Negotiating

Petro-Canada, Kerr-McGee, Canadian Superior, EOG Resources, Total, Norsk Hydro and BHP Billiton were among the successful bidders in Trinidad and Tabago’s recent offshore acreage sale, which eventually could lead to new gas supply for the Atlantic LNG project, the largest liquefied natural gas (LNG) exporter to the United States.

Dynegy Inc. confirmed Friday it is engaged in exclusive discussions with Chicago-based Exelon Corp. to possibly sell Illinois Power Co. (IP). The utility is the Houston-based company’s regulated business segment, which sells natural gas and electricity to Illinois customers.

Dynegy Inc. confirmed Friday it is engaged in exclusive discussions with Chicago-based Exelon Corp. to possibly sell Illinois Power Co. (IP). The utility is the Houston-based company’s regulated business segment, which sells natural gas and electricity to Illinois customers.

Dynegy Inc. apparently is attempting to negotiate a settlement of an investigation of its accounting practices by the Securities and Exchange Commission (SEC), according to a report in the Wall Street Journal. Sources told the Journal that lawyers for Dynegy have been discussing a resolution with the SEC, but it was not clear how much progress had been made, or whether Dynegy also was attempting to resolve a criminal inquiry by the Department of Justice.

Houston-based independent EEX Corp. last week was negotiating with its lenders on a revised credit facility, which terminates June 27, 2002. “However,” it said, “there can be no assurance that the company will be able to replace its current credit facility with a new credit facility containing terms acceptable.” EEX, which also lost money in the fourth quarter through a natural gas sales obligation to an Enron Corp. affiliate, reported that its 10-K would contain a modification about the company’s “going concern” uncertainty without new credit.

Northwest Natural Gas Co. confirmed Friday that it is negotiating with Enron Corp. to buy its slow growing electric utility Portland General Electric Co. (PGE), but added “there can be no assurances that any transaction will result” from its negotiations. Enron has been trying to sell the utility for nearly two years, and was close to completing a $3.1 billion deal with Sierra Pacific Resources, but that sale fell apart nearly six months ago in the midst of the California energy crisis (see NGI, April 30).

In case anyone missed the lessons of new pipeline construction,hot regulatory fights and negotiating marathons, some newdescriptions for the state of Canadian natural gas transportationhave been coined at the National Energy Board.

Wall Street was awash in reports Monday that Akron, OH-basedFirstEnergy Corp. was negotiating to acquire GPU Inc. ofMorristown, NJ, for more than $10 billion in a transaction thatwould create one of the top energy utility companies in the nation.

Enron Capital and Trade Resources currently is negotiating adeal with a Lincoln, NE-based nonprofit joint power agency to sellit wholesale bulk, multi-year gas supplies so the agency can inturn sell them at below-market prices to municipal utilities inCalifornia and other states. Brokered through the American PublicEnergy Agency (APEA), supplies would be paid for in advance atdiscounted prices using the APEA tax-exempt financing capability.