Consolidation

In keeping with the consolidation of the natural gas industry,the boards of directors of GRI (formerly Gas Research Institute)and the Institute of Gas Technology (IGT), the leading energyresearch organizations, said yesterday they have approved inprinciple a combination of the two organizations. The boards areexpected to meet again next Monday to give their final stamp ofapproval to the deal.

While incumbents in the natural gas and power electronic tradingfraternity were predicting eventual fall-out and consolidation inthis exploding technology sector (see related story) a new entry— The Energy Consortium, including American Electric Power,Aquila, El Paso, and Reliant Energy and Southern Company EnergyMarketing — entered the fray last week.

The Appalachian Basin consolidation trend continued yesterday asTwinsburg, OH-based North Coast Energy announced it has completedthe purchase of Peake Energy Inc. from North Canton, OH-basedBelden & Blake Corp. for $72.5 million. A spokesman from NorthCoast said the companies have been working on completing this dealfor the past three months. The purchase more than doubles NorthCoast’s production and reserves.

In response to the rapid consolidation of the natural gas andelectricity industries, the head of a major gas pipelineassociation said he plans to initiate talks soon with otherWashington D.C.-based energy trade groups about possibly merginginto one organization.

In response to the rapid consolidation of the natural gas andelectricity industries, the head of a major pipeline associationsaid he plans to initiate talks soon with other WashingtonD.C.-based trade groups about possibly merging into oneorganization.

Fresh off its purchase of Sonat Inc., El Paso Energy Corp.re-entered the consolidation game by announcing plans to merge withCoastal Corp. in a $16 billion deal. The potential union wouldcreate a pipeline empire capable of serving almost all of the majormarkets in the country. The companies expect the transaction,accounted for as a pooling of interests, to be completed by thefourth quarter of this year.

Fresh off its purchase of Sonat Inc., El Paso Energy Corp.re-entered the consolidation game by merging with Coastal Corp. ina $16 billion deal announced Tuesday. The potential union wouldcreate a pipeline empire capable of serving almost all of the majormarkets in the country. The companies expect the transaction,accounted for as a pooling of interest, to be completed by thefourth quarter of this year.

Once it acquires Eastern Enterprises, KeySpan Corp. will havelanded a big fish with a full belly as the Weston, MA-based holdingcompany is just now about to digest its third LDC acquisition inless than two years. The friendly deal, announced yesterday, hasEastern going for $64/share or about $2.5 billion.

Once it acquires Eastern Enterprises, KeySpan Corp. will havelanded a big fish with a full belly as the Weston, MA-based companyis just now about to digest its third LDC acquisition in less thantwo years. The friendly deal, announced yesterday, has Easterngoing for $64/share or about $2.5 billion.