Vastar

Blue Dolphin Energy has signed an agreement to build a gaspipeline in the Gulf of Mexico to transport 120 MMcf/d ofproduction for Vastar Resources. The new 3.4-mile, 12-inch diameterline will be designed to accommodate production from High IslandA-5 to Blue Dolphin’s Black Marlin Pipeline in High Island BlockA-6. Transportation service is expected to commence in 60 days.Blue Dolphin will own a 50% interest in the new pipeline at anestimated net cost of $1.1 million. It owns a 50% interest andoperates the Black Marlin Pipeline system, which currentlytransports 120 MMcf/d. Black Marlin has capacity to transport 200MMcf/d. Blue Dolphin Energy Company is engaged in the acquisitionand exploration of oil and gas properties, and the gathering andtransportation of natural gas and condensate.

Southern Company Energy Marketing (SCEM), the energy trading andmarketing joint venture of Southern Energy Inc. and VastarResources, Inc., has named Gary J. Morsches president. Currentlysenior vice president and COO, Morsches will have responsibilityfor all of SCEM’s commercial and administrative functions. He willoversee the trading, marketing, asset management, structuring,research and human resources functions for the company. MarceFuller, previously SCEM’s CEO, was named president and CEO ofSouthern Energy in July.

Southern Company Energy Marketing (SCEM), a joint venture ofSouthern Co. and Vastar Resources, said its second quarterelectricity sales jumped 21% to 48.2 million MWh from last year’ssecond quarter. Natural gas sales, however declined by 8% to 4.3Bcf/d.