Foundering

A whopper of a service cost hike is built into TransCanada Corp.’s effort to salvage its foundering natural gas Mainline from Alberta to central Canada and the United States, the National Energy Board (NEB) has been told.

Foundering liquefied natural gas (LNG) terminal developer Cheniere Energy Inc. continued to produce more red ink than regasified LNG in the second quarter as losses more than tripled from the year-ago period and more than doubled from the first quarter. However, investors took heart from the company’s announcement that it had secured $250 million in financing.

Foundering liquefied natural gas (LNG) terminal developer Cheniere Energy Inc. continued to produce more red ink than regasified LNG in the second quarter as losses more than tripled from the year-ago period and more than doubled from the first quarter. However, investors took heart from the company’s announcement that it had secured $250 million in financing.

While the energy market sailed on past foundering Enron with barely a ripple, that would not have been the case if the major marketer’s implosion had occurred a year earlier during a time of rising energy prices, the chairman of the Maine Public Utilities Commission told a congressional committee Wednesday.

Agreeing that Georgia’s natural gas deregulation program is flawed but not foundering, a Blue Ribbon Natural Gas Task Force empowered by Gov. Roy Barnes recommended last week that the state not give up on the more than three year-old initiative. Instead, the group decided on a list of proposals to reform the program, including the reinstitution of a single regulated marketer.

Agreeing that Georgia’s natural gas deregulation program is flawed but not foundering, the Blue Ribbon Natural Gas Task Force empowered by Gov. Roy Barnes said it recommends that the state not give up on the more than three year-old initiative. Instead, the group decided on a list of proposals to reform the program, including the reinstitution of a single regulated marketer.

Former Deputy Energy Secretary Elizabeth Moler and Washingtonattorney Katherine B. Edwards have made the list of candidatesbeing considered by the Natural Gas Supply Association (NGSA) tosucceed former President Nicholas J. Bush, who departed last monthamid allegations that he defrauded the trade group out of more than$2.4 million, sources say.

The futures market concluded what one trader described as a”tumultuous trading week” by slipping for the fifth straight day,leaving futures at their lowest level since March 1997. There was alittle something for everyone in the market last week: speculativeselling, a bullish storage report, and even a little hurricanehype. The only thing missing from trading last week was a dayregistering a gain. That left even the most bullish of tradersscratching their horns wondering when the market will reverse itsdowntrend. The September contract closed at $1.844 on Friday, down6.2 cents. Friday’s With that, the market concluded the month ofJuly. A month that saw major declines in both cash and futuresmarkets eroding the September contract nearly 30 percent of itsJuly 1 value.