Duke

The Federal Energy Regulatory Commission on Wednesday issued favorable rulings for Duke Energy’s Egan Hub Partners LP to proceed with further expansion of its storage facility in Louisiana, and for Montana-based Energy West Development Inc. to convert a liquid products pipeline to natural gas service in the West.

Duke Energy Gas Transmission (DEGT) said last week that two of its projects — the Freehold project and the Hanging Rock project — approved recently by FERC will use a new rate schedule that allows customers to contract for firm hourly swing service on subsidiary Texas Eastern Transmission laterals.

“The breach of trust is deep and wide,” Priory said in a speech to the Economic Club of Detroit. “Business today is suffering from a crisis in confidence. This is no wake up call; it’s a screeching red alert.” Shareholder confidence is at an all-time low, he said.

Duke Energy Field Services (DEFS) and a unit of Williams have agreed to an exchange of natural gas gathering and processing interests located in Wyoming, Texas and Oklahoma. Under the agreement, Williams will receive DEFS’s 34% interest in the Echo Springs processing plant and related gathering system near Wamsutter, WY. In exchange, DEFS will receive Williams’ Oklahoma-based Hugoton gathering system and three gas processing plants: Baker, in Baker, OK; Hobart Ranch, in Canadian, TX; and South Bishop, in Ellis County, OK. In addition to operating the Echo Springs facilities, Williams now will own 100% of the complex. It recently finished expanding Echo Springs’ capacity to almost 400 MMcf/d.Williams and DEFS have already completed the Federal Trade Commission review period and expect to close the transaction in the first quarter of 2002.

Duke Energy Field Services (DEFS) and a unit of Williams have agreed to an exchange of natural gas gathering and processing interests located in Wyoming, Texas and Oklahoma. Under the agreement, Williams will receive DEFS’s 34% interest in the Echo Springs processing plant and related gathering system near Wamsutter, WY. In exchange, DEFS will receive Williams’ Oklahoma-based Hugoton gathering system and three gas processing plants: Baker, in Baker, OK; Hobart Ranch, in Canadian, TX; and South Bishop, in Ellis County, OK.

Both Duke Energy-operated pipelines, Texas Eastern and Algonquin, issued Critical System Warnings Sunday saying that based on anticipated system operations and weather conditions, all customers were required to immediately “eliminate excess receipts and conform scheduled receipts to actual deliveries.” The warnings will remain in effect until further notice. Texas Eatern noted that with unseasonably mild weather in the market area and shippers filling contract storage inventories in anticipation of the heating season, its storage capacity is now about 98% full, leaving little system flexibility. If mitigating action isn’t taken, an OFO with non-compliance penalties of $25/Dth may become necessary, the pipeline said. Without specifically mentioning a potential OFO, Algonquin said it may adjust customer nominations and/or revise scheduled quantities to halt further accumulation of imbalances. “In addition, AGT may take any actions within its operational capabilities to reduce excess receipts,” it added. No due-pipe imbalance makeup is being accepted until further notice.

Gulfstream Natural Gas System, an Alabama-to-Florida pipeline project jointly owned by Duke Energy and Williams, was caught in the middle of what began as a feud between the House Alabama and Florida delegations on Capitol Hill last week, and led to a heated debate over the need for Florida to re-think its ban on offshore drilling in light of the state’s expanding appetite for natural gas. If not, one Texas lawmaker warned Florida could become the next California.

Duke Energy Gas Transmission (DEGT) and KeySpan Energy DeliveryLong Island (KEDLI) announced yesterday plans for an open seasonfor transportation services on their proposed Islander Eastpipeline, a 40-mile line that will bring natural gas fromConnecticut to Long Island, NY.

Calgary-based Canadian 88 Energy Corp. Thursday rejected a hostile takeover bid from Canadian Superior Energy Inc. after stockholder Duke Energy, which owns 20% of Canadian 88 shares, said it did not support the proposal. Canadian Superior, begun by Canadian 88 founder Greg Noval, is less than one-tenth the size of Canadian 88, but nevertheless, it launched its takeover in April (see NGI, April 30). Noval resigned from Canadian 88 last year.