Begins

It’s taken just eight months since its discovery, but MarinerEnergy Inc. says that the Apia Project, a deep-water Gulf of Mexicosingle subsea well, is completed and is producing nearly 40 MMcf/dof natural gas. Located in Garden Banks block 73, the well isproducing at a water depth of 700 feet, connected to a hostplatform approximately three miles away.

Phase Two of Tengasco Inc.’s pipeline system is now underconstruction following permitting by the Tennessee Department ofTransportation. The 28-mile mile project will complete the 60-milesystem, which ties Tengasco’s Swan Creek gas field into end-usermarkets in Eastern Tennessee. The pipeline is the only intrastategas carrier in Tennessee.

Tengasco Inc. began construction on Phase Two of its gaspipeline system following permitting by the Tennessee Department ofTransportation. The 28-mile mile second phase will complete the60-mile system, which ties Tengasco’s Swan Creek gas field intoend-user markets in Eastern Tennessee. The pipeline is the onlyintrastate gas carrier in Tennessee.

TransCanada PipeLines has taken the first steps in a bold planto divest $3 billion in assets in its Canadian midstream,international and refined products transportation businesses. Thecompany sold subsidiary NovaGas Canada LP’s Provost gas plant andgathering system to a subsidiary of Midcoast Energy Resources Inc.last week for an undisclosed sum and completed the sale of its PeshCreek processing complex and East Australia pipeline system earlierthis month. The total value of the two Canadian processing planttransactions comes to about $42 million.

PG&E Corp.’s National Energy Group began construction on theLa Paloma Generating Plant, a 1,048 MW gas-fired, combined-cyclefacility expected to begin operating in the summer of 2001. Theplant is estimated to burn about 180,000 MMcf/d, and Kern-Mojave isthe closest pipeline source, a spokesman said.

Nicor Energy LLC said yesterday that it began supplying 30% ofIllinois’ state-run buildings as of Jan. 1. Under arecently-finalized agreement with the Illinois Department ofCentral Management Services the Nicor-Dynegy partnership willsupply the buildings with 2.8 Bcf during the 18-month term.

Maritimes & Northeast Pipeline celebrated the new millenniumwith the rattle and hum of initial gas flowing from the shorelineof Nova Scotia 650 miles to markets in the northeastern UnitedStates. After struggling through an 11th hour Indian dispute inCanada, the pipeline company said it opened its valves Jan. 1.

Maritimes & Northeast Pipeline celebrated the new millenniumwith the rattle and hum of initial gas flowing from the shorelineof Nova Scotia 650 miles to markets in the northeastern UnitedStates. After struggling through an 11th hour Indian dispute inCanada, the pipeline company said it opened its valves Jan. 1.

Disregarding debate over whether the new millennium has alreadybegun or won’t arrive until nearly a year from now, gas tradersgreeted the year 2000 by sending spot prices moderately lower. Itwas hardly surprising that the January aftermarket would open on adownward trend, a Texas marketer said. “We’ve been wondering whythis market has remained up as much it did. Everything seemsbearish.”