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Details were still somewhat sparse Saturday, but Northwest Pipeline was able to confirm that there had been a line failure on its pipeline near Stevenson, WA Friday night about 8:20 (PST). Personnel were immediately dispatched to the site to secure the area. As of press time Saturday, no injuries were reported and the cause of the incident was under investigation.

The Portland Natural Gas Transmission System (PNGTS) andTransQuebec &amp Maritimes Pipeline (TQM) held a ribbon-cuttingceremony last week at the U.S./Canada border to announce completionof the first high-capacity gas pipeline to serve northern NewEngland. Commercial operations, however, are not expected to beginuntil Saturday, March 6. And PNGTS probably will not betransporting its full certificated capacity of 178,000 MMBtu/duntil the end of the year, said spokesman John Flumerfelt, becauseseveral of the power plants and paper mills to be served by thepipeline are not complete.

It’s been all talk but no action and as a result industryanalysts are starting to back away from rampant rumors of apotential merger between Southern Co. and El Paso Energy.

It’s funny how an extra hundred million dollars will get your attention. That’s what the board of directors of Southwest Gas Corp. have to contend with in the form of an unsolicited proposal from Southern Union Co., after they already had signed off on an offer from ONEOK Inc.

While the real price of other goods and services in the U.S.increased by 34% since 1987, the price of natural gas to consumershas decreased by an average 14%, from 1987 to 1997, according to areport used by the American Gas Association to show FERC thatretail unbundling is working. The distributors’ group told afederal/state regulatory policy conference Thursday the price toconsumers went from an average $4.47/Mcf in 1987 to $3.85 in 1997(all in 1997 $). Of that delivered price the total transportationand distribution cost to consumers went from $2.23 to $1.53, a 31%decline, AGA said, citing surveys by the Energy InformationAdministration. During the same period the wellhead price wentfrom $2.24 (in 1997 $) to $2.32 in 1997.

It’s been all talk but no action and as a result industryanalysts are starting to back away from rampant rumors of apotential merger between Southern Co. and El Paso Energy.

Taking its initial plunge into the Canadian Midstream market,Duke Energy announced last week its subsidiary, Duke EnergyServices Canada Ltd., acquired gas gathering and processing assetsfrom Calgary-based Cometra Energy. Financial terms were notdisclosed.

ONEOK Inc. is building up its midstream presence by agreeing toacquire all the Oklahoma midstream gas gathering and processingassets of Koch Midstream Enterprises for $285 million in cash.

In an effort to smooth the way for FERC approval of its mergerwith MidAmerican, CalEnergy sold a 50% stake in power generationsubsidiary CE Generation LLC to El Paso Energy last week for $259.6million, including $236.1 million in cash and $23.5 million in debtand other payments. CE Generation is the holding company for 14U.S. power plants with capacity to produce 896 MW of electricity.