Ventures

Both Energy and Environmental Analysis (EEA) and Energy Ventures Analysis (EVA), two Arlington, VA-based energy industry consulting firms, predict that natural gas prices will be pressured lower this year — EEA says possibly as low as $4/MMBtu by the end of the gas storage injection season.

El Paso Corp.’s oil and natural gas production business will pull out of some riskier ventures and return its underperforming “base” U.S. assets to profitability, the unit’s president said last week. With a tighter focus, and assuming natural gas prices hold at or above $4.25/MMBtu, El Paso Production Co. President Lisa Stewart forecast the business will “turn the corner in 2004.”

El Paso Corp.’s oil and natural gas production unit will pull out of some riskier ventures and return its underperforming “base” U.S. assets to profitability, the unit’s president said Tuesday. With a tighter focus, and assuming natural gas prices hold at or above $4.25/MMBtu, El Paso Production Co. President Lisa Stewart forecast the business will “turn the corner in 2004.”

Los Angeles Department of Water and Power (LADWP) is striking out into new gas supply ventures, looking at buying the undeveloped California portion of Questar Corp.’s converted oil-to-natural gas Southern Trails pipeline, preparing to sign its first of three pre-paid, 10-year natural gas supply deals with a Native American tribe, and joining with other Southern California munis to line up natural gas reserves behind a new power plant in Burbank, CA.

Los Angeles Department of Water and Power (LADWP) is striking out into new gas supply ventures, looking at buying the undeveloped California portion of Questar Corp.’s converted oil-to-natural gas Southern Trails pipeline, preparing to sign its first of three pre-paid, 10-year natural gas supply deals with a Native American tribe, and joining with other Southern California munis to line up natural gas reserves behind a new power plant in Burbank, CA.

Imperial Oil Resources Ventures Ltd. plans to begin drilling operations as early as July on its deepwater acreage on the Scotian slope, located southeast of Halifax, pending final regulatory approval. Imperial’s announcement followed a call for bids on four offshore packages unveiled by the Canada-Nova Scotia Offshore Petroleum Board (CNSOPB).

Imperial Oil Resources Ventures Ltd. plans to begin drilling operations as early as July on its deepwater acreage on the Scotian slope, located southeast of Halifax, pending final regulatory approval. Imperial’s announcement followed a call for bids on four offshore packages unveiled by the Canada-Nova Scotia Offshore Petroleum Board (CNSOPB).

Putting to rest the capacity release contract dispute raised by Tenaska Marketing Ventures against Northern Border Pipeline Co. in the wake of Enron Corp.’s bankruptcy, FERC ruled last Wednesday in favor of Northern Border, denying Tenaska’s complaint against the pipeline.

Dominion has agreed to purchase 100% of the interest in Mirant State Line Ventures Inc. from Mirant for about $182 million. The company’s assets include the 515 MW coal-fired State Line power station located near Hammond, IN, which serves the Chicago area. Dominion also will assume the power purchase agreement with the sole purchaser, Exelon, whose agreement expires in 2012.