Welcome

Eastern Canada is rolling out a welcome mat for new liquefied natural gas (LNG) import terminals, with two projects taking strides towards construction on top of one being built in New Brunswick.

Analysts last week predicted steep declines in gas storage levels, welcome news for an industry that had been choking on inventory while it waited for winter to finally show.

Although its credit ratings remain in the “junk” category, Aquila Inc. received some welcome news last week from Standard & Poor’s Ratings Services (S&P) after it upgraded the Kansas City, MO-based company’s corporate credit rating to “B-” from “CCC+” and removed it from CreditWatch. Fitch Ratings also raised its outlook on Aquila to “stable” from “negative,” and affirmed its rating at “B+,” the fourth-highest junk rating.

Although its credit ratings remain in the “junk” category, Aquila Inc. received some welcome news Wednesday from Standard & Poor’s Ratings Services (S&P) after it upgraded the Kansas City, MO-based company’s corporate credit rating to “B-” from “CCC+” and removed it from CreditWatch. The outlook remains negative.

While the Energy Information Administration’s (EIA) efforts to improve the transparency of natural gas production data are “welcome,” the proposed monthly reporting process will be “costly for the industry and will be duplicative of other existing reporting efforts,” according to comments filed last week by an industry coalition of major and independent producers.

Sure to be a welcome boost to its third quarter results, Sempra Energy’s Southern California Gas Co. gained a $48.2 million reward from the California Public Utilities Commission Thursday for the success of it multi-billion-dollar annual gas-buying program over a two-year period, 2000-2002.

Dynegy Inc. and its subsidiaries received welcome news from Moody’s Investors Services on Thursday that their credit rating outlook improved to “developing” from “negative.” The action followed the Houston-based company’s announced refinancing and restructuring plans earlier this week (see Daily GPI, July 16).

The Michigan Public Service Commission brought state energy consumers welcome news about winter natural gas supplies. With state gas demand expected to decline 1% this winter to 873 Bcf, and national and state (544 Bcf) gas storage levels near full, Michigan gas supplies should be more than adequate this winter, despite sharply lower in-state production levels. However, utility rates are still relatively high, compared to current wholesale price levels, the PSC said in its Michigan Energy Appraisal.

The Michigan Public Service Commission brought state energy consumers welcome news about winter natural gas supplies. With state gas demand expected to decline 1% this winter to 873 Bcf, and national and state (544 Bcf) gas storage levels near full, Michigan gas supplies should be more than adequate this winter, despite sharply lower in-state production levels. However, utility rates are still relatively high, compared to current wholesale price levels, the PSC said in its Michigan Energy Appraisal.