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GulfWest Energy Inc. has entered into a joint venture with Allen Drilling Acquisition Co. (ADAC), a subsidiary of Advanced Energy Recovery Inc., a midstream natural gas and production company located in Mission, KS. The joint venture, incorporated as Elgin Holdings LLC, was formed to activate a currently inactive gas gathering system in Hardin County, TX and to develop deep rights for natural gas on non-producing acreage in Madison County, TX. In forming the joint venture, GulfWest agreed to contribute its deep rights on the non-producing acreage and its ownership of the inactive gas gathering system, and ADAC committed to provide the initial capital funding to Elgin for the projects. GulfWest holds a 47.5% interest in Elgin and will act as the operating partner of Elgin Holdings. The pipeline in Hardin County is being prepared to be operational by the end of December.

After finalizing new technology that will speed up construction times on liquefied natural gas (LNG) facilities, ExxonMobil Upstream Research Co. said that it has licensed the patented LNG storage tank technology to U.K.-based Skanska Whessoe, an engineering, procurement and construction contractor with specialized, worldwide experience in storage and handling of low-temperature fluids.

After finalizing new technology that will speed up construction times on liquefied natural gas (LNG) facilities, ExxonMobil Upstream Research Co. said Friday that it has licensed the patented LNG storage tank technology to U.K.-based Skanska Whessoe, an engineering, procurement and construction contractor with specialized, worldwide experience in storage and handling of low-temperature fluids.

The zeal with which natural gas prices have advanced on the heels of primarily hurricane concerns has some traders checking their spreadsheets and preparing for what may be short-lived trading opportunities.

For the sixth time in seven trading sessions, natural gas futures advanced higher yesterday amid technical bullishness, and as traders continued to grapple with the possibility that the year-on-year storage deficit—currently at 404 Bcf—will be difficult to trim this summer when gas is in high demand for electricity generation. The May contract led all months Tuesday, finishing 8.2 cents stronger at $5.559.

ONEOK broke ground Friday just north of Oklahoma City on a newnatural gas-run advanced electricity generating plant.The 300 MWplant, which will be owned and operated by ONEOK Power Marketing,will use the latest gas turbine technology to provide electricityfor utilities as well as other purchasers. This marks ONEOK’sfirst venture into the growing natural gas-powered electricitygeneration market. Intended as a “peaking plant,” the facilitywill provide electricity during the summer periods of peak demand.The Oklahoma Municipal Power Authority has already signed acontract to purchase 25% of the plant’s total capacity. ONEOKPresident and Chief Operating Officer David Kyle had this to sayabout ONEOK’s new project, “The natural gas-fueled plant that willbe built here is symbolic of not only a new direction for us, butfor the state as well.” The plant’s site is strategicallypositioned near Oklahoma Gas & Electric’s electric transmissionlines and one of ONEOK’s own natural gas storage facilities. Thegas-burning turbines will be provided by General Electric at anestimated cost of $70 million and will be in operation by thesummer of 2001.

Advanced turbine systems (ATS), including microturbines, andfuel cells, took the top dollars in the Department of Energyresearch, development and demonstration budget for FY99, accordingto a budget assessment by the American Gas Association. Overall,AGA estimated DOE’s research funding for natural gas set a newrecord at $246 million. That’s up from the $209 million in thisyear’s budget.