Natural

Florida Gas Transmission (FGT) has sought FERC authorization tobuild a major expansion/extension of its mainline to providenatural gas to meet the growing fuel needs of power utilities inthe state. If approved by the Commission, the project would makegas available to customers in the southwestern part of the statefor the first time.

Consolidated Natural Gas (CNG) is taking advantage of depressedprices in the E&ampP sector and spending more of its money where itsees the most long-term bang for the buck. Having pulled out of themarketing business, CNG’s $524.5 million capital budget for 1999continues the company’s focus on expanding its exploration andproduction business. More than 60% of the 1999 budget is allocatedto CNG’s E&ampP subsidiary, CNG Producing Co.

High volatility continued in the natural gas pit Tuesday whentraders tested both sides of the market during a session that sawlittle in the way of fresh fundamental news. In the end, supportivecash prices-that were up 20 or more cents in mostlocations-provided the incentive for futures to trend higher. TheDecember contract led the way, eeking out a 4.9 cent gain to settleat $2.436 in light to moderate trading activity yesterday.

Portland Natural Gas Transmission System has become the secondmajor import pipeline project being delayed well into the winterfrom expected Nov. 1 start up. The pipeline said the 152 MMcf/d ofCanadian gas scheduled to flow to New England markets this fallprobably will not enter the pipe until sometime in January at theearliest.

FERC last week approved an amended certificate for SouthernNatural Gas (Sonat) to build a controversial mainline extensionthat’s intended to provide customers with an alternative to theexisting pipeline now serving northern Alabama. The fate of theproject, however, still hangs in the balance since the InteriorDepartment’s Fish and Wildlife Service (FWS) hasn’t yet issuedSonat a permit to build through a protected wildlife refuge.

While Oklahoma Natural Gas’ (ONG) appeal of the OklahomaCorporation Commission’s interim order unbundling its upstreamsystem winds its way through court, the OCC has turned to Arkla andthe unbundling of its downstream system. Arkla will have its fourthopen meeting with the commission and other interested parties Nov.17. OCC Commissioner Bob Anthony is enthusiastic about how thingshave gone so far. “They [Arkla] have not just claimedconfidentiality on everything. It’s been very open and detailed. Idon’t normally go around bragging about utilities. I’ve asked somestaff people if everything’s operating in good faith and they’vegiven me some encouragement.”

While Oklahoma Natural Gas’ (ONG) appeal of the OklahomaCorporation Commission’s interim order unbundling its upstreamsystem winds its way through court, the OCC has turned to Arkla andthe unbundling of its downstream system. Arkla will have its fourthopen meeting with the commission and other interested parties Nov.17. OCC Commissioner Bob Anthony is enthusiastic about how thingshave gone so far. “They [Arkla] have not just claimedconfidentiality on everything. It’s been very open and detailed. Idon’t normally go around bragging about utilities. I’ve asked somestaff people if everything’s operating in good faith and they’vegiven me some encouragement.”

FERC yesterday approved an amended certificate for SouthernNatural Gas (Sonat) to build a controversial mainline extension tooffer competing transportation services to customers in northernAlabama and Georgia. The fate of the project, however, still hangsin the balance given that Interior Department’s Fish and WildlifeService (FWS) hasn’t issued Sonat a permit yet to build through aprotected public refuge.

The futures market spiked higher Monday in response to thethreat to natural gas supplies in the Gulf of Mexico posed byHurricane Mitch. There was an early buying surge as non-commericaltraders struggled to close out short positions ahead of the rally.However, once the market started its momentum, buying came from allsegments of the market. The November contract settled up 13.4 centsto $2.298.