Raises

Responding to the financial strength of Loews Corp., Texas Gas Transmission LLC’s (formerly Texas Gas Transmission Corp.) new parent company, Moody’s Investors Service upgraded the pipeline company’s senior unsecured credit rating to Baa1 from B3. It also assigned a first-time rating of Baa2 senior unsecured to its new immediate parent company, holding company TGT Pipeline LLC. The rating outlooks for both companies are stable.

After correcting the data for acquisitions and divestitures, U.S. natural gas production increased 1.6% sequentially, breaking a trend of lower production for the previous six consecutive quarters, according to Raymond James energy research. However, the bullish analysts were quick to point out several one-time events that contributed to the deceptively strong year-over-year production numbers.

Responding to the financial strength of Loews Corp., Texas Gas Transmission LLC’s (formerly Texas Gas Transmission Corp.) new parent company, Moody’s Investors Service upgraded the pipeline company’s senior unsecured credit rating to Baa1 from B3. It also assigned a first-time rating of Baa2 senior unsecured to its new immediate parent company, holding company TGT Pipeline LLC. The rating outlooks for both companies are stable.

TransColorado has sharply raised the proposed size of its gas pipeline expansion project to an incremental increase of 600,000 Dth/d from the previously announced 150,000 Dth/d (see Daily GPI, Jan. 22).

With wholesale gas prices for March and April nearly triple what prices were for the same months in 2002, very little can be done to prevent some impact on utility customers. Despite forward purchasing, storage and other risk management practices, Mobile Gas in Alabama said its residential customers still will see a 22% increase in their rates.

With wholesale gas prices for March and April nearly triple what prices were for the same months in 2002, there is very little that can be done to prevent some impact on utility customers. Despite forward purchasing, storage and other risk management practices, Mobile Gas in Alabama said its residential customers still will see a 22% increase in their rates.

Even prior to last week’s massive storage withdrawal of 162 Bcf and $5-plus January futures prices, the Energy Information Administration (EIA) had tacked on another 46 cents/Mcf to its first quarter 2003 natural gas wellhead price forecast compared to last month’s prediction in its Short-Term Energy Outlook. In the latest Outlook, EIA said it is expecting first quarter prices to average $4.16. It also raised its price forecast for all of next year to $3.69/Mcf from its prediction last month of $3.37.

The Energy Information Administration (EIA) tacked on another 46 cents/Mcf to its first quarter 2003 natural gas wellhead price forecast compared to last month’s edition of the Short-Term Energy Outlook. In the latest Outlook, EIA is expecting first quarter prices to average $4.16.

The industrial customer will be the overall loser next year as lagging U.S. and Canadian natural gas production, increased exports to Mexico, increased power generation use and pressure to refill storage is expected to keep the natural gas market tight and prices high, according to a report by Simmons & Co. International.