With its deal to acquire Poco Petroleums for $2.5 billion, Burlington Resources could be leading a charge of U.S. E&P companies heading to Canada for relatively cheap gas assets at a time when Canada is expected to play a large role in meeting strong gas demand growth.
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Probe Sought of Southern LNG’s Open Season
FERC has been asked to place an immediate hold on Southern LNGInc.’s applications to reactivate and upgrade its mothballedliquefied natural gas (LNG) storage and send-out facility on ElbaIsland in Georgia, pending the outcome of a probe being requestedinto the company’s open-season procedures.
Hurricane Season Finally Shows, Prices Soar
Don’t put your duct tape and plywood away just yet. The lull inthe Atlantic hurricane season finally broke last week with TropicalStorm Bret and Tropical Depression Four throwing a one-two punch tothe gas market and triggering a more than 30-cent jump in NymexHenry Hub futures prices, which broke $3 early on Friday.Meanwhile, the National Oceanic and Atmospheric Administration(NOAA) and renowned Colorado State University forecaster Dr.William M. Gray both recently reiterated their predictions that thehurricane season will be a whopper despite the early lull.
Gulf of Mexico Seeing Drilling Improvement
Fourteen consecutive months of declining drilling rigutilization came to an end in July, according to Global Marine’smost recent SCORE report, or Summary of Current Offshore RigEconomics. And the Gulf of Mexico appears to be leading theturnaround.
SoCal Restructuring Under Close Industry Scrutiny
Southern California Gas Co.’s proposed restructuring plan hasbeen pushed aside by six new confidential alternatives becausecertain aspects of the utility’s plan have been deemedanticompetitive and have the potential to allow gaming at theTopock, AZ, receipt point, according to observers and participantsin discussions taking place at a downtown Los Angeles hotel.
Rockies Poised For Role In 30 Tcf Market
Rocky Mountain gas producers heard encouraging news on the rolethey could play in helping the industry achieve a 30 Tcf market by2010. Several speakers at the Colorado Oil & Gas Association’sannual conference earlier this month in Denver delivered themessage that it’s largely up to the Rockies to make that kind ofmarket growth a reality.
Unconditional OK of $32M Deal Urged by Edison
Southern California Edison called on FERC last week to approve”without condition or modification” an agreement under which ElPaso Natural Gas would pay the California electric utility $32million and make other concessions to forestall the collapse of its1996 capacity-turnback settlement. The deal, if approved by FERC,would put an end to a four-year legal battle by Edison, the only ElPaso customer to object to the settlement in its entirety. It also”clears the way” for Commission approval of the settlement.
Cinergy Considers Exiting Trading and Regulated Sales
Cinergy Corp. CEO James Rogers told analysts recently the company may exit the power supply business altogether, including nonregulated trading and marketing, and regulated sales, as a result of the huge losses suffered in the power market in July (see NGI, Aug. 9). Cinergy’s board intends to make a decision on the matter this fall. The company also plans to consider spinning off its generation business into a separate subsidiary.
Market Share Defined in Georgia
The 16 gas suppliers vying for Georgia customers had theirmoment of truth earlier this month, as Atlanta Gas Light (AGL)determined their market share and presented the results to theGeorgia Public Service Commission (GPSC). As expected, GeorgiaNatural Gas Services, an AGL affiliate, and Scana Energy Marketinggained the most customers, receiving over 60% of the market betweenthem.
Producers Seek Stay of FERC’s Sea Robin Decision
Major gas producers have called for FERC to stay theeffectiveness of its controversial remand decision on Sea RobinPipeline pending rehearing, citing the “enormous impact” that itcould have on offshore production and transportation activities ifit’s implemented prior to being reviewed by the Commission.