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A BP team of more than 100 employees and contractors was making “significant progress” on recovery operations at its Fort Saskatchewan Natural Gas Liquids (NGL) storage facility that caught fire in an early morning explosion Aug. 26 (see Daily GPI, Aug. 28). The facility is located about four miles northeast of Fort Saskatchewan, AB.

Houston-based Apache Corp. had a busy Wednesday as the company announced that it has discovered natural gas at Eugene Island Block 187 in the Gulf of Mexico, approximately 45 miles offshore Louisiana. The company also reported that it has completed a “strong development well” from its South Timbalier 295 platform. Apache said both wells are in production.

Atmos Energy Corp. said it has reached a definitive agreement topay $375 million for the gas operations of two Citizens UtilitiesCo. distribution subsidiaries — Louisiana Gas Service Co. and LGSNatural Gas Co. Atmos said the acquisitions will make it thelargest natural gas distributor in Louisiana with approximately359,000 customers.

A Houston-based source characterized the situation: “People just have no idea where this market is going to settle.” That was telling it like it is Friday, as the July aftermarket began substantially below first-of-month indexes and even further removed from end-of-June pricing.

On orders from a state Superior Court judge, California officials Friday made public the 38 long-term electricity contracts it has signed this year with 18 suppliers and marketers. Along with the impact of conservation and favorable weather of late, the state’s long-term contracts have cut its average cost of spot market power from $275/MWh in February to $121/MWh this month.

On orders from a state Superior Court judge, California officials Friday made public the 38 long-term electricity contracts it has signed this year with 18 suppliers and marketers. Along with the impact of conservation and favorable weather of late, the state’s long-term contracts have cut its average cost of spot market power from $275/MWh in February to $121/MWh this month.

Against the backdrop of high levels of natural gas storage injections over the past two months and lower demand levels, the Energy Information Administration (EIA) recently projected that average natural gas wellhead prices will decline this spring and summer, averaging $4.14/Mcf. Although this latest projection represents a significant downward revision of about 50 cents/Mcf from EIA’s previous outlook, the Department of Energy agency continues to believe that it may be a while before wellhead prices return to the level of under $2.50/Mcf seen a little more than one year ago.

Conoco Northern Inc., a subsidiary of Houston-based Conoco Inc., officially launched its friendly takeover bid for Gulf Canada Resources Ltd. on Friday, tendering a cash offer that would pay the Calgary-based company C$12.40 per share in a deal worth $4.3 billion (C$6.7 billion). The two companies agreed to the sale in May (see NGI, June 4), and Conoco’s offer will expire on July 13.

Conoco Northern Inc., a subsidiary of Houston-based Conoco Inc., officially launched its friendly takeover bid for Gulf Canada Resources Ltd. on Friday, tendering a cash offer that would pay the Calgary-based company C$12.40 per share in a deal worth $4.3 billion (C$6.7 billion). The two companies agreed to the sale in May (see Daily GPI, May 30), and Conoco’s offer will expire on July 13.