Indicates

The performance of Dynegy’s gas liquids business during thesecond quarter indicates the market is finally making aturn-around. Operating income from the liquids division grew 41% to$54.9 million, Dynegy reported. Its power marketing and generationdivision, including operating margin and equity earnings from jointventure power projects, also showed continued improvement with 28%growth in operating income to $56.8 million. But gas marketingsuffered a 31% decline in operating income to $21.8 millionprimarily because of “weak market conditions” in Europe, thecompany said. Dynegy posted a 19% increase in net income during thesecond quarter to $28 million compared with $23.4 million in 2Q98.It sold a total of 9.2 Bcf/d of gas (6.1 Bcf/d domestically), upfrom 8.2 Bcf/d in 2Q98, and sold 17.4 million MWh of power, down40% from the 28.9 million MWh sold in 2Q98. Dynegy also showed ahigh retail marketing loss of $2.4 million compared with $600,000in 2Q98 because of the expansion of its SouthStar retail marketingalliance with AGL Resources and Piedmont Natural Gas in Georgia.SouthStar markets gas under the name Georgia Natural Gas and hasbuilt one of the largest market shares in Georgia. Dynegyattributed the mounting losses to increased advertising inpreparation for the Oct. 1 deadline for retail customers to switchto buying gas from marketers.

Northwest Pipeline experienced a leak Tuesday afternoon on itsVancouver (WA) Lateral. There were no injuries. Preliminaryinvestigation indicates third-party damage, the pipeline said.Service was disrupted to direct industrial customer Vanalco and toindustrial customers of LDC Northwest Natural Gas in the area untilbeing restored at 11:24 p.m. PST Tuesday.

Northwest Pipeline’s preliminary investigation indicates thatland movement affecting about 500 feet of pipe was the cause of aline break Friday night near Stevenson, WA (see Daily GPI, March 1,2). Following industry practice, Northwest will send segments ofthe pipe for metallurgical testing to verify the rupture’s causeconclusively. A temporary 16-inch surface pipeline is beinginstalled to restore service to LDC Northwest Natural Gas in theNorth Bonneville, WA, area. Northwest Pipeline said it is workingwith geotechnical experts to plan permanent re-routing of theruptured 26-inch line outside the boundaries of the land movementarea.