Columbia Gas opened a data room this week to provide informationto anyone interested in buying its Derrick’s Creek storage field inKanawha County, WV. The field has about 6.2 Bcf of total storagespace, 20 gas storage wells and 13 miles of related pipelinefacilities. In 1996, Columbia announced plans to sell the field,which is not part of its core transportation and storageoperations. Interested parties should contact Columbia at (304)357-2282. Access to the data room will be available until Dec. 3.

Shell Offshore Inc., on behalf of its partners, McMoRanExploration, Spinnaker Exploration Company L.L.C. and an individualinvestor, announced that gas production has begun at its Alexprospect, located in Brazos Block A-19 in the western Gulf ofMexico, about 75 miles south, southwest of Galveston, TX.Production began Oct. 16 and reached an expected peak rate of 87MMcf/d on Nov. 2. “Alex represents a high quality infield discoveryfor Shell,” said David Lawrence, vice president exploration anddevelopment for Shell Exploration and Production. “Our technicaland cost focus have allowed us to add significant value and volumesto a mature area.” Alex utilized existing infrastructure on BrazosBlock A-19, creating significant cost savings in the development ofthis field. “By using existing surplus materials and structures, wewere able to provide producing facilities for Alex for less than$30 million,” said Lawrence. Production is transported to shorethrough the existing 24-inch Transco-Columbia Pipeline nearby.

Ashland Energy Services said it has formed an energy managementalliance with Columbus, OH -based Energy Marketing Services Inc.According to the alliance agreement, Ashland will provide EMS withcomplete business management services, including management of theoperational, marketing and administrative activities of thecompany. In addition, Ashland will provide EMS customers withgreater gas supply and transportation options as well as energymanagement services, including risk management tools andelectricity consulting services.

Lexington, MA-based global technology company Raytheon announcedthat a subsidiary has been awarded a $1.1 billion turnkeyconstruction contract for two major new gas-fired power projects inMassachusetts proposed by Sithe New England Power Partners LLC, aunit of Sithe Energies, Inc. Raytheon Engineers & Constructors(RE&C) will providing complete project management, engineering,equipment procurement, construction, and start-up services for a1,600 MW gas-fired power plant at the Mystic Station in Everett,MA, and an 800 MW gas-fired power plant at the Fore River Stationin Weymouth. “Sithe is moving quickly to be the first producer inMassachusetts to bring on line efficient, state-of-the-artfacilities specifically constructed to serve the new merchant powermarket,” said Shay D. Assad, CEO of Raytheon Engineers &Constructors. “Power is one of several growth markets in RE&C’sbusiness plan. The fact that we have a strong leadership positionin the power industry, plus the tremendous opportunities created byderegulation, have us well positioned to grow this business.”Construction work at both sites is expected to start in the firstquarter of 2000 and be completed in early 2002.

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