El Paso lifted Friday an Overpull Penalty Alert notice that had been posted Tuesday afternoon. However, it cautioned that with a San Juan Crossover project involving installation of pigging facilities on Lines 1300 and 1301 scheduled for Dec. 1-2, 300 MMcf/d of system supply would be unavailable over the weekend and the alert would be reinstated if necessary. El Paso said concerns about cold weather, low linepack and other operational issues had caused rumors that the Crossover work might be canceled, although no such statement had been issued by the pipeline. Because El Paso and upstream producers had invested substantial efforts and resources in preparing for the maintenance, “rescheduling would be very difficult. The operational concerns have lessened considerably, and although the overall system is not in ideal condition for a shutdown of this scale, the shutdown will occur as scheduled.”
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Duke’s 3Q Earnings Post 46% Gain, Revenues Rise 7%
Lifted by a strong portfolio management strategy, Duke Energy’s third quarter results posted last week showed a 46% gain, with earnings per share (EPS) of $1.02, up from 70 cents per share a year ago. Revenues also rose 7% to $16.7 billion, primarily because of the Charlotte, NC-based company’s wholesale natural gas and power sales.
Transportation Notes
As posted earlier (see Daily GPI, Oct. 16), Sonat has determined that the three compressors used for injection and compressed withdrawal at the Muldon (MS) Storage Facility cannot be operated in their current condition. Repairs are under way on two units, and one is currently expected to return to service by Thanksgiving. A second unit is expected to be back on-line during the upcoming winter. However, personnel have determined that the third unit cannot be repaired and thus are evaluating replacement options. Sonat expects that replacement parts for the third unit will be installed and it will be available for service in April 2002. The Daily Injection Quantity for each CSS customer will remain at 36% of normal until further notice, but will increase by about 21 percentage points for each unit that is placed back in service. The Daily Withdrawal Quantity will remain at 100% until further notice. “However, if compressed withdrawal is required prior to all three compressor units being placed back in service, some reduction in DWQ is possible,” Sonat said, although that likely would not occur until late winter.
Duke’s 3Q Earnings Post 46% Gain, Revenues Rise 7%
On the strength of its portfolio management energy strategy, Duke Energy’s third quarter results posted on Tuesday showed a 46% gain, with earnings per share (EPS) of $1.02, up from 70 cents per share a year ago. Revenues also rose 7% to $16.7 billion, primarily because of the Charlotte, NC-based company’s wholesale natural gas and power sales.
U.S. Rig Count Down Slightly, Canada Up
The U.S. rig count for August was 1,252, down 26 from a month earlier, when there were 1,278 rigs, while the Canadian rig count was up by six to 325 from the 319 it posted in July, according to Baker Hughes latest rig survey. However, the U.S. rig count still held constant from its climb of a year ago, up 265 from the 987 rigs counted in August 2000.
Majors’ Earnings Up, But Falling Prices Could Hurt 3Q
Exxon Mobil Corp. and Chevron Corp., the number one and two energy companies in the world, both posted record profits in their second quarter earnings, but analysts warned that going forward, it will be difficult for the energy companies to continue soaring if oil and natural gas prices remain depressed. Exxon, the largest publicly traded company, saw earnings up 5.5% in both natural gas and refining operations, while Chevron’s jumped 21%.
Transportation Notes
ANR revised the schedule of capacity reductions that was posted last week for June 4-July 6 maintenance on its Southeast Mainline (see Daily GPI, May 22). Here is the new schedule: June 4-10, 195 MMcf/d; June 11-12, 225 MMcf/d; June 13-24, 60 MMcf/d; June 25-26, 140 MMcf/d; June 27-July 3, 220 MMcf/d; and July 4-6, 25 MMcf/d. ANR also said Michigan Leg capacity will be cut by about 200 MMcf/d while the 22-inch mainline is pigged later this month. Pigging of the Sandwich to Bridgman segment will occur during the week of June 18, while the Bridgman to Woolfolk segment will be pigged during the week of June 25.
Futures Spring Higher After False Breakout Lower
For just the second time in three months, natural gas futuresposted a net gain for the week ending Friday as traders foughttheir way out of a bear trap that enticed more than a few sellersthe week prior. After plumbing to new three-and-a-half-month lowsdown to $4.87 on March 15, the April contract surged higher lastweek to close at $5.273.
Transportation Notes
As a follow-up to its gas quality advisory posted Tuesday (seeDaily GPI, Feb. 28), NGPL listedWednesday 12 points on its Louisiana Line (east of Compressor Station302 in Segments 23, 24 and 25) that are currently exceeding thepipeline’s limit of 1,050 Btus per cubic foot on receipts. EffectiveMarch 1, nominations at those points will not be confirmed untilfurther notice “unless acceptable mitigating actions have beenarranged,”
Major Marketers 3Q Sales Compared
Wholesale gas and power sales still appear to be climbingsharply for most major marketers as Enron, Duke Energy and Reliantall posted significant increases in both commodities in thirdquarter. Southern Energy reported that while its third quarterNorth American electricity sales declined from last year’s thirdquarter level, its gas sales enjoyed a sizable increase.
