Increasing competitive pressure inside traditional monopolyutility market territories has triggered somewhat of a revival ofinvestment diversification by gas and electric utilities. But theseinvestments are not what they’re cracked up to be, according toenergy consulting firm Metzler Services, a subsidiary of Metzler& Associates. Non-core investments, including internationalventures, did not payoff over the year ended last September,Metzler calculated in its third quarter Flashreport, released lastweek.
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AGA Sees Promise in Regulatory Changes Ahead
Despite the increasing pressure of retail competition, thefuture is bright for gas utilities, American Gas AssociationChairman Dick Terry told investors last week. Terry, who also isCEO of Chicago-based Peoples Energy, told the New York Society ofSecurity Analysts he’s optimistic that federal and state regulatorsare headed in the right direction.
Industrials Will Lead Rise in Canadian Gas Demand
The Canadian Gas Association’s 1998 demand forecast showsoverall domestic gas consumption increasing nearly 30% over thenext 12 years to 100.7 billion cubic meters in 2010. The industrialsector is expected to enjoy the strongest growth (up 38% over theforecast period), largely driven by increases in power generation.In 2010, the industrial sector will represent 63% of total end-usegas demand in Canada, with consumption pegged at 63 billion cubicmeters. This compares to 45.7 billion cubic meters in 1998.
Canadian Gas Demand Projected to Rise 30% in 12 Years
The Canadian Gas Association’s 1998 demand forecast showsoverall domestic gas consumption increasing nearly 30% over thenext 12 years to 100.7 billion cubic meters in 2010. The industrialsector is expected to enjoy the strongest growth (up 38% over theforecast period), largely driven by increases in power generation.In 2010, the industrial sector will represent 63% of total end-usegas demand in Canada, with consumption pegged at 63 billion cubicmeters. This compares to 45.7 billion cubic meters in 1998.
Williams Buys Rest of Volunteer Energy
Williams Energy Services has acquired full ownership ofVolunteer Energy Corp., increasing its stake from 50%.
Briefs
Williams completed its Cherokee expansion project, increasingcapacity on the Transcontinental Gas Pipe Line (Transco) system by87 MMDth/d to provide additional firm transportation capacity toserve markets in Georgia. The $68 million project consisted ofadding looping and compression.
Williams’ Cherokee Expansion in Service
Williams announced yesterday that its Cherokee expansion projecthas been placed into service, increasing capacity on theTranscontinental system by about 87 MMDth/d to provide additionalannual firm transportation capacity to serve markets in Georgia.
Pacific Northwest Primed For New Storage
The Pacific Northwest, historically a great corridor forshipping western Canadian natural gas to California’s burgeoningmarkets, is getting increasing attention for expansion ordevelopment of natural gas storage to fuel its own growth, whichhas averaged 5% annually in the 1990s. The region’s only twounderground storage facilities are in the midst of expansions, andenergy players within and outside the region are searching for newstorage prospects-under-and above-ground.
Rockies Gas Coming Into Its Own
Over the next decade as the Rocky Mountain is saved byincreasing pipeline transportation, the trend of reserve growth inrecent years will finally pay off in dramatic production increases,Fred Julander, past chairman of the Colorado Oil & Gas Assoc.told the group’s annual meeting.
LADWP Market Participation Growing
The nation’s largest municipal electric utility is rapidlyincreasing its participation in robust wholesale energycompetition, although as a government-run entity it is not directlya part of California’s ongoing restructuring of electricity andnatural gas. In the fiscal year just ended, the Los AngelesDepartment of Water and Power did about $110 million in wholesaleenergy deals, according to department sources, including one of itsbiggest natural gas contracts ever for more than 6 Bcf of suppliescovering the next six months.