Firm

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.

Petal Gas Storage, a subsidiary of Crystal Oil, announced itsigned a major 20-year gas storage agreement with Southern Co. lastweek for firm deliverability from its Mississippi salt cavernstorage facility of 700,000 MMBtu/d of gas and storage injectioncapacity for 350,000 MMBtu/d. Southern Company Services will managethe capacity and will act as an agent for its affiliated operatingelectric utility companies: Mississippi Power, Alabama Power,Georgia Power, Gulf Power and Savannah Electric.

Petal Gas Storage, a subsidiary of Crystal Oil, announced itsigned a major 20-year gas storage agreement with Southern Co.yesterday for firm deliverability from its Mississippi salt cavernstorage facility of 700,000 MMBtu/d of gas and storage injectioncapacity for 350,000 MMBtu/d. Southern Company Services will managethe capacity and will act as an agent for its affiliated operatingelectric utility companies: Mississippi Power, Alabama Power,Georgia Power, Gulf Power and Savannah Electric.

Offering to manage energy and related infrastructure services,Sempra Energy’s energy services provider has inked a deal with oneof the nation’s largest auto parts retail chains. Under the dealSempra Energy Solutions will provide energy information and billingmanagement services for 718 retail outlets in 37 states.

Shippers hoping to line up firm capacity to California on ElPaso better be ready to fight for it, according to Jerry Strange,El Paso director of transportation marketing.

An open season for up to 100 MMcf/d of firm transportationcapacity in the Sacramento Delta region of northern California isset for May 10 through the end of June by Western Gas Resources(WGR), which is planning to make an existing gas pipeline,gathering and delivery system an open-access, state-regulatedoperation. The state regulatory process to make the change willbegin June 8 with a pre-hearing conference in San Francisco.

May prices remained firm in morning business Thursday but weregetting softer in the afternoon after the June futures screenstarted retreating from a dalliance around the $2.40 level, a GulfCoast producer reported. However, a marketer saw little movementeither way for May numbers in western markets. And another tradersaid intra-Alberta prices “are getting wild,” reporting themstraddling the C$2.80 level Thursday.

Williams yesterday said it is holding an open season throughJune 1 for annual firm service to be created by Transco’s SundanceExpansion Project. The expansion is intended to serve growing powergeneration, residential and commercial gas markets in thesoutheastern United States and is proposed to be in service byApril 2002. Sundance would expand the Transco system from Station65 in Louisiana to Station 165 in Virginia.

Western Resources of Topeka, KS, acquired a 40% interest innational direct marketer Paradigm Direct for $31.2 million. “Thisstrategic transaction provides an excellent opportunity to bridgeour customer bases. Over the past few years we set a course todramatically expand Western Resources’ national footprint. WithParadigm’s marketing expertise, we are positioned to increase theservices we provide these customers and do so efficiently,” saidDavid C. Wittig, Western Resources CEO.