NGI Staff Reports

Depending on favorable Gulf of Mexico weather, Sea Robin expectsto restore flows on its 16-inch West Cameron 580 lateral by Sunday(see Daily GPI, Feb. 3). The force majeure that was implementedJan. 27 because of a leak will remain in effect until repairs havebeen completed.

As the retail market for natural gas and electricity moves into the competitive arena, few of the largest marketers are lining up behind Enron to serve small residential customers. El Paso Energy was the latest to declare its preference for large customers, saying it was closing regional offices in four eastern cities.

A new energy tax reform package debuted in New Jersey earlier this year with the intent of “leveling the playing field” between utilities and marketers in their zealous quest for natural gas customers, but the immediate and unintended fallout has been a dampening of customer interest in gas pilot programs.

Despite the current lull in gas production, the Gulf of Mexico is expected to grow in its delivery and supply of gas by 4-6 Tcf a year over the next decade, predicts Michael J. Utsler, deep-water manager of planning and technology for Amoco’s offshore business unit.

After a four-year struggle and one failed open season, sponsors of a proposed high-deliverability gas storage facility that could become a major Midcontinent spot market location have launched a redesigned project they say is larger but more affordable. HNG Storage, The Williams Companies and Coastal Corp.’s ANR Storage Co. said they expect to file an application with FERC for the $50 million project, called Kiowa Gas Storage, in March.

Carnegie Gas, a unit of USX-Marathon, and Houston-based Natural Gas Storage Corp. of North America (NGSC) said they have plans to develop new high-deliverability storage in the Northeast at a lower cost and with more flexible terms of service than other recent projects.

A number of K N Interstate Gas Transmission (KNI) shippers last week denounced the pipeline’s latest rate hike request as “staggering,” and urged FERC to review it closely – particularly the costs associated with KNI’s Pony Express project.

The intended sale of one of Canada’s biggest energy trading houses, Pan-Alberta Gas, has been put on hold as a result of the merger agreement between its parent, Nova Corp., and TransCanada PipeLine.

Last year, NGC Corp. sold more gas, marketed more power and made less money than in 1996. In fact, the energy marketing giant lost money due to lower margins and a number of special charges. The net loss for 1997 was $102.5 million, 68 cents/share, compared to 1996 net income of $113.3 million, 83 cents/share.