Reported

PG&E Gas Transmission-Northwest reported completing hydrotesting of its A-Line ahead of schedule. The project’s end restoredcapacity to best-efforts levels of 2,620 MMcf/d at Kingsgate and1,930 MMcf/d at Station 14 Friday.

Florida Gas Transmission reported completion of lowering its30-inch mainline at Station 7.5 in South Louisiana ahead ofschedule and has commenced lowering the 24-inch mainline. This workis expected to limit St. Landry volumes to 910 MMcf/d-65 MMcf/dbelow maximum-through April 10.

The surprisingly small storage withdrawal last week of 69 Bcf,as reported late Wednesday by the American Gas Association, tookthe blame for a 12.1-cent tumble in the April Henry Hub futurescontract yesterday. Most observers were expecting about 110 Bcf tobe withdrawn, so the AGA report was enough to trigger along-awaited correction. Heavy selling sent the front-month Nymexgas futures contract cascading down throughout the day to a low of$1.810 before closing at $1.820.

Despite record fourth-quarter production, Vastar Resourcesreported 1998 earnings that were down 43% from the previous year.Last year’s earnings were $136.4 million, compared to $240.5million in 1997.

The Ohio Public Utility Commission reported that 280,000 retailconsumers are buying gas from alternative suppliers, a 25% increasesince September. The percentage of eligible customers participatingin the three utility customer choice programs has risen to 21%(34,644 residential and small commercial customers) on East OhioGas, 8% (30,979) on Cincinnati Gas & Electric and 17% (216,900)on Columbia Gas. In total, 24,127 commercial customers and 258,396residential customers are participating.

In its first report to shareholders since completion of itsmerger with Nova Corp., TransCanada PipeLines reported net incomefrom operations dropped to $139 million in the third quarter from$157 million in the third quarter of 1997, yielding net income pershare of 30 cents, down from 34 cents in the year-ago period.Revenues were up, however, to $4.43 billion from $3.91 billion.

A story that ran in NGI’s Daily Gas Price Index Oct. 14 falselyreported that a state court had ordered the break-up of ProLianceEnergy. It also contained several other inaccuracies. The decisionby the Indiana appellate court merely reversed an order by theIndiana Utility Regulatory Commission (IURC) in which supplycontracts between ProLiance and affiliates Indiana Gas and CitizensGas Light & Coke were approved. The court ruled thatcontractual provisions relating to the use of published gas priceindexes required a different approval process. ProLiance “disagreeswith the court’s interpretation of the state statute and believesthat the IURC had full authority to approve the contracts under thestatutes cited in the IURC’s opinion.” The company intends toappeal the decision. The decision also does not require refunds tocustomers.

Despite record production Enron Oil & Gas (EOG) reportedthird quarter net income of $5.9 million, down from $31.2 millionin the third quarter of 1997.

Energen Resources Corp., the oil and gas subsidiary of EnergenCorp., reported it signed a definitive agreement to acquire thestock of Total Minatome Corp. for $110 million, plus $22 million inlegal and financial obligations. For its investment, EnergenResources will gain an estimated 200 billion cubic feet equivalent(Bcfe) of proved domestic oil and natural gas reserves. Immediatelyupon closing the transaction on Oct.15, Energen Resources (formerlyTaurus Exploration Inc.) plans to sell a 31% undivided interest inTotal Minatome’s assets to Westport Oil and Gas Co. Inc.