2001

Storage companies in the Producing Region apparently started digging into base gas two weeks ago as their working storage levels ran dry, according to the American Gas Association’s report for the week ending March 2. The report confirmed the predictions of the Energy Information Administration, which said last week that storage levels will reach record lows this month and operators may have to dip into base gas to maintain deliveries (see related story this issue).

Storage companies in the Producing Region apparently starteddigging into base gas last week as their working storage levels randry, according to the American Gas Association’s report for theweek ending March 2. The report confirmed the predictions of theEnergy Information Administration, which said this week thatstorage levels will reach record lows this month and operators mayhave to dip into base gas to maintain deliveries (see Daily GPI,March 8).

California Gov. Gray Davis said Monday that the state has signed40 long-term power deals with 20 companies for 8,800 MW over thenext 10 years at an average price of $69/MWh, giving the state whatthe governor estimates are 65-70% of its peak power-demand needsthis summer. Together with a projected 10% reduction in demand anddeals still in the works that involve another 6,000-7,000 MW, thegovernor said he thinks California may be able to squeak by withoutrolling blackouts.

Firing a shot across the bow of local distribution companies(LDCs), INGAA Chairman Stanley C. Horton, CEO of Enron GasTransportation Services Co., said last week the LDCs are standingin the way of desperately needed interstate pipeline capacity.

FERC Chairman Curt L. Hebert told a House panel last week thatthe Commission was “fully committed” to moving quickly onapplications for new interstate pipeline capacity to California andfrom the North Slope of Alaska to meet the nation’s unquenchabledemand for natural gas.

California ended last week without a definitive deal with theinvestor-owned utilities, but with the governor predicting a dealwould be in place by the end of the month. Gov. Gray Davis’optimism didn’t stop there, however. He also believes under-paidsuppliers will accept partial payments for the their mountingbills, and federal regulators somehow will bless the state’stakeover of the utilities’ transmission assets on a lease-backarrangement.

Southern LNG’s proposed enhancements to its Elba Islandvaporization facilities were granted preliminary approval onnon-environmental grounds by FERC yesterday. Southern plans toremove five existing vaporizers and replace them with moreefficient ones, resulting in increased send-out capability to 675MMcf/d from 540 MMcf/d at a cost of $14 million. Southern’s onlycapacity holder, El Paso Merchant Energy, will pick up the tab.

Dynegyconnect LP, a new e-business subsidiary of Houston-basedDynegy Inc., has launched an Internet service that allows serviceproviders to expand their networks or add access to theirportfolios. The service is designed to assist Dynegy’s current andfuture customers to be more competitive in the workplace throughthe Internet.

Top North American Gas Marketers : Ranking by 2000 Sales VolumeRanking by Fourth Quarter 2000 Sales Volume