There have been 26 natural gas utility mergers announced since1995, with 15 of them occurring in the past year and seven in themonth of June alone. And there are “many more” to come, accordingto a Merrill Lynch report released last week.
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KN Marketing Signs Gas Management Deal
Continuing a flurry of activity since its proposed merger withSempra Energy fell through (See related story), KN Energy was at itagain Friday as its marketing affiliate, KN Marketing, announced itwas selected to provide gas and fuel management services to a 600MW power plant in Elwood, IL. KN will supply 10 Bcf/year to thisplant at an undisclosed price. The Colorado-based company will alsomanage the plant’s fuel service, including supplying, balancing andmanaging storage and transportation.
Market Slide Comes to End With Modest Upturn
The moderate price slide that defined much of the cash marketsince late last week reached a plateau Tuesday as flat to slightlyhigher pricing dominated reports. The correlation of cash movementwith a tight-ranged screen was very high, sources said. A gradualwarming trend was just starting to be felt in the major marketareas of the Midwest and Northeast, they added, but it was lendingsupport to small price increases at citygates and in the Gulf Coastand Midcontinent regions.
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Virginia Gas Co. announced that Glenn Rogers has accepted theposition of chairman of the board of directors. Rogers served onthe board of directors since June 1998.
Nymex Fall-Off Tempers Bullish Euphoria
It has been a good spring for bull traders at Nymex. SinceFebruary 26, the now-spot June contract has rallied nearly 70 centsto trade as high as $2.40 last week. But just as constructivetechnicals and low storage injection figures seemed to point tocontinued strength, the market spiraled lower Thursday and Friday.And while long liquidation spurred by the bearish one-two combo ofnuclear units coming back on line and moderating temperaturesacross the country were as good as reasons as any for the marketturning lower, traders remain divided as to the price directionheading into the summer. June finished the week mixed at $2.273, 2pennies above its close from the prior Friday, but 2.2 cents lowerfor the day.
Aftermarket Starts With Dime Slides Below Indexes
Any traders who decided that since April proved to be a goodmonth for long supply positions, they should continue the strategyfor May may be regretting that decision now. Though there is stillample time for price recovery-and at least one major aggregatorremains very bullish about the May swing market-the earlyaftermarket was headed south to the tune of about a dime or morebelow indexes in weekend deals done Friday.
Animosity Breaks Out Between AGL, GPSC
The bitter atmosphere existing in Georgia since the GeorgiaPublic Service Commission (GPSC) accused Atlanta Gas Light (AGL) ofovercharging its customers last month intensified last week as theGPSC filed biting pre-testimony for a Feb. 3 hearing, only to haveAGL respond in a public outcry. If the hearing occurs, thecommission expects a decision on the case by Feb. 9.
CMS Survives Warm Year; Looks to Future
Despite the warmest year since 1921 in Michigan and a poorfourth quarter, CMS Energy announced a growth in net income to $284million, or $2.65 per share, in 1998 from $244 million, or $2.39per share, in 1997. The company credited improvements in both itsutility and international energy businesses as reasons for thegrowth.
Northern Border Still Ramping Up
Nominations for the trip to Chicago on Northern Border reached490 MMcf/d yesterday, which shows the line has been ramping upgradually since beginning service on Dec. 22, but the pipe still isabout 175 MMcf/d short of being full.
Hansen Chosen Leader Of New Gas Committee
Christine Hansen, Interstate Oil and Gas Compact Commission(IOGCC) executive director since 1993, was named to the newCommittee on Natural Gas for the National Petroleum Council (NPC).The committee, formed at the request of U.S. Secretary of EnergyBill Richardson, has been charged with a reassessment of its 1992study “Potential of Natural Gas in the United States,” and willreport back to Richardson by mid-1999.The study will focus on thecapability of the industry to meet growing gas demands and alsowill compare the 1992-98 actual supply-demand with projections madein the 1992 study.