In a new analysis of power demand growth, Colorado-basedResource Data International (RDI) projects slightly over 186,000 MWof primarily gas-fired electric generating capacity will have to beadded by 2010 nationwide to meet burgeoning demand and to replaceretiring nuclear and non-nuclear capacity. The cost approaches$90-billion.
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Clayton Williams Adding TX Assets
Midland, TX-based Clayton Williams Energy Inc. will acquire morethan 65 Bcf of gas equivalent reserves in east Texas from SonatExploration Co. The company executed a purchase and sale agreementwith Sonat to acquire the assets for about $46.5 million. Thetransaction is effective April 1. The assets are concentrated inthree east Texas fields and consist mainly of long-life gasreserves with significant potential for behind-pipe re-completionsand developmental drilling. Clayton Williams will assume operationson substantially all of the acquired properties at closing,expected to occur by Nov. 20.
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Arthur L. Smith resigned as chairman and CEO of Torch EnergyAdvisors Inc. effective immediately. Smith joined the Houston-basedcompany June 1, 1998 from John S. Herold Inc. Torch PresidentKenneth E. White Jr. said the board of employee-owned Torch andSmith “concluded that their operational and strategic differenceswould best be resolved by going in separate directions.” Torchintends to focus on providing outsourcing services and capital tothe upstream oil and gas industry. Smith plans to focus his effortson personal energy investments in North America, the company said.Torch founder J.P. Bryan became senior managing director.
KN Acquires Mexican Gas Interest
KN Energy International Inc. bought an interest in IntegratedGas Services of Mexico LLC (Igasamex), a Mexico City-based companythat is involved in helping Mexican industry convert to natural gasfrom alternative fuels – such as diesel, propane or fuel oil -through development of supply and transportation projects. It alsoprovides third-party inspection of pipeline construction, andprovides pipeline management services in Mexico. Terms of theacquisition were not disclosed.
Southern, GRI to Build Energy Customer Database
Atlanta-based Southern Co. has joined a collaborative effort of20 companies to create the largest survey of business energy use.Southern, the Regional Economic Research (RER), Opinion DynamicsCorp. and the Gas Research Institute plan to survey more than10,000 businesses across the U.S. to obtain detailed information onenergy usage as well as attitudes and behavior of energy buyers.The database and analysis system, called the National BusinessEnergy DataMart, will be packaged with software that providesdetailed analysis down to the individual customer level. Resultsare expected to be available next February.
Acquisition Gives Pepco Entree to Gas Market
A wholly owned subsidiary of Potomac Electric Power Co. (Pepco)has purchased the assets and operations of a Maryland-based gasretail marketing firm for an undisclosed amount. The transactiongives Pepco through its subsidiary, Pepco Services, the capabilityto offer for the first time natural gas to its commercial,institutional and industrial customers.
Another Power Marketer Bites the Dust
New York-based York Research Corp. announced this week it plansto exit the power marketing business following the pricing turmoilin the Midwest electricity market this summer, making it about theeighth or ninth marketer to take this action.
Pioneer Sale Cuts Debt, Slashes Property Holdings
In a move to cut debt and costs by reducing its propertyinventory, Dallas-based Pioneer Natural Resources agreed to sellcertain oil and gas properties to Costilla Energy Inc. for $410million. The transaction will be effective Oct. 1 and is expectedto close by year-end. Despite the recent volatility in oil and gasprices, the company said the price falls within its expectations.
TX Gatherer Builds New Marketing Operation
Fort Worth-based Richardson Products Co., the marketing arm ofSid Richardson Gasoline Co., is hoping to follow the footsteps ofAquila Gas Pipeline of San Antonio, TX, into third-party gasmarketing. The company is expanding into marketing of third-partynatural gas and adding risk management products. RichardsonProducts recently grew its staff by five, four of whom come fromAquila Gas Pipeline where they started a successful third-partymarketing business. Richardson Products last year marketed 100 to130 MMcf/d of gas last year. Jim Wade, newly hired vice presidentof marketing and business development, said plans are to initiallydouble that number and then market about half a Bcf/d in the firstquarter of next year, all physical gas. Expectations are for abouta Bcf/d in financial volumes.
PG&E Corp. Completes Twin Eastern Deals
San Francisco-based PG&E Corp. leap-frogged the continent tocomplete the $1.59 billion acquisition of New England ElectricSystem’s generating business, including hydro and gas-fired plantswith 5,100 MW of capacity. The acquisition was made by PG&Esubsidiary U.S. Generating Co.