Texas Independent Energy, a 50-50 joint venture of PSEG Globalof New Jersey and Panda Energy International of Dallas, plans todesign, build and operate a third merchant power plant in Texas.This one, to be in Ector County, represents a total investment ofabout $300 million. The Ector County plant will burn an average of145 MMcf/d with a peak gas consumption of 170 MMcf/d. Commercialoperation is expected by summer 2001.
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Pogo Cuts Back While Wading Deeper Into The Gulf
Although like the rest of the industry, Houston-based PogoProducing Co. has been wrangling with super soft commodity prices,the company is wading deeper into the Gulf of Mexico with a focuson future growth.
Cash Market Flattens Out Going into Weekend
It was like old times again (if you can regard February as “oldtimes”) for traders Friday as weekend swing pricing leveled offwith little change from Thursday. It reminded some of the longperiods last month when there was practically no volatility in thecash market. The small gains handily outweighed a few scatteredpenny drops in the West for an overall showing of flat to a smidgenhigher.
It’s True; El Paso, Sonat Plan Combination
Like dreams, rumors sometimes come true-and more frequentlythese days when the gossip foretells of yet another energy industryconsolidation. Last week’s buzz became this week’s ballyhoo Mondaywhen El Paso Energy and Sonat Inc. said they will merge in a $6billion deal.
Storage Lingers as Winter Wanes
As the winter that wasn’t winds down, gas in storage will haveto come out like a lion during March if capacity holders are tomeet cycling requirements. Even if temperatures remain warmer thannormal the market should expect six weeks of relatively strongwithdrawals because many storage capacity owners must bring levelsdown to about 25% full.
San Juan Production Still Gaining Ground
The longevity of the San Juan Basin never ceases to amaze mostindustry observers. Like the Denver Broncos’ John Elway, thewestern producing basin in New Mexico and Colorado just seems tokeep coming back each year to produce even more despite its age andthe endless predictions of its degeneration by its critics.
Once More, With Feeling: Gas Prices Are Flat
Like the “Row, row, row your boat” verse that repeats over andover, cash prices repeated their flat trading pattern Tuesday forthe umpteenth time in 1999. Several points made small gains of 1-3cents, likely deriving their modest firmness from a similar rise onthe futures screen.
TransCanada Posts Lower Earnings
Despite strong performance by TransCanada’s transmissionbusiness, like most everyone else the company took a hit toyear-end earnings due to flagging commodity prices. TransCanadareported net earnings before unusual charges of $575 million 1998,down 8% from $620 million for fiscal 1997. Net earnings afterunusual charges, for the year ended Dec. 31, 1998 were $355 millioncompared to $522 million for the year ended Dec. 31, 1997.
No Picnic for LDCs in 1998
Like producers, local distribution companies are under the weather, too, judging by their year-end results. “It’s dismal,” said Merrill Lynch analyst Rebecca Followill, who follows LDCs.
Year-End Financial Reports are a Testament to Industry Woes
The returns are coming in, and it’s safe to say 1998 was a year the energy industry – particularly producers – would like to forget. Not all energy sectors suffered equally, but shareholders in every energy province have something to grouse about judging from earnings releases and analyst reports.