Judging from preliminary gas marketer ranking results for thefirst quarter, the big continue to get even bigger and the smallergas marketers are increasing their volumes as well. So far in NGI’smarketer survey, 13 of the top-20 increased their gas sales volumesby more than 1 Bcf/d from the same period in 1998. Only four of thetop-20 did less business in 1Q99 than 1Q98.

Despite the increased volumes, only small moves were seen in thetop slots. By marketing nearly 12.5 Bcf/d, Enron held onto the topspot once again, but PG&E Energy Trading is gaining fast.PG&E jumped to No. 2 in the first quarter from No. 4 in 4Q98 onthe list, riding the strength of a 4.37 Bcf/d increase in volumes.

PG&E Energy Trading spokeswoman Debbie Witmer attributed hercompany’s more than 54% growth in gas volume marketed mainly tochanges in the company’s portfolio. PG&E Energy Trading isintegrating the fuel supply of non-regulated U.S. Generating aswell as PG&E’s Energy Services business. “Some of that increaseis due to the continued integration of the portfolio, which is nowbeing handled by Energy Trading.”

Witmer said the company is not focused just on volume. “Overtime, say a two or three year period, we do expect to see healthygrowth, but these swings up and down are kind of the result oflong-term deals dropping out and new deals coming in. I’d say ourfocus is on profitability, which can come with volumes, but notalways. I guess the real key thing is over the longer term, two- tothree-year period, we do expect to see healthy, steady growth.”

Although Aquila Energy saw an almost 2 Bcf/d rise in gas sales,it fell to fourth place. Duke and Coral Energy held their placesfrom their 4Q98 ranking at third and fifth place, respectively.Each company in the top-five averaged at least 1.5 Bcf/d over theirfull year 1998 results.

Engage Energy continued to report dwindling results. Afterposting a 7% gain in volumes from July to September of 1998, thecompany has posted decreased volumes in both the fourth quarter of1998 and first quarter of 1999. With the latest drop of over 14%,Engage fell to ninth place.

The company biting at Engage’s heels in 10th place, ColumbiaEnergy, has been rising by leaps and bounds since 3Q98. The firstquarter of 1999 marked the second straight 50% rise in gas salesvolumes for the Virginia-based integrated pipeline company.

Another company achieving a 50% increase was Sempra Energy. Therise placed the San Diego-based marketer in 12th place, up twospots from its 4Q98 ranking. The volume increase was, in part, aresult of Sempra’s purchase of CNG’s energy marketing portfoliolast year. This is the third straight quarter Sempra has posted avolume increase of 50%.

Sonat Marketing appears to be headed in the opposite directionof Sempra. It posted a decrease in volumes marketed for the thirdstraight quarter. The 1Q99 drop was the most significant, however,as the volumes fell 20% from 1Q98 levels. One result of the poorperformance was Atlanta Gas Light’s (AGL) announced intention tosell its 35% interest in Sonat Marketing. Due to disappointingresults from the venture, including a $3.5 million non-recurringaccounting charge last quarter, AGL exercised its option to sellits interest back to Sonat for no less than the original investmentplus interest.

NGI’s complete gas and power marketer rankings will be availableMonday.

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