Return

Tennessee expects its 300 Line in northern Pennsylvania to returnto service today following completion of repairs to Sunday morning’srupture (see Daily GPI, Feb. 29). Unlessconditions change, the pipeline will accept intra-day Cycle 1nomination increases beginning at 5 p.m. CST for all meters downstreamof Main Line Valve 314.

Despite the return of hot weather alerts and temporary voltagereductions among Northeast electric utilities Monday, spot gasprices found it tough going to build much further on Friday’smoderate gains. Gas demand was fairly strong, sources said, butnot big enough to boost prices any more than 1-2 cents at citygatesand in the Gulf Coast production area. In fact, several Gulf pointsturned in flat performances.

El Paso estimates one of the two compressor units at its Caprock(NM) Station will return to service by April 16, raising San JuanCrossover capacity to 600 MMcf/d from its current 580 MMcf/d. Itappears the other unit will remain unavailable until mid-May, thepipeline said.

Atlanta Gas Light Co. (AGL) reached an agreement with theGeorgia Public Service Commission (GPSC) Wednesday to return to itspre-deregulation billing methods, avoiding a Feb. 3 Commissionhearing intended to charge the utility with disregarding marketconstraints in its rate-charging practices. The utility also agreedto refund $14.5 million to overcharged customers. The reformedbills and the refunds will be sent out in February.

Conceding defeat – at least temporarily – North AtlanticPipeline Partners withdrew from FERC its application to build amassive 575-mile subsea pipeline system to carry initially 2 Bcf/dof gas from the Scotian Shelf offshore Nova Scotia to markets inAtlantic Canada and New England.

A return to normal temperatures in the first quarter andthroughout next year is likely to lead to a 2.4% increase in gasdemand in 1999, the Independent Petroleum Association of America(IPAA) said in its November Short-Run Forecast. IPAA sees demandreaching 22.3 Tcf, a peak that surpasses the previous high of 22.1set in 1972 and a significant turnaround from the 1.1% decrease to21.7 Tcf of gas demand expected this year.

Marathon Oil plans to return to Canada with its agreement toacquire Tarragon Oil and Gas Ltd. of Calgary for $1.1 billion,including $340 million of assumed debt. Marathon has not held oilor gas properties in Canada since divesting its Canadian holdingsin 1982.

Announcements of new pipeline projects are booming despiterecently voiced concerns by pipeline executives that return onequity is not sufficient to justify new construction (see NGI, Feb.2). A recent NGI survey of projects announced over the last threeyears indicates more than 7 Bcf/d of new capacity has already beenconstructed in the U.S. and Canada, with nearly 21 Bcf/d ofcombined capacity additions approved or under consideration. Thisis in addition to projects canceled or put on hold indefinitely.