While this is the first commercial shale well, and more work will be required to unlock the area’s full potential, this is clearly a landmark for Australia’s natural gas industry. Producing commercial quantities of natural gas from the Cooper's shale rock formations would provide the potential for ongoing energy security for South Australia and our eastern states, plus valuable export revenue.

“The well was only 350 metres from the existing pipeline network and eight kilometres from Moomba's gas processing plant, which enabled it to be brought on line quickly, illustrating the importance of Santos' existing infrastructure position in commercialising the region’s significant resource potential.”

Further drilling is planned for the area, including an ongoing vertical well appraisal program and Santos’ first horizontal shale well planned for early 2013.

Santos was joined by the Premier of South Australia, the Hon Jay Weatherill MP, and the Minister for Mineral Resources and Energy, the Hon Tom Koutsantonis MP, to officially open the Moomba-191 well at an on-site ceremony north-east of the Moomba processing plant.

Mr Weatherill said: “Natural gas from unconventional sources has been regarded as something that would happen in the future but today's opening demonstrates that the future is happening today.”

"This is the first step in the next wave of Cooper Basin development that will lead to natural gas from unconventional sources being increasingly used in households across SA and Eastern Australia more generally.”

Santos has a 66.6% interest in the South Australian Cooper Basin Joint Venture. The other participants are Beach Energy (20.21%) and Origin Energy (13.19%).

• Santos announces start of Australia’s first commercial shale gas production

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The Commonwealth Pipeline will provide a direct, cost-effective path for bringing natural gas produced in the Marcellus and Utica Shale plays to growing natural gas markets in central and southeastern Pennsylvania and the greater Mid-Atlantic region. The proposed interstate pipeline will consist initially of approximately 120 miles of 30-inch pipeline extending from the southern terminus of the Inergy Midstream’s MARC I Pipeline in Lycoming County, Pennsylvania, to several points of interconnection in southeastern Pennsylvania with other interstate pipelines, including NiSource Gas Transmission and Storage, Texas Eastern Transmission Company, Transco Pipeline, and Eastern Shore Natural Gas Company. As shown on the map below, the Commonwealth Pipeline is also expected to connect with UGI Energy Service’s natural gas liquefaction, vaporization, and storage facility near Temple, Pennsylvania, and to run near or connect with multiple natural gas distribution systems in southeastern Pennsylvania.

The proposed interstate pipeline project is expected to have an initial capacity of 800,000 dekatherms of natural gas per day. The project sponsors have commenced field work, including requesting survey permission from landowners, and expect to request authorization from the Federal Energy Regulatory Commission (“FERC”) later this year to use its pre-filing procedures. The project sponsors anticipate filing with the FERC in the first half of 2013 a Section 7(c) application under the Natural Gas Act for a Certificate of Public Convenience and Necessity, and placing the Commonwealth Pipeline into commercial service in 2015. Project representatives are working with prospective shippers and expect to execute additional precedent agreements over the next several weeks to further support the Project’s construction and the filing of applications for regulatory approvals.

• The Sponsors of the Commonwealth Pipeline Project Announce the Execution of Binding Precedent Agreements with Anchor Shippers

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The meeting dedicated to these anniversaries was attended by Alexander Medvedev, Deputy Chairman of the Gazprom Management Committee and Director General of Gazprom Export, Tomas Malatinsky, Slovak Minister of Economy, Jan Klepac, Executive Director of the Slovak Gas and Oil Association, the executives of Slovak companies, members of Parliament, Pavel Kuznetsov, Russian Ambassador to Slovakia and Maros Sefcovic, European Commission Vice-President.

The participants of the meeting highlighted that the mutually beneficial cooperation of Gazprom and Slovakia was important for strengthening the security of gas supply to European consumers and for developing to a great extent the mutually beneficial Russian-European economic relations in general.

“We see the intrinsic changes in the European market and we are ready to work with them. At the same time, we are sure there are things and principles that have to remain unchanged regardless of price behavior or emergence of new gas sources. They are the principles of free competition, non-discriminatory access, compliance with legislative regulations,” Alexander Medvedev stated.

Background

Slovakia is the largest Russian gas transiting country after Ukraine. In 2008 Gazprom and its Slovak partners signed new 20-year supply and transit agreements.

Slovakia has a long history of partnership with Russia and is a reliable partner in the sphere of gas supply. Gazprom Group's partners are SPP, dealing with gas purchase, sale and distribution, and Eustream a.s., Slovak gas transmission system (GTS) operator. Russian natural gas transited via the Uzhgorod route crosses the Slovak Republic. In Western Slovakia the gas flow is split in two parts: one is transited across the Czech Republic to Germany and the other is supplied to Austria, France and Italy.

According the 2011 results 5.89 billion cubic meters of natural gas was supplied to Slovakia and 47.38 billion cubic meters of natural gas was conveyed through the county, including 0.83 billion cubic meters for the compressor stations.

• Gazprom and Slovakia celebrate anniversaries of cooperation in energy sector

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This loan will finance capital investments required of CDGR in connection with its subscription of 40% interest in a partnership which owns the shale gas assets in the Montney land in British Columbia, plus additional potential lands tapping the Cadomin and Doig geological formations. Encana Corporation, Canada's largest natural gas producer, is the operator and managing partner of this partnership.

Canada is endowed with vast shale gas reserves and has great potential as a new natural gas supplier for the markets in the Asia-Pacific region. The participation of MC in this project to secure gas interests in North America will contribute to Japan's energy security by diversifying the natural gas supply sources and easing the demand-supply balance in the Asian liquefied natural gas (LNG) markets.

MC is also planning to produce LNG in its production facilities that are going to be built on the western coast of British Columbia by using the natural gas produced from this shale gas project and the shale gas project in the Cordova Embayment*1, and to export the output to Japan and the Asian region. This project is expected to make Canada, which is politically stable and a relatively short distance from Japan, a new LNG supply source, thereby contributing to the diversification of Japan's LNG supply sources.

JBIC will continue to actively support Japanese businesses that promote the development and acquisition of energy resources by drawing on its various financial facilities and schemes for structuring projects, and by performing its risk-assuming functions.

• Energy and Natural Resources Financing for the Shale Gas Project in Canada

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“Following a thorough and consultative review process, the Nova Scotia Government reached a decision which we applaud as the best option for customers,” said Darren Gillis, General Manager, Irving Energy. “An open and competitive market will mean more competition in Nova Scotia, and we believe that fair competition drives down costs, fosters innovative solutions and helps improve delivery reliability."

Irving Oil could begin operations as early as next year and will deliver natural gas by truck in an easily transported form called compressed natural gas, or CNG. Construction of Irving Oil’s first natural gas compression station in Nova Scotia is expected to begin once commercial negotiations are finalized.

“We’ve been processing (refining) and delivering energy in multiple forms to our customers since 1924,” said Gillis. “We’ve been servicing our Nova Scotia customers successfully since 1930, providing diesel, heating oil, propane, bunker and other products. Now, we’ll begin to provide our customers with greater access to natural gas, which will help them lower energy costs. Large commercial users in Nova Scotia who convert to natural gas could cut their annual energy bills by as much as 35 percent.”

Recent reports indicate that North America could become the leading producer of natural gas in the world, providing a ready supply from which Irving Oil will serve new commercial customers and provide them a competitive energy option. With North America’s large supply of natural gas and competitive prices, future commercial customers can expect to see energy savings. In addition, natural gas has important environmental advantages as the cleanest-burning fossil fuel.

“With Irving Oil’s long history of delivering fuels safely and efficiently throughout Atlantic Canada and New England, expanding our natural gas business makes sound business sense both to us and to our customers,” said Gillis. “As Irving Oil leverages abundant natural gas supplies and attractive costs, our customers who seek to increase their competitiveness by lowering their fuel costs will also benefit.”

• Irving Oil set to deliver natural gas in Nova Scotia

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"Our team has the expertise to design, build and safely operate pipeline systems. We look forward to having open and meaningful discussions with Aboriginal communities and key stakeholder groups, including local residents, elected officials and the Government of British Columbia, where we will listen to feedback, build on the positive and seek to address any potential concerns," said Russ Girling, TransCanada's president and chief executive officer. "Coastal GasLink will add value to British Columbians, particularly Aboriginals and communities along the conceptual route, by creating real jobs, making direct investments in communities during construction and providing economic value for years to come."

• TransCanada Selected by Shell and Partners to Develop Multi-Billion Dollar Natural Gas Pipeline to Canada's West Coast

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The TAPI Gas Pipeline is envisaged to be 1680 Km in length (144 Km in Turkmenistan, 735 Kin in Afghanistan & 800 Km in Pakistan) with a capacity of 90 MMSCMD of gas, with 38 MMSCMD each for India and Pakistan and the remaining 14 MMSCMD for Afghanistan. The Pipeline is expected to be operational in 2018 and supply gas over a 30 years period.

The source of the gas is the South Yoiotan Osman field, recently renamed Galkynysh, which has been certified by a reputed international consultant to be holding proven recoverable gas reserves of 16 trillion cubic metres.

The provisions of the GSPA have been structured to protect India's commercial interests as India is at the tail end of the pipeline. Afghanistan and Pakistan have committed to the safety and security of the pipeline through the Inter-Governmental Agreement and the Gas Purchase Framework Agreement signed among the four countries in December, 2010.

• Gas Sales and Purchase Agreement under Turkmenistan-Afghanistan-Pakistan-India Gas Pipeline Project

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The proposed pipeline will transport up to 1.2 Bcf of natural gas per day to city gates and interstate pipeline systems at points between the southern terminus of Inergy Midstream’s MARC I line (at the interconnect with Transcontinental Gas Pipe Line Company, LLC’s Leidy Line near Station # 517 in Lycoming County, Pennsylvania) and the Dominion Cove Point LNG, LP pipeline in Charles County, Maryland. The primary purpose of the Commonwealth Pipeline is to provide a direct and flexible path for bringing natural gas produced in the Marcellus and Utica Shale plays in Pennsylvania and neighboring states to growing natural gas markets in central and eastern Pennsylvania; the metropolitan areas of Philadelphia, Baltimore, and Washington, D.C.; and the Delmarva Peninsula.

The proposed project is targeting shippers seeking (i) additional supply flexibility, diversity, and reliability; (ii) liquid points for trading locally-produced Marcellus and Utica shale gas; (iii) direct access to premium markets in the Northeast and Mid-Atlantic region, including new delivery points to constrained areas in the greater Washington, D.C. metropolitan area; (iv) the ability to capture pricing differentials between the various interconnected market pipelines; and (v) firm access to long-lived dry gas reserves that will not require the additional expense and potential interruptibility of natural gas liquids (“NGL”) processing. Commonwealth will provide shippers additional opportunities to buy and sell supplies, and to transport natural gas to where it is needed and valued most. This “market pull” project will provide shippers with a short-haul transportation option for direct access to Marcellus and Utica Shale gas supplies, thereby eliminating the expense of system-wide fuel and maintenance costs associated with long-haul pipelines traditionally bringing Gulf Coast supply to the Northeast and Mid-Atlantic markets.

Rates for the Commonwealth Pipeline will be determined after the conclusion of this non-binding Open Season and are dependent upon the final scope of the facilities and firm service commitments. The non-binding Open Season will close at 5:00 p.m. Central Time on Friday, June 8, 2012.

• Inergy Midstream, UGI and WGL Announce Non-Binding Open Season for Commonwealth Pipeline

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Subject to partner consent, BG Group and Cosan expect to execute a definitive sale agreement in the near term. The transaction, which will be subject to regulatory approval, is likely to complete by the end of 2012.

BG Group Chief Executive Sir Frank Chapman said: “This memorandum of understanding is another important step in our ongoing portfolio rationalisation and funding diversification programmes, underpinning delivery of the wealth of opportunities we have across our global portfolio. We look forward to concluding this deal as part of our plans to release some $5 billion of capital in the next two years through strategic divestments.”

Shareholders in Comgás are BG Group (60.1%) and Shell (18.1%) with the remainder held via the public through a listing on the São Paulo stock exchange.

• Memorandum of understanding signed for sale of Comgás stake

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The four companies have agreed on a work plan aimed at commercializing North Slope natural gas resources within an Alaska Gasline Inducement Act (AGIA) framework. Because of a rapidly evolving global market, large-scale liquefied natural gas (LNG) exports from south-central Alaska will be assessed as an alternative to a natural gas pipeline through Alberta.

“Commercializing Alaska natural gas resources will not be easy. There are many challenges and issues that must be resolved, and we cannot do it alone. Unprecedented commitments of capital for gas development will require competitive and stable fiscal terms with the State of Alaska first be established,” the CEOs of ExxonMobil, ConocoPhillips and BP wrote in a joint letter to Governor Sean Parnell.

The producing companies support meaningful Alaska tax reform, such as the legislation introduced by Governor Parnell, which will encourage increased investment and establish an economic foundation for further commercialization of North Slope resources.
With Point Thomson legal issues now settled, the producers are moving forward with the initial development phase of the Point Thomson project. Alaska’s North Slope holds more than 35 trillion cubic feet of discovered natural gas, and Point Thomson is a strategic investment to position Alaska gas commercialization.

• ExxonMobil, ConocoPhillips, BP and Alaska Pipeline Project Working Together to Commercialize North Slope Natural Gas

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A minimum of five wells will be drilled during the exploration program which is directed principally at better defining the contingent resource size and characteristics of the greater Poseidon structure.

The first well, Boreas-1, is located in WA-315-P on a large tilted fault block approximately 4 kilometres south of Poseidon-1 and is expected to spud early next week and reach total depth some time later in the first half of 2012.

The second well, Zephyros-1, is located in permit WA-398-P on a large tilted fault block approximately 8 kilometres south west of Kronos-1.

The third well, Proteus-1, is located in WA-398-P on a large tilted fault block approximately 14 kilometres south east of the Poseidon-1.

Additional well locations for the remainder of the program will be announced as they obtain Joint Venture approval.

ConocoPhillips is the operator of the jointly held WA-314-P, WA-315-P and WA-398-P Browse Basin permits containing the previously announced Poseidon and Kronos gas discoveries.

Karoon Gas Australia Ltd holds, 40% of permit WA-315-P and WA-398-P, and 90% of permit WA-314-P.

• Browse Basin Drilling Program Set To Commence This Week

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Subject to government approval, this is the first shale gas PSC ever signed in China. The contract area covers approximately 3,500 square kilometres.

Zhao Zhengzhang, Vice President of PetroChina Company Limited, and Lim Haw-Kuang, Executive Chairman of Shell Companies in China, signed the PSC at a ceremony in Beijing. Jiang Jiemin, Chairman of CNPC, and Peter Voser, Chief Executive Officer of Royal Dutch Shell plc, witnessed the signing.

“We are delighted about this new milestone in our strategic cooperation with CNPC,” said Peter Voser. “China has huge shale gas potential and we are committed to making a contribution in bringing that potential into reality.”

Shell will apply its advanced technology, operational expertise and global experience in the project to jointly develop the shale gas resources with CNPC.

• CNPC and Shell sign first shale gas production sharing contract in China

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Although actual revenue will be dependent upon purchased quantities and prices at the time of sale, the estimated total revenue for the 15-year period is $18 billion in the event IEC does not exercise its option and $23 billion if the option is exercised. The gas price formula includes a base price and is indexed mainly to the US Consumer Price Index. The agreement is subject to final government approval, which is expected.

"We look forward to the start-up of gas deliveries from the Tamar field to meet the needs of the state of Israel," said Charles D. Davidson, Noble Energy's Chairman and CEO. "This clean burning fuel will reduce emissions and lower the cost of power generation. Tamar is on schedule to begin commissioning late this year with initial gas deliveries expected in April 2013."

As a result of this and previously announced agreements, the Tamar partners have sales agreements for natural gas quantities in the range of 3.9 to 4.7 Tcf with six different customers, resulting in estimated total revenues between $27 billion and $32 billion over a 15 to 17 year period.

Noble Energy operates Tamar with a 36 percent working interest. Other owners are Isramco Negev 2 with 28.75 percent, Delek Drilling with 15.625 percent, Avner Oil Exploration with 15.625 percent, and Dor Gas Exploration with the remaining four percent.

• Noble Energy Announces Execution of Gas Sales Agreement With Israel Electric Corporation

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May exploation of shale gas create risk for natural environment? This question casts deep shadow on Poland dreams to become the second Norway. Fearful news on effects of hydraulic fracturing keep coming from various places in the world, especially the United States. And this is still the key method for releasing gas entrapped in tiny pores of dark, otherwise impervious Silurian shales which occur at 3-4 km depths in a belt stretching from the central Pomerania to Lublin region.

In order to verify these fearful news, our scientists decided to carry out detailed studies of environment and ground water in area of the first exploratory well in Poland, in which Lane Energy company performed full-scale hydraulic fracturing in the middle of the last year. The studies were conducted on the initiative of the Ministry of the Environment from June 13 till October 13, 2011.

The team of specialists studied environmental conditions and ground water before, during and after the hydraulic fracturing. The studies were coordinated by the Polish Geological Institute and the team comprised geologists and hydrogeologists from the PGI as well as specialists from the Institute of Geophysics of the Polish Academy of Sciences, Voivodeship Inspectorate for Environmental Protection in Gdańsk, Biology Division of the Faculty of Environmental Engineering of the Warsaw University of Technology and Oil and Gas Institute in Cracow. Over 30 specialists took part in the field works, and about 30 - in laboratory studies.

The well named as Łubień LE-2H is 4,075 m deep, with horizontal section 1,000 m long. It is located near Łebień in the Pomerania voivodeship. This is typical agricultural area It is drained by the Kisewska Struga Creek. The main usable ground water horizon occurs at the depth 10 to 20 m below terrain surface but the local population also uses water from shallower horizons.

The hydraulic fracturing was performed by Schumberger on horizontal section of the well from August 19 to 28, 2011. After making holes in steel casing of well bore in 13 intervals of the horizontal section, about 17,322 m3 of water stored in a special reservoir in the well site area was injected into the horizontal section. Before the injection, about 1,271 tonnes of quartz sands and 462 m3 of chemical were added to the water. The role of quartz sand addition was to prevent closing of fissures made by blows of water-based fluid injected into a well under high pressure. In turn, chemicals are added to increase penetrating force of the fluid, prevent growth of bacterial flora and protect well casing from corrosion.

The studies were comprehensive, covering air, soil gas, surface water and usable ground water, soil, noise level and ground vibrations. A special attention was paid to the presence of the major component of natural gas, that is methane, and radioactive radon. The presence of methane would indicate leakiness of cement plugs of the well casing or migration ofthat gas from shale rock layers subjected to hydraulic fracturing. Radon is fairly common in rocks and ground water and, as suggested by some authors, may also escape from gas-bearing shale rock series.

The studies carried out on such scale for the first time in Poland did not show any changes in the natural environment which could be linked with the hydraulic fracturing. Neither methane nor radon were found. Seismic stations of the Institute of Geophysics (20 in number) did not record any shakes in the time of fracturing. Also analyses of water from the Kisewska Struga Creek and 20 water wells did not show any changes from chemical composition as found in detailed studies performed before the hydraulic fracturing. Only noise level turned to be arduous from time to time but only in the direct proximity of aggregates

The studies also covered management of waste and flowback fluids. As expected, a part of injected technological fluid (2,781 m3) came back to the surface. In result of contact with strongly saline water and shales in the zone of hydraulic fracturing the fluids became enriched with chlorides and barium salts. The analyses showed increase toxicity of these fluids in relation to some groups of organisms (crustaceans and plants). The major part of these flowback fluids were subjected to treatment in a special station in the well site area and stored for reuse in hydraulic fracturing to be performed on other wells. The rest was treated as industrial waste fluid and sent to be subjected to specialized methods of utilization. It should be noted that the technological liquids were subjected to continuous supervision.

All the operations carried out at the well site area were conducted in the way minimizing risk of negative impact on ground water. This includes recycling of the flowback fluids, storage of waste in leak-proof containers and protection of land surface with concrete plates and liners made of plastic firm).

It should be added that the use of large quantities of water in hydraulic fracturing operations did not result in decrease of ground water resources in the Łebień well area. This was due to the fact that water was being gathered in leak-proof reservoir for several months, in quantities consistent with the water rights permit.

• Environmental Impact of Hydraulic Fracturing Treatment Performed on the ŁEBIEŃ LE-2H WELL

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Spectra Energy expects natural gas demand in this region to significantly grow as power generators look to increase their use of existing facilities and site new gas-fired generation. The Renaissance project will support multiple service offerings to these generators, as well as local distribution companies and industrial users, by bringing high-pressure capabilities to serve the swing and hourly delivery requirements that these markets require.

The Renaissance project will commence at an interconnect with Spectra Energy's Texas Eastern Transmission, LP (Texas Eastern). Texas Eastern is strategically positioned with existing connectivity through the Marcellus, Utica, Appalachian and other shale gas supply sources, creating a direct link from these basins to the Renaissance project. Texas Eastern offers additional supply options for Renaissance customers with its traditional access to Gulf of Mexico and Gulf Coast supply as well as its access to the Fayetteville, Haynesville, Woodford, Barnett and Eagle Ford shale plays. These direct links to multiple supply basins will serve to diversify customer's clean energy options and offer significant liquidity and supply reliability. The new pipeline runs 230 miles in length, and the projected capacity is approximately 1.25 billion cubic feet per day (Bcf/d), with an estimated in-service in late 2015.

“Taking advantage of expanding domestic onshore resources and creating access to growing natural gas markets will enable us to offer greater flexibility to both new and existing customers,” said Mark Fiedorek, group vice president, Spectra Energy Transmission, Southeast.

“With our existing Texas Eastern system footprint, Spectra Energy can readily connect the shale gas production potential from the Marcellus and Utica shales to the doorstep of an exciting, high-demand market,” Fiedorek added. “We hope to reach a mutually beneficial arrangement with AGL Resources to anchor this project, and are confident we also can meet the future needs of other potential customers in the Southeast.”

The non-binding open season will commence March 2, 2012, and end March 30, 2012.

• Spectra Energy Holds Open Season for Renaissance Gas Transmission Project

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The proposed Commonwealth Pipeline will extend from the southern terminus of Inergy Midstream's MARC I pipeline in Lycoming County, Pennsylvania, due south through central and eastern Pennsylvania and will continue south to access markets across southeastern Pennsylvania, Philadelphia and the Baltimore and Washington, D.C. metropolitan areas. The pipeline will connect these attractive markets directly to reliable supplies of Marcellus natural gas production from across Pennsylvania while providing a more cost effective transportation path compared to traditional routes. The pipeline is expected to cross and interconnect with a number of interstate pipelines along its route, providing even greater supply diversity while providing producers with direct access to markets that are currently served only through existing interstate pipelines.

The sponsors expect to own equal equity interests in the project company formed to own the pipeline. Inergy Midstream will construct and operate the pipeline which is expected to cost approximately $1.0 billion and be funded equally by the sponsors.

A non-binding open season will be announced in March 2012, for shippers interested in acquiring capacity on the proposed pipeline.

• Inergy Midstream, UGI and WGL announce plans to jointly develop a new interstate natural gas pipeline

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The parties discussed current issues and prospects for further cooperation in the energy sector. Particular attention was paid to the interaction of the companies on the terms of Russian natural gas supplies to Italy and the implementation of the South Stream project.

The agreement on the revision of the price of the gas supply contracts represents an important step in the forty-year long strategic partnership between Gazprom and Eni. Gazprom and Eni further consolidate their commercial relationship, contributing to the competiveness of Russian gas in the european market and helping to strengthen security of supply.

The parties also discussed the execution of the actions detailed plan for the commencement of construction of the gas pipeline by December 2012. It was noted that the project is being implemented in strict accordance with the approved schedule. The two sides also discussed the preparation of project documentation for the Final Investment Decision (FID) on the South Stream project offshore section to be adopted this November.

• Eni and Gazprom reach agreement on gas supply contracts and discuss actions for the expedited construction of the South Stream gas pipeline

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