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Natural gas and distributed electric power should become closeallies over the next 30 to 40 years as the world transitions toless dependence on a fossil fuel-based energy economy, according toseveral microturbines developers who outlined the “opportunitiesand challenges” of decentralized electricity generation at NGI’sGasMart/Power ’99 in Dallas last week.

Natural gas and distributed electric power should be closeallies over the next 30 to 40 years as the world transitions toless dependence on a fossil fuel-based energy economy, according toproponents of different microturbines who outlined the”opportunities and challenges” of decentralized electricitygeneration May 11 at GasMart/Power ’99.

Sonat exercised an option recently to buy back 35% interest inSonat Power Marketing from Atlanta Gas Light (AGL). The price wasnot released. Sonat did say it will be at fair market valuedetermined by investment banks selected by Sonat and AGL. Sonatalready owns the other 65% of Sonat Power Marketing.

In response to a data request from CNG’s board, Columbia EnergyGroup extended its deadline to May 10 for the CNG board to respondto its unsolicited merger proposal. CNG asked for additionalinformation on a two-way collar mechanism in Columbia’s $6.7billion bid for the company (see NGI, April 26).

Koch Midstream Services Co. of Houston bought West Texasgathering and treating assets from Glossop Gas Co. Koch acquiredGlossop’s Chenot Putnam Gathering System and Treating Plant inPecos County, TX. The treating plant is capable of processing 10MMcf/d. The gathering system includes 33.5 miles of high-pressurepipeline. The system also includes existing production.

Despite a plea from Nevada regulators to postpone action, theFederal Energy Regulatory Commission last week readily approved a$4 billion merger of the state’s biggest electric and gas providers- Sierra Pacific Power and Nevada Power.

Producers addled by low prices could take some comfort from atasty lunch served up with a cheerful prediction. Brad Karp,president of Duke Energy Trading and Marketing, told a producerluncheon in Houston last week his company is pretty bullish on gasprices long term.

Avista Power said Tuesday it purchased a 20-acre site inLordsburg, NM from TNP Technologies and plans to put a $70 millionpower plant into service on the acreage by early 2000. The terms ofthe sale were not disclosed. The land contains four oldergenerators, which were in the process of being updated. All permitsand licenses will transfer to Avista Power and the transaction isexpected to close within 60 days.

Feeding off strength from Tuesday’s Access session gains, theMay contract was fast out of the chute Wednesday, quickly notchinga $2.08 shortly before noon. But for the fourth time in the lastfive trading days, resistance at the $2.07-09 level held andprofit-taking in the form of selling became the theme of theafternoon. The May contract finished at $2.024, just 1.1 cents morethan Tuesday’s close.