Qatargas Liquefied Gas Co. and Duke Energy LNG Sales , a unit ofDuke Energy International, agreed for Duke to buy one cargo ofliquefied natural gas (LNG) from Qatargas.
Sales
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Dreyfus Gets $40M for Ending Contract
Louis Dreyfus Natural Gas received a payment of $40 million forearly termination of a long-term, fixed-price gas sales contract.The terminated contract, which was with an independent powerproducer, covered 4 Bcf/year of gas which would have been deliveredthrough 2006. The total volumes of 33 Bcf, covered by thisterminated contract, are now available to be sold to othercustomers or in the spot market. Proceeds will be used to reducebank debt. The payment monetizes a portion of the value of Dreyfus’portfolio of long-term, fixed-price contracts. The value of thesecontracts is not reflected on its balance sheet. In the aggregate,the remaining contracts have a present value (discounted 10%) inexcess of market of about $125 million.
Avista Moves Up in Marketing Rankings
Avista Energy said it’s quickly moving up in the gas and powermarketer rankings, increasing its power sales by 90% in the firstquarter of 1998 compared with the fourth quarter of last year andgrowing gas trading volumes by 42% over the same period.
Edison Buys Options on 740 Bcf to Hedge Power Sales
In a move that could be replicated as other states open theirelectric markets, Southern California Edison, the nation’s secondlargest electric utility, has purchased options on 740 Bcf offuture natural gas supplies for an undisclosed price as a means ofhedging against what is expected to be a highly volatile wholesaleprice for electricity in California’s newly established mandatorywholesale spot market, called the Power Exchange (PX).
Mitchell Replaces 187% of Gas & Oil Reserves
Mitchell Energy & Development replaced 187% percent of thegas and oil reserves it produced in fiscal 1998, even while settinga new high for annual gas sales of 238 MMcf/d.