Buys

While much of the gas industry is busy preparing for a period of low prices and declining demand due to the weakening economy, Duke Energy is showing great confidence in future gas market growth and the potential of Canadian supply basins. The company announced plans last week to buy Westcoast Energy in a cash and stock transaction valued at US$8.5 billion, including $4 billion in debt assumption. The move greatly expands Duke’s North American natural gas pipeline holdings and positions it for a strong role in future gas infrastructure expansions.

While much of the gas industry is busy preparing for a period of low prices and declining demand due to the weakening economy, Duke Energy is showing great confidence in future gas market growth. The company announced plans late Thursday to buy Westcoast Energy in a cash and stock transaction valued at US$8.5 billion, including $4 billion in debt assumption. The move greatly expands Duke’s North American natural gas pipeline holdings and positions it for a strong role in future gas infrastructure expansions.

Goldman Sachs Group Inc. has agreed to pay $456 million in cash for El Paso Corp.’s interests in East Coast Power LLC, which owns the natural gas-fired 940 MW Linden cogeneration facility in New Jersey.

Accent Energy Group LLC (Accent Energy) has purchased the remaining 1,700 commercial and industrial gas customer accounts from Nicor Energy, a retail energy marketer owned equally by Nicor, Inc. and Dynegy. The customers are Nicor’s last since its decision to exit the retail marketing business.

Calgary-based Nexen Inc. said it bought the remaining 40% interest in the Gulf of Mexico’s deepwater Aspen field and remaining interests in five exploration blocks in the greater Aspen area from BP Exploration and Production for US$136 million.

Calgary-based Nexen Inc. said it bought the remaining 40% interest in the Gulf of Mexico’s deepwater Aspen field and interests in five exploration blocks in the greater Aspen area from BP Exploration and Production for US$136 million. The purchase is part of Nexen’s strategy to expand its deepwater Gulf operations.

Accent Energy Group LLC (Accent Energy) has purchased the remaining 1,700 commercial and industrial gas customer accounts from Nicor Energy, a retail energy marketer owned equally by Nicor, Inc. and Dynegy. The customers are Nicor’s last since its decision to exit the retail marketing business (see Daily GPI, )

Constellation Energy Group announced plans to buy most of Nicor Energy LLC’s remaining competitive energy supply contracts covering about 8,000 commercial and industrial gas and electric customers in three midwestern states. Constellation said its affiliates will serve electricity to customers in Michigan and Illinois, and natural gas to customers in Michigan and Indiana. Closing of the deal is expected by April 1. Terms were not disclosed.

Volumes and prices for spot market wholesale electricity purchases by California’s Department of Water Resources (DWR) shifted upward over the last two months of 2002, according to statistics released Tuesday by DWR’s Sacramento office. Spot purchases exceeded 1 million MWh (1.056 million MWh) in December, 2002, at an average cost of $43/MWh, in contrast to the previous month when spot purchases hit 906,000 MWh, at an average cost of $38/MWh.