Important

Enron Corp. and Dynegy Inc. announced last Thursday that they settled a $10 billion lawsuit Enron filed against Dynegy for backing out of a merger agreement and claiming Northern Natural Co.’s pipeline system in the process. Enron filed the lawsuit Dec. 2, 2001 in conjunction with its Chapter 11 bankruptcy filing. The settlement agreement has been approved by the boards of both companies.

Clearing an important milestone in its plans to acquire Westcoast Energy, Duke Energy announced it had received approval from the British Columbia Utilities Commission (BCUC) to acquire indirect control of the public utilities owned wholly or in part by Westcoast and regulated by the BCUC.

The Federal Energy Regulatory Commission (FERC) issued several important certificates Wednesday for new gas pipeline infrastructure projects, including final approvals for Transcontinental Gas Pipe Line’s Leidy East expansion in Pennsylvania, for a new pipeline by Petal Gas Storage in Mississippi and for an ANR lateral extension to serve to 1,050 MW Badger power plant in Kenosha, WI. The Commission also denied rehearing of its orders granting Kern River Gas Transmission certificates to expand its system by about 135 MMcf/d.

In what would be a major blow to Alaska officials, especially Gov. Tony Knowles who has pinned the remainder of his term toward getting an Alaska Highway natural gas pipeline, major producers indicated this week that because the cost would be less, they now favor a North Slope pipeline that would move north, through the Beaufort Sea, instead of across the state.

Technicals, like a roadmap to a traveler, give natural gasfutures traders important clues as to where the market is takingthem. Although fundamental factors must never be ignored, they arehaving a vastly diminished impact during this low demand “shoulder”period. The April contract rocketed higher Tuesday after gappingabove a key technical level on the charts. April finished thesession at $5.621, up 29.9 cents on the session.

Calling 2000 a watershed year for the natural gas market issomewhat akin to saying 1776 was an important time in U.S. history.With only a couple of exceptions, last year began with all spotprice indexes between $2 and $3. It ended with January 2001 indexesranging from $8.56 (Questar) to $18.81 (Transco Zone 6-NYC).

Calling 2000 a watershed year for the natural gas market issomewhat akin to saying 1776 was an important time in U.S. history.With only a couple of exceptions, last year began with all spotprice indexes between $2 and $3. It ended with January 2001 indexesranging from $8.56 (Questar) to $18.81 (Transco Zone 6-NYC).

Calling it “the most important energy project currently underconstruction” in North America, Arctic Resources Co.’s new chairmanForrest E. Hoglund began a public relations campaign in Houstonyesterday to push the Northern Gas Pipeline Project that wouldtransport natural gas from the Alaskan North Slope and the CanadianMackenzie Delta to the Lower 48.

An important juncture in the proposed $5 billion merger ofPacific Enterprises and Enova Corp. is expected this week when anadministrative law judge with the California Public UtilitiesCommission recommends a proposed decision to the five-memberregulatory body. The CPUC is then expected to act by the end ofMarch. No one is expecting the proposed decision or the ultimatefinal one by the state to turn down the marriage of the holdingcompanies for Southern California Gas Co. and San Diego Gas andElectric Co., but it is unclear whether the conditions placed onthe deal will make it financially unattractive for one or both ofthe companies