Faced

The Federal Energy Regulatory Commission should be making a decision soon on competing projects to send more gas into the New York City/Long Island market, and the sponsors of both projects are optimistic their pipeline will be selected.

The Federal Energy Regulatory Commission should be making a decision soon on competing projects to send more gas into the New York City/Long Island market, and the sponsors of both projects are optimistic their pipeline will be selected.

Not wilting under the public spotlight so far but faced with heightened public criticism from state elected officials, the Los Angeles Department of Water and Power (LADWP) tried hard last week to stand its ground on information about its power trading in late 2000 that on the surface appears to contradict testimony the utility’s representatives gave under oath to legislators in May.

Faced with mounting concerns from investors and credit-rating agencies, energy giant Williams Cos. announced a $3 billion-plus plan last Tuesday to improve the company’s flailing balance sheet over the next 12 months. However, Williams’ strategy drew mixed reactions from the major ratings’ agencies and failed to stem its stock losses.

Faced with a sharp drop-off in company stock and severe credit crunch, Williams Cos. is considering bring in an outside partner for its marketing and trading arm, a company official said last Wednesday.

Officials of Florida Gas Transmission faced a tougher crowd than usual at its customer meeting in Key Biscayne, FL late in the week ending May 10, according to reports from attendees. The shippers were upset about two force majeures declared by the pipe in the days leading up to the meeting, and that was before a third force majeure in just over a week occurred on the meeting’s last day. Disagreements about curtailment priorities were also on the customers’ agenda.

Faced with prices that are expected to fall lower than $2/Mcf, producers could begin curtailing production soon and that would further ensure the return of sharply higher prices next winter, given the current drilling decline, according to panelists at Cambridge Energy Research Associates’ CERAWeek 2002. Supply restrictions during a hot summer would quickly change the storage situation, the panelists said.

Faced with prices that are expected to fall lower than $2/Mcf, producers could begin curtailing production soon and that would further ensure the return of sharply higher prices next winter, given the current drilling decline, according to panelists at Cambridge Energy Research Associates’ CERAWeek 2002. Supply restrictions during a hot summer would quickly change the storage situation, the panelists said.

Faced with what an executive called the “new reality in financial markets,” Tulsa-based Williams said Wednesday it would cut capital spending by $1 billion, or 25%, next year and sell non-core assets to raise between $250 million and $750 million in a scheme to strengthen its balance sheet. Williams also plans to issue $1 billion in mandatory convertible preferred securities in 2002, all steps in a plan to retain its investment-grade credit rating.