Unit

Southern Company Energy Marketing – the marketing joint ventureof Southern Company unit Southern Energy and Vastar Resources’Vastar Gas Marketing and Vastar Power Marketing – plans to movesome of its Houston employees, mainly traders, to its Atlantaoffice.

Sempra Energy Solutions, the energy services unit of SempraEnergy, and Comfort Systems USA formed a strategic alliance todeliver energy solutions to mid-sized commercial and industrialcustomers. The companies will jointly market products and servicesinitially in California and the Western United States, andeventually nationwide.

Qatargas Liquefied Gas Co. and Duke Energy LNG Sales , a unit ofDuke Energy International, agreed for Duke to buy one cargo ofliquefied natural gas (LNG) from Qatargas.

Spirit Energy 76, Unocal Corp.’s Lower 48 exploration andproduction unit reached a definitive agreement to sellsubstantially all of its oil and gas assets in Michigan to NewstarEnergy USA Inc. and Omimex Energy Inc. for about $37.25 million incash and 670,000 shares of stock in Newstar Resources, the parentcompany of Newstar Energy.

Questar Corp. subsidiary Universal Resources will increase itsdaily gas and oil production 20% and reserves 31% with a $157.5million acquisition of HSRTW Inc., a Midcontinent regionexploration and production subsidiary of HS Resources of SanFrancisco. In the cash transaction, Universal will receive 150 Bcfeof proved oil and gas reserves (80% gas) primarily in Oklahoma, aswell as Texas, Arkansas and Louisiana. It also receives another 50Bcfe of reserves considered probable and possible. The propertiesinclude 1,000 wells in the Anadarko and Arkoma basins.

El Paso Energy’s Tennessee Gas Pipeline unit agreed in principlewith Pemex Gas Y Petroquimica Basica, a subsidiary of PetroleosMexicanos, to interconnect facilities between the companies’pipelines. The new facilities will be built from the end ofTennessee’s Donna lateral in Hidalgo County, TX, across theinternational border to Pemex’s existing facilities at Reynosa,Mexico. The interconnect is expected to be in service by January1999.

PG&E Gas Transmission-Northwest reported Tuesday it hadcompleted unscheduled maintenance on Unit C at Station 7 (see DailyGPI, June 24-26). Throughput capabilities returned to 2,500 MMcf/dat Kingsgate, 2,375 MMcf/d at Station 8 and 1,900 MMcf/d at Station14.

Dynegy Inc. – formerly NGC Corp. – plans to construct agas-fired, four-unit, 600 MW generation facility in RockinghamCounty, NC, and Duke Power, the electric utility of Duke Energysigned a letter of intent to buy the 600 MW of capacity and energygenerated by the power plant.

TECO Energy’s Peoples Gas unit is cutting up to 240 jobs due toits decision to discontinue the gas piping, appliance installationand repair business effective July 15.