Additions

The power industry’s increased reliance on natural gas, coupled with the uncertainty on the timing and size of liquefied natural gas (LNG) supply additions, has created an “unprecedented” set of risky alternatives for utilities and regulators, according to a scenario analysis unveiled by Cambridge Energy Research Associates (CERA) Thursday at CERAWeek 2005.

Slashing the heavy debt that helped finance its major Montana utility additions and at the same time helped drive it into Chapter 11 protection, South Dakota-based NorthWestern Corp. emerged from bankruptcy last Monday, leaving remaining shareholders with worthless stock that was wiped out when a new board took over and 35.5 million shares of new stock were issued, most going to creditors.

Slashing the heavy debt that helped finance its major Montana utility additions and at the same time helped drive it into Chapter 11 protection, South Dakota-based NorthWestern Corp. emerged from bankruptcy late Monday, leaving remaining shareholders with worthless stock that was wiped out when a new board took over and 35.5 million shares of new stock were issued, most going to creditors.

Slashing the heavy debt that helped finance its major Montana utility additions and at the same time helped drive it into Chapter 11 protection, South Dakota-based NorthWestern Corp. emerged from bankruptcy late Monday, leaving remaining shareholders with worthless stock that was wiped out when a new board took over and 35.5 million shares of new stock were issued, most going to creditors.

The saturated power market and significant downsizing and belt tightening among merchant energy companies will result in a sharp decline in the number of gas-fired power plants added to the market over the rest of the decade. “The construction boom is finally nearing its end,” Virginia-based consulting firm Energy and Environmental Analysis Inc. (EEA) said in its latest Monthly Gas Update.

The saturated power market and significant downsizing and belt tightening among merchant energy companies will result in a sharp decline in the number of gas-fired power plants added to the market over the rest of the decade. “The construction boom is finally nearing its end,” Virginia-based consulting firm Energy and Environmental Analysis Inc. (EEA) said in its latest Monthly Gas Update.

ExxonMobil Corp. reported higher fourth quarter earnings but lower results for the full year because of lower natural gas realizations and poor downstream market conditions, according to Chairman Lee Raymond. Fourth quarter net income rose $1.4 billion to $4.1 billion, and Raymond said results for the fourth quarter were the highest since the second quarter of 2001. Full year net income fell $3.9 billion to $11.5 billion.

Officials at Colorado Interstate Gas (CIG) are expecting extremely depressed gas prices and wide basis differentials in the Rocky Mountain region this year to provide enough of an incentive for producers to finally step up to the plate and support an eastern greenfield pipeline project, and possibly the switching of Wyoming Interstate to westbound flow to support demand from Kern River shippers at the Opal hub.

Officials at Colorado Interstate Gas (CIG) are expecting extremely depressed gas prices and wide basis differentials in the Rocky Mountain region this year to provide enough of an incentive for producers to finally step up to the plate and support an eastern greenfield pipeline project, and possibly the switching of Wyoming Interstate to westbound flow to support demand from Kern River shippers at the Opal hub.