Upgrades

Coming a day after the company decided to upgrade its exploration and production strategy, Kerr-McGee Corp. said last Thursday its board of directors has approved the development of the Red Hawk area in the deepwater Gulf of Mexico, in Garden Banks Block 877. With estimated proven reserves of more than 250 Bcf of natural gas, the Red Hawk natural gas field will be developed using a new state-of-the-art mini-floating production facility.

Marking its first petition for a rate increase in seven years, Progress Energy subsidiary, NCNG, said Monday that it has filed with the North Carolina Utilities Commission (NCUC), seeking an increase in natural gas service rates for its customers. The company said it is seeking to recover the cost of serving its 176,000 residential, commercial, industrial and municipal customers.

Yankee Gas Services Co. has begun the first phase of a $23 million comprehensive, multi-year expansion of its natural gas distribution system that will include 70 miles of new gas mains and services throughout its service territory in Connecticut. The expansion follows an agreement with state regulators when the company completed its merger with Northeast Utilities (see Daily GPI, Dec. 30, 1999).

Compression upgrades on parts of the Southern California Gas Co. pipeline infrastructure along with using cushion gas from several storage fields, including SoCal’s idle Montebello field, may be the last and best hope of avoiding a meltdown in California’s natural gas transmission pipeline infrastructure this summer under the weight of heavy demand from electric generators, a state energy expert told California legislators last Wednesday.

Temporary compression upgrades on parts of the SouthernCalifornia Gas Co. pipeline infrastructure along with using cushiongas from its idle Montebello underground storage field may be thelast and best hope of avoiding a meltdown in California’s naturalgas transmission pipeline infrastructure this summer under theweight of heavy demand from electric generators, a state energyexpert told California legislators Wednesday.

California’s power plant siting agency gave unanimous approvalWednesday to Duke Energy’s plans to build new facilities at itsexisting Moss Landing generating plant along the central Californiacoast, adding 1,200-MW capacity while eliminating eight 225-footsmoke stakes and 10 oil storage tanks for the existing plant sitedeveloped in the early 1950s. After a 22-month approval process,Duke officials said earlier in the week they will beginconstruction Monday, assuming they receive a final local waterpermit as expected on Friday.

Seeking greater operating flexibility in what is expected to bea more fluid California natural gas market following industryrestructuring, Occidental Petroleum has started work on a $9million, 12-mile, 16-inch gas pipeline out of Elk Hills to the eastof the massive reserve. It will interconnect with Pacific Gas andElectric’s transmission line swinging north from the Arizonaborder, providing the first interconnection between Four Cornerssupplies and PG&E when combined with earlier Elk Hillsconnection work done by Oxy.

Seeking greater operating flexibility in what is expected to bea more fluid California natural gas market following industryrestructuring, Occidental Petroleum has started work on a $9million, 12-mile 16-inch-diameter gas pipeline out of Elk Hills tothe east of the massive reserve. It will interconnect with PacificGas and Electric Co.’s transmission line swinging north from theArizona border, providing the first interconnection between FourCorners supplies and PG&E when combined with earlier Elk Hillsconnection work done by Oxy.