Millennium Pipeline yesterday joined a growing crowd of pipelineexpansions and projects that are being delayed until 2000. Thecompany informed the Federal Energy Regulatory Commission of therevised project schedule, which calls for some portions of the442-mile pipeline to be constructed in 1999, the balance beingbuilt the following year and service by November 2000. IndependencePipeline, a Millennium competitor, announced a similar delayearlier this year, and Alliance Pipeline said it too was forced toput off transportation services until winter 2000.
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The yet-to-be-completed Destin Pipeline is growing with plansfor two extensions to its system in the eastern Gulf of Mexicoproduction area. Destin Pipeline Co. announced two contiguousextensions, with a total estimated cost of $52 million, will servetwo development projects that recently dedicated production tothe1 Bcf/d Destin.
Consolidation in the drilling/oilfield services industrycontinued this week, with the announcement that Baker Hughes andWestern Atlas plan to merge in a tax-free, stock-for-stocktransaction valued at $5.5 billion. It will create a company with$6.5 billion in annual revenues and 36,000 employees.
Dramatic spot price changes are expected throughout the U.S.over the next two years following the construction of proposedmajor gas pipeline projects and development of gas reserves tosupport them. A new analysis released yesterday at GasMart Power’98, NGI’s annual energy conference, by ICF Kaiser focuses on howprices and volumes would shift following several likelydevelopments: the construction of Alliance Pipeline along withexpansions of Foothills/Northern Border, construction of the Vectorand Millennium projects to move gas from Chicago to East Coastmarkets, completion of the Sable Island project and associatedMaritimes and Northeast Pipeline moving gas down the East Coast andincreased gas production in the Gulf of Mexico.
Energy Pacific launched a new energy service called Power ChoiceCalifornia, which will help companies make electricity buyingdecisions in a restructured marketplace. The company launched theservice through a pilot with Hewlett-Packard earlier this year andwill begin marketing the service in April. “We’re finding that manycustomers just don’t know where to begin when asking energyproviders for price quotes, or even what their energy options are,”said Eric Nelson, president of Energy Pacific, an unregulated jointventure of Pacific Enterprises and Enova Corp.