Anadarko Energy Services Aligns With Mountain Energy
Anadarko Energy Services Co., the wholesale marketing affiliate
of Anadarko Petroleum, is gaining entrance into the retail market
through an agreement with independent marketer Mountain Energy.
Mountain Energy recently signed an agreement with Anadarko
Energy Services Co. and a related agreement with Manchester Gas
Storage Facility. The agreements are said to position Mountain
Energy as a market leader in Kansas and Missouri.
Mountain Energy serves more than 600 small and medium-sized
industrial and commercial end users in Kansas and Missouri. The
company concentrates its efforts primarily on the Kansas Gas
Services and Williams Gas Pipeline systems. The company also has
sales offices in Topeka and Wichita, KS.
Anadarko Energy Services and Anadarko Petroleum have significant
exploration, production and gas gathering operations in Kansas and
Oklahoma. Anadarko Energy Services can deliver more than 200 MMcf/d
into the Kansas Gas Services and Williams pipeline systems from
about 2,500 wells in the Hugoton field in southwest Kansas to serve
Mountain Energy's customers. Anadarko Energy Services will supply
gas to Mountain Energy for its retail activities while it continues
to build its own wholesale business. In the second quarter,
Anadarko Energy Services had physical marketed volume of about 1.4
Bcf/d, including equity and third-party gas. In 1998, the company
marketed about 1.2 Bcf/d.
"This arrangement with Mountain Energy strategically complements
our wholesale marketing efforts in Kansas, Oklahoma and Missouri,"
said Darryl Kennedy, manager of market development for Anadarko
Energy Services. "Anadarko Energy Services will continue to focus
its efforts on serving and developing wholesale markets by
providing reliable and competitive supply on all major pipelines
within the Midcontinent region. Anadarko Energy Services will
utilize its expertise and assets, including storage, processing,
pipeline flexibility and trading capacity, to provide Mountain
Energy with reliable and competitively-priced natural gas to meet
its customers' needs."
Mountain Energy also agreed to act as agent for the sales and
management of capacity for the Manchester Gas Storage Facility.
Anadarko Energy Services is a significant holder of capacity at
Manchester. Located in Grant County, OK, the Manchester facility
has more than 12 Bcf of storage capacity and substantial
deliverability into the Williams (more than 100 MMcf/d) and
Oklahoma Natural Gas (more than 30 MMcf/d) systems.
"The relationships with Anadarko Energy Services and Manchester
bring additional flexibility to our inventory control and provide
access to supply and deliverability during times of critical
temperature fluctuations. With these arrangements, Mountain Energy
now has additional strength to substantially grow and meet the
changing needs of natural gas customers in Kansas and Missouri,"
said Mountain Energy President Mike Eichenberg.
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