Projects

Natural gas markets across North America last week were warned for the second time this heating season against taking for granted any further growth in Canadian gas supplies, for most of this decade. The Canadian Energy Research Institute (CERI) said its latest industry survey will confirm a report by the National Energy Board (NEB) in December that gas field productivity has peaked and stands poised to drop in western Canada (see NGI, Jan. 13; Jan. 20).

Despite the now infamous bust in gas-fired combined cycle power generation projects in development and even under construction, combined cycled capacity additions are expected to top 78,000 MW during 2003 and 2004, according to Arlington, VA-based consulting firm Energy Ventures Analysis Inc. However, actual operating results will fall far short of nameplate capacity, EVA predicted, because of tight spark spreads.

Despite the now infamous bust in gas-fired combined cycle power generation projects in development and even under construction, combined cycled capacity additions are expected to top 78,000 MW during 2003 and 2004, according to Arlington, VA-based consulting firm Energy Ventures Analysis Inc. However, actual operating results will fall far short of nameplate capacity, EVA predicted, because of tight spark spreads.

Marathon Oil Corp. showed a nearly 100% gain on fourth quarter net income from $98 million, or $0.32 per diluted share in 2001, to $194 million, or $0.62 per diluted share in 2002. The company also reported last week it had achieved a 250% reserve replacement ratio, including expansion of its Powder River Basin coalbed methane holdings.

Stakeholders are telling the Midwest Independent Transmission System Operator (MISO) that if adequate transmission were in place in the heartland, new developments of both coal-fired and wind-powered generation would occur, but for now there is insufficient transmission to keep up with new generating plants coming online in the region, a top official with MISO said last Wednesday.

The Federal Energy Regulatory Commission last week awarded certificates to Gulf South Pipeline Co. LP to expand lateral facilities to accommodate the growing demand for natural gas in Florida, and to Northwest Pipeline to relocate and replace pipeline facilities to make way for the construction of a planned dam in Colorado.

The Federal Energy Regulatory Commission has awarded certificates to Gulf South Pipeline Co. LP to expand lateral facilities to accommodate the growing demand for natural gas in Florida, and to Northwest Pipeline to relocate and replace pipeline facilities to make way for the construction of a planned dam in Colorado.

FERC continued to smile upon natural gas pipeline projects right up until the very end of last week. Late Friday, the agency dismissed a plea by a Florida citizens advocacy group to stay Florida Gas Transmission’s (FGT) construction of a new compressor station as part of the pipeline’s Phase V expansion project in the state.

Pengrowth Energy Trust of Calgary has agreed to acquire Calpine Corp.’s oil and gas holdings in British Columbia for US$248 million (C$387 million).