Segment

Koch Gateway has planned maintenance for today and Friday forits Index 129 segment (West 30-inch mainline in East Texas). Exceptfor gas received and delivered south of Mile Post 98.33 (Koch’sColorado River crossing near the Wharton/Fort Bend County line),all other receipts south of 98.33 will be scheduled to zero.However, at shippers’ request, up to a total of 233,000 MMBtu/d ofdeliveries (the pipeline’s total firm obligation from the area)will be kept whole.

The natural gas producing segment will lose $200 millionannually for every penny increase in transportation costs that’srealized from the lighter handed regulatory initiatives – such asnegotiated terms and conditions and capacity auctioning – proposedby FERC, an official with a leading independent producer groupprojected.

Williams will abandon service Sept. 1 on its Pampa Line(designated as Line Segment 470), which runs from Hemphill County,TX to the Alva Compressor Station in Woods County, OK. As of Sept.1 Williams will not confirm nominations at any of 10 Pampa Linereceipt points. Point operators must either find other outlets fortheir gas or shut it in, Williams said. Shippers currentlytransporting from those points must replace the gas with othersupplies. The Hobart Ranch and South Bishop receipt points and theArnett and Irrigation delivery points, once connected to Pampa,have been moved to the Canadian-Blackwell Line (LS 458) and canstill be nominated on Williams.

Maritimes & Northeast Pipeline (M&NE) has received acertificate for the last segment of an 800-mile system designed tocarry up to 530 MMcf/d of natural gas from Sable Island offshoreNova Scotia into New England and the U.S. Northeast.

Look for NGC to focus its efforts on growing the powergeneration segment of its energy store concept of providing gas,power and gas liquids, CEO Chuck Watson told reporters in HoustonMonday. “We are going to optimize and strategically grow our powergeneration assets. Greater than 50%, probably almost 75%, of ouravailable cash flow in this company over the next several yearswill be in power generation, either greenfield projects, merchantplants, or in possibly acquiring some of these plants that are spunoff from the utilities over the next several years.”