Deliver

Few can deny that the two biggest factors influencing prices inthe volatile natural gas futures arena are storage and weather.Accordingly, a combination of record cold temperatures andlarger-than-expected storage withdrawals through November andDecember caused natural gas prices to more than double, leavingregulators stunned and sending buyer to the poor house. And whileit is doubtful that natural gas prices will return the ol’two-dollar days anytime soon, the futures market did take solid ahit yesterday and yes, storage and weather were to blame.

Maritimes & Northeast Pipeline has completed constructionand commissioning of the Halifax Lateral, which is ready to delivergas to Nova Scotia Power Tufts Cove Generating Station and willcommence service today. The 77-mile, 12-inch diameter pipelineextends from a point on the mainline near Stellarton to the Tuftsplant in Dartmouth. There are two firm service agreements in placewith Nova Scotia Power for a total of 61,600 MMBtu/day.Construction of the Saint John Lateral also is nearly complete.When the pipeline receives a leave-to-open from the National EnergyBoard, commissioning activities will begin. The lateral is onschedule for service in late November. Facilities for the SaintJohn Lateral consist of 63 miles of 16-inch diameter pipeline froma point near Kedron Lake to delivery points in the Saint John andLake Utopia areas in New Brunswick. The Saint John lateral isdesigned to transport 164,000 MMBtu/d of gas. M&NP also said ithas received approval from the NEB to build facilities to serveEnbridge Gas New Brunswick’s distribution system in eastern,western and southern Saint John. The northern facilities are onhold.

Buccaneer Pipeline, one of two long lines proposed to cross theGulf of Mexico and deliver gas to the west coast of the FloridaPeninsula, has finally received permission to go ashore in PascoCounty, north of Tampa-St. Petersburg, after facing substantiallandowner opposition.

Capping a two-year battle for its controversial MarketLink project, designed to expand its system to deliver new supplies to the Northeast, Williams’ Transco pipeline has scaled back its ambitious schedule, filing to phase in construction through 2004.

Northwest reported that because it has been unable to deliverspec quality gas off the south end due to increased hydrocarbondewpoint levels, starting today it will be required to shut in sixinterconnect points: Piceance Quick Cycle, Grand Valley, SandSprings, Grand Gas, Premier-Bar-X and Bar-X. The pipeline said itwould contact each affected interconnect operator to discuss gasquality details.

Williams’ Transco pipeline has received approval for itsSouthCoast Expansion, a project to deliver up to 204 MMcf/d ofadditional supplies starting in November, primarily in Georgia andSouth Carolina. The Federal Energy Regulatory Commission issued acertificate for the project last Monday, accepting Transco’salternate incremental rate scheme, requiring signed 15-yearcontracts for 100% of capacity, and dismissing protests (see FERCDocket CP99-392)

Williams’ Transco pipeline has received approval for its SouthCoastExpansion, a project to deliver up to 204 MMcf/d of additionalsupplies starting in November, primarily in Georgia and SouthCarolina. The Federal Energy Regulatory Commission issued acertificate for the project Monday, accepting Transco’s alternateincremental rate scheme, requiring signed 15-year contracts for 100%of capacity, and dismissing protests (see FERC Docket CP99-392)

The BP Amoco and Atlantic Richfield Co. (ARCO) merger isofficially complete. BP Amoco will deliver to former ARCO holders,for each share of common stock owned, 1.64 American depositaryshares (ADS) of BP Amoco. Alternatively, if properly elected, ARCOcommon stock holders can receive BP Amoco ordinary shares. Cashwill be paid for fractional share interests. BP Amoco ADSs trade onthe New York Stock Exchange and other North American exchangesunder the symbol BPA with one ADS representing six ordinary sharestraded on the London Stock Exchange. Existing BP Amoco ADR holdersand existing ARCO preference stock holders do not need to take anyaction with respect to this transaction.

Bangor Hydro-Electric Co. announced plans to sell its 50% stakein Bangor Gas, the recently formed local distribution company thatwill deliver Sable Island gas to retail customers in the state ofMaine once the Maritimes pipeline begins service this winter.Sempra Energy owns the other half of the company, which was formedin 1997 to distribute gas production to customers in and aroundBangor and other cities in Maine.