Report

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 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).

Independent producers plan to present a resolution later thismonth to congressional lawmakers and others in the federalgovernment seeking their support for measures to lift the oil andgas industry from its currently depressed state.

Reliant Energy, formerly Houston Industries, expanded itsMidwest retail gas marketing business with the acquisition ofcertain assets of National Energy Management LLC and Koch MidstreamServices Co.’s Chicago operation. Together, these retail marketingbusinesses serve more than 2,200 accounts in the Chicago andsouthern Wisconsin areas and have annual revenues exceeding $65million.

The fate of the Millennium, Independence, SupplyLink andMarketLink pipeline expansion projects, which together representabout 1.7 Bcf/d of new pipeline capacity directed at northeasternmarkets from the Midwest, have been scheduled for discussion onlyat FERC’s next regular meeting March 10. That move has sparked aconsiderable degree of speculation among FERC observers andpipeline representatives.

Independent producers plan to present a resolution later thismonth to congressional lawmakers and others in the federalgovernment, asking them to support measures to lift the oil and gasindustry from its currently depressed state.

NIPSCO Industries is changing its name to NiSource Inc.(pronounced Nye-source), in an attempt to signal a new directionfor the company as a multi-state supplier of energy and waterresources and related services. The company’s logo will remain thesame, continuing to incorporate beams bursting from a point oflight.

Industry merger and acquisition activity last week was a wholesale confirmation of two major trends: the convergence of gas and electricity operations, and consolidation. Two more of the nation’s largest diversified gas pipeline companies were snatched up by two major energy distributors. Sempra Energy (SRE) announced it is buying KN Energy (KNE) in a stock-and-cash transaction valued in the aggregate at $6 billion, a 24% premium to KNE’s recent stock price, and Dominion Resources said it is buying Consolidated Natural Gas Co. (CNG) for about $6.3 billion in stock, a 25% premium (see related story this issue).

Fanning the flames of the convergence-consolidation bonfire,Dominion Resources (DRI) last week announced two plannedacquisitions that would add both wellheads and burner tips, not tomention assets in between.