Discoveries are approaching 1 Tcf in a southern portion of theNorthwest Territories, which is emerging as Canada’s hottest newnatural-gas drilling play, fanning flames under a simmeringregulatory and political dispute over pipeline service throughAlberta.
Articles from Grow
Thanks to a strong fourth quarter, San Francisco-based PG&ECorp. earnings increased slightly in 1998, mainly due toimprovements in its nonutility operations, particularly in theelectricity businesses. Merchant natural gas operations lost moneyoverall because of Texas operations that continued to operate inthe red.
Canada’s National Energy Board gave natural-gas exporters alicense to grow by approving the Alliance Pipeline Project, but theboard included a warning of the risks of excess capacity: pricecuts and strained supplies.
Dynegy opened a new $57 million gas liquids fractionationfacility near Lake Charles, LA, that can separate up to 55,000barrels/d of gas liquids into ethane, propane and a butane andnatural gasoline mix. The facility is fed primarily from offshoreproduction in the Gulf of Mexico via pipeline and truck throughDynegy’s Hackberry terminal. Its products are primarily shippedthrough pipeline to customers in the petrochemical/refiningindustry in Lake Charles.
Anadarko Petroleum said its annual energy production is expectedto grow at an average rate of 18% per year, from 48 million energyequivalent barrels (EEBs) in 1998 to an estimated 92 million EEBsin 2002. The company said the new production forecast is based ondevelopment of known fields and does not include any newexploration discoveries.
Texas’ power generation capacity continues to grow with two newmerchant plants, one just coming on line and one announced foroperation in 1999. California-based Calpine Corp. said its 240 MWgas-fired Pasadena 1 Power Plant began producing power for thederegulated Texas wholesale market, just in time to help meet peaksummer power demand. The plant, under construction since 1997, cameon-line three months ahead of schedule and about $21 million underbudget. The $131 million power plant is selling power under short-,mid- and long-term contracts and into the open market. Pasadena 1will generate up to 240 MW.
By acquiring Union Texas Petroleum in a deal worth about $3.3billion, ARCO would grow production, reserves and its presenceinternationally. The two companies agreed to merge yesterday, withARCO acquiring all Union Texas common stock for $29 cash per share,including debt and preferred stock of Union Texas. The deal willimmediately add 140,000 barrels/d of oil equivalent to ARCO’sproduction. Union Texas production last year was 44 million BOE,51% of it natural gas.