Expands

A new nonutility natural gas supply network and someenvironmental concessions to local agricultural interests are twonew twists to a major 500 MW merchant natural gas-fired power plantproposed for northern California in proximity to the SacramentoValley gas fields. As a result, the project sponsor, CalpineCorp., has agreed to invest an additional $20-$25 million in theestimated $300 million project to use a more environmentally benignair cooling system at the plant instead of the traditionalwater-based evaporative cooling approach.

Amoco Energy Co. of Trinidad and Tobago completed an 18-monthproject to increase its gas capacity by 40% to support growingdomestic industrial demand at Point Lisas and Point Fortin. Amocoincreased its ability to provide gas locally to about 700 MMcf/d,primarily due to two successful new wells at the company’s existingFlamboyant structure off the southeast coast of Trinidad.

Mid Louisiana Gas Transmission, a subsidiary of Midcoast EnergyResources, announced last week that it purchased all of the stockin the Creole Gas Pipeline in southern Louisiana from El PasoEnergy for an undisclosed amount.

Northern Indiana Public Service Co. (NIPSCO) announced it isexpanding its NIPSCO Choice program to an additional 32,000residential customers in the South Bend area this summer and willintroduce the program to Fort Wayne-area residents early next year.In addition, the number of commercial and small industrialcustomers eligible to choose alternate suppliers will increase to10,000.

South Jersey Gas received approval from the New Jersey Board ofPublic Utilities to expand its residential transportation programallowing 12,500 more customers to select an independent natural gasmarketer. “Last year, 13,000 customers tested the uncharted watersof deregulation by signing up with an independent marketer,” saidCharles Biscieglia, president of South Jersey. “Finding ways tohelp our customers reduce energy costs is important to us andanything we can do to create a potential for savings is a positivestep.” Enrollment for the expanded program closes July 31, 1999.South Jersey serves 260,000 residential, commercial and industrialcustomers in Atlantic, Cape May, Cumberland, Salem, and significantportions of Camden, Gloucester and Burlington counties.

By acquiring Union Texas Petroleum in a deal worth about $3.3billion, ARCO would grow production, reserves and its presenceinternationally. The two companies agreed to merge yesterday, withARCO acquiring all Union Texas common stock for $29 cash per share,including debt and preferred stock of Union Texas. The deal willimmediately add 140,000 barrels/d of oil equivalent to ARCO’sproduction. Union Texas production last year was 44 million BOE,51% of it natural gas.

Washington Gas is expanding its customer choice program inMaryland, targeting 100,000 residential customers or one-third ofthe total, and all of its 25,000 commercial customers in the state.The company said it received approval for the expansion from theMaryland Public Service Commission.

Coral Energy expanded its gas and power marketing enterprisewith two West Coast acquisitions, which complement its Canadian gassupply position.

Puget Sound Energy (PSE) today received approval from theWashington State Utilities and Transportation Commission (WUTC) tomake natural gas available for the first time to portions ofKittitas County.