Together

The fate of the Millennium, Independence, SupplyLink andMarketLink pipeline expansion projects, which together representabout 1.7 Bcf/d of new pipeline capacity directed at northeasternmarkets from the Midwest, have been scheduled for discussion onlyat FERC’s next regular meeting March 10. That move has sparked aconsiderable degree of speculation among FERC observers andpipeline representatives.

East Breaks Gathering Co., a new joint venture between LeviathanGas Pipeline, ANR Pipeline Co., and Natural Gas Pipeline Co. ofAmerica, said last week it is taking part in a $1.2 billion Gulf ofMexico joint development project between Amoco and Exxon. EastBreaks has agreed to build, operate and service a new pipelineextending from Amoco and Exxon’s western Gulf facility to aninterconnect that feeds ANR’s pipeline. Construction of the newpipeline and the producer’s deep-water drilling facility isexpected to be finished in mid-2000. Estimated reserves in the areawere not disclosed.

Negotiations reportedly are going on to bring together onceagain the Washington lobbying activities of large oil and naturalgas producers in the form of the American Petroleum Institute (API)and the Natural Gas Supply Assoc. (NGSA).

The screen was hot and the weather was hotter almost everywhereexcept on the West Coast. Put them together and you get Mondaytrading dominated by double-digit price increases at all pointsexcept the Rockies and Canadian markets.

Tennessee Gas Pipeline has filed plans to increase capacity onsix separate pipelines in the Gulf of Mexico that together wouldrepresent an increase of over 720 MMcf/d in offshore lines owned byTennessee and other parties and a net increase in deliverabilityout of the Gulf of 200 MMcf/d.