Republished

This week’s run-up in cash prices apparently hadn’t run out ofsteam completely Wednesday, but most of the new increases weresmall, and several points either flattened out or, as in the caseof Northern Natural-demarc and Chicago citygates, were starting toretreat from their previous heights.

TransEnergy Management and SABRE Energy Network will interfacetheir respective software products. Under the agreement, users willhave the ability to submit pipeline nominations and to receiveconfirmations through TransEnergy’s Energy Marketing Systemelectronically using SABRE Energy’s SEN*Net product. SEN*Net is astandardized alternative to the numerous pipeline electronicbulletin boards (EBBs) through which most nominations andconfirmations for gas transactions are now made.

Amoco Oil, Enterprise Products, Exxon Chemical and WilliamsField Services announced plans to form a joint venture to build andoperate a 60,000 b/d natural gas liquids (NGL) fractionationfacility near Baton Rouge, LA. Construction has begun, and start-upis expected next March. The joint venture is to be called BatonRouge Fractionators LLC. Enterprise will operate the plant andmanage fractionation services. Amoco will process its PascagoulaGas Plant volumes at the facility. Exxon will process a portion ofits Louisiana area NGLs there, and Williams will contract toprocess its Mobile Bay Gas Plant volumes at the facility.

Chevron says it will appeal a recent preliminary ruling by theState of Florida against its development of the Destin Dome 56Unit, about 25 miles offshore from Pensacola, FL.

Given the lofty prices paid for midstream assets recently, SanAntonio, TX-based Aquila Gas Pipeline believes the time is right totest the waters for a possible sale or merger. The Texas andOklahoma gas processing and pipeline company has hired MerrillLynch & Co. to assist in the effort.

The proposed merger of Pacific Enterprises and Enova Corp. wascleared by the U.S. Department of Justice following a settlementagreement that calls for the merged company to divest itsgeneration assets and seek additional DOJ approval of any purchasesof existing power plants exceeding 500 MW of capacity inCalifornia. It calls for Enova to follow through on its previouslyannounced auction of San Diego Gas & Electric’s (Enova’sprimary electric utility subsidiary) two fossil-fuel power plants,located in Carlsbad and Chula Vista, CA. The agreement ends DOJ’sreview and clears the merger under the notification requirements ofthe Hart-Scott-Rodino Antitrust Improvement Act.

PanCanadian Petroleum has established energy marketerPanCanadian Energy Services through the consolidation ofHouston-based National Gas & Electric and PanCanadian’s naturalgas marketing group in Calgary, AB. The company also operatesregional sales offices across the U.S. in Austin, TX, SanFrancisco, CA, Mobile, AL, and Atlanta, GA. Midwest customers areserved by PanCanadian affiliate National Energy Management, inChicago and Madison, WI. Pan Canadian Energy Services is based inHouston.

The producer refund case has taken a unique turn as severalpipelines have stepped up to argue that while natural gas producersmust pay them the $500 million in refunds – yesterday was thedeadline for payment – they don’t believe they have to pass thatmoney on to their customers.

Trigen Energy announced it is mounting a legal battle to forcePECO Energy to honor terms of a Gray’s Ferry power purchaseagreement. Trigen said the Grays Ferry Cogeneration Partnershipreceived a letter from PECO saying the Pennsylvania utility couldnot pay the full contract price for electricity from the 150 MWcogeneration plant. The plant sells electricity to PECO and steamto Trigen-Philadelphia Energy. It is located in Philadelphia andwent into commercial operation earlier this year. Ironically,Exelon, a wholly owned subsidiary of PECO Energy, is a one-thirdowner in the project with Trigen and NRG Generating.