Natural

A revival is in the works for decades-old hopes to fill in themissing link in the Canadian natural gas pipeline grid byconnecting the Atlantic region with the rest of the country.

Budget cutbacks and consolidation within the natural gasindustry have prompted the Gas Research Institute (GRI) and theInstitute of Gas Technology (IGT) to consider the possibility ofmerging the two research and development groups.

A revival is in the works for decades-old hopes to fill in themissing link in the Canadian natural gas pipeline grid byconnecting the Atlantic region with the rest of the country.

Budget cutbacks and consolidation of the natural gas industryhave prompted the Gas Research Institute (GRI) and the Institute ofGas Technology (IGT) to consider the possibility of merging the twoR&D groups.

Parties in ongoing settlement negotiations have given up hope ofan all-encompassing, permanent solution to California’s futurenatural gas unbundling puzzle following an Oct. 6 meeting in LosAngeles. The best and most realistic hope now appears to be forattaining consensus on an interim solution by the regulator-imposedOct. 27 deadline, along with what parties describe as an”aggressive” timetable of up to two years for resolving andimplementing the issues of intra-state transmission and storageunbundling.

Rio Bravo Energy, a joint venture between Tidelands Oil &Gas Corp., a Texas-based producer and Hudson SVD, a natural gasgathering and marketing company, announced the formation of SonoraPipeline yesterday. Sonora will own and operate a 53-mile gatheringsystem located in Dimmit and Zavala counties, TX. This line will beinterconnected with Rio Bravo’s Pena Creek Gathering System, whichservices the Chittim Gas Processing Plant recently acquired by RioBravo from Conoco. The plant is a propane refrigeration plant witha nominal capacity of 5 MMcf/d and a liquid fractionation train.The Pena Creek Gathering System which serves the Plant consists of15 miles of gathering and compression facilities.

Natural Gas futures slipped lower for the second day in a rowyesterday as light scale-down industrial buying was no match forcommercial and fund selling. The November contract traded to itslowest price in ten weeks at $2.52 before settling at $2.586, 3.9cents lower on the day.

Coral Energy of Houston bought a liquefied natural gas (LNG)cargo from the North West Shelf Venture in Australia for deliveryinto the United States. The cargo of about 2.9 Bcf is Coral’ssecond recent LNG purchase.

Despite double-digit physical market increases and an earlyretest of the $2.80 level, natural gas futures tanked yesterday astraders weighed the impact of warm weather forecasts for the firstpart of October. After holding in the high $2.70s for most of themorning Monday, the November contract was hit with a round ofselling in the afternoon that pushed the price 16.8 cents lower toclose at $2.625.