NGI Staff Reports

Marking the start of construction related to projects thatultimately will increase pipeline capacity into New England by morethan 20%, Portland Natural Gas Transmission System (PNGTS) andMaritimes & Northeast Pipeline began a crossing of thePiscataqua River between Newington, NH, and Eliot, ME. The crossingis the first stage in the construction of the PNGTS/Maritimes JointFacilities Project, which represents the southernmost portion ofeach pipeline.

Union Pacific Resources Group (UPR) closed on its acquisition ofNorcen Energy Resources. The companies’ boards approved the dealJan. 26. UPR initiated a tender offer for the 51.5% of Norcen’s stock not owned or controlled by Noranda Inc., a shareholder of49.5% Norcen common stock.

The Independent Petroleum Association (IPAA) has filed a lawsuitagainst the Department of the Interior, claiming that through a newnatural gas royalty regulation DOI’s Minerals Management Service iscollecting a larger share of royalties than it is entitled to.

“Total Energy” may be an “unforgettable” brand name in this ageof energy convergence, as the small New York energy services firmTotal Energy Corp. claims, but would someone actually buy the nameand make it their own? Total Energy’s consultant R.J. RuddenAssociates thinks so, though Richard J. Rudden, president of thefirm, admits he’s never heard of a company buying another’s brandname. “I can’t say I’ve heard of that. But I know it’s nothing fora large national energy company to spend tens of millions ofdollars on brand imaging.”

El Paso Natural Gas conceded Wednesday it discontinueddiscounting interruptible transportation early this year, but saidits action was primarily due to its new status as “swing supplier”of California-bound transportation – a position that it says givesit free reign to charge maximum IT rates.

Transwestern said its La Plata compressor station will be downthrough Thursday, March 5, for construction. There will be zerovolumes flowing from the Ignacio area to the Blanco Hub.Interconnects affected are NWPL-La Plata, WFS Ignacio Plant, andAmoco Florida River Plant. Capacity from the Blanco Hub to Thoreauwill remain at 800,000 MMcf/d. The same scenario also will applyMarch 28 through 31, Transwestern said.

March prices, which had roared off to a strong start on Monday,filtered lower Tuesday leaving traders wondering if March wouldfollow the weather adage and trade out like a lamb. Cash priceswere slipping anywhere from a couple cents to nearly a dime Tuesdayin most markets. In doing so, many spot points achieved in Marchwhat they were unable to do the entire month of February: tradebelow index. Rockies gas, however, remained in high demand, immuneto the overall losses.

Cash prices came out of the chute fast Monday morning as coldertemperatures, strong NYMEX prices and a bit of hype tricked mostmarkets into early gains. “A buyer blinked early this morning andsellers took control,” a Tulsa marketer said. The early strengthpushed prices to 5-8 cents above index levels in some cases.However, after the market caught its breath, sellers came out ofthe woodwork to send prices lower and late trades were back nearindex levels. Western prices followed the East’s early lead butresisted the major downturn.

The April Nymex contract fell 2.9 cents to $2.292 on Monday,following the spot month’s failed attempt to clear a majorresistance level. “April was in a two hurdle race today, but ittripped on the second hurdle,” a trader told GPI. “On the one hand,April was able to break out of the symmetrical triangle formationby moving above $2.34. However, April immediately fell back once itfilled in the chart gap at $2.355. There were quite a few standingsell orders at that price, so it’s no wonder the contract fellback,” he said.