Right

The optimists are turning out to be right as Canadian naturalgas exports to the United States continue to climb, laying to restpessimistic productivity forecasts a year ago.

The dazzling increases in cash prices Thursday certainly failedto surprise anybody who was paying attention Wednesday afternoon tothe storage report and the screen’s subsequent skyrocketingperformance.

BP Amoco exercised its right of first refusal to buy SouthernNatural Gas Co.’s one-third interest in the Destin Pipeline,growing its share to two-thirds. Tejas Destin LLC holds theremainder.

Through a new tolling deal Southern Company Energy Marketingwill have the exclusive right to supply fuel to and receive powerfrom United American Energy Corp.’s 82 MW gas-fired power plant inLowell, MA.

BP Amoco and Atlantic Richfield Co. (Arco) say they will fightthe Federal Trade Commission in court for their right to merge.Wednesday the FTC said it would seek a preliminary injunction infederal District Court to block the merger.

Through a new tolling deal Southern Company Energy Marketingwill have the exclusive right to supply fuel to and receive powerfrom United American Energy Corp.’s 82 MW gas-fired power plant inLowell, MA. Southern will market and trade electricity from theplant in the New England Power Pool. Terms of the deal were notreleased.

Anyone who was complaining about a lack of winter likely hasshut up by now, and for good reason. Right on top of the first one,the eastern United States last week was bracing for its second coldsnap of the year.

Natural gas futures resumed trading Tuesday right where theyleft off last week as traders pressured the market higher in twodistinct buying surges. The first one came at 10:00 a.m. (EST),when February opened a penny above last Friday’s $2.35 high onreports of the coldest air of the season for the Northeast U.S. Thesecond wave of buying came near the close, in a local-led attemptto push the spot month above its 40-day moving average at $2.385.In the end that push was only half-successful; February was able topunch through its 40-day average, but was unable to settle aboveit. The contract closed up 6.1 cents at $2.383 amid light volume ofjust 43,581.

Alliance Pipeline, the largest initial pipeline project in NorthAmerica, is on track to begin service on its scheduled date of Oct.1, 2000, the project’s CEO said last week. All of the constructiongoals for 1999 have been met and currently 77% of the mainline hasbeen installed.