Prior

Northwest Pipeline said it was able to keep all but a smallpercentage of markets whole after its 26-inch mainline explodedabout 8:20 p.m. PST Friday in the Columbia River Gorge area nearStevenson, WA, about 32 miles east of Portland (see Daily GPI,March 1). The rupture caused a fireball, but no injuries werereported and pipeline workers had the situation controlled withinan hour, a spokeswoman said.

A top-ranking FERC official last week dismissed suggestions thatthe Commission was dragging its feet on key pipeline projects thatwould ship natural gas to the Northeast – namely the proposedMillennium, SupplyLink, MarketLink and Independence lines. “…[W]elove new pipelines,” said Richard O’Neill, director of the Officeof Economic Policy, “but we don’t want these new pipelines to turninto stranded costs.” Also, he cited environmental concerns.

It’s been all talk but no action and as a result industryanalysts are starting to back away from rampant rumors of apotential merger between Southern Co. and El Paso Energy.

Despite record earnings last year, Coastal Corp. CEO David A.Arledge admitted in January that 1999 would be a “challengingyear.” Coastal began to prepare for that challenge last week bystarting a corporate belt-tightening program that will include awork-force reduction.

Taking its initial plunge into the Canadian Midstream market,Duke Energy announced last week its subsidiary, Duke EnergyServices Canada Ltd., acquired gas gathering and processing assetsfrom Calgary-based Cometra Energy. Financial terms were notdisclosed.

It’s been all talk but no action and as a result industryanalysts are starting to back away from rampant rumors of apotential merger between Southern Co. and El Paso Energy.

ONEOK Inc. is building up its midstream presence by agreeing toacquire all the Oklahoma midstream gas gathering and processingassets of Koch Midstream Enterprises for $285 million in cash.

While the real price of other goods and services in the U.S.increased by 34% since 1987, the price of natural gas to consumershas decreased by an average 14%, from 1987 to 1997, according to areport used by the American Gas Association to show FERC thatretail unbundling is working. The distributors’ group told afederal/state regulatory policy conference Thursday the price toconsumers went from an average $4.47/Mcf in 1987 to $3.85 in 1997(all in 1997 $). Of that delivered price the total transportationand distribution cost to consumers went from $2.23 to $1.53, a 31%decline, AGA said, citing surveys by the Energy InformationAdministration. During the same period the wellhead price wentfrom $2.24 (in 1997 $) to $2.32 in 1997.

The U.S. Attorney’s office in Washington D.C. has begun toexplore the possibility of criminal action in the case involvingNicholas J. Bush, former president of the Natural Gas SupplyAssociation (NGSA), who was relieved of his duties two weeks ago inthe wake of allegations that he defrauded the trade group of morethan $2.4 million over a 12-year period. NGSA made the allegationsin a lawsuit it filed two weeks ago.