Rationale

Safety staff at the California Public Utilities Commission (CPUC) on Wednesday reiterated their rationale for a proposed $2.25 billion penalty against Pacific Gas and Electric Co. (PG&E) in a reply to the utility’s recent filing in the CPUC penalty consideration cases arising out of a natural gas transmission pipeline rupture and explosion in San Bruno, south of San Francisco (see Daily GPI, May 7).

Chesapeake Energy Corp. on Friday agreed to sell its midstream businesses to Global Infrastructure Partners (GIP) in three separate transactions for more than $4 billion in cash. Chesapeake would net about $2.4 billion and cut previously budgeted midstream capital spending over the next three years by $3 billion.

Enterprise Products Partners LP cited robust growth in Eagle Ford Shale liquids-rich gas production in South Texas as the rationale behind its plans to add yet more fractionation capacity at the Mont Belvieu, TX, natural gas liquids (NGL) complex.

Still-moderate weather fundamentals for the most part didn’t seem to offer any rationale, but prices recovered some lost ground at all points Monday following an extremely weak weekend market. Without any new developments from previously mostly mild to cool weather, it seemed that at least a bit of “storm hype” must have crossed traders’ minds.

The strong rise of 18.8 cents by October futures going into the holiday weekend was about the only rationale for higher prices in most of the cash market Tuesday as weather fundamentals were decidedly mild for early September in most areas.

The market was marginally firmer Wednesday as a significantly greater number of points were seeing small increases than a day before. The rationale for the modest rise in bullishness was elusive, as cooling demand was receding to some extent in the Midcontinent and parts of the South while mostly moderate conditions still dominated the rest of the weather picture. Also, Tuesday’s flat July futures provided no support for cash numbers Wednesday.

When the price is right, it’s time to buy, even if you don’t need the assets. That was the rationale behind the decision of Calgary-based Canadian Natural Resources Ltd. to buy Anadarko Canada Corp. (ACC) for US$4.075 billion ($4.24 billion when including working capital adjustments).

When the price is right, it’s time to buy, even if you don’t need the assets. That was the rationale behind the decision of Calgary-based Canadian Natural Resources Ltd. to buy Anadarko Canada Corp. (ACC) for US$4.075 billion ($4.24 billion when including working capital adjustments).

FERC last Tuesday issued an order accepting a global settlement reached between Duke Energy, several California parties and Commission staff resolving matters stemming from the 2000-2001 California energy crisis as they relate to Duke.