Extending

Palmetto Interstate Pipeline Co., a partnership of SouthernNatural and Carolina Power & Light, said it is extending itsopen season for firm transportation capacity on its proposed systemuntil June 30. Interested parties should contact Sonat’s MarkLimbaugh at (800) 633-8570 or CP&L’s Rob Caldwell at (919)546-4552. Palmetto is planning to build a line that would run fromSonat’s terminus in Aiken, SC, to an interconnect with NorthCarolina Natural Gas – which is being purchased by CP&L – inRoberson, NC. CP&L plans to subscribe for a substantial portionof Palmetto’s 200 MMcf/d to 300 MMcf/d capacity to fuel newelectric generation being developed in the Carolinas, with theremainder to be used to increase regional gas availability.CP&L said it plans to build 4,000 MW of gas-fueled generationin the Carolinas by 2007. Palmetto said it plans to have Phase I ofits system in service in April 2002 with up to 300 MMcf/d ofcapacity. Two later phases in the following two years would addcapacity to the system.

After extending its unsolicited merger offer for ConsolidatedNatural Gas twice, Columbia Energy finally accepted defeat lastweek, ending a three-month battle with Dominion Resources for CNG’shand. Columbia officially withdrew its $6.7 billion offer lastTuesday following a sweetened merger bid by Virginia Power parentDominion set at $6.4 billion and the CNG board’s unanimous approvalof a revised agreement with Dominion.

Natural gas futures continued lower yesterday and were able tobreak through a key support level. The June contract finished 4.5cents lower at $2.191 after mapping out a $2.17 low for the day.

Columbia Energy Group said yesterday it is extending the deadlineby seven days to May 10 on its merger proposal with ConsolidatedNatural Gas in response to a data request from CNG’s board. CNG askedfor additional information on a two-way collar mechanism in Columbia’sunsolicited $6.7 billion bid for the company (see Daily GPI, April 20).

El Paso continued a 30 MMcf/d allocation of the San JuanCrossover through today due to unforeseen problems extendingmaintenance on the Laguna Station (Cibola County, NM) #3compressor. El Paso also postponed maintenance on the WendenStation (La Paz County, AZ) “A” turbine, which had been scheduledearlier this week, to March 16-18 to coincide with a total shutdownof the station March 17. Havasu Crossover capacity will be cut by80 MMcf/d on March 16 and 18 and by 150 MMcf/d on March 17.