NGI Staff Reports

Capstone Turbine Corp., developer and manufacturer ofmicroturbine power generators, says it has successfully tested a 30kW unit that can be used at the wellhead to generate power usingsour gas.

A second merchant underground natural gas storage field inCalifornia proposed for a depleted gas field 20 miles south ofSacramento is awaiting a draft environmental report from stateregulators in September to stay on its current timetable forstart-up next Spring.

Orion Power Holdings Inc., jointly owned by affiliates ofGoldman, Sachs & Co. and Constellation Energy, bought theAstoria Generating Station, Gowanus Gas Turbine and Narrows GasTurbine facilities from Consolidated Edison Co. of New York forabout $550 million.

Wednesday’s suspicions that a weeklong run-up in cash prices,which hesitated only on Monday before starting to climb again, wascoming to an end proved well founded Thursday. A sharply droppingscreen, the continued lack of any significant storm threat toproduction and mild weather in the major market areas of theMidwest and Northeast combined to pull down eastern quotes byamounts on either side of a dime. Declines tended to be smaller inthe West, ranging from flat at a few Rockies points to as much as 8cents in the Northern California market.

Feeding off Wednesday’s weakness and reflecting fading concernsthat any of the three tropical systems would reach the gas-richGulf of Mexico, the futures market tumbled lower yesterday as bothcommercial and speculative traders exited long positions. Theresultant price slide left the September contract just penniesabove its $2.90 low for the week and turned several bulls intoshort-term bears. The prompt month finished 8.2 cents lower at$2.948 shortly after notching a $2.93 low late in the session.

Kinder Morgan Energy Partners LP will provide pipelinetransportation services for Aux Sable Liquid Products LP in theChicago area for liquids from Alliance Pipeline. Aux Sable isconstructing natural gas liquids (NGL) extraction and fractionationfacilities in Channahon, IL, about two miles east of KinderMorgan’s Morris, IL, liquids pipeline, storage and truck loadingfacility. Aux Sable’s facilities will initially process up to 1.6Bcf/d from Alliance and remove from the gas stream up to 40,000barrels of ethane, 19,000 barrels of propane, 8,000 barrels ofbutane (both normal butane and isobutane) and 3,000 barrels ofnatural gasoline. The facilities are targeted for completion byOct. 1, 2000.

Oneok Inc., the successful bidder for Southwest Gas Corp., threwdown the gauntlet earlier this week, challenging losing bidderSouthern Union (SU) to present evidence by today to support itsallegations that Oneok conspired to illegally influence SouthwestGas in its choice of merger partner.

The first fruit has fallen from the new Canadian tree ofcompetition among natural gas transporters, as TransCanadaPipeLines prepares to auction spare capacity that is developing onits system.

Capstone Turbine Corp., developer and manufacturer ofmicroturbine power generators, says it has successfully tested a 30kW unit that can be used at the wellhead to generate power usingsour gas.