Preparation

In preparation for its US$8.5 billion merger with Duke Energy (see NGI, Sept. 24), Westcoast Energy Inc. last week began to divest of some assets, including an agreement to sell its Centra Gas units to BC Gas Inc. for C$208 million and another deal worth C$176.7 million, which sends its Ontario-based Union Energy and Westcoast Capital energy services companies to the City of Edmonton’s Epcor Utilities Inc.

In preparation of its US$8.5 billion merger with Duke Energy (see Daily GPI, Sept. 21), Westcoast Energy Inc. announced two divestitures, including an agreement to sell its Centra Gas units to BC Gas Inc. for C$208 million and another deal worth C$176.7 million, which sends its Ontario-based Union Energy and Westcoast Capital energy services companies to the City of Edmonton’s Epcor Utilities Inc.

Aquila is beefing up is high deliverability gas storage holdingsin the Gulf Coast region in preparation for serving growinggas-fired power generation demand. The company bought rights to theproposed Houston Energy Center, a greenfield, natural gas saltcavern storage project being developed by SG Resources of Houston,Inc. The sale price was not disclosed.

NOVA will be reducing its system linepack target this week from395 e6m3 (about 13.956 Bcf) to 390 e6m3 (13.781 Bcf) in preparationfor upcoming summer operations. The reductions will be made in evenincrements today through Friday. The change is due to increasingambient and ground temperatures, NOVA said. It included in thedetermination of linepack an adjustment to account for changes inthe system’s average heating value. NOVA will not be sellinglinepack to reach its desired target.

In preparation for a major workshop on capacity auctions, FERCon Friday issued a staff paper that provides an overview of thesubject – the benefits of auctions, factors to be considered whendesigning auctions, the different types of auctions, the use ofauctions in the pipeline industry today and a glossary of auctionterms.

In preparation for a major workshop on capacity auctions, FERCon Friday issued a staff paper that provides an overview of thesubject – the benefits of auctions, factors to be considered whendesigning auctions, the different types of auctions, the use ofauctions in the pipeline industry today and a glossary of auctionterms.

NUI Corp., parent company of six eastern gas local distributioncompanies, announced a restructuring plan designed to streamlinethe company in preparation for a more competitive marketplace. Theplan includes greater emphasis on nonregulated business operationsand a voluntary early retirement program offered to 88 of its 1,161employees, including four members of NUI’s executive managementteam, among them Lyle Motley, president of the company’s southerndivision. Further downsizing is expected once the companydetermines where it can achieve greater efficiencies in its effortto generate higher revenues from its nonregulated businesses.