El Paso's CA Capacity Goes Up for Bid Again
Shippers hoping to line up California capacity coming open on El
Paso better be ready to fight for it, according to Jerry Strange,
El Paso director of transportation marketing.
"There's 1.3 Bcf coming up the first of January. It will be
subject to a right of first refusal posting around the first of
September. The timeline on that will be 20 business days for open
bidding, and there's a couple days to select a contract, and
there's a five-business-day period where Dynegy has the right of
first refusal on those contracts and then another two or three days
to award the contracts.
"Those of you who went through our sale of this before, we will
sell it the way it's most effective for El Paso on an economic
basis because that's the reality of the world. The paradigms all
crashed in '96 on how capacity like this is sold. And so my
admonition to everybody is bid early and bid often because it's
going to be a very competitive situation."
Strange made his remarks in Dallas Tuesday at GasMart/Power '99.
Delivery points on the capacity to be auctioned will be limited to
California, and the capacity is broken up into three blocks, two of
which have limitations on access rights to receipt or delivery
point, Strange said. "In addition to that we have 100 million a day
coming up on our right of first refusal to Window Rock, which is
the delivery point from El Paso into Transwestern in eastern
Arizona that also will go up some time in the fall. The capacity is
available the first of January, but it has a similar right of first
refusal." Strange said dealing with its "huge capacity turnback" is
the biggest challenge El Paso now faces.
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