When assessing the market of an acquisition target, allcustomers are not equal, Columbia Energy Group Chairman Oliver G.Richard told a merger and acquisition symposium this week.
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AGA Sees Promise in Regulatory Changes Ahead
Despite the increasing pressure of retail competition, thefuture is bright for gas utilities, American Gas AssociationChairman Dick Terry told investors last week. Terry, who also isCEO of Chicago-based Peoples Energy, told the New York Society ofSecurity Analysts he’s optimistic that federal and state regulatorsare headed in the right direction.
EIA Sees 16 Bcf/d of Pipe Capacity Planned for Next 2 Years
New pipeline development and expansions could add 16 Bcf/d ofcapacity to the national transmission network over the next twoyears (1999-2000) at an estimated cost of about $9.5 billion,according to a report by the Energy Information Administration.While all of the proposed projects may not be built, totalexpenditures are expected to far exceed the $5.1 billion investedduring the last major period of pipeline development in 1992-1993.
Study Sees Capacity Price Distortion As FERC Related
Any price distortions that are being seen in the short-termmarket, particularly with capacity-release transactions, are theresult of FERC policies and regulations, and can’t be pinned on theindustry publications reporting those prices, according to a jointstudy between pipelines and LDCs that was released last week.
EIA Expects Demand to be Down 6% in 4Q
The Energy Information Administration is projecting gas demandin fourth quarter to be 5-6% lower than it was in 4Q97, which was acolder-than-normal quarter. It sees 8.9% fewer heating degree-daysthis quarter than during the prior year’s period. All sectors areshowing lower gas demand in this quarter, except for electricutility gas demand, which may hold to levels seen in 4Q97. Overallnatural gas demand growth this year is now projected to be 2.9%below the 1997 level.
Peoples Sees Gas Futures In Chicago’s Future
Yet another gas futures contract could be coming down the pipe,this time in Chicago where a bounty of Canadian gas expected fromNorthern Border and Alliance Pipeline has Peoples Gas Light &Coke thinking its system could host the contract’s delivery point.
EIA Sees Slow Increase for Natural Gas Prices
The Energy Information Administration (EIA) in its Annual EnergyOutlook 1999 released Tuesday is forecasting only a gradual 0.8%average annual rise in natural gas wellhead prices through 2020.Prices will go from $2.23/Mcf in 1997 to $2.68 in 23 years later.
Peoples Sees Futures in Chicago’s Future
The bounty of Canadian gas expected to make its way to Chicagovia Northern Border and Alliance Pipeline has Peoples Gas Light& Coke thinking its system could host the delivery point foryet another gas futures contract.
CNG Boosting Budget Commitment to E&P
Consolidated Natural Gas (CNG) is taking advantage of depressedprices in the E&P sector and spending more of its money where itsees the most long-term bang for the buck. Having pulled out of themarketing business, CNG’s $524.5 million capital budget for 1999continues the company’s focus on expanding its exploration andproduction business. More than 60% of the 1999 budget is allocatedto CNG’s E&P subsidiary, CNG Producing Co.
EIA Sees Massive Gas Market Shift Under Kyoto Treaty
The gas industry’s share of the U.S. energy market is projectedto soar to 35% in 2010 from just 24% in 1996 if the U.S. followsone possible scenario to meet the requirements of the Kyoto Treaty,the Energy Information Administration said in a report to Congress.In contrast, the industry will grab only two percentage points moreof the energy market over that same period without the treaty.