Project Development & Finance

  • Initial Comments on DOE’s Proposed Grid Resiliency Rule Raise Issues and Draw Battle Lines Before FERC

    31 Oct 2017

    The “Grid Resiliency Pricing Rule” submitted in late September by the Secretary of Energy for consideration by the Federal Energy Regulatory Commission (FERC)[1] has attracted the proverbial avalanche of initial comments from a broad spectrum of interests, including former FERC Commissioners, labor unions, independent power producers, traditional utilities, environmental groups, state public service commissions, energy consumer groups, investors, natural gas producers and pipeline companies, and the U.S. Congress. The comments raise numerous issues, including whether there is a “resiliency” problem in US bulk power markets and, if so, whether it is an urgent problem, the cause of any resiliency problem in US bulk power markets, whether the problem exists across the US or only in certain markets, the best way to resolve any resiliency problem, the potential effect of the Pricing Rule on competitive electricity markets, federal versus state jurisdiction over generating facilities, and the status of FERC as an independent agency under the Department of Energy (DOE).  The comments generally put coal and nuclear-powered generation interests on one side of the battle line, with natural gas- and renewable-powered generation interests on the other side.

  • DOE Directs FERC to Consider Rule Providing Cost Recovery for Coal- and Nuclear-Fired Generating Facilities Operating in RTO/ISO Markets

    3 Oct 2017
    On September 29, 2017, Rick Perry, the Secretary of Energy, sent a letter to the Federal Energy Regulatory Commission (FERC) directing that FERC consider exercising its ratemaking authority under Sections 205 and 206 of the Federal Power Act to require regional transmission organizations (RTOs) and Independent System Operators (ISOs) subject to FERC jurisdiction with day-ahead and real-time markets, or the functional equivalent, to allow for the recovery of costs and a return on investment by “eligible grid reliability and resiliency resources” participating in those markets.
  • Energy Update

    Sep 2017

    We are pleased to release the latest issue of our client newsletter, Energy Update, designed to inform clients and friends of the firm about important developments affecting U.S. and international energy markets.

  • Oil & Gas Sector in Mexico: Comisión Nacional de Hidrocarburos Announces Petróleos Mexicanos Invitation to Bid for Ayín-Batsil Farmout

    22 Sep 2017

    On September 18, 2017, the Mexican government, through the Comisión Nacional de Hidrocarburos (National Hydrocarbons Commission or “CNH”), commenced an international tender process to grant the right to enter into a license agreement in partnership with the productive state-owned enterprise PEMEX Exploración y Producción, to pursue upstream activities in deep waters in the Nobilis-Maximino.

  • Video: Chile’s New Electricity Highway

    6 Sep 2017

    Partners Cynthia Urda Kassis and Alexandro Padrés (both New York-Project Development & Finance) discuss how the Transmisora Eléctrica del Norte S.A. (TEN) financing project transformed Chile’s transmission development, aligning infrastructure to policy objectives by creating an opportunity for renewable sources to be better integrated into the market.

  • D.C. Circuit: FERC Must Consider Potential Pipeline Downstream GHG Effects

    28 Aug 2017

    On August 22, the U.S. Court of Appeals for the District of Columbia Circuit, in a 2-1 decision, vacated and remanded orders of the Federal Energy Regulatory Commission (FERC) authorizing the construction and operation of three natural gas pipeline projects to serve Florida and southeastern markets  because FERC’s environmental impact statement (EIS) issued in connection with FERC’s environmental review of the pipelines did not contain enough information on greenhouse gas (GHG) emissions that will result from burning the natural gas carried by the pipeline projects.

  • Shearman & Sterling Contributes to Liquefied Natural Gas, The Law and Business of LNG

    23 Aug 2017

    Project Development & Finance partner Anthony Patten, counsel Anthony Lepere, associate Lachlan Clancy and trainee Andrea Callá have contributed to the forthcoming third edition of Liquefied Natural Gas, The Law and Business of LNG. This practical title has been updated to take into account the rapidly shifting arrangements and participations in the international LNG sector. Anthony Patten and Anthony Lepere (with assistance from Andrea Callá) collaborated with Elze Frima from Shell to update the chapter concerning floating LNG, while Anthony Patten (with assistance from Lachlan Clancy) collaborated with Philip Thomson from Ashurst to update the chapter concerning LNG trading.

  • Public Healthcare in the Kingdom of Saudi Arabia: Plans for Private Sector Participation

    July 2017

    Saudi Vision 2030 and the National Transformation Program 2020 are built upon the encouragement of private sector investment in sectors that have been predominantly funded and serviced by the Government in the past. Reform of how public healthcare and related services are delivered in the Kingdom is one of the Government’s most important priorities. According to the National Transformation Program 2020, the Ministry of Health (the “MOH”) plans to spend up to SAR23 billion prior to 2020 to reform and restructure primary health care. This article summarises our current understanding of the strategic framework that has been developed by the MOH for private sector participation (“PSP”) in the delivery of public healthcare in the Kingdom, including the MOH’s PSP initiatives, the phases for the implementation of the PSP program, the proposed PSP structure and the proposed delivery models for the PSP initiatives.

  • Shearman & Sterling Lawyers Write Article on Revolutionary Change in Chilean Energy Sector

    6 Jun 2017
    The Chilean energy sector will undergo a revolutionary change in 2017, as the two major grids, the Sistema Interconectado del Norte Grande in the north, and the Sistema Interconectado Central, which covers the center and south of the country, will become interconnected.
  • Trump Infrastructure Plan Envisions Greater Role for Public-Private Partnerships

    2 Jun 2017

    Last week, the White House released an infrastructure “fact sheet” (the “Fact Sheet”) that accompanied its proposed Fiscal Year 2018 budget. The Fact Sheet includes an Infrastructure Initiative (the “Initiative”) that provides a glimpse into how the Trump administration may approach infrastructure policy. This client alert highlights major aspects of the Initiative with a particular focus on its potential impact on private investment in the infrastructure sector and, in particular, public-private partnerships or P3s.


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