Begins

Some traders were getting a sense of deja vu all over again(thanks, Yogi Berra) as a second straight week started withdouble-digit price increases nearly across the board. The biggestgains on either side of 20 cents were concentrated at Northeastcitygates. Despite forecasts of snow and cold weather in theRockies, several increases of about a dime were experienced bypipes there. And although its rise of a little over a dime wasamong the day’s smaller ones, the PG&E citygate topped all U.S.pricing with quotes solidly in the $3.30s.

Between a plunging screen and mild-to-cool weather almosteverywhere outside the southern U.S., it hardly came as a shock totraders that Tuesday’s swing deals done for today only would failto measure up to September index levels. However, some consideredthe ability of crude oil futures to stay above $22/bbl and eventack on an extra dime a mitigating factor in keeping the initialaftermarket softness fairly mild.

El Paso Energy’s Tennessee Gas Pipeline and CNG’s CNGTransmission announcedan open season for their joint venture, theAtlantic Alliance Project, begins today and will extend toThursday, Sept. 30. Shippers will be asked to submit bindingprecedent agreements for service commencing November 2001 as partof the open season.

Texaco and Chevron began producing natural gas and condensatefrom Gemini, a subsea system of wells, manifold and flow lines onthe bottom of the Gulf of Mexico in 3,400 feet of water.

In a rare move that eliminates huge legal costs, Kern River GasTransmission has submitted to FERC a negotiated settlementagreement on its rate design prior to the start of a general ratecase (RP99-274). The agreement has the approval of all of itsshippers. Kern’s general rate case was scheduled to begin thismonth.

In a rare move that eliminates huge legal costs, Kern River GasTransmission has submitted to FERC a negotiated settlementagreement on its rate design prior to the start of a general ratecase (RP99-274). The agreement has the approval of all of itsshippers. Kern’s general rate case was scheduled to begin thismonth.

As construction begins on Alliance Pipeline, Canadiannatural-gas producers are mounting aggressive northern drillingcampaigns to fill up the added export capacity when it goes intoservice in October of 2000. Northeastern British Columbia, thestarting point for Alliance’s 2,320-mile route to Chicago, hasemerged as an E&ampP hot spot.

Moving one step closer to bringing 1.325 Bcf/d of gas fromWestern Canada to Chicago, Alliance Pipeline last week announcedthe start of construction with the clearing of 410 miles offorested rights-of-way for mainlines and laterals in northwesternAlberta and northeastern British Columbia. The entire system isexpected to be completed and in service by October, 2000. Alliancesaid it already has commitments from 37 shippers for 15-yearcontracts worth a total of $8.2 billion. Agreements have beenreached with 93% of landowners along its 2,320-mile route acrossCanada and the United States, while time to complete the NEBproceedings has been built into the construction schedule.

Moving one step closer to bringing 1.325 Bcf/d of gas fromWestern Canada to Chicago, Alliance Pipeline announced the start ofconstruction with the clearing of 410 miles of forestedrights-of-way for mainlines and laterals in northwestern Albertaand northeastern British Columbia. The entire system is expected tobe completed and in service by October, 2000. Alliance said italready has commitments from 37 shippers for 15-year contractsworth a total of $8.2 billion.