Coast

Much like on the East Coast a couple of weeks ago, arecord-setting heat wave set in over the weekend in California andthe desert Southwest. The effect on western peaking power pricesMonday wasn’t nearly as dramatic as the $6,000/MWh numbers hitearlier this month in the New England pool; however, gas pricesshowed a much greater impact this time.

Weekend cash prices hit a plateau Friday in theMidcontinent/Midwest, Gulf Coast and Appalachia, but softened inthe Northeast and at most western points.

Reflecting the spread of East Coast chill further south, FloridaGas Transmission became the latest pipe to issue an OFO Friday.Citing significant market-area demand, FGT declared an OverageAlert Day notice for the system east of Station 12 in the FloridaPanhandle. It carried a 6% tolerance for negative daily imbalances.The pipeline also said it began maintenance Friday at Station 13.Until further notice the work will limit market-area deliveries to1.43 Bcf/d. Due to customer sourcing patterns having its SouthTexas, East Texas and M-1 (24-inch line) zones scheduled close tocapacity, Texas Eastern said Friday it is allowing due-shipperimbalance gas to be taken in those segments. All other servicepoints remain closed for taking due-shipper imbalances, Tetco said.

Three West Coast states are coordinating their efforts with theFederal Trade Commission to resolve the antitrust problemsassociated with BP-Amoco’s acquisition of Atlantic Richfield. Inthe event the issues can’t be worked out, the states said they willbring a lawsuit to block the $26 billion marriage.

Reliant Energy International Inc. said it has sold its 50%indirect interest in a natural gas distribution company alongMexico’s Gulf Coast. Tractebel purchased Gas Natural de Rio Panucofrom an indirect subsidiary of Reliant and its Mexican partner,Corporacion Gutsa SA de CV (Gutsa) for $8.5 million. NorAm Energy,which was acquired by Reliant Energy in August 1997, partnered withGutsa to win a 30-year concession to build, operate and maintain anatural gas system in the northeastern Mexican state of Tamaulipas.The area includes the cities of Tampico, Ciudad Madero andAltamira, which lie in the Panuco River Basin, and has a totalpopulation of one million.

Duke Energy Trading and Marketing and Dynegy Marketing and Tradewere the winning bidders in the first auction of Gulf Coast gastransportation services in the Minerals Management Service’s (MMS)Gulf of Mexico royalty in-kind pilot program. The two companieswill be transporting a total of 198 MMcf/d of royalty gasproduction to the General Services Administration (GSA) at marketpoints onshore Louisiana from December through March 2000.

Duke Energy Trading and Marketing and Dynegy Marketing and Tradewere the winning bidders in the first auction of Gulf Coast gastransportation services in the Minerals Management Service’s (MMS)Gulf royalty in-kind pilot program. The two companies will betransporting a total of 198 MMcf/d of royalty gas production to theGeneral Services Administration (GSA) onshore Louisiana fromDecember through March 2000.

With temperatures across much of the East Coast pushing abovethe 70-degree mark yesterday, natural gas futures traders hadlittle choice but to take prices lower. But in contrast to lastThursday’s price direction, which had the trajectory of a safepushed out of a 10-story building, Monday’s market had a some lifeleft in it, enabling traders to trim losses throughout much of thesession. After reaching a low of $2.805 during the first 30 minutesof trading, the December contract battled back to finish at $2.914,off 4.7 cents for the day. Estimated volume was light with just57,373 contracts changing hands.

Attempting to better accommodate the burgeoning Gulf Coast powerdemand, Entergy Corp. spent $1.9 billion to purchase 24 GE 7FAadvanced technology gas turbines and four steam turbines from GE,Entergy said yesterday. Delivery is scheduled through 2004. Theagreement includes turnkey installation of the 1,000 MW Freestonepower plant project and long-term service agreements (LTSAs) thatcover all scheduled maintenance for a period of 16 years followingthe start- up of each turbine.