The retreat of Northeast citygates from last week’s lofty levelswas still under way Monday, but the rate of decline was slowing.Otherwise, except for softening at Rockies and PacificNorthwest/western Canada points and moderate firmness at Midwestcitygates; flat to slightly lower pricing dominated the west of themarket.
Still
Articles from Still
PSC Approves Wisconsin Energy-WICOR Merger
The Public Service Commission of Wisconsin approved the proposedmerger of Wisconsin Energy Corp. and WICOR by a vote of 3-0. Thedeal still requires clearance from the Federal Trade Commission andSecurities and Exchange Commission. Nov. 2, the companies said theFTC had requested additional information in connection with theirHart-Scott-Rodino filing. Both companies have supplied additionalinformation and documentation in response to the request.
Statoil’s Trading, Power Systems Still on the Block
Statoil Energy’s sale of 1.1 Tcf of gas reserves and 6,500 wellsin the Appalachian Basin to Equitable Resources earlier this monthfor $630 million was the first of three possible transactions, aspokeswoman said last week. The latter two, which would include thecompany’s top-30 trading operations, and growing power developmentarm, are expected to involve an eastern-U.S. electric utility buyerand take place before March, according to one inside source.
Statoil’s Trading, Power Systems Still on the Block
The company began moving its Houston operations to its Alexandria headquarterslast week in preparation for closing down the Houston office. The Houstonmarketing and trading group is expected to be operating at least throughthe end of the month and plans to come up with a transition plan to ensureservice will not be disrupted.
Prices Flatten Out But Market Outlook Still Bearish
Despite consensus that the latest storage and weather news has beenbearish, the cash market did little more than march in place Thursdaywith only slight gains dominating at the great majority of points. Asmidgen of softness showed up in the Southwest basins, and theRockies, largely because of El Paso having lifted a low-linepack OFOlate Wednesday afternoon (see Daily GPI, Jan. 6).
Sempra Finds Little Use for D.C. Associations
While it is still too early to see if others in the industrywill follow the lead, Sempra Energy is not looking back afterdropping out of four major energy trade associations at year-end.Strategic direction, as much as cost-savings, was the key driver inthe $5 billion holding company’s decision, according to a seniorexecutive responsible for implementing the new direction. The moveis expected to save Sempra several million dollars annually in duesand expenses related to its employees’ participation.
Industry Briefs
The Federal Trade Commission (FTC) approved the merger ofDominion Resources Inc. and Consolidated Natural Gas Co. Stillpending are approvals by the Federal Energy Regulatory Commissionand the Securities and Exchange Commission, which are expected byyear end. The merger is expected to close in the first quarter of2000.
The Case of the Missing Molecules
Sixty U.S. gas pipelines are still trying to figure out whathappened to 106 Bcf of gas last year. The methane simply vanishedinto thin air at a cost of more than $200 million, according to asurvey of FERC Form 2 data by GRI. The GRI research shows that onaverage, each of those interstate pipes lost about 4.8 MMcf/d.
The Case of the Missing Molecules
Sixty U.S. gas pipelines are still trying to figure out whathappened to 106 Bcf of gas last year. The methane simply vanishedinto thin air at a cost of more than $200 million, according to asurvey of FERC Form 2 data by GRI. The GRI research shows that onaverage, each of those interstate pipes lost about 4.8 MMcf/d.
Merchant Power Plants Find Hard Times in CA
Although there are still proposals crowding the queue for newnatural gas-fired merchant power plants in California, the statehas lost a lot of its luster because of time-consuming sitingapprovals, environmental set-asides and a flawed pricing systemthrough the state power exchange (PX), according to a panel ofregulators and power plant developers.