Coral Energy Resources has won out in the reverse auction held by Duke Energy’s marketing and trading arms to take over its Southwestern portfolio of transportation, storage and gas supply contracts effective May 1.

Duke Energy Marketing America LLC (DEMA) and Duke Energy Trading and Marketing LLC (DETM) will pay Coral $30,324,115 to fulfill the contracts, which Duke is divesting as part of its merger with Cinergy.

Duke has received waivers from the Federal Energy Regulatory Commission to assign the contracts through a reverse auction procedure, which was conducted on the El Paso Natural Gas transportation website (see Daily GPI, Feb. 28). The announcement of the completion of the reverse auction, posted on the El Paso website, said Coral Energy had been the prearranged replacement shipper. The contracts were posted for bidding March 31, and the replacement shipper had the option of matching the best bid.

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