Fort Worth-based Richardson Products Co., the marketing arm ofSid Richardson Gasoline Co., is hoping to follow the footsteps ofAquila Gas Pipeline (AQP) of San Antonio, TX, into third-party gasmarketing. The company picked up four AQP employees to accomplishits goal.

Richardson Products is expanding into marketing of third-partynatural gas and adding risk management products. RichardsonProducts recently grew its staff by five, four of whom come fromAquila Gas Pipeline where they started a successful third-partymarketing business. Richardson Products marketed 100 to 130 MMcf/dof gas last year. Jim Wade, newly hired vice president of marketingand business development, said plans are to initially double thatnumber and then market about half a Bcf/d in the first quarter ofnext year, all physical gas. Expectations are for about a Bcf/d infinancial volumes. The company currently markets about 16,000barrels/d of gas liquids.

The company will market third-party volumes in the Permian, SanJuan and Midcontinent regions at least initially, and extend thatto trading, origination and other services for various customers,end users, pipelines. Richardson Gasoline gathers, processes andtreats natural gas. The company has the Keystone processing plantand gathering system in the Permian Basin of West Texas and the Jalprocessing plant and gathering system in the Permian Basin.

Others joining the company who worked at Aquila Gas Pipeline areJeff Wachsmann, gas trading representative; Scott Walker, managerof gas and basis trading; and Brad Brigham, director of T&ampE, gascontrol, financial and physical positions. Randy Brown, manager ofgas futures trading, did not come from Aquila. He has a consultingbackground.

A spokesman for Aquila Gas Pipeline parent UtiliCorp said abouthalf a dozen people left Aquila during the time it was offered upfor sale and are being replaced. In March, the San Antonio-basedcompany began testing the waters for a possible sale or merger (SeeNGI March 16, 1998). However, the company was pulled from theauction block when low gas liquids prices kept buyers away (See NGIAug. 10, 1998). Aquila Gas Pipeline markets about 0.75 Bcf/d ofthird-party gas.

Joe Fisher, Houston

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