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Seeking to bolster the expansive, 18-state regional power grid in their states, western governors last week signed a memorandum of understanding (MOU) with three key federal agencies. Bush administration officials and the state chief executives cemented the agreement during the Western Governors’ Association (WGA) annual meeting in Coeur d’ Arlene, ID.

Buoyed by a combination of a bullish tropical storm and storage concerns, natural gas futures rumbled higher Tuesday as weak shorts propelled the market to its highest level in almost two weeks. The September contract finished 9.5 cents stronger at $3.049. The out months were equally impressive, led by the October and November contracts which each gained 9.9 cents to close at $3.142 and $3.404 respectively.

Conoco Inc., the fourth largest U.S. energy company and USX-Marathon Group, the sixth largest, bumped up their second quarter profits and met or exceeded analysts’ projections, mostly because of higher energy prices during the period. Houston-based Conoco, which acquired Calgary’s Gulf Canada Resources Ltd. in the quarter, saw earnings rise almost 32%, while its cross-town neighbor USX-Marathon, the energy business of USX Corp., exceeded expectations, with income up 59%.

The newly expanded State Line Power Plant near Joplin, MO got a boost to its service last week, as a unit of Williams began natural gas transportation service on Friday to the plant. Williams recently completed a $19.7 million expansion of its Central pipeline system, adding 37 miles of 20-inch pipeline and an increased pressure rating of 16-inch line to nearby Oklahoma.

The national pipeline expansion frenzy continued last week with Tennessee Gas Pipeline announcing a certificate application with the Federal Energy Regulatory Commission (FERC) to add new pipeline capacity in New England at its connection with the Maritimes & Northeast pipeline, which imports Canadian gas produced offshore Nova Scotia at the Sable Offshore Energy Project.

The Wiser Oil Co., in an effort to boost its natural gas reserves, reported it has entered into an agreement to acquire Calgary-based Invasion Energy Inc. for an aggregate purchase price of C$55 million. Dallas-based Wiser said it has reached a deal with Invasion’s shareholders to acquire all outstanding common shares for C$33 million cash, and assume Invasion’s net debt of C$22 million.

With the over-abundance of proposed new natural gas power plants, calls for for more distributed generation and renewed interest in coal and nuclear generating plants emerged last week among various energy industry experts and firms bidding to fill developing niche markets.

The Wiser Oil Co., in an effort to boost its natural gas reserves, reported it has entered into an agreement to acquire Calgary-based Invasion Energy Inc. for an aggregate purchase price of C$55 million. Dallas-based Wiser said it has reached a deal with Invasion’s shareholders in which it will acquire all outstanding common shares for C$33 million cash, and assume Invasion’s net debt of C$22 million.

The national pipeline expansion frenzy continued this week with Tennessee Gas Pipeline announcing a certificate application with the Federal Energy Regulatory Commission (FERC) to add new pipeline capacity in New England at its connection with the Maritimes & Northeast pipeline, which imports Canadian gas produced offshore Nova Scotia at the Sable Offshore Energy Project.