Comparable

XTO Energy Inc. reported that its natural gas-weighted production in the first three months of the year jumped 10% from a comparable period in 2006 to 1.602 Bcfe/d from 1.460 Bcfe/d, powered by its leasehold in the Barnett Shale. The Fort Worth-based independent expects to sustain at least 10% production growth through the year, executives said.

In a “very significant step-change” that will double its natural gas-heavy reserves, Houston-based independent Edge Petroleum Corp. has obtained a package of wells, natural gas pipelines and related infrastructure, mostly located in its core area of South Texas, for $320 million cash. Together, the wells are producing at a rate of 31 MMcfe/d, of which about 86% is gas.

Recalling its notice earlier this month advising shippers that working storage inventory levels were significantly above levels for a comparable period last year and there was a distinct possibility of running out of available capacity by mid-summer (see Daily GPI, May 12), Southern Natural Gas said Wednesday it was implementing immediately the restrictions on certain storage transactions that the notice had said might be required to preserve firm storage obligations and interruptible storage quantities that already had been accepted. See the bulletin board for details of the restrictions now in effect on interruptible storage nominations. The pipeline emphasized that “firm storage transactions are NOT being restricted.”

Noting that total working gas storage capacity on its system is 60.0 Bcf, Southern Natural Gas said its inventory stood at 42.0 Bcf as of May 4, or 70% of capacity. That compares with 25.5 Bcf (43%) and 24.4 Bcf (41%) at the comparable stages of the 2005 and 2004 injection seasons respectively, Southern said. Storage is now 16.5 Bcf ahead of the year-ago level, and at historical injection rates, Southern projects that maximum storage capacity could be reached before mid-summer. “If this trend continues, please note that it might be necessary to implement the following restrictions on…[certain] types of transactions to preserve firm obligations and interruptible quantities that have already been accepted,” the pipeline said in a posting Wednesday. See the bulletin board for details on potential transaction restrictions.

Baltimore Gas and Electric (BG&E) anticipates winter gas heating bills will be “comparable” to last year because of expected milder weather based on forecasts by the National Weather Service. The weather is expected to translate into decreased demand, which should help keep bills in line despite an estimated 15% rise in natural gas costs, the utility said.

Baltimore Gas and Electric (BG&E) anticipates winter gas heating bills will be “comparable” to last year because of expected milder weather based on forecasts by the National Weather Service. The weather is expected to translate into decreased demand, which should help keep bills in line despite an estimated 15% rise in natural gas costs, the utility said.

FERC commissioners last week finalized revisions to rules foroff-the-record communications between commissioners and key staffand persons outside the Commission. Chairman James Hoecker said thenew rule (Order No. 607) provides a balance that “will supply theclarity and precision we need. They should facilitate better accessto information while ensuring the integrity of our processes.”