Last

Enbridge Inc., a Calgary-based energy transportation anddistribution company, entered the midstream business last week withthe purchase of a 35% share in AltaGas Inc., a Calgary-basedmidstream gas company, for $160 million. The deal is expected toclose in September.

Illinova Energy Partners (IEP) purchased the Chicago holdings ofthe natural gas marketer Energy Dynamics Inc. last week, adding1,400 commercial and industrial customers to its Midwest base.Illinova also said the purchase will push its overall gas revenuesabove $100 million annually. Terms of the transaction were notdisclosed.

PG&E Gas Transmission-Northwest discovered contaminated oilin the lubrication system of its Stanfield (OR) Compressor Stationlate last week. The unit is out of service until the oil can bereplace; the pipeline estimates it will return on-line Thursday.Because the work has the potential for limiting Stanfield receiptsfrom Northwest Pipeline, PG&E GT-NW is offering a blanket ITdiscount of 1 cent plus fuel on the Starr Road-to-Stanfield paththrough Thursday.

KN Energy warned investors last week that warm temperatures,high storage levels, poor processing margins and reduced gastransportation throughput during the first quarter took a bite outof earnings and could continue to plague the company for the restof the year.

Enron Corp. has eliminated the last vestiges of its one-timehigh-profile venture into California’s residential electricitymarket by pulling out of its deal with the resort city of PalmSprings. Enron was the energy service provider for a citygovernment-established aggregation business, which had about 2,000mostly residential customers lured away from the local monopolyprovider, Southern California Edison.

CMS Corp.’s marketing division, CMS Marketing, Services and Trading (MST), completed an agreement last Tuesday to purchase a total of 9.3 Bcf of liquefied natural gas (LNG) from the North West Shelf LNG project in Australia for delivery to the CMS Trunkline LNG facility in Lake Charles, LA. Terms of the transaction were not disclosed.

Williams’ Transcontinental Gas Pipe Line subsidiary filed anapplication with FERC last week for its SouthCoast expansionproject, which would add 204,099 Dth/d of firm transportationcapacity to serve new markets in Georgia and Alabama.

DTE Energy, Detroit Edison’s parent company, said last week itis in the market to acquire a natural gas supplier. The company isin exploratory stages right now but hopes to have some kind ofagreement by the end of this year, a DTE official said at thecompany’s annual meeting.

Wyoming Interstate’s proposed $78 million Medicine Bow Lateralin the Powder River Basin won preliminary approval from FERC lastweek. In a draft order, the Commission said the pipeline, whichwould provide 260,000 Dth/d of new firm take-away transportationcapacity for Wyoming producers, would be in the public interest,subject to a final order following environmental review.