Prospect

The prospect of privatization of Mexico’s energy industry underits President-elect Vicente Fox has California interests salivatingbecause already robust demand and infrastructure activity in NorthBaja and along the other northern states promises to get evenhotter under the new political leadership in the next few years.

The prospect of privatization of Mexico’s energy industry underits President-elect Vicente Fox has California interests salivatingbecause already robust demand and infrastructure activity in NorthBaja and along the other northern states promises to get evenhotter under the new political leadership in the next few years.

Houston’s Manta Ray Offshore Gathering Co. LLC has begunconstructing a major extension to its existing offshore gatheringsystem to complement the Hickory prospect in the Gulf Coastoffshore in Grand Isle Blocks 110, 111 and 116, which is expectedto begin production later this year. The 22.25 mile, 20-inchdiameter pipeline extension will tie into an existing gatheringsystem at South Timbalier Block 292 and extend to the Grand IsleBlock 116 platform. According to Manta Ray, the “strategicposition” will help the company compete for transportation of moregas volumes in the “prolific” area. The extension is sized tohandle the total Hickory volumes as well as the surrounding area’sproduction. Anadarko first announced the Hickory discovery inOctober 1998, and now is drilling additional development wells. Aproduction platform is planned to be moved on location at Block 116later this summer with facilities capable of handling 300 MMcf/d ofnatural gas. Shell Gas Transmission owns 50% of Manta Ray while ElPaso Energy Partners LP owns 25.67% and Marathon Gas TransmissionInc. owns 24.33%.

El Paso Energy yesterday announced subsidiaries would developits interest in the Prince prospect, installing a multi-purposetension leg platform (TLP), in the Ewing Bank Block 958 unit in theGulf of Mexico.

As producers get organized for a forecast big push to acceleratedevelopment of Canadian natural-gas supplies, a hot market in fieldassets is emerging.

The magical 30 Tcf annual natural gas market goal is very much arealistic prospect on the demand side, but much more problematicfrom a U.S. supply perspective, according representatives of largeand small producers addressing a national meeting of stateregulators this week.

Some traders were groaning with dismay Wednesday at the prospectof the March market being one of nearly all sideways pricemovement, much like the February one preceding it. All it takes isa look at the multitude of zeroes and ones in the change column ofDaily GPI’s price table today to understand where they might havegotten such an idea.

American Gas Association President David Parker yesterdaydismissed industry speculation that the gas LDC group is exploringthe prospect of combining with its electric counterpart, the EdisonElectric Institute.

Light short-covering gently prodded the futures market higheryesterday as traders surveyed the prospect of a sizable storagewithdrawal reported in the American Gas Association’s storagereport this afternoon. The prompt February contract led all others,advancing 4.2 cents to settle at $1.821. With that small gain, themarket ended a five-day, 25-cent slide.