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Independent producer Canadian Superior Energy Inc. said Wednesday El Paso Corp.’s Canadian production subsidiary has agreed to join in developing and drilling its Mariner natural gas prospect offshore Nova Scotia, which is believed to hold potential reserves of more than 1 Tcf. This marks the second time the two producers have joined forces in the region.

Liquefied natural gas (LNG) imports may find a potentially power market in the United States because break-even cash costs for new projects have fallen to about $3/Mcf and it costs even less for expansion, according to a new report by Standard & Poor’s Ratings Services (S&P). The report was issued Wednesday, the same day FERC moved three U.S. LNG projects forward and signaled its support for more (see related story).

Liquefied natural gas (LNG) imports may find a potentially power market in the United States because break-even cash costs for new projects have fallen to about $3/Mcf and it costs even less for expansion, according to a new report by Standard & Poor’s Ratings Services (S&P). The report was issued Wednesday, the same day FERC moved three U.S. LNG projects forward and signaled its support for more (see related story).

Volatility has dwindled in the gas futures market, and traders struggled to find direction Wednesday without much success. The April contract was weak in the morning, strong midday with a daily high of $5.45 just before noon and then weak again in the afternoon ending the day down 6.1 cents at $5.278.

After gapping higher on Friday en route to a new contract high, the April natural gas futures contract gapped lower at the open Monday as traders alleviated overbought conditions and reacted to mixed weather forecasts. Selling was spread throughout the open-outcry session and was enough to thwart several attempts by bulls to prop up the market.

After a quick dip back below $5.00 on the heels of Thursday morning’s bearish storage report (withdrawal of 86 Bcf), natural gas futures clawed their way back into positive territory for the day as traders continued to price in the latest weather forecasts. The February contract finished very strongly at $5.304, up 14.3 cents for the session and more than 30 cents above its $4.97 morning low.

Yes Virginia, there still is an energy executive whom you can admire. Chicago-based Morningstar Inc., a worldwide investment research firm, has named Richard D. Kinder, chairman and CEO of Kinder Morgan Energy Partners LP (KMP), as one of four nominees for its CEO of the Year award for 2002. It will announce the winner live on CNBC on Jan. 3 at about 11:20 a.m. (Eastern time).

If FERC should find El Paso Corp. affiliates manipulated natural gas prices in California, some energy industry experts believe the Commission has “very broad authority” to take disciplinary action against the energy corporation and essentially could destroy it, while others believe the agency’s remedial powers are “somewhat limited.”

Natural gas-fired generators are going to find it increasingly difficult to be profitable as lower cost coal-fired generators continue to beat them to the market, and overcapacity of low-cost gas generation keeps power prices depressed, a new report looking at Midwest power markets concludes.