Businesses

A leaner Williams Cos. has set its sights on its three core natural gas businesses, exploration and production (E&P), midstream and interstate gas pipelines, going forward, the head of the company told analysts last Thursday. The company is trying to exit the power business, but it’s unlikely that it will be able to do so in the near term.

A leaner Williams Cos. has set its sights on its three core natural gas businesses, exploration and production (E&P), midstream and interstate gas pipelines, going forward, the head of the company told analysts Thursday. The company is trying to exit the power business, but it’s unlikely that it will be able to do so in the near term.

A new study by Petroleum Research Atlantic Canada (PRAC) on five greenfield sites that have received or expanded natural gas service within the past 10 years reports that areas offering gas services are better able to retain industries that might otherwise relocate because of environmental standards and costs, and the communities become more competitive.

Fueling rumors that USX-Marathon Group may separate its steeland energy businesses and then sell a beefed up oil and gasbusiness, Houston subsidiary Marathon Oil put together a $500million deal to acquire two-year-old Pennaco Energy Inc., a companywhose key assets are tied to coalbed methane (CBM) gas productionin the Powder River Basin of northern Wyoming and southern Montana.

In a bold move to improve its competitive advantage, ChevronTexaco will sell some of its non-strategic U.S. assets, cut up to 200 U.S. jobs, consolidate several U.S. offices and consider whether to sell some of its producing and midstream assets in western Canada. The program, which only targets North American operations, is expected to be completed in 2004.

Looking to return focus to its core businesses and higher returns, ConocoPhillips entered into an agreement with Canadian convenience store mogul Alimentation Couche-Tard Inc. on Monday for the sale of the Circle K Corp., which comprises 1,663 retail marketing outlets in 16 states and the Circle K brand, as well as the assignment of the franchise relationship with more than 350 franchised and licensed stores.

With declines in quarterly earnings but stronger results in trading and international businesses, San Diego-based Sempra Energy officials said Thursday they consider their company “ahead of the competition” to be the next major developer/operator of liquefied natural gas (LNG) terminals in North America — one on the Pacific Coast of North Baja California in Mexico and the other in the Gulf of Mexico offshore Louisiana.

Williams said it has recently closed two transactions involving the sale of certain assets in the company’s exploration and production and midstream businesses. Over the past week, the company said it has closed the previously announced sale of natural gas exploration and production properties in the Denver-Julesberg basin in northeastern Colorado for $28 million to Petroleum Development Corp. It has also closed the new sale involving Williams’ 45% ownership interest in the 223-mile Rio Grande Pipeline that transports natural gas liquids from Hobbs, NM to Ciudad Juarez, Chihuahua. Navajo Southern Inc., a wholly-owned subsidiary of Holly Corp., purchased Williams’ interest for $27.5 million, subject to certain closing adjustments. Including the two most recent sales, Williams has received nearly $2.75 billion cash from asset sales that have been closed this year.

Southern California Gas Co. Wednesday doled out its first two grants to businesses to help subsidize their move to distributed generation as part of a three-year, $54 million program by the nation’s largest gas distributor. Under a program approved last year by state regulators, SoCalGas can provide up to half the cost of on-site self-generation.