News

GFI Energy Ventures of Los Angeles, Caminus Energy Ltd. ofCambridge, England, SS&C Technologies, Oaktree CapitalManagement and RIT Capital partners plc are combining forces toform GFI Caminus, a new enterprise that will provide comprehensiveconsulting services and software technology to the power and gastrading industry.

Midcoast Energy Resources is buying two short pipeline systemsfrom Koch Gateway to serve new demand for marketing andtransportation in the Baton Rouge, LA, area. The systems will beacquired by Midcoast’s wholly owned subsidiaries, Mid Louisiana GasCo. (MLG) and Mid Louisiana Gas Transmission Co. (MLGT) for $2.6million cash. Midcoast will assume operations June 1, with closinganticipated during the third quarter, subject to approval by theFederal Energy Regulatory Commission and appropriate Louisianaagencies.

The Federal Energy Regulatory Commission yesterday issued anotice of proposed rulemaking (NOPR) in which it seeks industrycomments on how to create an efficient electronic informationsystem for processing and distributing filings.

KN Energy said yesterday its Nebraska customer choice programhas topped all other pilots in the U.S. with more than 68% ofeligible Nebraskans participating. About 56,100 customers out of82,500 eligible elected to receive gas from an alternativesupplier, putting KN’s program well over Columbia Gas of Ohio on apercentage basis – only 35% of Columbia’s customers in its Toledo,OH, pilot are participating – but slightly less than Columbia inthe number of customers choosing alternative suppliers. Columbiacurrently has 57,500 customers signed up.

Lomak Petroleum and Domain Energy Corp. said they will merge toform a company with a reserve base of nearly 1 Tcf in gasequivalents, reserve life of 12 years and extensive development andexploration opportunities. The company to be created will be calledRange Resources Corp. and will have total assets exceeding $1.1billion.

A FERC official last week confirmed that the Commission staff isreviewing its crucial “need” test used in certifying new pipelineprojects to determine whether any changes are warranted.

The amount of nuclear plant capacity that has been eitherpermanently shut down or has been slated for closure in the Midwestand Northeast will create a potential new market of up to 1.55 Tcfper year for natural gas in those two regions, according to anupdated Washington International Energy Group (WIEG) study due tobe released Wednesday.

The American Gas Association(AGA) predicts additions to domesticproved gas reserves last year will come out between 96% and 120% ofproduction. “The indication of strong 1997 reserves replacementcomes at a time when long-term natural gas growth is expected toreach 30 Tcf by 2015,” said Chris McGill, director of gas supplyand statistics at AGA. “To meet the requirements of robust growthin gas markets, annual additions to gas reserves through drillingmust also remain strong, balancing new sources of natural gas withdomestic production each year.”

The cost of PacifiCorp’s failed attempt to buy Britain’s TheEnergy Group showed up in its first quarter earnings report. Thecompany reported first quarter 1998 earnings on common stock of$104 million, or 35 cents/share, excluding $70 million charge forU.S. job cuts, and a $54 million charge for the terminated bid forEnergy Group. Including these charges, the Company reported a losson common stock of $20 million, or 7 cents/share.