Kansas City Power & Light Co. (KCPL) threw in the whitetowel earlier this week, canceling its proposed merger with thefinancially troubled Western Resources citing doubts aboutWestern’s growth and increasing shareholder opposition to thetransaction. KCPL canceled the merger using a stipulation in theoriginal agreement requiring the merger to have all regulatoryapprovals completed by Dec. 31, 1999. The merger suffered fromregulatory delays and never received a final okay from the FederalEnergy Regulatory Commission.
Articles from White
Florida Gas Transmission reported completing a maintenance projecton its East White Lake Lateral in southwestern Louisiana well ahead ofschedule and said volumes will be restored to 450,000 MMBtu/d on thelateral’s south end and to 150,000 MMBtu/d on the north end effectivewith the Nov. 24 gas day. The work originally had been expected tolast through Dec. 10 (see Daily GPI, Oct. 19).
El Paso said Friday the White Rock (NM) Station had been takenout of service for emergency maintenance. The pipeline heldcapacity out of San Juan Basin at the Cycle 2 scheduled rate of2,685 MMcf/d Friday but lowered the volume slightly to 2,680 MMcf/dfor Saturday’s gas day.
The House of Representatives last week approved legislation toestablish a multi-million federal loan-guarantee program to helpindependent oil and natural gas producers recover from the effectsof depressed crude oil prices. The measure, which was approved bythe Senate in June, is now headed to President Clinton for hissignature.
El Paso found unexpected damage in its inspection of the WhiteRock No. 2 turbine. The unit remained down through Friday, cuttingSan Juan Basin capacity by 200 MMcf/d. The pipeline expected tocomplete repairs by late Friday afternoon, but said because itcould not raise San Juan capacity until the unit could be tested,the constraint would remain in effect for Cycles 1 and 2 ofSaturday’s gas day.
The next round of restructuring is about to unfold in Canada’snatural-gas community as a white knight buyer prepares to stepforward for the country’s second-biggest supply aggregator,Pan-Alberta Gas Ltd. In fact, a team of rescuers has emerged.Senior Canadian industry sources say a producer consortium has comeup with a winning bid that will both keep the mammoth dealer inhome-grown hands and heal the worst remaining sore spot in thecommunity.