Risks

The Federal Energy Regulatory Commission issued a proposed rule Wednesday that signals a major shift in how interstate natural gas pipelines will determine their shippers’ creditworthiness in the future.

Hill-Lake Gas Storage LP, a West Texas storage facility owned by Falcon Gas Storage, has notified Tractebel Energy Marketing Inc. (TEMI) that it plans to shut off natural gas storage service to the marketer effective Thursday and has put a lien on TEMI’s gas in storage for allegedly failing to comply with the creditworthiness requirements of its contract, a top Falcon Gas official said.

The Williams Cos. warned Tuesday in its annual report with the Securities and Exchange Commission (SEC) that limited access to capital due to its non-investment-grade credit status and insufficient cash flow from operations to pay debt obligations make it imperative that the company sell its previously announced $2.25 billion in additional assets this year.

In an attempt to boost the liquidity of energy trading companies and restore confidence in energy markets, Edison Electric Institute (EEI) and member utilities introduced last week a new “master netting agreement” that they claim will help limit the credit exposure for traders of electricity, natural gas and financial instruments.

In an attempt to boost the liquidity of energy trading companies and restore confidence in energy markets, Edison Electric Institute (EEI) and member utilities introduced Tuesday a new “master netting agreement” that they claim will help limit the credit exposure for traders of electricity, natural gas and financial instruments.

With energy traders and other companies becoming bigger credit risks, Natural Gas Pipeline Co. of America (NGPL) has proposed tariff changes to shield it from its transportation capacity being released by non-creditworthy shippers at cut-rate prices.

Growth lies ahead for the North American gas industry as do anumber of risks and challenges, according to the just released”North American Natural Gas Trends 2000,” a joint report of ArthurAndersen and Cambridge Energy Research Associates (CERA).

Growth lies ahead for the North American gas industry as do anumber of risks and challenges, according to the just released”North American Natural Gas Trends 2000,” a joint report of ArthurAndersen and Cambridge Energy Research Associates (CERA).