Halts

After being in denial for months over the weakened Mid Atlantic market for new pipeline capacity, Greenbrier Pipeline Co. LLC finally succumbed to reality last week, announcing an indefinite delay for its proposed 279-mile pipeline. Project sponsor Dominion Resources told FERC on Wednesday that it has suspended field work on Greenbrier while considering whether to shift budgeted funds to further expanding infrastructure related to the recently recommissioned Cove Point LNG import terminal in Maryland.

The Federal Energy Regulatory Commission last week put the brakes on an index-based transportation contract that Transwestern Pipeline negotiated with Dynegy Marketing and Trade, saying the agreement flies in the face of a mid-July order suspending the Enron-affiliated pipeline’s authority to do such deals for an entire year.

The Federal Energy Regulatory Commission has put the brakes on an index-based transportation contract that Transwestern Pipeline negotiated with Dynegy Marketing and Trade, saying the agreement flies in the face of a mid-July order suspending the Enron-affiliated pipeline’s authority to do such deals for an entire year.

The U.S. Senate has passed an amendment to the Interior Department’s appropriations bill that restricts drilling offshore California. The amendment, which was offered by Sen. Barbara Boxer (D-CA), would halt development for the next year on 36 undeveloped oil leases off the coast.

The U.S. Senate has passed an amendment to the Interior Department’s appropriations bill that restricts drilling offshore California. The amendment, which was offered by Sen. Barbara Boxer (D-CA), would halt development for the next year on 36 undeveloped oil leases off the coast.

Connecticut Gov. John Rowland last Friday issued an executive order halting any final decisions or approvals for construction of large-scale gas or electric transmission projects, pending the completion of a study by a task force on transmission issues. Significantly, the order, which takes effect immediately, does not apply to a high-voltage electric transmission cable across Long Island Sound which is just days away from the start of construction.

Citing a current depressed demand for electricity, particularly in the industrial sector, San Jose, CA-based Calpine Corp. last week put the breaks on its seemingly nonstop gas-fired power plant development program that currently covers 29 states, Canada and the UK. The company, whose stock and credit ratings have taken a hit, particularly in the wake of Enron’s fall, said it would complete “on schedule” its 27 projects (15,200 MW) now under construction, but it was halting 34 other projects (15,100 MW) under development, pending further review.

The drastic moves announced during a conference call is part of the continuing fallout from Enron Corp.’s bankruptcy, a lack of investor confidence and the recession. In Enron’s wake, merchant energy companies have been especially hard hit, with their stock prices plummeting and bond ratings dropping. Moody’s Investors Service downgraded $4.9 billion of Mirant’s debt to junk late on Wednesday.

At least temporarily, the slide in May swing prices came to an end for much of the cash market Thursday. Rockies/San Juan/Pacific Northwest and non-Malin California numbers remained on the downhill path, but eastern and Southwest basin prices generally ranged from flat to a dime or so higher. Most eastern points, though, were only barely above flat.