Plant

With the tight gas supply and demand situation today, some power plants may find themselves stranded unless they’ve already locked up gas supplies — and some of the projected gas-fired generation projects could be delayed, Offshore Technology Conference attendees heard last week. Gas inventories and demand will be tight for two or three years, putting more pressure on the infrastructure to expand.

With the tight gas supply and demand situation today, some power plants may find themselves stranded unless they’ve already locked up gas supplies — and some of the projected gas-fired generation projects could be delayed, Offshore Technology Conference attendees heard this week. Gas inventories and demand will be tight for two or three years, putting more pressure on the infrastructure to expand.

Dynegy last Friday clarified its squabble with Sempra Energy’s San Diego utility unit, contending that it never asked for 18 smaller power plants to be shut down, regardless of orders from the California Independent System Operator (Cal-ISO) to produce electricity during peak demand hours.

Maintenance at the Sable Offshore Energy Processing Plant that had been scheduled for April 16-19 (see Daily GPI, April 2) was postponed. The tentative work period now is from midnight April 18 to midnight April 20. Maritimes & Northeast Pipeline expects only about 35% of capacity to be available for deliveries during that time. Full system capabilities are anticipated for April 21.

Calpine Corp. subsidiary SkyGen Energy LLC has entered into a10-year agreement to supply Xcel Energy, formerly Public ServiceCo. of Colorado, with 336 MW of peaking capacity.

FERC last week ordered Williams Energy Marketing & Tradingand AES Southland Inc. to show cause why they shouldn’t be found inviolation of the Federal Power Act (FPA) for allegedly engaging inactions that drove up power prices in the California bulk marketand potentially compromised the reliability of the transmissionnetwork.

Kern River expects its receipts to be “slightly impacted” asAmoco’s Painter Plant near Evanston, WY performs maintenance thatwas to begin Sunday and continue through next Sunday.

To ease escalating natural gas prices that have resulted inplant shutdowns and job losses, Mexico’s Energy Ministry said lastweek that the government will offer long-term financing through2006 to help industries cope.

Elwood Energy LLC, located about 60 miles southwest of Chicago,has signed a multi-year power plant sales agreement with AquilaEnergy for the output of Elwood’s phase II expansion of itsgas-fired peaking facility. When the Elwood, IL facility becomesoperational next summer, it will double the capacity of itsexisting 600 MW merchant facility, bringing the total capacity to1,350 MW.