Position

El Paso Corp. on Tuesday eliminated what the CEO called the “most significant single long-dated position remaining” in the company’s energy trading business and its only tolling agreement with the sale of the power purchase agreement (PPA) between El Paso Marketing LP and Cordova Energy Co. LLC to Constellation Energy Commodities Group Inc.

Atlantic LNG Co. of Trinidad and Tobago said that its $1.3 billion Train 4 liquefaction facility began producing liquefied natural gas (LNG) on Friday, “solidifying Trinidad’s position as the largest exporter of LNG to the United States.” However, the competition between the U.S. and Spain over LNG cargoes will remain a significant factor in determining how much LNG eventually arrives in U.S. ports.

A strong North American natural gas position appears to be regaining its value for the majors. As domestic natural gas futures prices continue to trade in the uncharted territory of $14-15, rumors were circulating Monday about Houston-based ConocoPhillips taking an interest in buying Burlington Resources, also Houston-based. The Wall Street Journal reported that the two companies are in “advanced talks” on a deal valued in excess of $30 billion.

Cinergy Corp. CEO James Rogers last Thursday said that Cinergy and Duke Energy are in “a very good position” to obtain approval of their pending merger from FERC without a hearing. He noted that there were “few interventions” in their case at the Commission, compared to the number filed in the Exelon-Public Service Enterprise Group merger case, which cleared FERC without a hearing.

Noting his company’s “significantly long” natural gas position from 2010 onward, a Calpine senior executive said Thursday the company has seen some moderation of natural gas prices since the Gulf of Mexico hurricanes, and it is possible prices will go down some more over the full course of next year. The value of the company’s portfolio has increased by an estimated $300 million over the past three months, said Paul Posoli, Calpine executive vice president, during a third-quarter earnings conference call.

Kern River was in the unusual position Thursday of asking customers to refrain from drafting its system as low linepack conditions continued in all four segments. For much of this year it has been reporting high linepack. “It is imperative that operators only take their scheduled quantity,” the pipeline said. “In addition, if you have an imbalance that is owed to Kern River, please make arrangements to pay back this imbalance as soon as possible.”

As it strengthens its position in the natural gas liquids (NGL) business, Oneok Inc. said its second quarter income rose 40% on strong gas, NGL and oil prices, along with higher sales and transportation volumes. Net income was $24.9 million (23 cents/share), compared with $17.8 million (17 cents) in 2Q2004.

Four years after the power crisis that put out the lights in California, the state is still locked in an untenable position, facing a growing load with little net gain in generation capacity, relying on a fleet of aging power plants with the prospect of reduced imports from the Pacific Northwest and continuing policies that keep investment out of the state and limit demand response, according to witnesses at a joint hearing presided over by federal and state regulators last Thursday.

Marathon Oil Corp. issued a statement on Friday to clarify comments made by CEO Clarence P. Cazalot last week regarding its position on whether it is soliciting or is interested in offers to purchase the company. At a media roundtable on April 7 with 11 journalists Cazalot was asked whether the company was a takeover target. His response was that Marathon is “for sale every day on the New York Stock Exchange. To the extent that someone wants to offer a premium, the board would consider it.” Some news reports following the roundtable indicated the company was actively soliciting offers. “Marathon remains convinced that its strategy to remain a fully-integrated company presents the greatest value to its shareholders,” the company said in its statement.