Rival

Although the official word at Dynegy Corp. is that its merger with downtown Houston rival Enron Corp. remains on track, a source close to the negotiations said Dynegy is “talking to all of the parties involved in this transaction,” and suggested that the deal could be revised in the very near future.

As early as today an announcement may be forthcoming that downtown Houston rival Dynegy Corp. may ride to the rescue of Enron Corp. in either a merger or a $2 billion cash infusion through its 27% shareholder ChevronTexaco. Several sources, including the The Wall Street Journal, report that the companies’ directors were in talks to work out a deal to revive Enron — still responsible for 25% of the energy trades made around the world. Neither Dynegy nor Enron would comment.

The winter peak in gas demand has a new rival: summer peakdemand. And many market observers are wondering if the two canco-exist. With rapidly increasing gas-fired generation, theindustry will be hard pressed to meet traditional loads whileserving what once was considered a low priority customer – thepower generators.

The winter peak in gas demand has a new rival: summer peakdemand. And many market observers are wondering if the two canco-exist. With rapidly increasing gas-fired generation, theindustry will be hard pressed to met traditional loads whileserving what once was a low priorty — the power generators.

Houston-based Newfield Exploration Co. entered the new Milleniumwith a bang, agreeing to buy rival Lariat Petroleum Inc. for nearly$333 million in cash, stock and assumed debt, and boosting itsreserves by about 40%. The properties, 90% in the Anadarko Basin ofOklahoma, produce 60 MMcf/d, and include 256 Bcf of reserves.

Houston-based Pogo Producing Co. announced yesterday it willacquire cross-town rival Noric Corp. for $750 million in cash anddebt, upping its reserve base by 63% and increasing its projectedannual 2000 production by 35% — with most of the new assets innatural gas fields in Texas, Louisiana and the Rocky Mountains.Noric is the parent corporation of North Central Oil Corp.

Pipeline competition in the Rockies is heating up with a newpipeline project launched yesterday by Williams and changes to aplanned extension announced by rival Trailblazer Pipeline.

CNG Transmission Corp. last week called on FERC to dismiss thepending application of potential competitor Independence Pipeline,claiming that the 400-mile project was based on out-dated andfaulty demand projections for the Northeast gas market and lackedbinding precedent agreements. In addition, it said Independence hasdrawn “substantial opposition” from affected landowners andenvironmental groups.

CNG Transmission Corp. last week called on FERC to dismiss thepending application of potential competitor Independence Pipeline,claiming that the 400-mile project was based on out-dated andfaulty demand projections for the Northeast gas market and lackedbinding precedent agreements. In addition, it said Independence hasdrawn “substantial opposition” from affected landowners andenvironmental groups.