In terms of physical natural gas sales in North America, BP plc appears to have no equals, once again topping NGI‘s fourth quarter and year-end 2003 survey. BP reported gas sales of 22.3 Bcf/d in the final quarter of last year, up substantially from 18.1 Bcf/d reported a year earlier. The London-based major also showed a 29% gain year-over-year, reporting 20.2 Bcf/d in sales during 2003, compared with 15.6 Bcf/d in 2002.

BP’s nearest competitor, California-based Sempra Energy, reported 12.9 Bcf/d in gas sales in the final quarter, up from 10.5 Bcf/d in 4Q2002. It gained 33% year-over-year in North American gas sales, reporting 13.2 Bcf/d last year, up from 9.9 Bcf/d in 2002. BP’s and Sempra’s volumes were both up 23% in 4Q2003 sales compared with 4Q2002. Shell’s trading arm, Houston-based Coral Energy, was in third place for the fourth quarter, averaging 9.3 Bcf/d in gas sales, while ConocoPhillips was fourth, averaging 8.6 Bcf/d.

After the top four, however, there was much more parity in gas sales for the quarter. Cinergy, up 6% in gas sales from the previous fourth quarter, rounded out the top five, averaging 3.94 Bcf/d in sales, which was less than half that of number four ConocoPhillips. However, Cinergy was up 17% year-over-year, with 4.06 Bcf/d in 2003 sales, compared with 3.46 Bcf/d the previous year.

The rest of the top 10 was dominated by up-and-coming marketers and continued strong showings by producers. Thirteen of the 21 companies listed were producers or producer affiliates.

ChevronTexaco, which began marketing its North American gas for the first time last year after severing its marketing agreement with Dynegy Inc., was in seventh place for the fourth quarter, reporting 3.8 Bcf/d in sales. Tenaska, gaining 23% in sales from a year before, reported 3.7 Bcf/d in the fourth quarter, and it was up 25% in sales for the year, reporting 3.5 Bcf/d in 2003, compared with 2.8 Bcf/d a year before.

Rounding out the top 10 were ExxonMobil Corp., which reported 3.03 Bcf/d in the final quarter, while Nexen reported 2.99 Bcf/d.

It terms of reporting, it was easier to compile a list of top North American marketers for the fourth quarter — unlike a year ago when many companies declined to detail gas sales following a turbulent period of scandals and investigations.

The increase in reporting late last year appears to support data compiled by the Market Price Reporting Action Committee (MPRAC), which earlier this month cited “evidence of increased transparency in the nation’s natural gas markets” (see Daily GPI, March 11).

The MPRAC credited index enhancements recommended last year by the Federal Energy Regulatory Commission, which it said had sparked a resurgence in market price reporting. Bob Anderson, a coalition member and executive director of the Committee of Chief Risk Officers, said a year-long drive by FERC had made a difference in the increased transaction data numbers. Companies also are now more willing to release other forms of data, such as gas sales.

Still, many formerly strong energy marketers, including Duke Energy, Dynegy, Mirant, Aquila and American Electric Power, are no longer officially reporting their gas sales. Meanwhile, Williams, which had been one of the gas marketing sales leaders less than two years ago, remained in the top 20 in the latest survey, but its data showed a 29% decrease from a year ago.

Ben Schlesinger, an energy consultant based in Maryland, had been compiling a directory of gas marketing firms for several years, but discontinued the project last year. He cited security issues because of Sept. 11, 2001, credit problems and scandals within the industry as the reason for the directory’s demise (see Daily GPI, Feb. 20). Still, he believes the market appears to be recovering.

“We’re seeing some new faces in the market business,” Schlesinger told NGI. “Major oil and gas producers are clearly in there now. There are a handful of survivors: Sempra, Coral and a few others. Credit is a real issue.”

Source: Physical sales volumes for thefourth quarter of 2003 as reported in quarterly financial reports tothe Securities and Exchange Commission or if necessary provided to NGIin a statement signed by a company official. * Total excludes Sequent.

Source: Physical sales volumes for the full year2003 as reported in quarterly financial reports to the Securities andExchange Commission or if necessary provided to NGI in a statementsigned by a company official. * Total excludes Coral and Entergy-Koch.

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