Plans

The yet-to-be-completed Destin Pipeline is growing with plansfor two extensions to its system in the eastern Gulf of Mexicoproduction area. Destin Pipeline Co. announced two contiguousextensions, with a total estimated cost of $52 million, will servetwo development projects that recently dedicated production tothe1 Bcf/d Destin.

Reports swirled around Washington last week that the White Houseplans to tap Bill Richardson, U.S. Ambassador to the UnitedNations, as the next secretary of the Department of Energy, butthere was no official confirmation. If true, this would mark thesecond time Deputy Energy Secretary Elizabeth Moler, who mostconcede is best qualified for the job, has been edged out of thetop energy post.

As part of a major reorganization plan, the American PetroleumInstitute (API) says it plans to establish a “natural gascomponent” aimed at attracting medium-to-small sized companies asnew members and at retaining current API members.

The apparent success of the Alliance Pipeline Project islighting a fire under government and industry plans to build upnatural gas production behind its starting point, in northeasternBritish Columbia, into a mainstay of supplies for markets east ofthe Rocky Mountains.

FERC said it plans to begin audits of three additionalinterstate pipelines next month as part of its stepped-up effort tocrack down on abuses involving marketing affiliates. The on-siteaudits of Columbia Gas Transmission, Great Lakes Gas TransmissionL.P. and CNG Transmission are expected to get underway around May18, according to a spokeswoman.

Union Pacific Resources Group announced additional details ofproducing properties it will sell to raise at least $600 million byyear-end. US and international properties make up nine bid packagesand will be made available in two phases. The first phase willinclude properties in the Gulf of Mexico, South Louisiana, SouthTexas and East Texas. Executive summaries for these packages willbe available by June 1 with closings anticipated by Oct. 1. Thesecond phase of the program will include properties in the RockyMountains, Argentina, Egypt and Australia. Executive summaries willbe available July 1 with closings anticipated by Oct. 30.

TECO Energy gas utility Peoples Gas System, Florida’s largestretail gas distributor, announced plans to expand distributionservice to southwest Florida. Customers in the Lee County area,including Fort Myers and Cape Coral as well as Naples andsurrounding communities, will be able to buy natural gas for thefirst time.

Viking Gas Transmission formally dropped out of the VikingVoyageur partnership earlier this week and now plans to test themarket for a separate, smaller expansion of its existing system,VGT President Greg Palmer, a former spokesman for Voyageur, saidyesterday. VGT intends to hold an open season to collect customerinterest in the project this summer.

MichCon announced plans yesterday to give all of its 1.2 millionretail gas customers a choice of suppliers over the next threeyears. The Detroit-based distributor filed an application with theMichigan Public Service Commission for the program earlier thisweek. It is designed to begin next January with 225,000 customers.The plan also would reduce gas costs by 7% to $2.95/Mcf and freezethem for three years for those customers who continue to useMichCon as their gas provider.