Four major gas associations last week urged FERC to reconsider”as soon as possible” an April rule requiring interstate pipelinesto conduct electronic communication using only electronic datainterchange (EDI) over the Internet by June 1, 1999.
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Southern Company Energy Marketing signed an agreement to providefour Sithe Energy power plants in New York with 55 MMcf/d of gasfor fuel and to market the 275 MW output. The 15-month arrangementis scheduled to begin this month.
Union Pacific Resources Group announced details of itsparticipation in four successful wells recently completed on itsLand Grant acreage. UPR’s net production from the wells is about 28MMcf/d of gas and 500 barrels of oil/d. The most prolific well, theChamplin 457 A No. 5, is located in the Whitney Canyon field inUinta County, WY. The company owns a 33% net revenue interest inthe well which began producing at an initial rate of 60 MMcf/d.
Dynegy Inc. – formerly NGC Corp. – plans to construct agas-fired, four-unit, 600 MW generation facility in RockinghamCounty, NC, and Duke Power, the electric utility of Duke Energysigned a letter of intent to buy the 600 MW of capacity and energygenerated by the power plant.
New Energy Ventures won a huge four-year power supply contractwith the Department of Defense that covers 1,200,000 MWh ofelectricity annually is worth $300 million. Among the servicesincluded in the contract are energy procurement and access to dailyincremental electric usage and demand data for each site via NewEnergy Ventures’ customer service Web site,http://www.nevservice.com.
Four factors will continue to tighten the future domestic gassupply picture, Randy Mundt, executive vice president of marketingfor producer Burlington Resources, said Tuesday at Ziff EnergyGroups’ New Gas Dynamics 2000+ conference in Houston. The twobiggest factors are producers’ difficulty in replacing productionand accelerated decline rates in the Gulf of Mexico. Also, Mundtsaid, Canadian imports are not an immediate threat to domesticproducers, and the current supply-demand scenario is roughly inbalance.
Pacific Gas and Electric started its second auction of electricgenerating plants in Northern California, placing four gas-firedpower plants and the company’s geothermal facilities on the blockthis week. The auctions are in support of California’s move towardfull competition in the energy utility industry.
Amoco Oil, Enterprise Products, Exxon Chemical and WilliamsField Services announced plans to form a joint venture to build andoperate a 60,000 b/d natural gas liquids (NGL) fractionationfacility near Baton Rouge, LA. Construction has begun, and start-upis expected next March. The joint venture is to be called BatonRouge Fractionators LLC. Enterprise will operate the plant andmanage fractionation services. Amoco will process its PascagoulaGas Plant volumes at the facility. Exxon will process a portion ofits Louisiana area NGLs there, and Williams will contract toprocess its Mobile Bay Gas Plant volumes at the facility.
The Public Service Commission of Wisconsin Tuesday approved gassupply agreements between a coalition of state utilities and fourCanadian suppliers for up to 105 Bcf/year for five years to bedelivered through the proposed Viking Voyageur pipeline.
El Paso said effective March 1 it will offer four dailyscheduling cyles instead of two, additional reduction codes,enhanced pooling, enhanced bumping for firm shippers and extra helpmatching up DUNS numbers at certain points on the line. It alsowill modify the procedures used to balance pools. See the PassPortbulletin board for details