Faltering

The Canadian government has opened a new round of financing discussions for the Mackenzie Gas Project (MGP) with a blunt reminder that no public money is available to the faltering proposal.

El Paso Corp.’s Lisa Stewart, who took over the company’s faltering exploration and production (E&P) business last year, said Tuesday it was “far too early to declare victory,” but she’s confident that by the end of this year, the company’s oil and natural gas production will be 8% above last year’s output and begin to show sustainable grow in 2006.

A political ally, the Northwest Territories government, has stepped forward to try restoring momentum to Canada’s faltering Arctic natural gas project. The territorial government is supporting the C$7 billion (US$5.6 billion) Mackenzie Gas Project so enthusiastically that it is taking a chance on angering one of its biggest constituencies, the Deh Cho aboriginal population along the southern 40% of the proposed Mackenzie Valley pipeline.

After faltering in earlier sales attempts, Dynegy Inc. last week reached agreement to sell its regulated utility Illinois Power Co. (IP) to St. Louis-based Ameren Corp. for $2.3 billion. Dynegy expects to increase its cash flow to $430-$480 million and to record a $65 million net gain on the sale. The sale of IP also will reduce Dynegy’s projected 2004 losses by $45-$75 million (12-20 cents/share).

After faltering in earlier sales attempts, Dynegy Inc. on Tuesday reached agreement to sell its regulated utility Illinois Power Co. (IP) to St. Louis-based Ameren Corp. for $2.3 billion. Dynegy expects to increase its cash flow to $430-$480 million and to record a $65 million net gain on the sale. The sale of IP also will reduce Dynegy’s projected 2004 losses by $45-$75 million (12-20 cents/share).

Northeast citygates were solidly topping $6 Monday while those in the Midwest edged their way above $5 in a continuing show of strength by the cash market. Only the Rockies lagged behind with minuscule gains, while the rest of the market measured its advance in double digits that exceeded 20 cents in most cases and approached a dollar at Transco Zone 6-New York City.

Without a business partner for its faltering energy marketing and trading unit, Tulsa-based Williams Cos. said last week it could be forced to cut more jobs, which would affect positions on the trading floor. Williams cut about 16% of its 800-member trading workforce last month in London and the United States, affecting about 130 employees (see NGI, June 24). However, discussions are continuing with “several companies interested in forming a joint venture, and for us to grow we need a partner,” Bill Hobbs, CEO of Williams energy trading, told the Tulsa World. “We need someone who’s going to come in and share the expense, add some liquidity and hopefully bring some assets with them.”

Without a business partner for its faltering energy marketing and trading unit, Tulsa-based Williams Cos. may be forced to cut more jobs, according to Bill Hobbs, CEO of energy trading for the company. He told the Tulsa World in an interview this week that the cuts would impact jobs on the trading floor. Williams cut about 16% of its 800-member trading workforce last month in London and the United States, affecting about 130 employees (see Daily GPI, June 24).

Without a business partner for its faltering energy marketing and trading unit, Tulsa-based Williams Cos. may be forced to cut more jobs, according to Bill Hobbs, CEO of energy trading for the company. He told the Tulsa World in an interview this week that the cuts would impact jobs on the trading floor. Williams cut about 16% of its 800-member trading workforce last month in London and the United States, affecting about 130 employees (see Daily GPI, June 24).