A battle for a grip on the growing gas market in the Florida Panhandle has flared up, involving a trio of gas pipeline companies, two of which are planning new offshore routes to the state from producing platforms near Mobile Bay, AL.
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NYMEX Pondering Future of Western Contracts
Electronic trading may be the antidote to anemic trading of theNew York Mercantile Exchange’s Alberta and Permian Basin gasfutures contracts, Exchange President R. Patrick Thompson said lastweek.
Alliance Breaks Ground, Begins Construction
Moving one step closer to bringing 1.325 Bcf/d of gas fromWestern Canada to Chicago, Alliance Pipeline last week announcedthe start of construction with the clearing of 410 miles offorested rights-of-way for mainlines and laterals in northwesternAlberta and northeastern British Columbia. The entire system isexpected to be completed and in service by October, 2000. Alliancesaid it already has commitments from 37 shippers for 15-yearcontracts worth a total of $8.2 billion. Agreements have beenreached with 93% of landowners along its 2,320-mile route acrossCanada and the United States, while time to complete the NEBproceedings has been built into the construction schedule.
Hoecker Gives Counsel on NOPR, NOI Negotiations
In an unusual step last week, FERC Chairman James Hoeckeroffered some advice to the industry negotiators who have beenmeeting in closed-door sessions to craft an agreement on the majornatural gas initiatives contained in the notice of proposedrulemaking (NOPR) and notice of inquiry (NOI).
FERC Plans ‘Discussion Only’ for New Pipes
The Federal Energy Regulatory Commission is expected to go onthe record this Wednesday with thoughts, but not votes, on thecompeting Independence and Millennium pipeline projects which arevying to be the last link in the new path for western Canadian gasdelivered to the U.S. Northeast.
PG&E Files Electric Rate Cutting Plan
Pacific Gas and Electric applied to the California PublicUtilities Commission (CPUC) to reduce electric rates at the end ofthe electric rate freeze, but no later than March 31, 2002. Thestate law that governs the restructuring of California’selectricity market, AB 1890, gave residential and small businesscustomers a 10% rate reduction on Jan. 1, 1998 and froze rates atthat level. The state law also provided investor-owned utilities atransition period to recover stranded costs. That transition periodends March 31, 2002, or when the past investment costs have beenrecovered, whichever comes first. At that time, the rate reductionswill go into effect.
Hoecker Gives Counsel to NOPR, NOI Negotiators
In an unusual step last week, FERC Chairman James Hoeckeroffered some advice to the industry negotiators who have beenmeeting in closed-door sessions to craft an agreement on the majornatural gas initiatives contained in the notice of proposedrulemaking (NOPR) and notice of inquiry (NOI).
Maritimes Defends Proposed Project Changes
Maritimes &Northeast Pipeline sponsors defended their proposed pipeline certificate (Phase II) amendment last week against attack by some the project’s own shippers and others who say it is too large and too costly for the market it will serve. Project sponsors said the calls for a stay on the project and a hearing on its size are based on a misreading of its amendment filing and a misunderstanding of its agreements with its shippers (see NGI, Feb. 22 issue).
Destin Seeking Waiver at FERC as Costs Nearly Double
Destin Pipeline Co. has filed at FERC to have cost limitationson its “CNG Lateral” waived in light of delays that pushed theproject’s cost to $35.1 million, well above $19.6 million allowedfor in the Commission’s certification of the project last year(Docket No. CP98-238).
UGI to Shed Utility As Part of Merger Deal
The merger bandwagon continued last week as UGI Corp. announceda proposed deal that would join its retail propane marketingbusiness with the largest marketer and distributor of printing andimaging paper and supply systems. UGI will sell UGI Utilities aspart of the transaction, making it the first company “in recenttimes” to completely shed itself of its utility business. Thecompany says it can take such a dramatic step because, unlike otherutilities, it has another “very distinct” business (propane) thataccounts for about two-thirds of its annual revenues.