Built

Houston-based Plains Exploration & Production Co. (PXP) built its emerging domestic natural gas position and nearly doubled its production with an agreement to buy cross-town independent Pogo Producing Co. in a stock and cash transaction valued at $3.6 billion.

Eastern Canada is rolling out a welcome mat for new liquefied natural gas (LNG) import terminals, with two projects taking strides toward construction on top of one being built in New Brunswick.

Eastern Canada is rolling out a welcome mat for new liquefied natural gas (LNG) import terminals, with two projects taking strides towards construction on top of one being built in New Brunswick.

Generation reserve margins have shrunk across the country, and the United States has built too much gas-fired power gen and too little of everything else, making for a capacity portfolio that is underpowered and out of whack — not to mention too dependent upon natural gas, which increasingly will come from abroad.

Generation reserve margins have shrunk across the country, and the United States has built too much gas-fired power gen and too little of everything else, making for a capacity portfolio that is underpowered and out of whack — not to mention too dependent upon natural gas, which increasingly will come from abroad.

Trading within a slim 16-cent range on the day, July natural gas on Tuesday managed only a high of $6.45 as the contract built upon Monday’s losses. After reaching a low of $6.290 just before noon EDT, the prompt month limped in to close at $6.385, down 7.8 cents on the day, bringing the week’s loss-to-date to 23.8 cents.

Kinder Morgan announced plans for a new 28-mile gas pipeline near Chicago that would deliver 360,000 Dth/d of gas to a new citygate station being built by an unnamed local distribution company, presumably Northern Illinois Gas Co., near Burnham, IL. Kinder Morgan said it is holding a binding open season on the pipeline project that will end on March 15.

Over nine weeks, the government has built a case against Enron Corp. founder Kenneth Lay and ex-CEO Jeffrey Skilling brick-by-brick, with more than 20 witnesses claiming the men not only knew about the problems at the company but also took an active part in deceiving shareholders, Wall Street and the media about its true financial condition. On Monday, the defense teams will attempt to chip away at the testimony piece by piece.

While some energy industry members likely wish that so much gas-fired power generation capacity had not been built — industrial gas consumers, for instance — the fact is that it’s here to stay, and the gas-power convergence is still very much with us.