Community

A range war in the Canadian natural gas community has come to anend with the industry’s chief enemy being led out of an Albertacourtroom in handcuffs to await a potentially long prison sentencefor sabotage.

BP Amoco is shedding its oil interests in Canada to concentrateon natural gas, with a vow to be the lowest-cost leader in aCanadian producer community tooling up to expand exports to theUnited States.The newly-merged empire’s Canadian arm has put upfor sale assets currently producing 53,300 barrels per day ornearly all of the former Amoco Canada’s oil holdings. The only gasput on the block is about 40 MMcf/d, or 4% of BP Amoco’s Canadiandaily production of about 1 Bcf, which is associated with oilproperties.

BP Amoco is shedding its oil interests in Canada to concentrateon natural gas, with a vow to be the lowest-cost leader in aCanadian producer community tooling up to expand exports to theUnited States.The newly-merged empire’s Canadian arm has put upfor sale assets currently producing 53,300 barrels per day ornearly all of the former Amoco Canada’s oil holdings. The only gasput on the block is about 40 MMcf/d, or 4% of BP Amoco’s Canadiandaily production of about 1 Bcf which is associated with oilproperties.

On the heels of a spectacular discovery on its turf, Canada’sNorthwest Territories has tossed a red hot potato into the lap ofthe nation’s natural gas community. The government in Yellowknifeis calling on the National Energy Board to take control of the11,000-mile Nova pipeline grid’s tolls and development away fromthe Alberta government.

It seemed that virtually everyone in the gas trading communitywas glad to bid a not-so-fond farewell to a September fraught withhurricane hassles and get on with an October in which theaftermarket is starting out very strongly. Swing deals being doneWednesday for today’s flow generally ranged from 10 to 20 centsabove bidweek averages. Late quotes for October baseload also wererebounding after most points had sunk steadily to the bottom end oftheir ranges.

The Canadian natural-gas community sees potentially sharp priceincreases developing on its horizon, thanks to a happy coincidenceof pipeline expansions and economic conditions on the supply side.As the Alliance Pipeline accepted its final certificate for itsU.S. leg from the Federal Energy Regulatory Commission, risingprices were being predicted by prominent fixtures ranging fromPeters & Co., an investment boutique specializing in energystocks, to the dean of Canadian geological and engineeringconsulting houses, Sproule Associates.

The Canadian natural-gas community sees potentially sharp priceincreases developing on its horizon, thanks to a happy coincidenceof pipeline expansions and economic conditions on the supply side.As the Alliance Pipeline accepted its final certificate for itsU.S. leg from the Federal Energy Regulatory Commission, risingprices were being predicted by prominent fixtures ranging fromPeters &amp Co., an investment boutique specializing in energystocks, to the dean of Canadian geological and engineeringconsulting houses, Sproule Associates.

Peace lasted less than two months in the Canadian natural gascommunity. Now comes the hard part of its April 8 agreement onpipeline regulation and competition – thrashing out what it meansin a contest over a small project with big implications.