Processing

Due to a change in schedule, Tennessee was unable to deliver gas for processing to the Yscloskey Plant in southeast Louisiana beginning Wednesday. Customers were required to reduce PTR nominations for Yscloskey to zero until further notice.

A little more than half of Destin Pipeline’s recent throughput of about 800 MMcf/d was cut Friday due to an outage of one of the processing trains at the BP Amoco-operated plant in Pascagoula, MS, according to a Destin spokesman. He said the train was expected to be returned to service by Saturday.

Enough’s enough, shippers and customers of El Paso Natural Gas told FERC Friday in requesting fast-track processing of a complaint requesting immediate mandatory expansion of the pipeline and a change in its contracting practices to convert unlimited full requirements obligations to set contract demand pacts.

In a $120 million deal with Enron Corp., EOTT Energy Partners LP has purchased a Texas-based hydrocarbon processing complex and a natural gas liquids storage facility, as well as a liquids pipeline grid system. EOTT also signed a 10-year tolling agreement for production from the hydrocarbon complex and a 10-year storage and transportation agreement to use the pipeline and storage systems with an Enron affiliate.

Barrett Resources Corp.’s move to provide “strategic alternatives” to its shareholders, and thus, increase the value if it is taken over, appears to have paid off. This week, the Denver-based independent apparently received at least two more bids to compete with Royal Dutch/Shell Group’s offer of $60 a share. Barrett had set a deadline of Wednesday for other companies to make an offer.

Enron Industrial Markets announced Monday it has signed a 15-year risk management and procurement outsourcing agreement with steel processor Huntco Inc. Under the contract, Enron will provide inventory price risk management services and will eventually provide more than 600,000 tons per year of hot-rolled, cold-rolled and galvanized steel products to Huntco Steel, a subsidiary of Huntco Inc.

Maintenance at the Sable Offshore Energy Processing Plant that had been scheduled for April 16-19 (see Daily GPI, April 2) was postponed. The tentative work period now is from midnight April 18 to midnight April 20. Maritimes & Northeast Pipeline expects only about 35% of capacity to be available for deliveries during that time. Full system capabilities are anticipated for April 21.

Tennessee reported being notified by Dynegy Midstream Services,operator of the Yscloskey Gas Processing Plant in southeasternLouisiana, that effective April 1 the plant will no longer process”strangers” gas that does not have a contractual relationship withthe plant. In the event this action causes Tennessee to once againexperience operational difficulties attributable to gas with highBtu levels, the pipeline said, it will do whatever is necessary tolower overall Btu content on its 500 Line to manageable levels.

Northern Border Partners LP announced its intention to enter theCanadian midstream business. The company is buying the 87 MMcf/dMazeppa sour gas processing plant southeast of Calgary and aminority interest in the 85-mile Gregg Lake/Obed Pipeline (150MMcf/d of capacity), which is west of Edmonton, AB, from DynegyCanada. The purchase is expected to close during the first quarter.