Grow

Despite sharply higher gas prices and an apparent struggle to maintain adequate supply levels, gas producers have more than enough reservoir targets and they are continuing to expand the nation’s gas resource base, according to a biennial report released yesterday by the Potential Gas Committee (PGC). However, committee officials warned that some energy policy changes are needed for the industry to continue expanding the resource and to meet burgeoning demand.

In its bid to grow its pipeline network in the central UnitedStates and along the Gulf Coast, Enbridge Inc., Canada’s secondlargest pipeline operator, agreed to buy up-and-comer MidcoastEnergy Resources Inc. of Houston, which last year more than doubledits revenue and saw profits soar 51%. Enbridge owns 21.4% of the $3billion Alliance pipeline, which delivers gas from Alberta to theMidwest.

In its bid to grow its pipeline network in the central UnitedStates and along the Gulf Coast, Enbridge Inc., Canada’s secondlargest pipeline operator, agreed to buy up-and-comer MidcoastEnergy Resources Inc. of Houston, which last year more than doubledits revenue and saw profits soar 51%. Enbridge owns 21.4% of the $3billion Alliance pipeline, which delivers gas from Alberta to theMidwest.

Analysts who cover Barrett Resources Corp. said yesterday thatonce the data rooms are opened, the Denver-based independent mayhave more than one cash-rich suitor interested in picking up thecompany’s assets, which are heavily concentrated in the naturalgas-rich Rocky Mountains. Barrett formally rejected a bid by RoyalDutch Shell Group, which yesterday launched a hostile takeover (seeDaily GPI, March 12).

Although the shakeout in the online energy trading marketplaceis expected to take its toll on large and small companies, in thelong run, the Internet will become the first choice for buying andselling energy products, according to an expert who follows theindustry on a daily basis.

The natural gas storage deficit compared to last year continuesto grow at an alarming rate, prompting Salomon Smith Barney (SSB)to warn yesterday of potential gas shortages by the end of thewinter heating season.

With electricity woes in California continuing to grow inseverity, Calpine Corp. is in the process of easing the strain inthe long term as it considers plans to develop and operate an 1,100MW natural gas-fired electric generating facility in AlamedaCounty, CA.

With electricity woes in California continuing to grow inseverity, Calpine Corp. is in the process of easing the strain inthe long term as it considers plans to develop and operate an 1,100MW natural gas-fired electric generating facility in AlamedaCounty, CA.

Chicago powerhouse Exelon announced new earnings targets for itsthree principal businesses yesterday, setting targets to grow at arate of about 10% a year through 2003. The company projectedearnings per share of $4.50 for 2001; $4.95 in 2002; and $5.40 in2003. Previous earnings per share had been $4.20 for 2001; $4.60 in2002; and $5.10 in 2003. Reduced amortization, partially offset byhigher spending for operations in its energy delivery business, isthe principal driver for the earnings increase said Exelonofficials. Exelon was formed in September 1999 in the merger ofPECO Energy Co. and Unicom Corp., and is one of the largestelectric utilities and the largest nuclear operator in the UnitedStates.