Necessary

It appears that repairs to the pig launcher on Line 1218 downstream of Bondad (CO) Station may not be necessary after all, El Paso said. Therefore, a shutdown of the line that had been scheduled for today (see Daily GPI, Aug. 31) has been canceled.

Despite record high rig counts, natural gas production is unlikely to add the 1 Tcf in new supplies necessary “to bring some comfort back to the market” this year, PACE Global Energy Services said in predicting gas prices will remain above $5.00 in 2001.

Gathering TransCanada has received significant market interest for a 227 MMcf/d expansion of its Nova Gas Transmission system and 216 MMcf/d of its B.C. System. It will make the necessary regulatory filings when it has the signed contracts in hand.

Gathering TransCanada has received significant market interestfor a 227 MMcf/d expansion of its Nova Gas Transmission system and216 MMcf/d of its B.C. System. It will make the necessaryregulatory filings when it has the signed contracts in hand.

Houston-based independent KCS Energy Inc. is slowly emergingfrom bankruptcy, completing the necessary steps to reorganize,announcing it has signed a production agreement with Enron NorthAmerica Corp. to sell about 17.3% of its oil and gas reserves overthe next five years for $176 million. KCS held nearly 277 Bcfe ofreserves in 2000.

Kinder Morgan Power Co., a wholly owned subsidiary of Kinder Morgan Inc. announced plans to build a 550-MW electric power plant in Jackson, MI. All the necessary regulatory permits and approvals have been obtained, and construction on the $250 million natural gas-fired plant will begin this month. Operations begin in June 2002. CEO Richard D. Kinder said the Jackson station will be the second in a series of electric power plants that Kinder will build using its proprietary Orion configuration. The Orion projects use gas and steam turbine generator sets and auxiliary equipment provided by General Electric’s S&S Energy Products. Kinder said that electricity demand has increased nearly 35% in the state in the past 10 years, but no additional power plants have been built. Michigan imports some of its electricity from other states. The Jackson plant will operate during intermediate- and peak-demand periods to provide wholesale electricity to electric utilities and power marketing companies.

Kinder Morgan Power Co., a wholly owned subsidiary of KinderMorgan Inc. announced plans to build a 550-MW electric power plantin Jackson, MI. All the necessary regulatory permits and approvalshave been obtained, and construction on the $250 million naturalgas-fired plant will begin this month. Operations begin in June2002. CEO Richard D. Kinder said the Jackson station will be thesecond in a series of electric power plants that Kinder will buildusing its proprietary Orion configuration. The Orion projects usegas and steam turbine generator sets and auxiliary equipmentprovided by General Electric’s S&S Energy Products. Kinder saidthat electricity demand has increased nearly 35% in the state inthe past 10 years, but no additional power plants have been built.Michigan imports some of its electricity from other states. TheJackson plant will operate during intermediate- and peak-demandperiods to provide wholesale electricity to electric utilities andpower marketing companies.

Due to a compressor failure at its Riner Station, Williamsdeclared a force majeure situation on Line Segments 490 and 491.Necessary repairs are expected to be completed by next Monday’s gasday. Since capacity in the two segments has been reduced,maintenance originally scheduled for the week of Aug. 21 at theCheyenne and Ogallah Stations will be done this week to minimizedisruptions during August, Williams said.

A handful of law firms have filed class action lawsuits onbehalf of Avista Corp.’s stockholders after the company reported aloss of $22.1 million or $0.47 per share in the second quarter,stemming from unhedged power trades in the forward market.