Build

In an effort to build a larger customer base, cut costs and offer a wider variety of commodities and services, Indiana Energy, parent of Indiana Gas, announced plans to merge with Sigcorp, the holding company for Southern Indiana Gas and Electric (Sigeco). The merger of equals will create a new $1.9 billion holding company called Vectren Corp.

Interstate pipelines should be allowed to build as much newcapacity as they want into the burgeoning Northeast gas marketproviding they are put at risk for underrecovery of rates on theprojects, pipeline customers told FERC last week. But absent suchan at-risk approach, they urged the Commission to exerciserestraint when assessing Northeast-bound pipe projects becausewhile they concede additional capacity will be needed in thefuture, they are more guarded than pipelines about the extent ofthe need.

Transwestern Pipeline has filed an application with FERC tobuild a new 10,000 hp compressor station near Thoreau, NM, off ofits San Juan Lateral and to add facilities to its Bloomfield and LaPlata compressor stations. The $11.6 million project will providean additional 50 MMcf/d of firm transportation service on the SanJuan Lateral downstream of the Bloomfield compressor station andwill allow Transwestern to operate its mainline at its certificatedcapacity of 1.1 Bcf/d on a firm basis.

Transwestern Pipeline has filed an application with FERC tobuild a new 10,000 hp compressor station near Thoreau, NM, off ofits San Juan Lateral and to add facilities to its Bloomfield and LaPlata compressor stations. The $11.6 million project will providean additional 50 MMcf/d of firm transportation service on the SanJuan Lateral downstream of the Bloomfield compressor station andwill allow Transwestern to operate its mainline at its certificatedcapacity of 1.1 Bcf/d on a firm basis.

Dallas-based Panda Energy International announced plans to builda 1,000 MW generation plant in Coweta, OK, near Tulsa. The plant’smaximum daily quantity for gas consumption will be about 170,000MMBtu/d. Gas supply and transportation agreements are expected tobe finalized in the next several months.

If you build it, a corporate sponsor will come. This time aroundit’s Houston’s new baseball stadium, and Enron Corp. said last weekit will pay $100 million over 30 years for naming rights to theballpark to be known as Enron Field. Enron Energy Services (EES)also will provide energy management to the facility.

If you build it, a corporate sponsor will come. This time aroundit’s Houston’s new baseball stadium and Enron Corp., which saidWednesday it will pay $100 million over 30 years for naming rightsto the ballpark to be known as Enron Field. Enron Energy Services(EES) also will provide energy management to the facility.

PennzEnergy Co. and Sonat Exploration Co. formed a joint ventureto develop mineral interests underlain by coal bed methane at the700,000-acre Vermejo Park Ranch in northeast New Mexico.PennzEnergy has held the bulk of the mineral rights since 1970.

Pennaco Energy and TransMontaigne Inc. subsidiary Bear PawEnergy signed a gathering agreement in which Bear Paw will buildand operate a new gathering line in the Powder River Basin ofnortheastern Wyoming and provide services to about 10% of Pennaco’scoal-bed methane program in the basin. The agreement covers thePennaco “South Gillette,” WY contract area, including over 8,600gross leasehold acres and 200 potential well locations. Pennaco hasdrilled and is in the process of testing and completing its first100 wells in the area. The Bear Paw gathering systems will connectPennaco’s gas wells to several major pipelines, including theWestern Gas Resources MIGC Pipeline, currently transporting up to130 MMcf/d of coal-bed gas, the recently announced Fort Union GasPipeline projected to be in service by September of this year, andthe proposed Thunder Creek Pipeline. The remaining 90% of Pennaco’s312,000 net acres in the Powder River will be devoted to FortUnion.