Associated

The energy merchant sector could see several more years of low wholesale prices, which in turn will complicate their ability to refinance upcoming debt maturities at their regulated utilities, according to a new report by Standard & Poor’s Ratings Services (S&P).

National Fuel Gas Supply is holding an open season for nearly 5 Bcf of firm storage and associated transportation service for the next storage injection season running from April 1 to Oct. 31, 2003.

Tractebel is in the process of buying bankrupt Enron Corp.’s proposed LNG terminal in the Bahamas and the associated $132 million Bahamas-to-Broward County, FL, Calypso pipeline project, which would bring the regasified liquefied natural gas to the U.S. pipeline grid. A Tractebel spokeswoman said the deal should be completed by this week following bankruptcy court review last Thursday.

Tractebel is in the process of buying bankrupt Enron Corp.’s proposed LNG terminal in the Bahamas and the associated $132 million Bahamas-to-Broward County, FL, Calypso pipeline project, which would bring the regasified liquefied natural gas to the U.S. pipeline grid. A Tractebel spokeswoman said the deal should be completed by the end of the week following bankruptcy court review on Thursday.

Citing concerns about increased leverage and business risk associated with the company’s diversification strategy, Moody’s Investors Service on Monday downgraded the ratings of Peoples Energy Corp. and the long-term ratings of the securities issued by its utility subsidiaries, Peoples Gas Light and Coke Co. and North Shore Gas Co. The ratings agency added that the rating outlooks are negative. The utilities’ short-term ratings were not under review.

Houston-based Nuevo Energy Co. on Wednesday announced the acquisition of 100 Bcfe of proved reserves — 97% natural gas and associated liquids — for two million shares of its common stock, $62 million in cash and the assumption of $20 million of debt from Athanor Resources Inc., a private company funded primarily by Yorktown Energy Partners. The reserves are located entirely in Terrell County, TX.

Dynegy Inc. on Wednesday told shareholders that “it is in no way associated with Main Street AC and expresses no recommendation on the unsolicited offer,” while Mirant recommended its shareholders not sell any stock to the San Diego-based company that offered to pay cash for 4.9% of the energy merchants Tuesday, as well as Aquila Inc. and Reliant Resources Inc. (see Daily GPI, Sept. 4).

Aquila Corp. affiliate Red Lake Gas Storage LP has filed an application at FERC for a certificate to build new storage facilities and an associated pipeline in Mohave County, AZ, to meet the growing natural gas demand in that region. It also is seeking the green light to offer storage and hub services at market-prevailing prices.

Aquila Corp. affiliate Red Lake Gas Storage LP has filed an application at FERC for a certificate to build new storage facilities and an associated pipeline in Mohave County, AZ, to meet the growing natural gas demand in that region. It also is seeking the green light to offer storage and hub services at market-prevailing prices.