Operations

Plummeting gas prices have prompted a large number of idled ammonia producers to restart operations this month, after lengthy downtime due to last winter’s record gas price increases. Houston-based Industrialinfo.com, which tracks manufacturing, said most of the Gulf Coast and Midcontinent plants are at partial or full capacity.

The energy industry managed to maintain operations while in a state of alarm last week following the horrific terrorist attacks that destroyed the World Trade Center, damaged the Pentagon and left hundreds dead in western Pennsylvania. While no damage was done to energy infrastructure other than to those distribution lines in close proximity to the attacks in New York City and Washington, DC, the experience will serve as a wake-up call to the government and the industry that energy security and reliability issues for once shouldn’t take a back seat to other matters.

The energy industry managed to maintain operations while in a state of alarm last week following the horrific terrorist attacks that destroyed the World Trade Center, damaged the Pentagon and left hundreds dead in western Pennsylvania. While no damage was done to energy infrastructure other than to those distribution lines in close proximity to the attacks in New York City and Washington, DC, the experience will serve as a wake-up call to the government and the industry that energy security and reliability issues for once shouldn’t take a back seat to other matters.

Calgary-headquartered Petrobank Energy and Resources Ltd. and Ventus Energy Ltd. announced Wednesday they will merge into a new company that will have three focused core areas in Western Canada, including northwest Alberta, central Alberta and southeast Saskatchewan. The arrangement gives Ventus shareholders the option of receiving C$9.75 cash or one common share of the new company for each share they hold, while Petrobank shareholders would receive one new share for each 4.25 Petrobank shares held.

In a strategic realignment of business operations, the board of directors of KeySpan Corp., the company announced that Robert J. Fani has been elected president, KeySpan Energy Services and Supply, Wallace P. Parker Jr. has been elected president, KeySpan Energy Delivery, and Steven L. Zelkowitz has been named executive vice president and general counsel. “The new positions will enable us to implement our growth strategy and are consistent with the evolution of our organizational structure into regulated and unregulated businesses,” said CEO Robert B. Catell. “To accomplish this, our unregulated business activities will be combined into a new business unit, KeySpan Energy Services and Supply, while our regulated gas and electric business will be combined under KeySpan Energy Delivery.” the company reported that Fani and Zelkowitz will report directly to Catell, while Parker will report to Craig G. Matthews, vice chairman and COO. In addition, Catell, Matthews, Fani and Parker will compose a newly formed office of the chairman, which will focus on corporate strategy and develop a leadership team to position the company for the future.

Questar Corp.’s initial results from the 2001 drilling and completion operations on the Pinedale Anticline in western Wyoming are encouraging enough to warrant more drilling and additional gathering facilities, company officials said last week, projecting that based on the new results, oil and gas production at year-end 2001 could triple over year-earlier levels.

Questar Corp.’s initial results from the 2001 drilling and completion operations on the Pinedale Anticline in western Wyoming are encouraging enough to warrant more drilling and additional gathering facilities, company officials said Monday, projecting that based on the new results, oil and gas production at year-end 2001 could triple over year-earlier levels.

El Paso is conducting a series of maintenance operations in the San Juan Basin this month. Through Thursday, there will be a 450 MMcf/d reduction in San Juan supply availability due to producer maintenance. During those dates, EPNG will perform maintenance at downstream locations, to minimize the additional impacts. White Rock Station was down for annual DOT inspections June 4 and 5, reducing the capacity of the San Juan Basin by 230 MMcf/d (no added impact). Line 1300 on the San Juan Crossover is being shut in for piping modifications Monday through today with no flow from San Juan east for delivery to the South Mainline, Waha or Anadarko. Line 1212 between Valve 4 and Gallup Station is having pigging facilities installed today and tomorrow, reducing the capacity of the San Juan Basin by an additional 210 MMcf/d. On June 9, Line 1600 from Waha to Gresham Station will be smart pigged, reducing the capacity from Waha west by 500 MMcf/d (total flow of 250 MMcf/d). For the remainder of June, and continuing into July, a program of pigging facility installations, pipeline cleaning and smart pig inspections will occur on four sections of Line 1212 between Blanco and Gallup. The reduction of San Juan Basin capacity will vary, depending on the pipeline section and the phase of the work being performed. During these reductions, downstream maintenance will be done at Gallup, Window Rock and Williams Stations to minimize the overall impact on throughput. For more details see El Paso’s bulletin board.

DTE Energy Services and Entergy Wholesale Operations announced that construction of a jointly-owned 320 MW natural gas-fired electric power generating plant began in May in Will County, IL. The plant, located about 30 miles south of Chicago in the Village of Crete, is expected to be in commercial operation in June 2002. The facility will be operated by Entergy Operating Systems Inc., in cooperation with DTE Energy Services. “The electric output from this facility will be available in time to supply additional electricity to the region during high-demand periods next summer,” said Barry G. Markowitz, president of DTE Energy Services. The companies said gas for the project will be provided through the recently completed Vector Interstate Pipeline. The Vector pipeline is partially owned by MCN Energy, which will become part of DTE Energy as a result of a merger between the companies, expected to close today. EntergyShaw LLC, an affiliate of the Shaw Group, will provide the engineering, procurement and construction services for the project.