Report

Signaling what could become a trend among large producers, Shellyesterday said it is stepping into the independent power generationbusiness with partner Bechtel Enterprises.

Tennessee Gas Pipeline’s Eastern Express Project 2000 is a muchdifferent expansion today-mainly much smaller-as it arrives at FERCthan when it was announced more than a year ago. Last winter, thecompany said there was market interest in more than 4 Bcf/d of firmcapacity along nearly every stretch of its system, from the Gulf ofMexico north, from Chicago and Niagara east and from New Hampshiresouth. But Tennessee filed an application yesterday with FERC toadd only 168 MMcf/d of capacity along the northernmost part of itspipeline at connections with PNGTS and Maritimes.

Public Service Co. of New Mexico (PNM) said it embarked on a$17.3 million stock repurchase plan Tuesday after announcing theNew Mexico Supreme Court rejected a $112 million rate cut imposedby the state’s outgoing Public Utility Commission (PUC) late lastyear.

Burlington Resources has joined forces with Enron Capital &Trade Resources Corp. in a gas gathering partnership that willserve the Wind River Basin in Wyoming, which has suffered fromprocessing and transportation constraints in recent years.

The leaders of the a major pipeline association and a keyelectric utility group jointly have expressed their support forFERC to convene a conference “in the near future” to assesspost-2000 natural gas demand in the Northeast and the need for newpipeline capacity to serve customers, particularly powergenerators, in that market.

Clinton administration officials met with major and independentproducers at the White House yesterday and assured them that ahigh-level group would be established to examine the conditionsthat are contributing to the depressed state of the oil and gasindustry.

Cash market prices remained predominantly flat during Tuesday’strading session, mimicking a stagnant Nymex futures screen and heldfast by decreasing demand nationwide. Aside from major Northeasternmarkets, which almost doubled Monday’s declines, cash continuedflat to a penny lower at most trading points.

Former Deputy Energy Secretary Elizabeth Moler and Washingtonattorney Katherine B. Edwards have made the list of candidatesbeing considered by the Natural Gas Supply Association (NGSA) tosucceed former President Nicholas J. Bush, who departed last monthamid allegations that he defrauded the trade group out of more than$2.4 million, sources say.

A study released Monday by Energy ERA, a Calgary-based energyconsulting firm, estimated that two scenarios involving differentpipeline expansions – one involving Vector and Millennium andanother involving Independence and MarketLink-from the Midwest intothe Northeast will have the same spot price impact. Both wouldcause an average $0.30/MMBtu price decline in New York Citygateprices over the next five years.