Stretch

The current “trough” hanging over the power sector is likely to stretch three to five years and a key factor in determining just how long the industry will be stuck in its current funk will depend, at least in part, on how many forecasted gigawatts actually come online over the next couple of years, said Thomas Boren, executive vice president at PG&E National Energy Group (NEG).

A fourth proposal for a liquefied natural gas (LNG) receiving terminal along a 60-mile stretch of Pacific Coast in North Baja California, Mexico, was formally announced by Royal Dutch/Shell Group. Shell outlined plans for a $500 million facility in Costa Azul, in the municipality of Ensenada, which is not far from the proposed site for another LNG terminal being planned by San Diego-based Sempra Energy. The Shell terminal will have a send-out capacity of up to 1.3 Bcf/d and is expected to come on stream in 2006.

Traders had realized that a belated stretch of severe winter weather throughout much of North America was the only thing keeping spot prices firm since the end of January, so it was purely a matter of “when” a market retrenchment would begin. The “when” turned out to be Wednesday, as across the board declines were topped by plunges ranging up to slightly more than 70 cents (Algonquin citygate) in the previously high-flying Northeast.

The $6 billion NiSource-Columbia merger is on its way down the homestretch, with only the Securities and Exchange Commission’s approvalleft in its path on the way to its predicted end of the yearcompletion date (see Daily GPI, July27). To ensure that the combined company moves through thetransition process smoothly, NiSource announced more post-mergerleadership positions for its lengthy list of business units.

After watching the market tumble 7.1 cents lower Monday, naturalgas bulls at the New York Mercantile exchange dug in their heelsyesterday as prices careened off support in the low $2.70s andmoved higher throughout the session. By virtue of its 3.7-centadvance and $2.751 settlement, the April contract nudged its wayback up well within the $2.67-90 trading range that has limitedprice movement since March 1. The May contract followed suit,trading up 3.7 cents to finish at $2.781, in a session that sawmoderate activity of 57,862.

Six marketers have succeeded in obtaining most of the Georgiagas market share, with Scana and Georgia Natural Gas Services(GNGS), the Atlanta Gas Light affiliate, emerging as definitivewinners, according to a study performed by Xenergy, the New YorkState Electric & Gas affiliate.

Six marketers have succeeded in obtaining most of the Georgiagas market share, with Scana and Georgia Natural Gas Services(GNGS), the Atlanta Gas Light affiliate, emerging as definitivewinners, according to a study performed by Xenergy, the New YorkState Electric &amp Gas affiliate.

As bidweek approached the home stretch Thursday, traders foundfixed prices mostly a little higher than they had been Wednesdaybut still considerably below where they had been at the start ofthe week Monday. A marketer whose earliest purchases into PanhandleEastern were in the mid $2.00s said the numbers rebounded to$1.93-94 Thursday after having dipped to just under $1.90Wednesday.

Confident parent companies Enova and Pacific Enterprises are inthe home stretch for final merger approval by the Securities andExchange Commission, Sempra Energy announced a deal with a nationaltelecommunications marketer, The Furst Group, Inc., that shows it’srapidly expanding in the nonregulated energy and communicationsservices arena.