Buyers

Three utility gas buyers and a medium-sized California food processor swapped stories about planning and buying natural gas supplies, and the moral to their collective tales is: “it ain’t easy” from either sector. They made their comments as part of the final panel at the two-day LDC Forum: Rockies & West conference in Los Angeles.

With buyers said to be lined up with unsolicited offers, Anadarko Petroleum Corp. late Wednesday announced it will sell profitable subsidiary Anadarko Canada Corp. for an undisclosed price. In 2005, the Canadian subsidiary provided 11% of Anadarko’s total proved reserves.

Contrary to rumors earlier in the year that it was looking for potential buyers for the rest of its U.S.-based assets, ScottishPower’s CEO Wednesday lauded Portland, OR-based PPM Energy for its “excellent” financial results. He also announced new expansions of its wind power and natural gas storage projects in the United States.

TXU Corp. is “engaged with a variety of potential buyers” to sell most of its natural gas-fired power plants in Texas, the company’s CEO said Friday. TXU has a total of about 10 GW of gas-fired generation in the state, but the plants have become too expensive to run, CEO C. John Wilder told shareholders in the utility’s annual meeting.

For a third day in a row, natural gas futures moved lower Wednesday to test key technical support at $7.50. However, buyers were able to limit the day’s decline with a late rally. August closed at $7.55, down 3.6 cents for the session but up 7 cents from its $7.48 daily low.

Calgary-based independent Nexen Inc. is finalizing agreements with four undisclosed buyers to sell conventional oil and gas properties in southeast Saskatchewan, northwest Saskatchewan, northeast British Columbia and the Alberta foothills for C$946 million (US$762 million) to pay down debt and get ready for startup of its 50%-owned Long Lake oilsands project late next year.

Calgary-based independent Nexen Inc. is finalizing agreements with four undisclosed buyers to sell conventional oil and gas properties in southeast Saskatchewan, northwest Saskatchewan, northeast British Columbia and the Alberta foothills for C$946 million (US$762 million) to pay down debt and get ready for startup of its 50%-owned Long Lake oilsands project late next year.

After trading significantly lower in overnight Nymex Access activity, April natural gas futures went on to set a session low of $6.63 on Monday morning, giving the appearance that the $6.55 support level of the current futures range could be in danger. Despite the scare, the prompt month rebounded in the afternoon to finish the day at $6.714, down 3 cents on the day.

Financial performance within the U.S. upstream oil and natural gas sector looks positive in 2005, driven by high crude and gas prices, according to a new outlook report by Fitch Rating.