Continuing the expansion beyond its core utility operations,FirstEnergy Corp. made a splash in the unregulated sector yesterdaywhen its energy services marketing arm, FirstEnergy Services,announced a management and supply deal with Republic TechnologiesInternational, Inc. (RTI), one of the largest producers of specialbar-quality steel products in the U.S. The deal, which is thelargest service agreement FirstEnergy has ever signed, couldproduce more than $1 billion in commodity and energy service salesover the span of the five-year contract.
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TransCanada Sees Gas Market at 87 Bcf/d by 2010
A continental supply and demand analysis released by TransCanadaPipelines in its most recent Update projects the North American gasmarket will grow to 87 Bcf/d by 2010 from 68 Bcf/d in 1998, a 28%increase, with gains made in every region of the continent.
Mitchell Finds Relief in Price Recovery
Mitchell Energy & Development Corp. said the rebound inenergy prices raised its second quarter average gas pricerealizations 30% and pushed gas liquids price realizations up 25%compared to first quarter amounts. Combined with cost cutting gainsand other operating efficiencies implemented over the past year,Mitchell said the improvements should result in quarterly earnings(excluding oil and gas property sales) that will be three timesgreater than the First Call consensus estimate of 13 cents pershare.
Columbia E&P Targets Canadian Maritimes
Columbia Natural Resources Canada (CNRC) has joined with twosmall Canadian producers to prove that all the natural gas actionin eastern Canada is not offshore.
Industry Briefs
Duke/Fluor Daniel has been awarded a contract by West GeorgiaGenerating Co. L.P., a subsidiary of Sonat Energy Services, toprovide engineering, procurement and construction services for a650 MW dual fuel, gas and distillate oil-fired power plant in UpsonCounty, GA. The power plant will be designed to use four PG7241(FA) gas turbines in simple-cycle operation. The $180 million powerplant, which will be built within the Thomaston Industrial Park inUpson County, is expected to be fully operational by June 1, 2000.A significant portion of the electricity from the plant will besold to Georgia Power under an existing power sales agreement.
Transportation Notes
Florida Gas Transmission, citing significant market-area demand,issued an Overage Alert Day notice Tuesday for the system east ofStation 12 (Santa Rosa County in the Florida Panhandle). The noticehas a 6% tolerance for daily negative imbalances. FGT willre-evaluate conditions this morning before deciding whether toextend the OFO through today’s gas day.
West Rebounds Lead Slightly Firmer, Quiet Market
Finding little if anything impressive in the way of newinfluences, cash prices in general decided to take it easy Monday.Other than some sizeable western increases, which consisted mainlyof regaining price territory lost on Friday, most quotes were flatto slightly higher. A moderately softer screen combined with hotweather and no sign of an Atlantic tropical storm gave the marketlittle guidance, a Midcontinent trader said. Storage activityseemed little changed from last week, he said.
Futures Filter Lower in Quiet Session
For bull traders yesterday’s natural gas futures session was acase of “no news is bad news” as prices chopped lower in a raresub-50,000 volume session. As usually is the case the promptmonth-September-took the biggest hit, slipping 4.5 cents to finishat an even $2.70.
Eastern Reviews Strategy Following Series of Mergers
Eastern Enterprises stock price jumped more than 10% yesterdayto $43.62/share on news it is evaluating strategic alternativesthat could include share repurchases, joint ventures or a sale ofall or part of the company.
Open Season Starts for Atlantic Alliance
El Paso Energy’s Tennessee Gas Pipeline and CNG’s CNGTransmission announcedan open season for their joint venture, theAtlantic Alliance Project, begins today and will extend toThursday, Sept. 30. Shippers will be asked to submit bindingprecedent agreements for service commencing November 2001 as partof the open season.