Moves

In a step that moves Enron Corp. a big step forward in putting its past behind it, Citigroup Inc. agreed to pay $1.66 billion and give up an estimated $4.25 billion in claims to settle a six-year-old lawsuit with creditors over the bank’s alleged role in the energy trader’s demise.

Following its recent track record of topsy-turvy moves, December natural gas futures on Thursday and Friday finished out the week with a rebound following a $1-plus drop that was concluded earlier in the week. The prompt-month contract recorded a high of $7.920 Friday before closing at $7.897, up 18.4 cents from Thursday but 52.1 cents lower than the previous Friday’s close.

Bills covering liquefied natural gas (LNG), bans on incandescent light bulbs and solar water heating are buried in committees in the California legislature as it moves toward its final week before scheduled adjournment Sept. 14. Only a proposal on customer-produced renewable power generation (SB 451) appeared on Thursday to have any chance of passage, according to a veteran energy industry lobbyist in Sacramento.

Bringing to a close a week of large moves in both directions, February natural gas futures ended on a high note Friday. After recording a high of $7.190, the contract closed out the week 27 cents higher at $7.175, up 27 cents on the day and 28.9 cents higher than the previous Friday’s close. February options went off the board Friday and February futures will follow suit Monday.

If the price of natural gas remains low or moves lower, development plans by U.S. oil and gas producers and liquefied natural gas (LNG) terminal operators could take a hit, a Standard & Poor’s (S&P) credit analyst said Thursday.

As Duke Energy moves forward with the spin-off of its natural gas operations, the new gas company is positioning itself to aggressively continue expansion of its pipeline system and develop new growth opportunities within its midstream operations, CEO Jim Rogers said Wednesday.

Firm in its rejection of unsolicited takeover moves by a fellow merchant power generator, Princeton, NJ-based NRG Energy, Inc. late last Monday asked Delaware’s Chancery Court to dismiss a complaint filed last month by Mirant Corp, the would-be acquirer of NRG. Mirant sued over NRG’s staunch rejection of its proposed buyout offer as being undervalued and offering a weak stock.

As the Alaska Senate moves toward a vote this week on a tax on oil and gas profits, Democratic legislators are demanding that they first see the terms of the contract the governor has signed with three major producers for construction of a $25 billion natural gas pipeline to the Lower 48 states.

The trial of Enron Corp. founder Kenneth Lay and ex-CEO Jeffrey Skilling moves into its fourth week on Tuesday, and while it has at times been dull and colorless, the pace picked up last week following a stern request by U.S. District Judge Sim Lake to hear “questions” and not just “statements” by the trial lawyers.