Southwest Gas Corp. said it expects its first quarter operating results to fall short of the consensus street estimate by one-third. The utility company attributed the lower results to warmer-than-normal weather in its two primary operating areas. Nevada experienced its warmest January on record and Arizona saw its second warmest. Unseasonably warm temperatures continued through March. Southwest expects to release its earnings for the first quarter near the end of April.

Duke Energy Gas Transmission (DEGT) said its recent decision to defer a substantial amount of previously planned construction on the Southern Mainline in British Columbia (the former Westcoast system) was a result of the economic downturn in the Pacific Northwest and the power supply glut that has forced generators to defer power plant construction. “Our view is what we are seeing in the Pacific Northwest just a short term event,” said Toni Beck, a spokeswoman for DEGT. “It’s a general economic downturn that we’re seeing not just in the Pacific Northwest. Our view is that long term the growth prospects are very encouraging for the Pacific Northwest.” The C$270-million expansion, which included a looping and additional compression, was expected to increase capacity by 200 MMcf/d. However, Duke was able to achieve the 200 MMcf/d through a capacity turnback solicitation to existing shippers and through C$50 million in additional compression at its compressor station 8B located near Hope, BC. Duke’s downsized construction project will result in about 85-100 MMcf/d of new firm transportation capacity. The turnback capacity will provide the remaining 100 MMcf/d (see Daily GPI, April 16).

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