Puts

The arrival of a new parent with deep pockets made an immediate difference to Westcoast Energy’s pipeline system in the western Canadian natural gas drilling hot spot of British Columbia. The ink was barely dry on the final agreement for the US$8 billion purchase of Westcoast by Duke Energy Corp. before the newly-appointed president of the resulting Duke Energy Gas Transmission Canada, Bob Reid, gave the green light for a C$338.4 million (US$215 million) expansion project.

Despite the holiday, storage operators finally opened the floodgates during the first week of the year in response to extremely cold weather, particularly in the Northeast and Southeast. The American Gas Association (AGA) reported a 190 Bcf withdrawal from storage for the week ending Jan. 4, the first withdrawal this season that has exceeded the previous year’s pace.

Despite the holiday, storage operators finally opened the floodgates last week in response to extremely cold weather, particularly in the Northeast and Southeast. The American Gas Association (AGA) reported a 190 Bcf withdrawal from storage, the first withdrawal this season that has exceeded the previous year’s pace. The number far exceeded last year’s 167 Bcf weekly withdrawal and was much bigger than the five-year average for the week of 137 Bcf. But it knocked only a smidgen (23 Bcf) off the year-on-year storage surplus.

Following the lead of other credit ratings services, Fitch on Thursday placed ratings of five energy-related companies and their affiliates — AES Corp., Mirant, TECO Energy Inc., UtiliCorp United Inc. and Xcel Energy Inc. — on Rating Watch Negative “because of recent negative events and adverse market sentiment affecting the energy sector.”

In response to a stunningly bullish weather forecast for the last week of December, natural gas futures shot higher Monday morning as short traders elected to take their profits and head for the exits. As one might expect, the January contract received the biggest buying boost, etching a 17.9-cent advance to close at $2.747, its highest settle since becoming the prompt contract late last month.

PG&E Gas Transmission Northwest (GTN) already has started deliveries through a 21-mile section of its 2002 mainline expansion project, and is making significant progress on proposed future expansions. The new 21-mile pipe section put into service a week ago last Friday increases the company’s ability to deliver natural gas to western markets by 42,000 Dth/d a year earlier than expected and in time for the 2001 winter heating season.

PG&E Gas Transmission Northwest (GTN) already has started deliveries through a 21-mile section of its 2002 mainline expansion project, and is making significant progress on proposed future expansions. The new 21-mile pipe section put into service last Friday increases the company’s ability to deliver natural gas to western markets by 42,000 Dth/d a year earlier than expected and in time for the 2001 winter heating season.

With the focus of the White House and Congress on terrorism, Comptroller General David M. Walker said the General Accounting Office (GAO) temporarily has put the brakes on its pursuit of information and records from Vice President Dick Cheney related to the Cabinet-level energy task force.

With the focus of the White House and Congress on terrorism, Comptroller General David M. Walker said the General Accounting Office (GAO) temporarily has put the brakes on its pursuit of information and records from Vice President Dick Cheney related to the Cabinet-level energy task force.