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Cinergy Corp. CEO James Rogers told analysts recently the company may exit the power supply business altogether, including nonregulated trading and marketing, and regulated sales, as a result of the huge losses suffered in the power market in July (see NGI, Aug. 9). Cinergy’s board intends to make a decision on the matter this fall. The company also plans to consider spinning off its generation business into a separate subsidiary.

The bloody battle over the right to merge with Southwest GasCorp. has recently claimed another victim: Arizona CorporationCommissioner (ACC) Jim Irvin. Federal and state authorities areinvestigating allegations that the state regulator illegallyinfluenced Southwest Gas to go with Oneok Inc. as a merger partnerinstead of rival suitor Southern Union Co.

Attempting to meet steep generation acquisition goals set by itsCEO for 1999, El Paso Energy recently bought a 49% ownershipinterest in East Coast Power, a subsidiary of Enron Corp. Terms ofthe deal were not disclosed. Enron still maintains control of thecompany with its 51% interest. El Paso said this deal is the firstdomestic power alliance between the two companies.

Duke Energy in conjunction with affiliates of Westcoast EnergyInc., Mobil Corporation and NS Power Holdings Inc. recentlycompleted the project financing for the U.S. and Canadian portionsof the Maritimes & Northeast Pipeline project.

Santa Fe Snyder, the resultant company from the recently approved Santa Fe Energy Resources and Snyder Oil Corp. merger, bought $210 million of interest in four Shell Exploration & Production Co. (SEPCo) Gulf of Mexico (GOM) assets. Closing is expected in August. Last week’s deal, which would give Santa Fe Snyder access to production from the Macaroni, Troika and Brutus deep-water fields as well as the Angus Complex, is expected to add 14.5 MMcf/d and 11,500 b/d of oil to the new company’s production results in 2000.

Northern Border Partners of Houston can thank its recentlycompleted expansion for significant gains in net income andthroughput on Northern Border Pipeline in the second quarter. Thecompany posted a 26% increase in second quarter net income to $20.6million. That compares to $16.4 million for the same period in1998. The increase is primarily attributable to the completion inDecember of Northern Border’s Chicago Project, which increasescapacity by more than 40% and plays a key role in gastransportation to the upper Midwest.

Santa Fe Snyder, the resultant company from the recentlyapproved Santa Fe Energy Resources and Snyder Oil Corp. merger,bought $210 million of interest in four Shell Exploration &Production Co. (SEPCo) Gulf of Mexico (GOM) assets. Closing isexpected in August. Monday’s deal, which would give Santa Fe Snyderaccess to production from the Macaroni, Troika and Brutusdeep-water fields as well as the Angus Complex, is expected to add14.5 MMcf/d and 11,500 b/d of oil to the new company’s productionresults in 2000.

Slowly but surely the faux summer that much of the eastern U.S.has experienced recently is turning into “real summer,” a marketernoted. But even that and a moderate gain by the August Henry Hubfutures contract were not enough to avert softening at most cashtrading points Thursday. Eastern declines tended to be minuscule,with a few points staying flat and few others falling by more than1-2 cents. But an easing of Southwest supply constraints andgenerally cooler weather in the West caused larger price drops inthe West, topped by a loss of several cents in the San Juan Basin.

Using new technology to increase transport speed from thewellhead to the pipeline, Mobil Exploration & Producing U.S.Inc. said it recently commenced selling gas from the newly streamedMobile 822 No. 6 well, in the Gulf of Mexico. The company said theprocess, which took 369 days, was its fastest drill-to-salesoperation to date in the Mobile Bay.