Than

Fueled by a smaller than expected storage injection figure,natural gas futures continued higher yesterday morning asspeculative buying easily erased the Wednesday evening price dip.The buying pressure continued throughout much of the day as bullshad their sights squarely set on last week’s high of $2.72. Theirpersistence paid off, and shortly after 1 p.m. the prompt monthpunched through and notched a $2.75 high on the day. However, notenough follow-through buying was seen entering the market, and theresulting sell-off deposited prices back down near unchanged forthe day. The August contract finished just a half-penny higher at$2.647.

NiSource Chairman Gary Neale said his company has been meetingwith shareholders representing more than 30% of Columbia EnergyGroup’s outstanding common stock, including six of the eightlargest shareholders, and has found the investors eager to see thetwo companies begin negotiations on a potential merger transaction.

BT Alex. Brown analyst Adam Sieminski said he expects U.S. gasprices to average $2.10/MMBtu this year, which is up 15 cents fromhis previous forecast of $1.95/MMBtu, because of rising demand,declining wellhead deliverability and the falling storage surpluscompared to last year. Sieminski said the tightness in marketfundamentals will peak this winter and carry strong prices throughnext year. He raised his forecast for prices in 2000 to $2.40 froma previous estimate of $2.20.

BT Alex. Brown analyst Adam Sieminski said he expects U.S. gasprices to average $2.10/MMBtu this year, which is up 15 cents fromhis previous forecast of $1.95/MMBtu, because of rising demand,declining wellhead deliverability and the falling storage surpluscompared to last year. Sieminski said the tightness in marketfundamentals will peak this winter and carry strong prices throughnext year. He raised his forecast for prices in 2000 to $2.40 froma previous estimate of $2.20.

The shareholders of Santa Fe Energy Resources and Snyder OilCorp. approved the merger of the two companies during specialmeetings yesterday. More than 99% of the voting shareholders ofeach company voted in favor of the merger. The new Houston-basedcombined company, which will be called Santa Fe Snyder Corp., willhave a market capitalization of $1.6 billion, with reserves of 315million boe. Combined production for 1999 is expected to be 105,000boe/d, 55% of which will be gas and 70% of which will be producedin the U.S.

Crossroads Pipeline Co., a subsidiary of Nipsco Industries, said Thursday its open season to test shipper interest in the Crossroads Pipeline expansion exceeded the company’s expectations. Companies expressed interest in over 600,000 Dth/d for the proposed interconnect. The open season for the Crossroads expansion began February 16 and ended March 31.

Crossroads Pipeline Co., a subsidiary of Nipsco Industries, saidThursday its open season to test shipper interest in the CrossroadsPipeline expansion exceeded the company’s expectations. Companiesexpressed interest in over 600,000 Dth/d for the proposedinterconnect. The open season for the Crossroads expansion beganFebruary 16 and ended March 31.

Less than a week after buying the gas marketing operations ofSemco Energy, MCN Energy subsidiary CoEnergy Trading announced thepurchase of Michigan-based Howard Energy Marketing’s retail gasmarketing assets for an undisclosed amount. The purchases aredesigned to bolster MCN’s unregulated marketing operations and itsinterest in the proposed Vector and Millennium Pipeline projects,which will add 1 Bcf/d of new gas transportation capacity throughthe region starting in November 2000, the company said.

Less than a week after buying the gas marketing operations ofSemco Energy, MCN Energy subsidiary CoEnergy Trading announced itis buying Michigan-based Howard Energy Marketing’s retail gasmarketing assets for an undisclosed amount. The purchases aredesigned to bolster MCN’s unregulated marketing operations and itsinterest in the proposed Vector and Millennium Pipeline projects,which will add 1 Bcf/d of new gas transportation capacity throughthe region starting in November 2000, the company said.