Around

The U.S. Coast Guard has proposed establishing three bands of safety and security zones around liquefied natural gas (LNG) facilities and tankers in Boston Harbor to safeguard against “sabotage or other subversive acts” in the wake of the Sept. 11 terrorist attacks.

The U.S. Coast Guard has proposed establishing three bands of safety and security zones around liquefied natural gas (LNG) facilities and tankers in Boston Harbor to safeguard against “sabotage or other subversive acts” in the wake of the Sept. 11 terrorist attacks.

Local opposition is building in and around the proposed sites for liquefied natural gas (LNG) terminals on the Pacific Coast of North Baja in Mexico, according to a report in the Los Angeles Times, which cited meetings in Rosarito where project proponents were given an ear full from local business owners.

It’s no accident that Michigan will be sporting an additional 3,500 MW of generating capacity by the time summer peaks roll around, according to a Michigan regulator, who said his state is generator friendly and should be able to handle whatever demand challenges are ahead.

With much of the U.S. and Canada still frigid from last week and renewed cold having returned to the South and Northeast, there was no surprise when prices rose nearly across the board Monday. There was quite a bit of variation among the amounts of increase, however. The Midcontinent/Midwest, Rockies, California and a few Gulf Coast points measured their gains generally in the vicinity of a dime or slightly more. The rest of the Gulf Coast tended to rise by either side of 20 cents, while Northeast citygates were up 30-55 cents.

The mood around Enron Corp.’s Houston headquarters Monday was resolve as much as anything else, as thousands of employees prepared for the inevitable pink slips following the weekend Chapter 11 bankruptcy filing by what was the world’s leading energy trader just a few weeks ago. With almost 21,000 employees worldwide, Houston’s offices will take the largest hit, with more than 4,000 of the 7,500 employees expecting to be let go this week.

The latest question revolving around Houston and the energy trading community as the week begins is how low can Enron Corp.’s stock go? On Monday, the stock dropped to a low not seen since 1994, failing to boost investor confidence as it lobbied banks for a new credit line. As investors bailed, Moody’s Investor Service cut the energy trader’s long-term debt ratings, and by the time the New York Stock Exchange had closed, Enron had fallen another 10.9%, losing $1.60 to stand at $13.95.

While exports to the United States drive the expanding natural gas sector on Canada’s East Coast, it remains unclear whether there will be a domestic distribution grid in Nova Scotia. The Nova Scotia utility commission has set a deadline of Jan. 14, 2002, to receive applications for a second run at building a gas distribution system in the province. A hearing has been called for Nov. 19 on issues raised by the withdrawal of Sempra Atlantic Gas from the project, including what to do with C$50 million (US$30 million) in installations that the company was able to construct in the Halifax-Dartmouth area.

“There’s a lot of gloom and doom all around,” commented a Midcontinent marketer. While the downhill slope for cash prices got a bit less steep Wednesday, no one was ready to argue with the marketer’s contention. Except for larger declines in the Rockies and at the PG&E citygate, most of the downticks were a dime or less, compared with overall drops in the teens the day before.