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Almost two weeks after Williams and Duke Energy announced they wereacquiring The Coastal Corp.’s yet-to-be-built 744-mile GulfstreamNatural Gas System (pipeline), Coastal reported that it has enteredinto a $310 million purchase agreement with Berg Steel Pipe tomanufacture and deliver almost all of the steel piping needed forconstruction (see Daily GPI, Nov. 20).

Spot prices appeared to be aimed at escaping earth’s orbit Mondayas they skyrocketed by huge amounts, led by several western pointsrecording increases in triple digits. A strong screen had someinfluence, but it was frigid weather saturating most of the NorthAmerican continent and prompting a plethora of pipeline OFOs (see Transportation Notes) that played thebiggest role in a market that awed many participants.

Now that most of the production data for the third quarter isin, analysts generally are saying they “told you so” because U.S.gas production is barely making desperately needed gains.Production is, however, growing slightly more than expected, andsome observers see huge gains to be made next year.

Now that most of the production data for the third quarter isin, analysts generally are saying they “told you so” because U.S.gas production is barely making desperately needed gains.Production is, however, growing slightly more than expected andsome observers see huge production gains to be made next year.

SCANA and Fayetteville Public Works Commission (PWC) reportedthey have entered into a joint agreement to build and shareownership of a natural gas-fired 500 MW power plant that willsupply electricity to Fayetteville, NC, residents and businessesbeginning during the summer of 2004. Scana also will build a106-mile gas pipeline lateral from its existing pipeline system inSouth Carolina to supply the plant.

Williams and ONEOK reported yesterday that they have reached atwo-year agreement in which Williams will provide incremental firmtransportation service of 56,200 Dth/d to the Oklahoma Natural Gas(ONG) division of ONEOK.

The sponsors of Independence Pipeline and the associatedSupplyLink expansion project informed FERC on Friday that theyaccepted the mid-July decision awarding them certificates toconstruct their controversial Midwest-to-East Coast pipelineproject. The order is still subject to rehearing at the Commissionand then possibly to a court review. Combined, the two projects —SupplyLink, an upstream expansion of sponsor ANR Pipeline’sexisting system; and Independence, a 400-mile greenfield pipelinefrom Defiance, OH, to the Leidy Hub — would add about 1 Bcf/d ofwest-to-east firm transportation capacity at $803 million, servingthe growing gas needs of power generators in the east andNortheast. Partners in Independence are ANR, Williams’Transcontinental Gas Pipeline and National Fuel Gas Co.Independence and SupplyLink projects are targeted for in-service inNovember 2002.

Two Louisiana companies announced Friday they’ve cooked up apowerhouse gumbo, a stew that is expected to heat up the wholesalepower market in regional hubs around the country. New Orleans-basedutility giant Entergy and the Baton Rouge-based construction firm,The Shaw Group, are blending their talents to form Entergy-Shaw, astrategic joint venture that is expected to accelerate Entergy’sgoal of becoming a dominant low-cost wholesale power provider inkey regional energy hubs.

Two Louisiana companies announced Friday they’ve cooked up apowerhouse gumbo, a stew that is expected to heat up the wholesalepower market in regional hubs around the country. New Orleans-basedutility giant Entergy and the Baton Rouge-based construction firm,The Shaw Group, are blending their talents to form Entergy-Shaw, astrategic joint venture that is expected to accelerate Entergy’sgoal of becoming a dominant low-cost wholesale power provider inkey regional energy hubs.