Made

The gains made earlier this week were not sustained yesterday asmost points on GPI’s Daily survey lost between a couple cents and adime. Spot points in the Midcontinent, California and the Rockieswere the exception, however, as most registered flat to decreasesof just a penny or two; some even managed small increases.

PanCanadian Petroleum Ltd. made a potentially sizable gasdiscovery offshore Nova Scotia about 25 miles from Sable Island. Inthe past year, the company has drilled two exploration wells intogeological zones under the Panuke oil field, about 155 milessoutheast of Halifax. During testing, each well flowed at more than50 MMcf/d, the maximum capacity of the testing equipment. Thewells, PP-3C and PI-1B, intersected net pay of more than 230 feetand 100 feet, respectively.

PanCanadian Petroleum Ltd. made a gas discovery offshore NovaScotia. In the past year, the company has drilled two explorationwells into geological zones under the Panuke oil field, about 155miles southeast of Halifax. During testing, each well flowed atmore than 50 MMcf/d, the maximum capacity of the testing equipment.The wells, PP-3C and PI-1B, intersected net pay of more than 230feet and 100 feet, respectively.

Avista Advantage and Strategic Energy LLC (SEL) made an allianceto pursue new business. SEL acquires the right to supply energycommodity services to Avista Advantage customers, and AvistaAdvantage acquires the right to provide SEL customers with its billconsolidation and energy management services.

While winter weather finally made an appearance in the Northeastand Midcontinent last Friday, major price movement in most marketareas did not. Sources in the Midcontinent and Northeast citedweather forecasts calling for major temperature warm-ups for thisweek as the major reason for the market’s inability to rise.

While much is made of gas demand growth fueled by gas-firedpower generation, a study sponsored by the American Gas Foundationsuggests advancing technologies for gas-powered distributedgeneration — namely fuel cells — and gas-powered vehicles willspearhead increased demand.

El Paso Merchant Energy Co. made a three-year asset managementagreement with Boston Gas Co., a subsidiary of Eastern Enterpriseseffective Nov. 1, 1999. El Paso will provide gas supply managementto Boston Gas and affiliated LDCs Colonial Gas Co. and Essex GasCo. Service includes arranging gas supply, managing interstatetransportation, and optimizing underground storage. Massachusetts’Department of Telecommunications and Energy approved the deal Oct.18.

Sithe Energies Inc. and Cabot LNG Corp., a wholly ownedsubsidiary of Cabot Corp., made a 20-year gas sales and purchaseagreement valued at more than $4 billion. Cabot LNG subsidiaryDistrigas of Massachusetts will be the principal supplier of gas tofuel Sithe’s Mystic Station, a 1,600-megawatt generating plant inEverett, MA.

Texas Eastern reinstated until further notice Monday afternoon anOFO requiring that all deliveries in its M-3 market zone be made at auniform hourly rate. As in last Friday’s OFO that was suspendedSaturday morning (see Daily GPI,Jan. 18), non-compliance penalties are $25/dth and all M-3Operational Balancing Agreements are suspended for the purposes ofhourly allocations only.