Well

The gas market actually did pretty well last year considering itwas the warmest year on record, but it may take an ice age toreduce the surplus storage gas bequeathed to 1999. Spotdelivered-to-pipeline gas prices in the U.S. averaged $2.02/MMBtuin 1998, down 41 cents, or 17%, from 1997. Some points fared betterthan others and the West generally did better than the East. Canadaactually came out ahead.

A new study finds all is not well with the relationship betweenenergy marketers and service companies and their commercialcustomers. Indeed, BENTEK Energy Research says “commercialcustomers feel marketers and ESCOs promise prices that are notrealized, underperform on services, and they are not meetingcustomers’ needs in helping to reduce their energy consumption.”

A new study finds all is not well with the relationship betweenenergy marketers and service companies and their commercialcustomers. Indeed, BENTEK Energy Research says “commercialcustomers feel marketers and ESCOs promise prices that are notrealized, under-perform on services, and they are not meetingcustomers’ needs in helping to reduce their energy consumption.”

Unicom Corp.’s 2,698 MW Collins gas-fired power station could goup for sale as well as 1,396 MW of peaking units. A sale of theplants would mark the company’s exit from non-nuclear generation.As of Nov. 29, the gas plants burned nearly 45 million Btu of gassince the first of the year, a spokeswoman said.

A constructive price move near the close of trading Tuesday anda well-bid over-the-counter market Wednesday morning had bullschamping at the bit early yesterday. But by afternoon, forecastscalling for a moderation of the cold weather gripping much of themiddle of the country had begun to filter through the futuresmarket which left prices to trickle lower. Both the December andJanuary contract slipped 4.6 cents, settling at $2.432 and $2.557respectively.

It seemed that virtually everyone in the gas trading communitywas glad to bid a not-so-fond farewell to a September fraught withhurricane hassles and get on with an October in which theaftermarket is starting out very strongly. Swing deals being doneWednesday for today’s flow generally ranged from 10 to 20 centsabove bidweek averages. Late quotes for October baseload also wererebounding after most points had sunk steadily to the bottom end oftheir ranges.

The gas industry might very well see another trading point inthe Garden City discharge facility of the Nautilus Pipeline. “We’vegot just about everybody connected that we initially planned to.We’re in negotiations with Columbia, and we’re finishing upnegotiations with Koch and ANR,” Nautilus President Bill Hastingstold NGI. Connections with Koch and ANR are expected this summer.Columbia also should be on line this summer, he said. A total ofseven pipeline interconnects are completed or planned right now.Currently, Louisiana Intrastate Gas, Acadian, Texas Gas, andCypress are connected. Trunkline has expressed interest, andTennessee also is in the vicinity of Garden City. “Sonat is alsovery interested, but the distance is prohibitive at the moment, andwe’re trying to work with that,” Hastings said. Ultimately, theNautilus terminus could see as many as 10 interconnects. Hastingswould not disclose Nautilus’ current throughput. “We havecommitments in the deep-water. We expect to be very close to fullin 2001. He alluded to gas processing capabilities but would notdiscuss plans.