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In Brief

In Brief

FERC has issued a final rule requiring interstate pipelines to identify the names and addresses of their marketing affiliates on their web sites on the Internet. The new rule is aimed at assisting the Commission in its oversight efforts and at helping shippers to better monitor transportation transactions between pipelines and their affiliated marketers. The rule, which amends existing Commission regulation, would require an interstate pipeline to update this information within three business days of any change in the status of its marketing affiliate, and to indicate when the information was last updated. The rule would only apply to interstate pipelines engaged in transactions with their affiliates. This reporting requirement, FERC believes, is especially important as marketing-affiliate names and addresses are in a constant state of flux due to acquisitions, divestitures, consolidations and/or other market changes [RM98-7].

EEX Corp. agreed to trade substantially all of its Permian Basin properties in West Texas and Eastern New Mexico for the shallow water properties located off the coast of Texas and Louisiana of Energen Resources Corp., the oil and gas subsidiary of Energen Corp. In addition to the shelf properties, EEX will receive $9 million in cash. "This trade is another step in our strategy to exit the onshore business and focus on offshore Gulf of Mexico. These new properties will improve near-term production of natural gas and will contribute to improving our cost structure by lowering per unit production costs while eliminating overhead costs related to onshore properties," said Tom Hamilton, EEX CEO.

In addition to cash, EEX will receive interests in 24 producing blocks and 30 exploratory blocks. Current average daily production from the 24 producing blocks is about 21 MMcfe, and proved reserves approximate 38 Bcfe. Energen will be receiving properties with an average daily production of about three thousand barrels equivalent and proved reserves of about 58 Bcfe. T

Lone Star Gas International along with two partners was awarded a permit to build a gas distribution system in Mexico City by Mexico's Comision Reguladora de Energia (CRE). Lone Star is a 70% partner in a consortium that is to invest $213 million over 10 years for a system that will have nearly 440,000 users, the vast majority of them residential. Lone Star's partners, each with 15%, are the Mexican companies Grupo Diavaz and Controladora Comercial e Industrial.

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