Company

Tenaska, Inc. and Diamond Generating Corp., a subsidiary ofMitsubishi, have formed Tenaska Diamond, LP, a new power generationpartnership. Through the new company, the partners will own fourdomestic power generating facilities totaling 3,500 MW of capacity.Tenaska and Diamond have also entered into a non-exclusive,strategic alliance agreement for future power generatingdevelopment.

The previously underutilized pipeline and storage assets ofNatural Gas Pipeline Company of America (NGPL) have enjoyed robustvolume growth under the management of the merged KN Energy andKinder Morgan. Last week, Kinder Morgan’s NGPL said it has fullysubscribed its storage service with the latest of a number ofdeals.

Coral Energy entered into an energy alliance with TerraIndustries Inc., an international chemicals company, to increasethe energy efficiency of Terra’s Blytheville, AR, chemical facilityusing Coral Site Advantage, Coral’s proprietary measurement,benchmarking and energy modeling program. Terms of the arrangementwere not released. The program will begin with a comprehensiveanalysis of energy requirements throughout the chemical complex.This information will be used in the development of a modelingprogram to establish a benchmark for optimal energy usage. “Energyis the major cost component at each of our manufacturingcomplexes,” said Mike Bennett, executive vice president for Terra.”The first step in that process is determining our precise energyneeds, which is a strength of the Coral Energy program. We expectto quickly achieve savings by becoming a more efficient energyuser.” Once the modeling system is in place, Coral will work withTerra to develop a multi-year energy savings plan, initiallyfocusing on energy utilized within existing plant processes. Coralwill receive compensation for its Coral Site Advantage servicesbased upon a portion of Terra’s measured energy savings.

Kinder Morgan’s Natural Gas Pipeline Company of America (NGPL)has fully subscribed its storage service with the latest of anumber of deals.

Coral Energy has entered into an energy alliance with TerraIndustries Inc., an international chemicals company, to increasethe energy efficiency of Terra’s Blytheville, AR, chemical facilityusing Coral Site Advantage, Coral’s proprietary measurement,benchmarking and energy modeling program. Terms of the arrangementwere not released.

Results from yesterday’s Central Gulf of Mexico Lease Sale 175were buoyed by strong commodity prices. This year’s sale activitydwarfed that of last year’s Central Sale 172 by about 60%,according to the Minerals Management Service’s Gulf of Mexicooffice. High bids received at the sale totaled nearly $300.57million compared to $171.62 million in high bids last year.

About 300 MMcf/d of Sable Island gas is flowing through theMaritimes & Northeast Pipeline currently to markets in theU.S., a spokeswoman for the pipeline company said last week. Thepipe, which transports gas produced offshore Nova Scotia, isexpected to be shipping 450 MMcf/d by summer and 530 MMcf/d whenthe Halifax, St. John’s and Point Tupper laterals in Canada areconstructed and open for service.

About 300 MMcf/d of Sable Island gas is flowing through theMaritimes & Northeast Pipeline currently to markets in theU.S., a spokeswoman for the pipeline company said yesterday. Thepipe, which transports gas produced offshore Nova Scotia, isexpected to be shipping 450 MMcf/d by summer and 530 MMcf/d whenthe Halifax, St. John’s and Point Tupper laterals in Canada areconstructed and open for service.

Southern Union Co. renegotiated its franchise agreement with thecity of El Paso, TX, last week, the company said. Under the termsof the deal, Southern Union will receive a cost-of-service revenueincrease of $650,000, but it did not disclose the deal’s totalvalue. The agreement was unanimously approved by the El Paso CityCouncil on Feb. 22.