El Paso Energy Corp. has agreed to sell East Tennessee NaturalGas, Sea Robin Pipeline and its interest in Destin Pipeline to gainFederal Trade Commission (FTC) approval of its merger with SonatInc. El Paso said last week it has signed a consent agreement withthe FTC and expects the agency to sign “shortly.” El Paso and Sonatexpect to close the merger in early October. FERC approved themerger last week.
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El Paso to Sell East Tennessee, Sea Robin, Destin
El Paso Energy Corp. will sell East Tennessee Natural Gas, theSea Robin Pipeline and its interest in Destin Pipeline to gainFederal Trade Commission (FTC) approval of its merger with SonatInc. El Paso said yesterday it has signed a consent agreement withthe FTC and expects the agency to sign “shortly.” Subject to FTCand FERC regulatory approval, El Paso Energy and Sonat expect toclose the merger in early October.
Texas Boosting Gas-Fired, Distributed Generation
Gas-rich Texas is moving to include preferences for the fuel andfor distributed generation in electric industry restructuring.
Texas Boosting Gas-Fired, Distributed Generation
Texas gas-fired generation and distributed generation stand togain from recent actions by the state’s Public Utility Commission.Commission staff has proposed a natural gas energy credits (NGEC)trading program with the goal of ensuring that at least 50% of allnew generating capacity, except that powered by renewabletechnologies, be gas-fired after Jan. 1. The proposal does notinclude modifications to generation facilities that merely increaseefficiency of currently installed equipment.
Screen Provides Stability for Most Cash Prices
Given modest support by a small screen gain, most cash tradingpoints tended to level off Thursday instead of continuing a slidethat many had expected would last into the weekend. Northeastcitygates constituted the rare weaker market in the East with dropsof almost a nickel as the region cooled off further from a heatwave that set power generation load records early this week.
Futures Eke Out Small Gain in Quiet Session
Follow-through on last week’s gains and record-settingtemperatures put bulls squarely in control Monday in the Nymex gaspit. Locals and commercials were good buyers in the first hour oftrading yesterday as they buoyed the market to its highest level insix months. However, after the initial surge the market could notattract fresh buying and was left to chop sideways amid arelatively light 59,236 in estimated volume. The July contractfinished at $2.442, up 0.5 cents for the day.
Screen Gain Leads Cash Prices to Modest Firming
The cash market was flat to a little higher Wednesday, and onceagain sources had little but the Henry Hub futures contract to citeas an influence. Most points were flat or just barely higher,however, with only a few coming close to matching the futures riseof over a nickel. The screen seems to be about the only thinghappening for cash, a Midcontinent trader said, “but it [screen] isnot running on fundamentals, just technicals.”
Screen-Influenced Cash Increases Lowest in West
Though the May Henry Hub futures contract eventually settled fora small gain of less than a penny, it was the screen’s morningflirtation with the $2.15-17 area that got most of the credit for astrong performance Tuesday by the cash market. Cash rises tended tofade out going westward to virtually nothing in California trading,but virtually all eastern points were up at least a nickel and inmany cases saw increases approaching a dime.
Small Gain Puts Bulls Back at Helm
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.
What Goes Up May Come Down Twice As Fast
After a convincing 7-cent gain to kick off the week, the futuresmarket forged higher yesterday morning amid continuedshort-covering mixed with some fresh buying activity. The Aprilcontract was bumping up against the March 12 high of $1.825 inmid-day trading, but in the afternoon the buying dried up, leavingonly sellers to determine the market direction. The resulting priceslide-7 cents in 45 minutes-send the prompt month spiraling lowerto finish at $1.754.