Northeastern Gas Caverns LLC, a New York company, has purchasedall the salt cavern drilling rights, licenses and equipment ownedby the bankrupt Avoca Natural Gas Storage Co. for $8 million,promising to revive the project, once highly touted as the firsthigh-deliverability salt cavern storage in the Northeast. NGC alsohas agreed to assume a portion of Avoca’s secured debt.
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Industry Briefs
Dynegy has fired up its first constructed, owned and operatednatural gas-fired peaking plant, the 250 MW Rocky Road Power Plantnear Chicago, in time to serve the summer air conditioning load.Dynegy plans to sell the power generated at the merchant powerplant into the wholesale electricity market. As a peaking plant itwill run on an as-needed basis. The Rocky Road plant is part of thecompany’s previously announced plan to back up its trading unitwith a $5 billion generation expansion program. Dynegy is aiming toown or control more than 70,000 MW of generating capacity by 2003.It has 6,800 gross MW operating or under construction and recentlyannounced plans for two natural gas-fired 500 MW plants, one inHeard County, GA and another in Oldham County, KY.
NRG Buys New York Generating Units
NRG Energy, a wholly-owned subsidiary of Northern States Power,said it has completed the acquisition of Arthur Kill Station andthe Astoria Gas Turbine Sites totaling 1,456 MW of generatingcapacity from Consolidated Edison Co. of New York The 842-MW ArthurKill Generating Station, located on Staten Island, includes twosteam generating units designed to burn gas and oil, as well as a”black start” gas turbine. The 614-MW Astoria Gas Turbine Sites,located in Queens, consist of 20 gas turbines, grouped into 11units. NRG holds 100% interest in the projects.
Industry Briefs
Midcoast Energy Resources said its wholly owned Louisianaintrastate pipeline subsidiary, Creole Gas Pipeline, has reached along-term agreement with Chevron Chemical Co. to provide gas supplyto Chevron’s Oak Point plant in Belle Chasse, LA. The five-yearpact calls for Creole to provide Chevron with 9,500 MMBtu/d of gas,or about 90% of the total requirements of the Oak Point plant.Creole will construct a new seven-mile pipeline to provide theservice, which will start in September. Creole provides gastransportation services to major industrial customers in the NewOrleans area.
Industry Briefs
Columbia Transmission Communications (CTC), a wholly-ownedsubsidiary of Columbia Energy Group, unveiled plans to beginbuilding the initial leg of its telecommunications network Monday.The initial leg of the overall route will extend 260 miles from NewYork City to Washington D.C. using Columbia Gas Transmission’sright-of-way. It will be capable of providing voice, data and videosignal access to 16 million people. The company is developing plansto extend this network to 2,500 route miles with direct access to35 million people throughout the eastern United States, includinglines to Cleveland, Cincinnati and New Orleans. CTC said usingColumbia’s right-of-way will allow for a competitive, low-costfiber network. Columbia still needs to get landowner approval forthe lines, a company spokesman said, because the right-of-way wasapproved for pipeline use, not telecommunication wire.
Select Energy Grows New England Gas Presence
Aurora Natural Gas of Dallas sold its New England retailbusiness to Select Energy of Berlin, CT, for $26 million. Select isa wholly owned subsidiary of Northeast Utilities.
Fulton Acquires NY Power Plant
Fulton Cogeneration Associates, a limited partnership owned byCoastal Corp. subsidiaries, acquired the 79.6 MW Rensselaercogeneration plant near Albany, NY, and pertinent contracts fromLG&E Westmoreland Rensselaer, in which LG&E IndustrialSales Corp. and Westmoreland-Rensselaer LP are general partners.
Westcoast Sells Manitoba LDC
Westcoast Energy, a partner in more venturesome natural gasprojects, announced it has sold wholly-owned subsidiary Centra GasManitoba to Manitoba Hydro for $245 million.
Coast Energy Buys Trading Assets of ERI Canada
Coast Energy Canada Inc., a wholly owned subsidiary ofCornerstone Propane Partners L.P., finalized the purchase of thegas trading assets of ERI (Equitable Resources) Canada Ltd.,effective Dec. 31. Terms of the acquisition were not disclosed.
AEP Closes Deal on Equitable Midstream Assets
AEP Resources Inc., a wholly owned subsidiary of AmericanElectric Power, completed the purchase of the midstream gasoperations of Equitable Resources Inc.