Efficiencies

Interstate natural gas pipelines have eked out economic and transportation efficiencies on their systems over the years despite challenges on the financial, regulatory and legislative fronts, according to a white paper released Wednesday by the Interstate Natural Gas Association of America (INGAA).

Continuing high prices and the creation of operational efficiencies through mergers, reorganizations and asset acquisitions will make 2008 an overall positive year for gas and oil companies, according to Deloitte & Touche USA, but the industry will face increased costs associated with legislation and global resource nationalism.

Continuing high prices and the creation of operational efficiencies through mergers, reorganizations and asset acquisitions will make 2008 an overall positive year for gas and oil companies, according to Deloitte & Touche USA, but the industry will face increased costs associated with legislation and global resource nationalism.

Equitable Gas Co. said it will install 260,000 electronic meter reading devices in its southwestern Pennsylvania utility service territory to gain efficiencies and cut long-term service costs. The implementation and installation process will begin later this month and will be completed by September 2006.

Touting the deal as a means of strengthening its finances and operating efficiencies, PNM Resources filed its plans to acquire Texas-New Mexico Power’s parent, TNP Enterprises, with state regulatory commission in New Mexico and Texas on Thursday. Rate decreases for both natural gas and electric utility customers in the merged company are proposed by PNM for next year.

It’s too soon to tell whether Dynegy Corp.’s proposed merger with Enron Corp. will be approved by federal regulators, but the most critical problem may not be how big the two companies’ trading power will be, but how much Enron’s shrinks over the next few months, analysts noted last week. If Enron regains and retains the number one position it held just weeks ago, federal approval may be questionable; if Enron’s market share is diluted, the merger may stand a better chance of succeeding.

PG&ampE Corp. is consolidating overall management of its PacificNorthwest and Texas natural gas operations to gain someefficiencies and prepare for expanding into unspecified marketsthroughout North America. A total of about 100 positions, less than10% of the 1,000-person work force, will be eliminated from PG&ampEGas Transmission (PG&ampE GT)-spread equally among the Texas andPortland, OR, operations.