Because

Most of the gas to be developed from northern Canada and Alaska probably will be routed to Chicago because “it’s about the only place that you can make a rational investment and expect a stable return,” according to a TransCanada PipeLines executive.

The ongoing turmoil in the energy industry and residue of California’s fiscal and energy-related struggles have made it harder on the state’s largest natural gas buyer — the California General Service Department’s gas aggregation program covers more than 100 government facilities scattered across the state. The deadline for bids for up to 5 Bcf of supplies over a five-year period starting April 2003 will conclude this week (Aug. 23).

The ongoing turmoil in the energy industry and residue of California’s fiscal and energy-related struggles have made it harder on the state’s largest natural gas buyer — the California General Service Department’s gas aggregation program covers more than 100 government facilities scattered across the state. The deadline for bids for up to 5 Bcf of supplies over a five-year period starting April 2003 will conclude later this month (Aug. 23).

Natural gas prices have weakened in recent weeks, but they may weaken even more in the coming weeks because of two things: corrections to the “huge” inventory overhang and weakening oil prices, which will put pressure on gas prices in the short term, according to Lehman Brothers in its latest “Oil & Gas: Exploration & Production Update.”

Putting to rest the capacity release contract dispute raised by Tenaska Marketing Ventures against Northern Border Pipeline Co. in the wake of Enron Corp.’s bankruptcy, FERC ruled last Wednesday in favor of Northern Border, denying Tenaska’s complaint against the pipeline.

Despite the recent run-up in natural gas prices, the U.S. Energy Department believes a shift to the downside is likely because of excess storage, more than adequate production capacity and only a moderate increase in demand. The downturn will come “once the summer season starts and the weakness of (storage) injection-related wellhead demand becomes more apparent,” according to the Short-Term Energy Outlook issued last week.

Because of the significance of the undertaking, the Federal Energy Regulatory Commission last week extended the deadline for the energy industry to submit comments on what makes up “critical energy infrastructure” — an exercise that could considerably limit public access in the future to information about natural gas, electric, crude oil and hydroelectric facilities.

Because of the significance of the undertaking, the Federal Energy Regulatory Commission has granted a two-week extension to the energy industry to submit comments on what makes up “critical energy infrastructure” — an exercise that could considerably limit public access in the future to information about natural gas, electric, crude oil and hydroelectric facilities.

With Enron’s Bahamas LNG project on the rocks because of the bankruptcy and no sign yet of El Paso’s LNG plans, AES took the lead spot last month in the race to build a liquefied natural gas import terminal in the Bahamas with a pipeline to Florida. The company filed an application with the Federal Energy Regulatory Commission for the $440 million Ocean Express pipeline.