Made

San Jose, CA-based independent power producer Calpine Corp. madea major investment in upstream gas supply for its current andfuture gas-fired power plants in California yesterday. The companybought 90 Bcf of proven gas reserves in the Sacramento Basin fromVintage Petroleum for $71.5 million. The transaction will makeCalpine the largest gas producer in the basin, raising itsproduction to 43 MMcf/d. The Vintage reserves currently produce14.3 MMcf/d.

Denver-based Western Gas Resources Inc. made a purchase and saleagreement with EXCO Resources Inc. to sell its 69% interest in theBlack Lake Unit, including the Black Lake processing and treatingfacilities in Louisiana. The sales price of $7.8 million is subjectto adjustment. Western expects to realize a pre-tax loss of about$6.5 million this quarter. This deal is expected to close by Jan.7.

Kinder Morgan Inc. made several significant moves last week as part of its “back to basics” strategy, which is designed to streamline and increase the efficiency of the businesses acquired through its merger with KN Energy earlier this year (see NGI, July 12, Aug. 9, and Aug. 20). Company officials, however, say they are only midway through this transition, and there have been quite a few changes to their original plans.

El Paso Merchant Energy Co. made its first foray into providingfuel to Mexico when it signed a 25-year gas supply contract withFuerza y Energia De Hermosillo SA, a subsidiary of Spain’s UnionFenosa Group, to serve Mexico’s Hermosillo power plant. El Pasowill supply up to 43 MMcf/d to the 225 MW combined cycle powerplant. The plant is expected to begin testing in early 2001 andbegin commercial operation summer 2001.

El Paso Merchant Energy Co. made its first foray into providingfuel to Mexico when it signed a 25-year gas supply contract withFuerza y Energia De Hermosillo SA, a subsidiary of Spain’s UnionFenosa Group, to serve Mexico’s Hermosillo power plant. El Pasowill supply up to 43 MMcf/d to the 225 MW combined cycle powerplant. The plant is expected to begin testing in early 2001 andbegin commercial operation summer 2001.

The FERC Wednesday approved the acquisition of MidAmericanEnergy Holdings Co. by an investor group made up of Inc., Omahabusinessman Walter Scott, and David L. Sokol, MidAmerican CEO.MidAmerican filed with the Federal Energy Regulatory CommissionNov. 8. On Nov. 29, MidAmerican received early termination of thewaiting period under the Hart-Scott-Rodino Antitrust ImprovementAct after filing Nov. 12. The transaction is still subject toMidAmerican shareholder approval as well as clearance by the IowaUtilities Board, the Nuclear Regulatory Commission and the IllinoisCommerce Commission. Closing is expected in the first quarter.

Gas restructuring filings made last week with the PennsylvaniaPublic Utility Commission by Penn Fuel Gas and PECO Energy Co. haveset the stage for only the fourth state in the country to providestatewide access to the retail gas market. Out of the 22 stateswith gas utilities employing pilot programs, only New Mexico, WestVirginia and New York allow gas customers statewide to choose theirgas suppliers so far. Pennsylvania regulators now say statewideunbundling will occur by July.

Traders made it two in a row yesterday at the New YorkMercantile Exchange as they covered shorts and bid up natural gasprices for the second straight session ahead of cooler weatherexpected next week.

Gas restructuring filings made this week with the PennsylvaniaPublic Utility Commission by Penn Fuel Gas, Carnegie Natural andPECO Energy Co. have set the stage for only the fourth state in thecountry to provide statewide access to the retail gas market. Outof the 22 states with gas utilities employing pilot programs, onlyNew Mexico, West Virginia and New York allow gas customersstatewide to choose their gas suppliers so far. Pennsylvaniaregulators now say statewide unbundling will occur by July.