Fourth

For the fourth session in a row yesterday natural gas futuresopened lower and came under immediate downward pressure as tradersgrappled with warm weather forecasts. However, after notching a$2.81 low during the first hour of trading the December contractwas led higher by a combination of local and trade buying. Theprompt contract finished the day down 7.7 cents at $2.837.

The 1 Bcf/d Vector Pipeline project continued moving ahead asthe most likely new Midwest pipeline project to break ground andbegin construction. Westcoast Energy decided to grab a 30% equitystake and committed to take 240 MMcf/d of firm capacity in the $500million project. The transaction gives Westcoast a major stake ineach of three new gas pipeline projects that will form a newdelivery corridor to the Midwest, Northeast and eastern Canada fromthe Western Canadian Sedimentary Basin.

Not even the best financial quarter since the fourth quarter of1997 could prevent BP Amoco from following through with itsjob-cutting plan as the company said it will cut 2,000 morepredominantly US jobs before the year is over. The integratedenergy giant has already slashed 12,500 jobs from the pay roll. Itwould not elaborate on which US jobs would be eliminated.

Lacking strong leadership for the fourth day in a row thenatural gas futures market continued to limp lazily sidewaysFriday. But unlike the modest gains that were posted Tuesday,Wednesday and Thursday, prices drifted lower to close out the week,possibly setting the market up for more losses today. The Julycontract finished 3.7-cents lower at $2.258.

Sempra Energy International is in the running for its third gasproject in Mexico with its bid to build distribution infrastructureto serve the cities of Torreon, Gomez, Palacio, Ciudad Lerdo, andDurango with the La Laguna-Durango system. Mexico’s EnergyRegulatory Commission (CRE) will announce the winning bidder nolater than May 20.

Enron’s retail energy provider, Enron Energy Services (EES), hasnot turned a profit to date but is expected to do so by the fourthquarter of this year and “from then on,” said Marty Sunde, EES’senior vice president of sales and marketing.

Daniel Rappaport was elected to a fourth two-year term asNymex’s chairman, making him the longest currently sitting chairmanof any futures exchange in the world, , the exchange announcedWednesday. Rappaport was first elected to the position in 1993.Before his election, he served six years as a member of Nymex’sboard of directors. Rappaport has been a member of the exchangesince 1981.

A combination of Dominion Resources and CNG would form thenation’s fourth largest electric and gas utility, serving nearly 4million retail customers in five states. Market capitalization ofthe combined entity will exceed $25 billion-consisting of about$14.5 billion in equity, $9.5 billion in debt and minorityinterests, and $1.1 billion in preferred stock.

Dynegy added a fourth regional marketing alliance and gainedentry into Georgia’s deregulated gas market by partnering with AGLResources and Piedmont Natural Gas. The three equal partners – whatDynegy CEO Chuck Watson calls a “dream team” – formed SouthStarEnergy Services LLC to offer unregulated energy products andservices to industrial, commercial and residential customers in theSoutheast. Offerings will include gas, electricity, fuel oil andpropane, along with related retail services. The Atlanta-basedcompany will have offices in Charlotte, NC, and Nashville, TN.