Operating

Shell Gas Transmission LLC. and the operating partnership of Enterprise Products Partners LP. announced plans Tuesday to construct and install a $40 million natural gas pipeline in the western Gulf of Mexico. The new 41-mile, 16-inch pipeline is expected to be ready to transport gas production beginning as early as November 2003 from the deepwater Gunnison development operated by Kerr-McGee Oil & Gas Corp.

CIG declared a Strained Operating Condition (SOC) that took effect Wednesday until further notice. The pipeline said its usual system flexibility is not available as a result of supplies in excess of markets north of the Springfield (CO) Compressor Station, the anticipated continuation of lower market requirements and the resulting high demand for storage injections. For the duration of the SOC, CIG will be unable to approve payback nominations to the pipeline or to accept any storage injection overrun requests. All interruptible storage shippers will be barred from nominating injections to their accounts. Finally, Auto Park and Loan rates will be raised to the maximum.

Even in the current political maelstrom surrounding some of its past trading practices during California’s energy crisis of 2000-2001, the City of Los Angeles Department of Water and Power (LADWP), the nation’s largest municipal utility, is financially and operationally secure in mid-2002, looking to expand its natural gas buying and power generation portfolios, according to its General Manager David Wiggs.

FERC has set an expedited hearing to explore charges of anti-competitive behavior in the gathering activities of affiliated pipelines operating off the coast of Texas.

FERC has set an expedited hearing to explore charges of anti-competitive behavior in the gathering activities of affiliated pipelines operating off the coast of Texas.

Citing the “extremely cold weather” forecast for its market area, CIG declared a Strained Operating Condition that took effect Friday until further notice. The pipeline anticipated “very limited ability to handle imbalances caused by variations between scheduled receipts and deliveries and actual gas flow,” especially during the weather conditions that had been predicted for Friday and Saturday. As of Friday CIG did not anticipate any need to issue an OFO as long as receipt shortage or delivery overage imbalances did not occur.

Dominion said Wednesday its 2001 operating earnings, excluding special charges, are expected to “meet or slightly exceed” analyst expectations of $4.15 per share, and it reaffirmed its 2002 earnings guidance of $4.90-4.95 per share. The higher earnings come despite fourth quarter write-downs of about $348 million, created by $97 million related to Enron Corp. exposure, a write-down of Dominion Capital assets worth $183 million, and a restructuring initiative announced in November, which will cost $68 million.

Dominion said Wednesday its 2001 operating earnings, excluding special charges, are expected to “meet or slightly exceed” analyst expectations of $4.15 per share, and it reaffirmed its 2002 earnings guidance of $4.90-4.95 per share. The higher earnings come despite fourth quarter write-downs of about $348 million, created by $97 million related to Enron Corp. exposure, a write-down of Dominion Capital assets worth $183 million, and a restructuring initiative announced in November, which will cost $68 million.

Rapidly declining gas and oil prices, a weakening economy and higher operating costs pressured ExxonMobil Corp. earnings down 23% or $970 million, excluding merger effects, to $3.3 billion ($0.48 per share). Earnings per share declined by 20%. Domestic natural gas sales were off more than 16% from the same period last year.