While still new in Canada, competition has escalated in naturalgas transportation to the point where some big shippers say theyface a “rate shock” of steep toll increases later this year. TheCanadian Industrial Gas Users Association says “disruptive” hikesare coming unless TransCanada PipeLines Ltd. is immediately bailedout with an “interim” raise to spread its losses from its rivalsover all of 2001.
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Transportation Notes
Transwestern began allocating Tuesday at its SoCal Needlesdelivery point into California due to nominations exceedingcapacity. About 103,000 MMBtu/d of West of Thoreau capacity wasaffected, the pipeline said.
Columbia Plans to Unload Propane, Petroleum Marketing
Less than one month after announcing the sale of its Cove PointLNG facilities to Williams for $150 million, Columbia already isputting more assets on the block. It has decided to sell ColumbiaPropane Corp. and Columbia Petroleum.
Columbia Plans to Unload Propane, Petroleum Marketing
Less than one month after announcing the sale of its Cove PointLNG facilities to Williams for $150 million, Columbia already isputting more assets on the block. It has decided to sell ColumbiaPropane Corp. and Columbia Petroleum.
Transportation Notes
Public Service Co. of Colorado will limit production behindBaxter Point to 3 MMcf/d April 24-May 7. Affected producers arebeing notified.
IPAA Suing Interior Over Oil Royalty Rule
The Independent Petroleum Association of America is suing theU.S. Department of the Interior to challenge its new oil royaltyvaluation regulation. The regulation creates new methods of valuingroyalties on oil from federal leases and takes effect June 1.
Canada Gas Building Toward Alaska
The growth in Canada’s natural gas supply is moving northwardand at some point is expected to be “within reach” of Alaska, wherethe United States has “huge reserves” of gas. If this trendcontinues, the still-under-construction Alliance Pipelineconceivably one day could be transporting both Canadian and Alaskangas supplies, an executive with the pipeline said.
Weekend Price Dive Materializes as Predicted
As expected, weekend prices took a steep plunge in Friday’strading as almost every point fell by around 20 cents or more. Thebiggest drops of almost 40 cents occurred at the SouthernCalifornia border and PG&E citygate, where both majordistributors had widely anticipated high-inventory OFOs in placefor Saturday.
GPU Plans to Cut, Sell and Improve
GPU Inc., parent of New Jersey’s largest electric utility, GPU Energy, unveiled a multi-point program designed to enhance shareholder returns at the Edison Electric Institute Finance Conference in Orlando, FL, last week. The plan includes a $100 million cost reduction over the next two years, a $40-$50 million investment to improve the company’s reliability and a non-core asset sale designed to generate over $500 million.
Transportation Notes
Effective with Nov. 1 nominations, ANR will consolidate itsWillow Run (Receipt) and Willow Run (Delivery) locations into onebi-directional nominatable point. The combined location will benamed Willow Run (MichCon) and use the existing Data Reference No.42078. It is the only location that will be needed for eitherreceipts or deliveries, and will be available for Park and Lendactivity.