Services

Columbia Energy Group is looking for a new executive to head itsColumbia Energy Services after the departure of CES President PaulFeldman. An announcement Friday said Feldman would be leaving topursue other opportunities. “Our CES operation has grownconsiderably over the last two years under Paul’s leadership,” saidColumbia Energy Group Chairman Oliver G. Richard III. “We thank himfor his contributions and wish him well.”

Thunder Creek Gas Services LLC, a joint venture of Devon EnergyCorp. and KN Energy, has begun construction of a 126-mile gasgathering system in the Powder River Basin of northeast Wyoming.The system is expected to be operational by fall at a total cost ofabout $100 million.

While the real price of other goods and services in the U.S.increased by 34% since 1987, the price of natural gas to consumershas decreased by an average 14%, from 1987 to 1997, according to areport used by the American Gas Association to show FERC thatretail unbundling is working. The distributors’ group told afederal/state regulatory policy conference Thursday the price toconsumers went from an average $4.47/Mcf in 1987 to $3.85 in 1997(all in 1997 $). Of that delivered price the total transportationand distribution cost to consumers went from $2.23 to $1.53, a 31%decline, AGA said, citing surveys by the Energy InformationAdministration. During the same period the wellhead price wentfrom $2.24 (in 1997 $) to $2.32 in 1997.

Duke Energy Power Services (DEPS) has signed a 10-year leasewith the Port of San Diego to operate and eventually replace the706 MW South Bay Power Plant located just south of San Diego in thecity of Chula Vista.

Shell Oil affiliate Tejas Natural Gas Liquids LLC and EnterpriseProducts Partners L.P. have formed joint venture Entell NGLServices LLC to develop a gas liquids transportation anddistribution system. Entell’s initial asset base will includesubstantially all of Enterprise’s existing pipeline facilities inLouisiana. In addition, Entell will create a pipeline systemlinking storage at Breaux Bridge, LA, to Mont Belvieu, TX. Entellanticipates the system being capable of distributing products fromkey NGL sources in southern Louisiana directly to major NGLmarkets, including the lower Mississippi River corridor, Dixiepipeline, Lake Charles, LA, and Mont Belvieu.

Calpine Corp. power marketing affiliate Calpine Power Servicessigned a one-year sales agreement with LG&E Energy Marketing(LG&E) to provide 150 MW from Calpine’s Texas power systembeginning January 1999. Calpine’s Pasadena Power Plant will provide140 MW of electricity, with the additional 10 MW coming from thecompany’s Texas City and Clear Lake facilities. With thisagreement, Calpine has now sold all of the power from its existingPasadena facility through 2001.

Joseph P. Kearney, 52, a leading figure in the energy servicesindustry responsible for building the nation’s largest independentelectric generation producer, died of an apparent heart attackwhile in Washington, D.C., Oct. 3 to attend a charity dinner forthe Lombardi Cancer Research Foundation.

El Paso Field Services said its Global Compression Project inthe San Juan Basin is now complete, providing producers with anadditional 40,000 horsepower of compression, new gas dehydrationfacilities and 54 miles of new pipeline looping.

KN Energy and Devon Energy signed a letter of intent to formThunder Creek Gas Services and build a new $110 million, 126-milegas gathering system and associated facilities in the Powder RiverBasin of northeast Wyoming. The 24-inch diameter gathering systemwould extend between Gillette and Glenrock, WY, bringing up to 450MMcf/d of new production to connections with multiple downstreampipelines during the first half of 1999.