Flame

Berkshire Hathaway Inc.’s locomotive unit, BNSF Railway Co., is launching a pilot project this year to test whether the blue flame of natural gas in liquid form might deliver a cleaner, more economic sound than diesel in its freight trains.

Pour more water on the flame lit by the shale gas explosion in the United States, analysts said last week. There’s just too much gas in the world markets to handle, two separate energy teams wrote.

Pour more water on the flame lit by the shale gas explosion in the United States, analysts with Deutsche Bank Securities Inc. said this week. There’s just too much gas for the world markets to handle, said the bank’s oil and gas team.

Chesapeake Energy Corp. — whose logo is a blue gas flame — is continuing the stampede to oil and liquids-rich gas plays along with other U.S. independent producers (see related story), reallocating $700 million of spending from gas to oil over this year and next and pulling some rigs from shale plays (see NGI, Feb. 22).

Chesapeake Energy Corp. — whose logo is a blue gas flame — is continuing the stampede to oil and liquids-rich gas plays along with other U.S. independent producers (see related story), reallocating $700 million of spending from gas to oil over this year and next and pulling some rigs from shale plays (see Daily GPI, Feb. 19).

No one was injured by an unintended gas flare at Exelon Corp.’s Handley power plant in Fort Worth at about 7:30 a.m. Monday. A flame more than 100 feet high erupted when a safety relief valve was opened on a 24-inch diameter gas line and a spark ignited the gas.

Williams and AES Corp. re-lit the flame under their cozyrelationship last week. Williams signed a 20-year agreement withAES to supply gas and market 832 MW of generating capacity andassociated energy and ancillary services from AES’ planned Red Oakpower facility in Sayreville, NJ. Financial terms of the agreementwere not disclosed. Red Oak will generate power to be sold to thePennsylvania-New Jersey- Maryland (PJM) markets. Construction onthe gas-fired, combined cycle plant began earlier this month andoperations are scheduled to begin in the first quarter of 2002. Itis the third deal between the two companies. In May 1998, theysigned a similar agreement under which Williams provides fuel toand markets 4,000 MW of capacity and associated energy andancillary services from three of AES’ southern Californiagenerating stations. And in February 1999, Williams reached anagreement to supply fuel to and market 700 MW of capacity andassociate energy and ancillary services from AES’ Ironwood facilityin South Lebanon, PA, which is currently under construction. AESRed Oak completed a $384 million non-recourse project bondfinancing yesterday for the construction of the New Jerseyfacility. AES’ total investment in the plant will be $440 million,which includes an equity contribution of $56 million. RaytheonEngineers & Constructors, Inc. began construction earlier thismonth.

Williams and AES Corp. re-lit the flame of their cozyrelationship yesterday. Williams signed a 20-year agreement withAES to supply gas and market 832 MW of generating capacity andassociated energy and ancillary services from AES’ planned Red Oakpower facility in Sayreville, NJ. Financial terms of the agreementwere not disclosed.