Firm

PG&E Gas Transmission Northwest Corp. got the thumbs-up from FERC yesterday to expand the capacity of its system in the Pacific Northwest by 210,800 Dth/d on an annual firm basis.

Following recent movement by some of their peers, top industry analysts with Salomon Smith Barney (SSB) and Merrill Lynch downgraded their 2002 forecasts for several U.S. exploration and production (E&P) company stocks late last week. SSB’s Robert Morris also decided to lower his natural gas price forecast for 2002, while Merrill Lynch’s Donato Eassey stuck to his gas price projections.

Williams Gas Pipeline Central is holding a binding open season through June 29 for 540,000 Dth/d of firm capacity on its proposed Western Frontier Pipeline Project. The project would provide a new transportation corridor from the Cheyenne Hub in northern Colorado to market points and connections with other Midcontinent pipelines in Kansas and Oklahoma.

Williams Gas Pipeline Central is holding a binding open season through June 29 for 540,000 Dth/d of firm capacity on its proposed Western Frontier Pipeline Project. The project would provide a new transportation corridor from the Cheyenne Hub in northern Colorado to market points and connections with other Midcontinent pipelines in Kansas and Oklahoma.

Florida Gas Transmission Co. (FGT) reported that it has entered into a long-term firm transportation agreement with the Orlando Utilities Commission (OUC) to deliver gas to the Curtis H. Stanton Energy Center located in Orange County near Orlando, FL from its latest 2003 mainline expansion project (tentatively referred to as Phase VI), to be revealed during the third quarter 2001.

Florida Gas Transmission Co. (FGT) reported on Wednesday that it has entered into a long-term firm transportation agreement with the Orlando Utilities Commission (OUC) to deliver gas to the Curtis H. Stanton Energy Center located in Orange County near Orlando, FL from its latest 2003 mainline expansion project (tentatively referred to as Phase VI), to be revealed during the third quarter 2001.

Although it didn’t seem likely as recently as the middle of last week, the market may be on the verge of a much-anticipated turnaround from its long slide. Except for Rockies/San Juan and California border-SoCalGas declines, Monday’s trading saw flat to moderately higher prices at most other points, and much higher ones at PG&E-related points struggling out of the abyss into which they had plunged following Friday’s stringent OFO.

After five years in the making, Alliance Pipeline officiallyopens for business today, adding 1.325 Bcf/d of new firmtransportation capacity from British Columbia and Alberta to theChicago gas market hub. The pipeline company held a grand openingceremony yesterday. “Our new, state-of-the-art pipeline systemprovides Western Canadian natural gas producers the opportunity toexpand their markets in both the Midwest United States and EasternCanada by offering them incremental transportation capacity througha real, competitive choice,” said CEO Norm Gish. “It will provideend-users in these market areas with a new supply conduit for thecleanest-burning hydrocarbon fuel. It will stimulate theexploration and producing sector in Western Canada resulting inenhanced business and employment opportunities in many communities.And, it will significantly contribute revenues to many governmentsdirectly in the form of taxes and indirectly in the form ofroyalties through increases in gas production.” COO Allan Edgeworthnoted that while the scale of the 2,300 mile system is significant,”it is only capable of transporting 10% of Alberta’s and BritishColumbia’s total gas production destined for export to eitherEastern Canada or the United States. The Alliance pipeline sponsorsinclude Coastal (14.4%), Enbridge (21.4%), Fort Chicago EnergyPartners LP (26.0%), Williams (14.6%) and Westcoast (23.6%).

The American Gas Association’s (AGA) proposal to expand the rights of firm capacity-holders to recall released capacity — to include capacity on which natural gas has already been scheduled to flow — has come under fire at FERC from natural gas producers, marketers and pipelines.