Raised

The Energy Information Administration (EIA), in its Short-Term Energy Outlook for May, again raised its projection for the average spot price of natural gas this year — by 7% to an average of $5.80/Mcf from the $5.40/Mcf that it had projected last month.

After testing the $6 resistance level on Monday, May natural gas futures raised the white flag early on Tuesday, retreating 22.1 cents to close at $5.788 on heavy volume, with 92,904 contracts changing hands.

Burlington Resources Inc., which will continue to focus its sights on North American natural gas, on Wednesday raised its cumulative production growth target to 20% through 2006. With $4/MMBtu natural gas prices, it also expects to see per-share growth of 10%.

Burlington Resources Inc., which will continue to focus its sights on North American natural gas, on Wednesday raised its cumulative production growth target to 20% through 2006. With $4/MMBtu natural gas prices, it also expects to see per-share growth of 10%.

Dynegy Inc.’s speculative grade liquidity rating was raised a notch this week by Moody’s Investors Service, which noted that the company has “substantial” liquidity back up, but possibly weaker operating cash flow for the next 12-24 months.

Parties to transportation letter agreements that have raised eyebrows at FERC — Northern Natural Gas pipeline and cogeneration facilities in Minnesota and Wisconsin — said last week they would not object if the Commission chooses to disclose the documents to the public.

Parties to transportation letter agreements that have raised eyebrows at FERC — Northern Natural Gas pipeline and cogeneration facilities in Minnesota and Wisconsin — said they would not object if the Commission chooses to disclose the documents to the public.

Constellation Energy Group Inc. (CEG) raised its stakes in the New York generation market by announcing it will pay $401 million to purchase the R.E. Ginna Nuclear Power Plant, a 495 MW facility located on Lake Ontario near Rochester. Once the transaction is approved, CEG plans to invest $32 million over the next several years to increase plant capacity by 17% to 580 MW. The Ginna asset, along with CEG’s Nine Mile Point Nuclear Power Station, also located on Lake Ontario, enhances its physical presence in the New York generation market and boosts its involvement in the New York Independent System Operator, the company said. The deal will give the Baltimore-based utility three nuclear power stations with five units total, as well as a fleet of natural gas, coal, hydro and geothermal generators that together total nearly 12, 600 MW of capacity. CEG is acquiring the New York facility from the Rochester Gas & Electric Corp. (RG&E), a unit of Albany, NY-based Energy East Corp. CEG also will purchase nuclear fuel from RG&E for the plant for $21.6 million. Completion of the transaction is expected in June. Because of refueling and uprate initiatives, CEG said the Ginna acquisition would be “mildly accretive” through 2006. After that, CEG expects the plant to add substantially to its profits. Constellation will sell 90% of the plant’s output and capacity through a power purchase agreement (PPA) to RG&E for 10 years at an average price of $44/MWh.

The U.S. Minerals Management Service (MMS) has raised its estimate of probable recoverable natural gas in the deep shelf area of the Gulf of Mexico by 175%, from 20 Tcf to 55 Tcf.