Closer

The Federal Trade Commission (FTC) last week asked El PasoEnergy and the Coastal Corp. to pony up with more informationregarding their proposed merger. The companies confirmed therequest but wouldn’t say what the FTC is seeking. The commissionwould not comment, saying the case is ongoing. Analyst speculationwas that the FTC is looking at the companies combined power in theGulf of Mexico.

The Federal Trade Commission (FTC) has asked El Paso Energy andthe Coastal Corp. to pony up with more information regarding theirproposed merger. The companies confirmed the request but wouldn’tsay what the FTC is seeking. The commission would not comment,saying the case is ongoing.

The driving force sought by promoters of Arctic natural gaspipelines is gathering steam as three senior Canadian productioncompanies revisit major northern discoveries they have sat on for aquarter of a century of unfavorable markets.

Plans for the pipeline were announced last December (see NGI, Dec.27, 1999). Project completion is scheduled for third quarter 2001.

Trans-Union Pipeline L.P., a subsidiary of Panda Energy Intl.,said yesterday it has contracted Willbros Group, Inc. to build oneof the largest single-project pipelines in North America. Willbroswas hired to engineer and construct a 42-mile, 30-inch natural gaspipeline to supply at least 430,000 Dth/d of gas to a planned 2,700MW gas-fired facility in southern Arkansas. Willbros estimated thevalue of the construction contract at $30 million.

Last week was busy for MidAmerican Energy Holdings, as it movedcloser to completing its sale to Berkshire Hathaway Inc. while alsoannouncing intentions to step up efforts in Illinois’ retail energymarket. Once the merger is finalized, the parent of a utilityserving 653,000 electric customers and 622,000 gas customers inIowa and Illinois will become a privately-held company.

Moving another step closer to becoming a privately-held company,MidAmerican Energy announced yesterday that its shareholdersoverwhelmingly approved the company’s proposed sale to BerkshireHathaway Inc. The company anticipates receiving all requiredapprovals in the first quarter of this year.

The mega-merger candidates in the production industry face anuphill battle in California, according to the state’s attorneygeneral, who promised close scrutiny of their transactions lastweek. With a new study on the causes of a gasoline price spikesthis summer in hand, Attorney General Bill Lockyer said there’s adistinct lack of oil industry competition in the state.

Improving crude oil market conditions usually are accompanied byincreasing political scrutiny into rising prices. A good example ofthat is occurring in California where Attorney General Bill Lockyerhas vowed to probe deeply into the mergers of major oil and gasproducers following a report that shows consolidation is one of thereasons California has experienced some of the highest gasolineprice spikes in the nation.