Five

A five-fold increase in drilling discoveries will eventually beneeded if Canadian producers are to keep up with expanded marketsfor their natural gas, according to a just-completed supply reviewthat comes virtually from the horse’s mouth.

A five-fold increase in drilling discoveries will eventually beneeded if Canadian producers are to keep up with expanded marketsfor their natural gas, according to a just-completed supply reviewthat comes virtually from the horse’s mouth.

Bulls have not had much to smile about in the last five monthsat the New York Mercantile Exchange, so it was to their surpriseand delight when a trio of factors — storage, technicals, andanother possible tropical storm — combined to lift the marketThursday. The three remaining months in 1998 all received an almostequal boost with October edging out the others slightly byadvancing 6 cents to settle at $1.712 in moderate trading activity.

Virginia Power asked the State Corporation Commission Tuesdayfor authority to build and operate five natural gas-firedcombustion turbines to generate power for the utility’s two millioncustomers during peak demand periods.

Pacific Gas and Electric Co. is moving ahead with the sale offive additional power plants, following the California PublicUtilities Commission’s decision this week to lift a temporary haltto the plant auction in response to an appeal by local governmentofficials and a citizens’ action group in San Francisco where twoof the plants are located. PG&E is now authorized to reviewpreliminary bids (“nonbinding expressions of interest”) frompotential buyers.

TransCanada PipeLines created limited partnership TransCanadaGas Processing LP and is offering units to the public. TransCanadaholds various ownership interests in five gathering and processingfacilities and all related agreements in Alberta and Saskatchewan.With offering proceeds, the partnership will acquire an indirect75% interest in the facilities, while TransCanada will retain theremaining 25%. After 20 years, TransCanada will reacquire thefacilities at their fair market value for cash or shares ofTransCanada. “TransCanada will recapitalize these Canadian gasprocessing investments in a very efficient manner and investorswill receive attractive returns and tax treatment,” saidTransCanada CEO George Watson.

The yet-to-be-completed Destin Pipeline is growing with plansfor two extensions to its system in the eastern Gulf of Mexicoproduction area. Destin Pipeline Co. announced two contiguousextensions, with a total estimated cost of $52 million, will servetwo development projects that recently dedicated production tothe1 Bcf/d Destin.

Five senior AGL Resources officers are leaving the company forearly retirement or other business interests, the company said.Leaving the company are Thomas Benson, President and COO of AtlantaGas Light; Robert Goocher, COO of AGL Resources Services; VerleneCobb, vice president corporate communications; Charlie Lail, seniorvice president operations improvement; and Marvin Wyatt Jr., vicepresident operations support. All but Benson’s position are beingeliminated as part of CEO Walter M. Higgins effort to betterposition AGL for gas deregulation in Georgia, which is scheduled totake place later this year. Higgins took over as CEO in February.AGL said an acting president of Atlanta Gas Light will be announcedwithin the next several days as will other internal reassignments.

The April Nymex contract made it five consecutive down days onFriday by virtue of its 1.2 cent loss to $2.129. Several tradersagreed Friday’s price action was a continuation of the 8.7 centdecline turned in on Thursday, coupled with some liquidation aheadof the weekend.