Merchants

U.S. shale gas supplies and pipeline exports have been drafted into playing backup for Canadian energy merchants’ plans to expand into overseas markets.

Canadian energy merchants will break out of North America and into overseas markets within six years, predicts the nation’s biggest pipeline empire. Exports of liquefied natural gas (LNG) will begin from new tanker terminals on the Pacific Coast of British Columbia (BC) at Kitimat in late 2017, TransCanada Corp. has told the National Energy Board (NEB).

Canadian energy merchants will break out of North America and into overseas markets within six years, predicts the nation’s biggest pipeline empire. Exports of liquefied natural gas (LNG) will begin from new tanker terminals on the Pacific Coast of British Columbia (BC) at Kitimat in late 2017, TransCanada Corp. has told the National Energy Board (NEB).

The Commodity Futures Trading Commission Monday voted out a final rule that would limit a futures commission merchants (FCM) ability to invest customer money in foreign sovereign debt.

The “extraordinary” surge in 3Q2005 natural gas prices — up 63% over a year ago — dramatically impacted margin calls for energy merchants and producers hedging their production; however, most companies either maintained or were able to secure enough of a cushion to withstand the higher prices, according to a report by Standard & Poor’s (S&P).

While the refinancing needs of leading U.S. merchant energy companies have diminished to $58 billion from a peak of $90 billion in November 2002, players in the sector continue to grapple with uncertain market rules and regulation, litigation risk and low power prices in many regional power markets, according to a report published last Thursday by Standard & Poor’s Ratings Services (S&P).

Several wholesale energy companies have “greatly improved” their collateral management and ability to model changes in liquidity requirements as compared to how they approached such issues six months to a year ago, Fitch analyst Ellen Lapson said in a conference call last week.

As energy merchants and utilities slowly pick themselves off the mat and get back into the game, CMS Energy Corp. and TXU Corp. last week scored some positive news.

Duke Energy said Friday it is discontinuing proprietary trading at its North American merchant energy businesses, Duke Energy North America (DENA) and Duke Energy Merchants, to focus on more profitable businesses.