Expects

Due to high linepack, Southern California Gas issued anOvernominations Day notice for Saturday.

Due to unscheduled maintenance at its Elmore (AL) CompressorStation, Sonat expects a 5,000-horsepower unit to remainunavailable until April 9. Although no reductions were anticipatedas of Sunday, it may be necessary to cut FT on a pro rata basis,the pipeline said.

Tennessee expects its 300 Line in northern Pennsylvania to returnto service today following completion of repairs to Sunday morning’srupture (see Daily GPI, Feb. 29). Unlessconditions change, the pipeline will accept intra-day Cycle 1nomination increases beginning at 5 p.m. CST for all meters downstreamof Main Line Valve 314.

Unocal Corp. said it expects worldwide average net oil and gasproduction to rise 44% to nearly 700,000 Boe/d by 2004. The updatedoutlook reflects a 7.6% annual growth in net worldwide productionfrom an estimated 485,000 Boe/d in 1999. Net Lower 48 U.S.production is expected to rise 44% to an estimated 237,000 Boe/d in2004.

While Washington D.C.-based trade groups for gas pipelines andLDCs have had some defections recently, the association for majorgas producers anticipates a small rise in its membership for nextyear.

A sample of energy industry experts attending the Dain RauscherWessels Energy Conference expects prices to strengthen toward theend of this year, only to give way to general price weakness in2000. Many of the 146 people polled at the conference said theyexpected gas prices to surge towards $3.10 before the end of thisyear, then fall to the $2.50 level in early next year. Overall, 800energy industry experts, company representatives, institutionalinvestors and securities analysts attended the four-day conference,which ended yesterday.

Williams share prices dipped nearly 5% to $40.88/share yesterdayfollowing an announcement that the company expects third quarterearnings per share to be “substantially below” current Wall Streetestimates of 20 cents/share. The company said a change inaccounting standards and cooler than normal temperatures inSouthern California, its major power sales area, were to blame. Theannouncement was made partly in preparation for WilliamsCommunications’ initial public offering next month.

The proposed Southern Trails Pipeline from the Paradox Basin ofNew Mexico to Long Beach, CA, could be delayed three to six monthsbecause of additional environmental assessment work underway aspart the federal and state regulatory processes, according to aSalt Lake City-based spokesperson for Questar Corp., which boughtthe pipeline for $40 million last year from ARCO. Nevertheless, theconverted 700-mile pipeline should be bringing 120 to 130 MMcf/d ofgas into California by the end of next year at the latest.

The proposed Southern Trails Pipeline from the Paradox Basin ofNew Mexico to Long Beach, CA, could be delayed three to six monthsbecause of additional environmental assessment work underway aspart the federal and state regulatory processes, according to aSalt Lake City-based spokesperson for Questar Corp., which boughtthe pipeline for $40 million last year from ARCO. Nevertheless, theconverted 700-mile pipeline should be bringing 120 to 130 MMcf/d ofgas into California by the end of next year at the latest.