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KN Energy began an open season for its a 108-mile, 24-inchMonterrey Pipeline that would connect its MidCon Texas intrastatepipeline in Starr County, TX, to Monterrey, Mexico. The open seasonbegan last week and runs through 5 p.m. CDT July 30. KN expects tostart construction of the $50 million pipeline in 1999, withcompletion projected for the second quarter of 2000. Capacity isexpected to be 275 MMcf/d, and the pipe will serve gas-fired powerplants in Monterrey, local distribution companies, large industrialconsumers as well as future market opportunities.

KN Energy began an open season for its a 108-mile, 24-inchMonterrey Pipeline that would connect its MidCon Texas intrastatepipeline in Starr County, TX, to Monterrey, Mexico. The open seasonbegan yesterday and runs through 5 p.m. CDT July 30.

Transwestern expects to complete maintenance Thursday on itsTopock Lateral that has been curtailing about 125 MMcf/d ofdeliveries to the PG&E interconnect at Topock, AZ, since June1. However, another phase of work on the lateral will begin Friday,reducing to zero deliveries at Topock to Mojave, SouthernCalifornia Gas and PG&E through June 30. About 400 MMcf/d willbe impacted by the second phase.

Questar is cutting about 25,000 Dth/d while repairing mechanicalproblems that began Tuesday afternoon on its No. 3 compressor atFidlar Station.

The merger bandwagon continued Monday with the announcement of a$2 billion deal that would bring together Illinois-headquarteredIllinova Corp., which has a strong Midwest power generation baseand a developing national energy services business, withHouston-based Dynegy Inc., a leading marketer of energy productsand services. The merged company would be called Dynegy.

The Coastal Corporation has announced that its Coastal Powersubsidiary will build a 265 MW gas-fired power plant northeast ofDenver. Fulton Cogeneration Associates, L.P., an affiliate ofCoastal Power, will own and operate the plant and has entered intoa power purchase agreement with Public Service Company of Coloradobeginning in May of 2000. Construction of the facility will beginthis summer near Brush, CO. Colorado Interstate Gas Company, also asubsidiary of The Coastal Corporation, will build a pipeline fromits Young and Fort Morgan natural gas storage fields to transportnatural gas to the plant.

NOVA estimated that repairs to a flange assembly leak on its NorthLateral (see Daily GPI, May 17), whichstarted Wednesday, would take 24-36 hours to complete. Some receiptsupstream of Dusty Lake Compressor Station are being curtailed by thework.

Maritimes & Northeast Pipeline officials began constructionof the 203-mile mainline that will extend from outside theU.S.-Canada border near Baileyville, ME, to Westbrook, ME.Maritimes and its Canadian affiliate will transport gas from theSable Offshore Energy Project off the coast of Nova Scotia tomarkets in Atlantic Canada and the Northeast U.S. Constructionbegins with the clearing and grading of the right-of-way along thedesignated route followed thereafter by ditching and pipeinstallation. Earlier this year, Maritimes successfully completedthe horizontal directional drill crossings of the Androscoggin andSt. Croix Rivers.

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.