Study: New Pipe Will Cut Eastern Canada’s Costs

Due to an expected rise in Alberta’s prices, eastern Canadiangas buyers will save up to 25% off their delivery costs byswitching suppliers, once the major ongoing pipeline expansionsfinish, a study jointly prepared by Energy ERA (Calgary) and A.E.Sharp & Associates (Toronto) said. The multi-client study,which involved a comprehensive evaluation of the entire NorthAmerican natural gas marketplace and focused on the continentalNortheast, said the savings are expected to begin in the 2000contract year and last until at least 2005. The largest savingsyear will be when the Alliance opens in 2001.

February 5, 1999

FERC, Utah Regulators in Sync on Questar Gas

Recent decisions by FERC and Utah regulators involving theextent of their jurisdiction over the interstate transportationrole of Questar Gas, a Utah-based LDC, don’t appear to becontradictory, say lawyers and company officials.

January 22, 1999


Devon Energy Corp. and Canadian-based Northstar Energy Corp.completed their merger, which was announced June 29. Devon isissuing about 16.1 million common equivalent shares to theNorthstar shareholders. In addition, Devon is assuming US$312million in existing Northstar debt. Northstar shareholders arereceiving 0.235 exchangeable shares for each Northstar share. Witha total capitalization of $1.9 billion, the merged company DevonEnergy Corp. is one of the top 15 U.S.-based independent oil andgas producers. The company is balanced with 54% of its provedreserves in the United States and 46% in Canada and has totalproved reserves of about 300 million Boe.

December 21, 1998

Coral, AlliedSignal Form Distributed Generation Alliance

Since last summer Coral Energy and AlliedSignal Engines havekept a lid on their alliance to market cogeneration solutions toindustrial customers because the generation market has become socompetitive. The two companies finally brought the deal out in theopen last week. It is one of the first alliances between a majorenergy and financial services company and a leading manufacturer ofgas turbine engines for cogeneration units.

December 14, 1998

Devon, Northstar Complete Merger

Devon Energy Corp. and Canadian-based Northstar Energy Corp.completed their merger, which was announced June 29 (see NGI July6, 1998). Devon is issuing about 16.1 million common equivalentshares to the Northstar shareholders. In addition, Devon isassuming US$312 million in existing Northstar debt.

December 14, 1998

BP Shareholders Approve Merger with Amoco

BP shareholders gave their overwhelming support to the company’smerger with Amoco last week. About 700 shareholders voted toapprove the merger at a general meeting at the Royal Festival Hallin London. Shareholders representing another 3.2 billion sharesvoted by proxy with 92% approving the merger. Chairman PeterSutherland called the vote a “massive endorsement” of the deal. Theall-stock transaction will result in a 60-40 equity split with BPshareholders having the majority.

November 30, 1998

Pipeline Protestors Are Younger, More Colorful

Protestors who are writing to FERC to express theirdissatisfaction with pipeline projects are getting younger and morecolorful.

November 23, 1998

TriState Files to Build 650 MMcf/d Gas Line

CMS Energy and Westcoast Energy filed an application with FERClast week for the U.S portion of their TriState Pipeline project, a650 MMcf/d gas pipeline that would extend to the Dawn Hub inOntario from Joliet, IL, near Chicago.

November 16, 1998

Front Runner on Hold as Front Range Starts

The alliance of Public Service Co. of Colorado (PSCo) andColorado Interstate Gas (CIG) have launched the operation of their53-mile, $25 million Front Range Pipeline stretching from theWyoming border south to Platteville, CO, and effectively haltingdevelopment of a competing 109-mile Front Runner Pipeline, proposedby Denver-based KN Energy.

November 16, 1998

Cash Prices Meet Expectations, Make Their Way Down

As most players expected for Thursday’s cash market, gas pricestumbled across the board amid moderating temperatures throughoutmajor markets nationwide. Cash prices fell about a dime on averageat most trading points.

November 13, 1998