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TX Gatherer Targeting Third-Party, Risk Management Business

TX Gatherer Targeting Third-Party, Risk Management Business

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

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

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

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

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

Joe Fisher, Houston

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