Growth

Strong gas-fired power generation and economic growth inCalifornia prompted Transwestern Pipeline to propose a $93 millionexpansion project yesterday. The pipeline received enough marketinterest during an open season last month to file with FERC for a150,000 MMBtu/d expansion of its mainline to Southern California.The proposed Red Rock Expansion was filed yesterday and would beginservice next June if approved.

Illustrating the tremendous demand growth that has nearly crippled California’s energy market, Kern River Gas Transmission announced a plan last week to more than double the amount of gas it transports to the state from Rocky Mountain region supply basins.

Illustrating the tremendous demand growth that has nearlycrippled California’s energy market, Kern River Gas Transmissionannounced a plan yesterday to more than double the amount of gas ittransports to the state from Rocky Mountain region supply basins.

The April gas futures contract managed a minor gain Friday of8.4 cents to end the regular trading session at $5.270/MMBtu andclose a relatively quiet week on a somewhat sleepy note. For thetime being, the April contract appears essentially dormant within atrading range between $5.06, which was the low trade for April setlast Tuesday, and Wednesday’s high of $5.385, which was the initialreaction high after the AGA storage data was released.

The National Energy Board has put out a new signal that naturalgas supplies will remain tight by cutting in half its growthprojections for western Canadian production capacity after a reviewof recent performance.

The National Energy Board has put out a new signal that naturalgas supplies will remain tight by cutting in half its growthprojections for western Canadian production capacity after a reviewof recent performance.

Transwestern Pipeline is going through a growth spurt with eightnew interconnect projects in service or under way, which will add300 MMcf/d in market area deliveries and 285 MMcf/d in new supplyreceipts. The new or expanded connection points will enhanceshipper access to both new supplies and markets.

Transwestern Pipeline is going through a growth spurt with eightnew interconnect projects in service or under way, which will add300 MMcf/d in market area deliveries and 285 MMcf/d in new supplyreceipts. The new or expanded connection points will enhanceshipper access to both new supplies and markets.

The Powder River Basin of Wyoming and Montana has become one ofthe fastest growing gas production areas in the nation, maybe eventhe world, but that could change if agricultural interests andenvironmentalists succeed in blocking the issuance of waterdischarge permits by the Wyoming Department of EnvironmentalQuality (DEQ).