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Election could inspire drop of MLP status; Devon selling Canadian business

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Election could inspire drop of MLP status; Devon selling Canadian business

Top News

Next election could inspire big partnerships to abandon MLP status, analyst says

If Energy Transfer LP and Enterprise Products Partners LP converted from partnerships to C-corps, they could potentially join the S&P 500 and become some of the top yielding names on the index.

IEA: Nuclear extensions vital to reach climate goals, ensure energy security

Unless governments around the world change policies to keep nuclear plants open for longer and stimulate investment in new projects, the closure of aging reactors will push up greenhouse gas emissions and electricity prices, the International Energy Agency warned in a new report.

Lawmakers file bills to subsidize making steel industry fuel from coal sludge

A bipartisan group of federal lawmakers from West Virginia, Pennsylvania and Ohio reintroduced bills intended to encourage the steel industry to produce fuel from a substance the government designates as a hazardous waste.

Devon inks C$3.8B deal to shed Canadian business

In the first step of its plan to transition into a U.S. oil growth business, Devon Energy Corp. is divesting its Canadian business to Canadian Natural Resources Ltd. for C$3.8 billion, or US$2.8 billion.

Quoted

"What we are seeing in the market is a number of projects going to final investment decision without having pre-sold all of their volumes," Woodside Energy Ltd. CEO and Managing Director Peter Coleman said on reports that the global LNG market could end up with excess supply in the next decade as companies race to build a new wave of LNG export projects even without customers.

Power

* An Ohio legislative panel advanced to the state House of Representatives a modified plan to shore up the economics of two nuclear power plants.

* National Grid PLC subsidiary National Grid USA received approval from Rhode Island regulators to purchase 400 MW of electricity from the Revolution offshore wind project under a 20-year power purchase agreement, according to The Associated Press.

* Infinite Energy Inc., NRG Energy Inc. and Vistra Energy Corp. have thrown their support behind a ballot proposal to deregulate Florida's electricity market, which they believe would help the retail power companies gain a foothold in the Sunshine State.

* Guzman Energy LLC has made a proposal to Tri-State Generation and Transmission Association Inc. to finance the accelerated retirement of nearly 50% of Tri-State's coal capacity not already slated for early closure and replace the retired coal capacity with renewable energy.

* Idaho Power Co. secured water certifications from Idaho and Oregon to renew the license of its Hells Canyon hydroelectric complex, the AP reported.

Natural gas

* Dominion Energy Transmission Inc. received a positive environmental assessment from the Federal Energy Regulatory Commission for a natural gas system expansion that would increase the delivery of natural gas to a power plant in eastern Ohio.

* Freeport LNG received approval from the U.S. Department of Energy for exports from its fourth liquefaction train to non-free-trade agreement countries.

* TC Energy Corp., formerly known as TransCanada Corp., agreed to off-load an 85% stake in the Northern Courier pipeline to Alberta Investment Management Corp. for estimated gross proceeds of about C$1.15 billion.

* Santos Ltd. is building a battery project at the Darwin LNG plant in Australia to reduce carbon emissions and costs. ConocoPhillips operates the Darwin LNG facility.

Oil

* S&P Global Ratings lowered its outlook for oilfield services majors Schlumberger Ltd. and Halliburton Co. to negative amid challenging industry conditions that drove weaker-than-expected financial performances in the first quarter.

* CITGO Petroleum Corp. is in talks with the government of Aruba on oil refinery operating contract, Reuters reported.

* Royal Dutch Shell PLC said its Alberta government-backed carbon capture and sequestration system has trapped 4 million tonnes of carbon dioxide, the most of any onshore facility in the world with dedicated geological storage.

* China increased its oil imports from Iran by 21% before the U.S. scrapped sanction waivers, the Financial Times reported.

* Total SA is withdrawing from exploring oil in Block 3 in the Democratic Republic of Congo, Bloomberg News reported.

Coal

* The U.S. Department of the Interior and the United Mine Workers of America both recently filed objections to Westmoreland Resource Partners LP's plan to liquidate.

* The Illinois General Assembly on May 27 passed a bill that would require coal-fired power plant operators to set aside money for the cleanup of leaking coal ash impoundments targeted by federal regulations. The legislation is now headed to Illinois Gov. J.B. Pritzker's desk for signature.

ChartWatch

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Natural gas accounted for the largest share of U.S. electricity generation in March.

New from RRA

* An administrative law judge with the California Public Utilities Commission has proposed a financial stress test framework for the commission to consider that will determine how much the state's electric utilities can pay for certain catastrophic wildfire costs while keeping them solvent and protecting ratepayers.

The day ahead

* Early morning futures indicators pointed to a lower opening for the U.S. equity markets. To view more SNL equity market indexes, click here. To view more SNL Energy commodities prices, click here.

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SNL ImageClick here to read about today's financial markets, setting out the factors driving stocks, bonds and currencies around the world ahead of the New York open.

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