Northeastern

Dynegy Inc. is close to selling the largest natural gas storage asset in Europe, its undersea storage facility Rough, which is located off the northeastern coast of Great Britain, according to Reuters sources. Dynegy, then set to blaze a trail through Europe, paid more than $600 million for Rough and a large package of storage and pipeline assets from UK-based BG Group plc last year (see Daily GPI, Nov. 29, 2001).

In an effort to transport natural gas supplies from off the coast of Nova Scotia to markets in eastern Canada and the northeastern United States, El Paso Corp. said that it has begun engineering studies for the 1 Bcf/d Blue Atlantic Transmission System. The company has gathered a coalition of technical expertise from both countries to address the specific design and technology issues involved in constructing the proposed 750-mile, 36-inch offshore pipeline.

In an effort to transport natural gas supplies from off the coast of Nova Scotia to markets in eastern Canada and the northeastern United States, El Paso Corp. said that it has begun engineering studies for the 1 Bcf/d Blue Atlantic Transmission System. The company has gathered a coalition of technical expertise from both countries to address the specific design and technology issues involved in constructing the proposed 750-mile, 36-inch offshore pipeline.

Natural Gas Pipeline Company of America (NGPL) is proposing an expansion and extension of its existing system in northeastern Illinois to serve a planned new electric power plant, which will be constructed to meet a spring, 2003 in-service date. An open season started April 13 and will close at 5 p.m. CT on Friday, April 27. Natural proposes to expand the capacity of its Volo lateral (starting at Compressor Station 113), North Chicago, and Moraine Lateral by 75,000 Dth/d with the addition of compression. Also, a new eleven-mile, 20-inch lateral with a design capacity of 75,000 Dth/d would be built east from the Moraine Lateral to the site of a planned 550 MW electric power plant in the city of Waukegan, IL. Shippers must return an executed precedent agreement for a minimum of 16 years. Natural has proposed a negotiated rate including a fixed reservation charge of$4.5626 per Dth of contract maximum daily quantity, a maximum commodity rate for an Iowa-Illinois receipt to a Market zone delivery, which is currently $0.0021 per Dth in the peak period and $0.0005 during the off-peak period, plus a tariff fuel rate for an Iowa-Illinois to Market Zone delivery (currently 1.81%). For further information contact David E. Oros at (630) 691-3196.

A natural gas well in northeastern British Columbia is producingas much as 100 MMcf/d, which would make it one of the top 10onshore discoveries in Canadian history, Murphy Oil Corp. reportedyesterday. The El Dorado, AR-based producer boosted its interest inthe play to 63% last November after acquiring Calgary’s Beau CanadaExploration Ltd. Houston-based partner Apache Corp. holds a 37%interest.

The natural gas potential in the Burgos Basin of Northeastern Mexico, similar to geology to the Texas Gulf Coast region, may be three-to-10 times higher than previously estimated, according to a comprehensive study by the Gas Technology Institute. GTI found that previous estimates, which put the total undiscovered resource at 9.7 Tcf, might actually be between 21 Tcf and 75 Tcf.

The natural gas potential in the Burgos Basin of NortheasternMexico, similar to geology to the Texas Gulf Coast region, may bethree to 10 times higher than previously estimated, according to acomprehensive new study by the Gas Technology Institute. GTI foundthat previous estimates, which put the total undiscovered resourceat 9.7 Tcf, might actually be between 21 Tcf and 75 Tcf.

Growing demand and limited gas transportation capacity in theTidewater area of southeastern Virginia, northeastern NorthCarolina and southeastern Maryland prompted Columbia GasTransmission to test the market for a pipeline expansion in thatarea.

Growing demand and limited gas transportation capacity in theTidewater area of southeastern Virginia, northeastern NorthCarolina and southeastern Maryland prompted Columbia GasTransmission to test the market for a pipeline expansion in thatarea.