Seem

Four planned liquefied natural gas (LNG) import projects in Maine may seem like a crowd, but at least one of the developers believes it’s nice to have a little company. Having four projects on the table reinforces the message that LNG is definitely here to stay, said Dennis Bailey, of Saavy Inc., the public relations firm behind the Quoddy Bay LNG terminal.

With the 12-month strip of Nymex gas futures prices near $6.50 and the 24-month strip not far behind, $3/MMBtu gas prices seem an impossible dream for many consumers and a bizarre nightmare for producers. However, a new study by Denver-based consulting firm Bentek Energy LLC predicts that by this time next year that’s exactly what the Rocky Mountain region and possibly the rest of the natural gas market will see.

With the 12-month strip of Nymex gas futures prices near $6.50 and the 24-month strip not far behind, $3/MMBtu gas prices seem an impossible dream for many consumers and a bizarre nightmare for producers. However, a new study by Denver-based consulting firm Bentek Energy LLC predicts that by this time next year that’s exactly what the Rocky Mountain region and possibly the rest of the natural gas market will see.

Although political pressure and some editorial writers seem bent on goading California’s governor into action on new energy legislation in the waning days of this year’s legislative session, Gov. Arnold Schwarzenegger remained unmoved on Friday, following a letter from the lower house Assembly Speaker and a consumer group rally on the Capitol steps last Wednesday.

FERC last week gave the green light to a proposal that will allow Ameren Energy Generating Co. (AEG) to move forward with the sale of two generating units to affiliate AmerenUE.

The winter of 2002/03 doesn’t seem to realize its time is up. Snow and ice storms scattered from the central Plains through the Midwest and Northeast resulted in gains ranging from about a nickel to 45 cents in non-Rockies/San Juan Basin markets Monday, although a couple of scattered points barely eked out any increase at all.

Although its agenda has had few major energy items, the extreme delays that seem to surround many issues before the California Public Utility Commission (CPUC) in recent months have caused a new informal alliance of old and new members from different political parties. The newest and most controversial CPUC member, Michael Peevey, an economist, former utility senior executive and energy services multi-millionaire entrepreneur, has been unequivocal in chiding CPUC President Loretta Lynch for holding items too long for ostensible legal reasons or incomplete facts.

Economics, politics and public policy pressures seem to be converging against the creation of regional transmission organizations (RTOs) and more cohesive, coherent power markets in the West, according to a consultant and a generators’ representative who spoke at GasMart/Power 2002 last Tuesday in Reno. Although on opposite sides in California’s ongoing electricity restructuring debate, they agreed that regulators and public policymakers need to change their approaches substantially in the future.

Although it didn’t seem likely as recently as the middle of last week, the market may be on the verge of a much-anticipated turnaround from its long slide. Except for Rockies/San Juan and California border-SoCalGas declines, Monday’s trading saw flat to moderately higher prices at most other points, and much higher ones at PG&E-related points struggling out of the abyss into which they had plunged following Friday’s stringent OFO.