Alcoa Partners with Siemens, PG&E Penalized in CA: Energy Business Update
Alcoa’s (NYSE:AA) Alcoa Power and Propulsion reaches a long-term arrangement with Siemens Energy (NYSE:SI) to provide blades and vanes for a wide array of industrial gas turbines. Parts made by Alcoa in the United States and in Europe will be employed in the Siemens F-Class turbine, which generates sufficient power to provide the energy needs of a city of 300,000 residents. Terms of the deal were not disclosed.
On Thursday, SM Energy Company (NYSE:SM) said that its board okayed a capital expenditure budget for next year, and provides 2013 production and cost guidance. Chief Executive Tony Best commented that “ Our 2013 capital program positions the Company for another year of record production while generating strong returns from our key projects. The capital budget is anchored by our high return Eagle Ford and Bakken/Three Forks development programs, with additional investments being made in emerging oil programs in the Permian Basin.”
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CBM Asia Development Corp (CBMDF.PK) and Exxon Mobil Corporation have created a joint venture through which to farm into four existing coalbed methane production sharing contracts, in the Barito Basin, South Kalimantan, Indonesia and to purchase rights to farm into certain additional contracts in the Kutai Basin, East Kalimantan. The parties would hold equal ownership interest in each contract.
PG&E Corporation (NYSE:PCG) has been ordered by regulators in California to share with its customers approximately $2.2 billion in estimated costs so as to increase the safety of its natural gas pipeline system, subsequent to a fatal pipeline explosion in San Bruno in 2012 that killed eight persons. After the event, investigations found that the company had lost critical pipeline records, and also had not adequately maintained and upgraded a number of its aging gas pipelines during several decades.
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