Tuesday

Enron Energy Services (EES) inked its largest energy management outsourcing contract last Tuesday, as Suiza Food Corp., a Dallas-based manufacturer and distributor of dairy products, agreed to receive comprehensive energy management services at more than 50 manufacturing facilities in 24 states. The contract continues EES’ outsourcing success, marking the fourth major deal in the last five months.

Enron Energy Services (EES) inked its second major energymanagement outsourcing contract in the last three months Tuesday,as Suiza Food Corp., a Dallas-based manufacturer and distributor ofdairy products, agreed to receive comprehensive energy managementservices at more than 50 manufacturing facilities in 24 states.Although no amounts were disclosed, Enron did say the ten-year dealis its biggest outsourcing contract.

Adding to the price erosion that began last Tuesday, natural gasfutures tumbled lower at the New York Mercantile Exchange Monday asunsupportive cash market values met with heavy local selling.However, when a second wave of selling failed to materialize,speculative traders were forced to cover shorts into the closeyesterday, sources said. The August contract finished at $2.144,down 1.9 cents on the day.

After a volatile three days of seller-dominated trading Tuesday,Wednesday and Thursday last week, the futures market was quietFriday as light pre-weekend short covering was almost perfectlymatched by follow-through selling. The August contract could manageonly a 4.5-cent trading range before finishing 0.1 cents higher forthe day at $2.163. Estimated volume was relatively modest, with55,158 contracts changing hands.

Northern Natural Gas extended a System Underrun Limitation orderfor all market-area zones through Monday. The SUL was initiatedTuesday to guard against excessive linepack (see Daily GPI, June 30).

After a spirited rally Tuesday that propelled the Augustcontract to its highest level since July 15, the market took abreather Wednesday as traders elected to wait on the sidelinesahead of fresh fundamental news. The prompt month finished down 0.6cents at $2.394 in choppy, range-bound trading.

Nuevo Energy, a Houston, TX-based exploration and productioncompany, bolstered its California position Tuesday by paying Texaco$61 million for interests in six oil and gas fields. Includingthese acquisitions, 87% of Nuevo’s total reserves and productionwill be based in California.

In an attempt to expand its Gulf Coast influence, MidcoastEnergy Resources Inc. purchased Southern Industrial Gas Corp.(SIGCO), a Gulf Coast distributor, Tuesday. Terms of thetransaction were not disclosed.

Northern Natural Gas had a System Underrun Limitation in effectTuesday for all market-area zones to guard against excessivelinepack.