Convergence

The convergence of abundant natural gas supplies and weak demand, driven by an 8% decline in industrial-sector consumption, will keep the Henry Hub spot price below $4/Mcf until late this year, but economic growth could boost industrial consumption and prices to an average $5.49/Mcf in 2010, the Energy Information Administration (EIA) said in its Short-Term Energy Outlook for June.

Natural gas markets worldwide are showing increasing convergence, particularly among the Organization of Economic Cooperation & Development (OECD) countries, and that trend, spurred by increased liquefied natural gas (LNG) traffic, is expected to continue, according to Raymond James’ Energy Stat of the Week.

Utility interface with hydrogen energy and transportation applications likely will develop as an offshoot of the push toward greater use of renewable energy resources, according to a panel of speakers at the National Hydrogen Association’s annual meeting Thursday in Los Angeles.

Dynegy Inc. said Wednesday that it has appointed Matt K. Schatzman, previously president of Energy Trading, to the positions of president and CEO of the company’s energy convergence business. In his new roles, Schatzman will add energy marketing and origination, commercial asset management, operations and development of Dynegy’s U.S. generation facilities, and Dynegy Canada to his current responsibilities, which include all energy transportation, logistics and risk management activities. He will continue to report to Steve Bergstrom, Dynegy Inc. president and COO. Schatzman joined Dynegy in 1990 as director of transportation after spending three years at Transcontinental Gas Pipe Line Corp. Cliff Hare, formerly senior vice president of marketing and origination for the Southeast, will replace Schatzman as president of Energy Trading. After spending 10 years with Southern Natural Gas Co., Hare joined Natural Gas Clearinghouse, Dynegy’s predecessor company, in 1987 and has served in various departments within the company, including transportation, gas trading, power fuel and gas and power marketing. He will relocate to Dynegy’s Houston headquarters and will report to Schatzman.

With the convergence of regulatory, political and financial solutions for California’s investor-owned utilities heating up Monday in the state legislature and regulatory halls, questions about additional retail rate increases are being raised. Officials with Gov. Gray Davis are going out of their way to squash the notion that any more increases are imminent, on heels of 40% hikes earlier this year that just became effective in June.

Utility convergence continues, with talks under way for aprospective new utility merger between New Jersey’s Public ServiceEnterprise Group and Ohio’s Cinergy Corp., according to Wall Streetreports.

Seeking convergence in its certificate policy, the FederalEnergy Regulatory Commission proposed phasing out its 15-year oldoptional expedited certificate, saying “expedited” is now amisnomer and all pipeline certificates should be required to passunder the “public convenience and necessity” bar.

Seeking convergence in its certificate policy, the FederalEnergy Regulatory Commission has proposed phasing out its 15-yearold optional expedited certificate, saying “expedited” is now amisnomer and all pipeline certificates should be required to passunder the “public convenience and necessity” bar.

If convergence is what’s driving the energy industry, thenNiSource Chairman Gary Neale could be a good candidate to pilot theAmerican Gas Association into the new millennium. Neale is theAGA’s new chairman, but he’s also chairman of National ElectricityReliability Council, is on the board of directors of EdisonElectric Institute and spends his spare time attempting a hostiletakeover of Columbia Energy Group.