Brandt Energy, a former partner in the Wild Goose Storageproject in California, is planning the development of Colorado’sfirst independent gas storage facility. The Totem Gas StorageProject is to be located about 12 miles east of the Denver Airportin a depleted gas field in the J Sand reservoir of the DenverJulesburg Basin. Brandt, Star Natural Gas, Renegade Oil & Gasand Fairchild, Ancell & Wells make up the development team forthe project, which will target growing power generation load andmarketers serving customers along the Front Range.
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Screen and Storage Nudge Spot Market Higher
Wednesday marked the first time in a week that double-digitmoves were nowhere to be found in the cash market. Most pointsregistered small gains of 2 to 5 cents, feeding off a strongfutures screen and a bullish American Gas Association (AGA) storagereport of a 26 Bcf injection.
Transportation Notes
For the first time in July Pacific Gas & Electric entered aweekend without having a high-inventory OFO in place. One that hadbeen declared for Friday (see Daily GPI, July 23) was not extended.However, Southern California Gas did implement an OFO-likeOvernominations Day for Saturday.
Coral, Aided by Shell, Dives into LNG Market
Coral Energy jumped head first into a new arena last Friday withits 2.8 Bcf purchase of liquefied natural gas (LNG) from MalaysiaLNG Sdn. Bhd. The shipment will be delivered to CMS’ Lake Charles,LA, LNG import facility later this month. Terms of the transactionwere not released.
Coral Dives into LNG Market
Coral Energy jumped head first into a new arena last Friday withits purchase of 2.8 Bcf of liquefied natural gas (LNG) fromMalaysia LNG Sdn. Bhd. The shipment will be delivered to CMS’ LakeCharles, LA, LNG import facility later this month. Terms of thetransaction were not released.
Industry Briefs
Dynegy has fired up its first constructed, owned and operatednatural gas-fired peaking plant, the 250 MW Rocky Road Power Plantnear Chicago, in time to serve the summer air conditioning load.Dynegy plans to sell the power generated at the merchant powerplant into the wholesale electricity market. As a peaking plant itwill run on an as-needed basis. The Rocky Road plant is part of thecompany’s previously announced plan to back up its trading unitwith a $5 billion generation expansion program. Dynegy is aiming toown or control more than 70,000 MW of generating capacity by 2003.It has 6,800 gross MW operating or under construction and recentlyannounced plans for two natural gas-fired 500 MW plants, one inHeard County, GA and another in Oldham County, KY.
Shareholders OK Commonwealth/BEC Merger
Shareholders for Commonwealth Energy Systems and BEC Energy votedto approve their companies’ previously announced merger plans lastweek. The merger was first agreed to last December (See Daily GPI, Dec. 8, 1998). The new companywill be named NSTAR.
Range Resources, First Energy Form Appalachian Giant
Range Resources Corp. and FirstEnergy Corp. announced Thursdaythe formation of a $1 billion joint venture in the AppalachianBasin. Each company will own 50% of the yet-to-be-named venture.The deal is expected to close within 60 days.
Exxon-Mobil Passes First Hurdle, But the Real Test Lies Ahead
Exxon and Mobil took an important step toward completing their merger last week as shareholders for both companies approved the combination. But many industry observers viewed the votes as foregone conclusions. One source called them “glorified rubber stamps.” The real test will come during the regulatory process when the transaction undergoes strict Federal Trade Commission (FTC) and European Commission (EC) scrutiny.
Exxon-Mobil Merger Passes First Hurdle
Exxon and Mobil took an eagerly anticipated step towardcompleting their merger yesterday as shareholders for bothcompanies approved the combination. Mobil received 98% shareholderapproval for the deal and Exxon received 99%. The votes were heldat separate hotels in Dallas, TX.