NGI The Weekly Gas Market Report / NGI All News Access



Carolina Power &amp Light announced it is considering sites in Richmond and Rowan counties, NC, for new natural gas-fired electric generation to be operational in 2001 and 2002. CP&ampL plans to build up to seven combustion turbine units totaling about 1,100 MW to be operational by June 2001 and may build additional units to be in service in June 2002. The projects are part of CP&ampL's previously announced generation expansion of about 4,000 MW, or 40%, by 2007. Each combustion turbine unit represents a capital investment of about $40 million. Construction is scheduled to begin by the end of 1999. CP&ampL also is building additional peaking generation at two existing plant sites-in Wayne and Buncombe counties-and has broken ground on a 160 MW gas-fired peaking plant in Monroe, GA. Natural gas to fuel a plant in Richmond County would come through North Carolina Natural's (NCNG) pipeline and Transcontinental Gas. Last November, CP&ampL announced its plan to acquire NCNG and to make it a wholly owned subsidiary. CP&ampL anticipates receiving regulatory approval for the acquisition by mid-1999.

Altra Energy Technologies Inc. licensed its management system to eight new clients: Duke Energy Field Services, Burlington Resources, Enogex, OGE Energy Resources, ONEOK Marketing, Proliance, Southern Company Services Inc., and Tejas Energy. The new clients reflect a broad spectrum of utility, energy marketing and pipeline companies using Altra's energy management system. Altra's technology adds the capabilities for full integration of the standard data sets developed by the Gas Industry Standards Board (GISB), including nominations, nomination quick response, schedule volumes, allocated volumes and imbalances.

Recently severed from the downstream operations of Pennzoil, PennzEnergy, like many producers, had an inauspicious year, to say the least. The company recorded a 1998 net loss, before non-recurring items and discontinued operations, of $131.5 million. Including non-recurring items and discontinued operations, 1998's net loss totaled $261.3 million on revenues of $837.4 million. Special items included after-tax, non-recurring charges of $126.6 million primarily due to the $48.7-million impairment to recognize a reduction in value of certain oil and gas reserves, effects of refinancing exchangeable debentures, and costs incurred to spin off and merge downstream operations with Quaker State Corp. Also, $3.2 million of after-tax losses from downstream operations prior to the spin-off were classified as discontinued operations. For 1997, the company recorded net income, before non-recurring items and discontinued operations, of $136.1 million. Including non-recurring items and discontinued operations, net income totaled $175.1 million on revenues of $977.6 million. Daily gas production averaged 467 MMcf in 1998 compared to 589 MMcf in 1997.

The proposed merger of ScottishPower and PacifiCorp gained a large boost last week when the Federal Trade Commission (FTC) waived the 30-day waiting period under the Hart-Scott-Rodino antitrust law. "We are delighted to have received early clearance, which keeps us on schedule to meet our regulatory timetable," said Ian Russell, a ScottishPower spokesman. "This is just the initial step in the overall process," said Dave Kvamme, a PacifiCorp spokesman. Both PacifiCorp and ScottishPower have filed with Oregon, Washington, Idaho, Utah, and Wyoming state regulatory commissions. More information will be provided to state regulators next month. The companies also plan to file an application with FERC soon. The proposed transaction's value is estimated at $7.9 billion. ScottishPower will execute a friendly takeover of PacifiCorp, bringing 1.4 million electric customers in the western U.S. under its wing. The combined company, known as ScottishPower, will have 7 million customers in the U.S., Great Britain, and Australia, and employ 23,500 people worldwide.

Houston-based Market Hub Partners Storage LP (MHP) said an ongoing expansion of capacity at two gas storage facilities and a reduction in expenses were the primary factors responsible for higher revenues and net income in 1998. MHP reported net income of $13 million before charges of $6.7 million for debt repayment. Revenues rose 17% to $32.2 million, compared to $27.5 million in 1997, despite a 16% decrease in hub revenues. When Moss Bluff and Egan expansions are complete in 1999, the facilities will have a combined 24 Bcf of working capacity.

©Copyright 1999 Intelligence Press, Inc. All rights reserved. The preceding news report may not be republished or redistributed in whole or in part without prior written consent of Intelligence Press, Inc.

ISSN © 2577-9877 | ISSN © 1532-1266
Comments powered by Disqus