Prevent

In order to prevent a recurrence of the spate of leaks on its natural gas distribution system, Washington Gas Light (WGL) expects to complete construction in December of a facility that will mix heavier hydrocarbons with the regasified liquefied natural gas (LNG) flowing from Cove Point LNG’s import terminal on the Maryland coast to the utility’s system, said Chairman and CEO James DeGraffenreidt Jr. Thursday.

Asserting that it is seeking to prevent anticompetitive activities, widespread market manipulation and collusion to fix electricity prices, retail electric provider (REP) Utility Choice Electric (UCE) on Thursday said that it has filed a lawsuit in the U.S. District Court-Houston Division against TXU, American Electric Power (AEP), APX and Reliant, among other defendants.

To discourage a hostile takeover, Houston Exploration Co.’s board of directors on Thursday adopted a shareholder rights plan that may be exercised if any group — with the exception of 24% shareholder KeySpan Corp. — acquires or announces a tender offer for 10% or more of the company’s outstanding common stock.

For the cash gas market, apparently the moderate screen weakness on Wednesday trumped a small increase in hot weather Thursday. Prices for Friday flow ranged from flat or slightly higher at some points in the West to down nearly 20 cents.

Security concerns since Sept. 11 probably will prevent the construction of any new onshore liquefied natural gas (LNG) import terminals on U.S. soil, Clark Smith, president of El Paso Merchant Energy Global Power, told analysts at Lehman Brothers 2002 CEO Energy/Power Conference in New York City last Tuesday. Smith said rather than focusing on new terminals onshore, El Paso is turning its attention to offshore ship-based gasification facilities at which LNG cargoes can be unloaded and transferred to the U.S. gas pipeline grid.

Security concerns since Sept. 11 probably will prevent the construction of any new onshore liquefied natural gas (LNG) import terminals on U.S. soil, Clark Smith, president of El Paso Merchant Energy Global Power, told analysts at Lehman Brothers 2002 CEO Energy/Power Conference on Tuesday. Smith said rather than focusing on new terminals onshore, El Paso is turning its attention to offshore ship-based gasification facilities at which LNG cargoes can be unloaded and transferred to the U.S. gas pipeline grid.

The media spotlight on the natural gas industry has “severely constrained” the industry’s ability to develop new resources and prevent an “imminent supply crisis,” according to a new report by Boston-based Energy Security Analysis Inc. (ESAI) Calling it the “arraignment of the gas industry before the investment community, regulators and the public,” ESAI suggested that the headlines have done more damage to the natural gas industry — and future supplies — than just a few black eyes to a few companies.

The Energy Information Administration (EIA) is attempting to post warning signs to help prevent the gas industry from entering what might be considered the Bermuda Triangle of weekly gas storage levels. Ever since the EIA took over the weekly storage survey from the American Gas Association (AGA) in May, the industry has been lost in a sea of revisions, struggling to find its way through weekly changes that have strayed so far from the historical norm.

The Energy Information Administration (EIA) is attempting to post warning signs to help prevent the gas industry from entering what might be considered the Bermuda Triangle of weekly gas storage levels. There could be changes in EIA’s revisions policy, including using more months of actual data from its monthly national storage survey to come up with a better estimation ratio (see EIA’s recent request for comments in the Federal Register on July 11).