Enogex Gas Gathering LLC has agreed to sell its natural gas gathering assets in Kinta, OK, to a subsidiary of Hiland Partners LP for $93 million. The assets include 568 miles of gas gathering pipeline and 23 compressor units with current volumes of approximately 145 MMcf/d, all in eastern Oklahoma. “The sale of these assets comes after careful analysis and is part of our repositioning and growth strategy,” said Danny Harris, COO of parent company Enogex Inc. “We expect this action to help us improve our long-term financial performance and position us to expand into other geographic areas of operation.” The transaction is expected to provide an after-tax book gain of $34 million and is currently scheduled to close by the end of April. The transaction is subject to customary closing conditions and regulatory reviews.
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NGI The Weekly Gas Market Report
FERC Accepts Enron-Sierra Pacific Western Crisis Agreement
FERC last Wednesday accepted an agreement by Nevada Power and Sierra Pacific Power, units of Sierra Pacific Resources, with Enron Corp. that resolves issues outstanding from the 2000-2001 western energy crisis.
Duke Energy Plans Income Fund IPO for Canadian Midstream Assets
Duke Energy Corp. is spinning off its Canadian midstream business into an income fund and is planning an initial public offering (IPO) of trust units of the fund. The announcement in Canada Friday by Duke Energy Income Fund said a preliminary prospectus has been filed with securities regulatory authorities in all of the Canadian provinces.
Transportation Notes
Due to its Washington Ranch storage facility being scheduled for annual Department of Transportation inspections, modifications to storage field piping and upgrades to compressor units this month, El Paso said there will be no injections or withdrawals Sept. 11-18. Also, injections will be limited to about 75 MMcf/d Sept. 19-30, but withdrawals will be possible during that time. These projects will cause El Paso to lose a large degree of operational flexibility, “making it critical that all parties scheduling gas on our pipeline manage their volumes carefully to balance receipts and deliveries daily,” the pipeline said. In order to maintain system integrity, it may place nonperformance caps on receipt/delivery pipeline interconnects, and is prepared to declare a Strained Operating Condition or Critical Operating Condition if necessary.
Uncertainty Lingers Over Damaged Gas Processors, Pipeline Integrity
Uncertainty about when gas processing units damaged by Katrina will ramp up again, as well as concerns about pipeline integrity, continued to provide market support on Thursday. The Minerals Management Service (MMS) reported that offshore gas production had barely moved from levels on Wednesday.
TXU Splits Into Wholesale, Retail, Names New Execs
TXU Corp. announced the formation of a new corporate structure with separate retail and wholesale divisions on Wednesday and named two new executives to lead the new units. James A. Burke, formerly with Gexa Energy, Reliant and Coca-Cola, was named chairman and CEO of TXU Energy, the retail business, and Michael T. McCall, former president of TXU Gas, was named chairman and CEO of TXU Wholesale, which will optimize the wholesale energy purchases for the company’s power generation and retail operations.
Transportation Notes
Florida Gas Transmission said Friday it is performing unscheduled maintenance on one of the two units at Compressor Station #3 in Port Lavaca, TX. The outage is expected to last through Sept. 15. During this work FGT will schedule up to about 160,000 MMBtu/d through the station. During normal operations it schedules up to 230,000 MMBtu/d. The reduction took effect Saturday.
Transportation Notes
Sonat said Tuesday it has identified a need for unscheduled maintenance on one of three compressor units at its Muldon Storage Field in Mississippi. Based on the best information available, it projected that the unit would return to service Friday evening. It did not estimate whether there would be any service impact.
El Paso Posts 2Q Profit, Discloses Investigation in Iraqi Oil Sales
Boosted by stronger results in its regulated business units, El Paso Corp. reported Tuesday that it recorded a profit in 2Q2004. With Securities and Exchange Commission (SEC) approval, El Paso filed the quarterly statement late to reconcile prior income statements between 2001 and 2003.
El Paso Posts 2Q Profit, Discloses Investigation in Iraqi Oil Sales
Boosted by stronger results in its regulated business units, El Paso Corp. reported Tuesday that it recorded a profit in 2Q2004. With Securities and Exchange Commission (SEC) approval, El Paso filed the quarterly statement late to reconcile prior income statements between 2001 and 2003.
