Nine

Nine months after approving a settlement to unbundle the Southern California Gas Co. backbone transmission and underground storage systems, stakeholders and California regulators are still waiting for it to happen (see Daily GPI, March 18; Dec. 12, 2001)

Nine months after approving a settlement to unbundle the Southern California Gas Co. backbone transmission and underground storage systems, stakeholders and California regulators are still waiting for it to happen (see Daily GPI, March 18; Dec. 12, 2001)

Nine federal agencies have begun a review of an estimated $70 million in existing government contracts with scandal-ridden Enron Corp. and Arthur Andersen LLP to determine whether they are being carried out “in accordance with contract terms and proper business practices.”

AEC said it has locked in fixed prices for the first nine months of 2002 on 600 MMcf/d of its gas production, or about 30% of its forecasted gas sales. In Canada, 370 MMcf/d was locked in at an average AECO equivalent price of C$3.80/Mcf, and in the U.S. Rockies, 230 MMcf/d was sold forward at an average Opal equivalent price of US$2.61/Mcf.

NiSource Inc. reported net income of $160.7 million, or $0.78 per basic share, for the nine months ended Sept. 30 versus net income of $155 million, or $1.27 per basic share for the same period last year. But the two are not comparable, NiSource said, because of its acquisition Nov. 1, 2000 of Columbia Energy Group.

Nine months after it began looking for a buyer, Canadian 88 Energy Corp. has taken itself off the selling block, announcing last Tuesday that financial and operating results have improved enough to succeed independently as a mid-sized natural gas producer. Company officials also acknowledged that in their opinion, potential buyers weren’t prepared to pay enough for the Calgary-based company’s increased gas production potential.

Nine months after it began looking for a buyer, Canadian 88 Energy Corp. has taken itself off the selling block, announcing Tuesday that financial and operating results have improved enough to succeed independently as a mid-sized natural gas producer. Company officials also acknowledged that in their opinion, potential buyers weren’t prepared to pay enough for the Calgary-based company’s increased gas production potential.

California signed another nine long-term power contracts for 900 MW in May and state-wide demand dropped by 11% (3,500 MW) compared to the same month a year earlier, Gov. Gray Davis administration energy officials announced over the weekend in a conference call with reporters. Overall peak demand for electricity dropped 10%, they said.

Following a nine-week sideways consolidation period, natural gas prices finally broke lower Monday, as traders continued to price in the impact of increased production in a slowing economy. A gap lower open for the June contract set the tone early and the bears responded with a steady stream of selling throughout the session, delivering the prompt month to its lowest settle in five months. At the closing bell, June was 17.2 cents lower at $4.695.