SCANA Shuts Down Wholesale, Focuses on Retail in Southeast
SCANA Corp. announced it is refocusing its marketing strategy on
the retail business in the Southeast and is shutting down its
Houston office and its wholesale gas marketing operation. The
company would not say how much natural gas its wholesale operation
handles on a daily basis.
"We had a pretty substantial amount of wholesale business, but
it was not a lot of term business so we don't have a lot to work
off," said John Tufts, vice president in SCANA's Houston Division.
"It was more of a month-to-month business." He said the operation
should be shut down and most of its 19 employees laid off by the
end of March.
"We've got a real strong team. It wasn't a performance issue, it
was more just a refocusing," said Tufts.
SCANA Energy Marketing President Charles Rampey said the company
plans to "continue to provide natural gas, electricity, and energy
management services to the end-use retail markets."
SCANA is focused on the Southeast, where it has a strong and
growing retail presence. "SCANA has more things to sell than just
gas in both South Carolina and Georgia and that's a major market
there and they are going after it in a major way," said Tufts.
"They understand the residential side of the business. They've got
telecommunications, home security, energy."
SCANA wholesale marketing division had been marketing gas as a
producer-marketer up until the company sold its E&P business,
SCANA Petroleum Resources, to Kelly Oil in December 1997. Then the
company decided it wanted to become more of a national wholesale
marketer. "Now they have refocused, realizing you have to be one of
the real big guys to make any money. The market is very thin in the
wholesale business," Tufts noted.
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