Window

San Diego-based Sempra Energy sees energy trading as an “integral part” of its overall business, providing a useful window on market imbalances that can lead to capital investment opportunities, according to CFO Mark Snell, who spoke Thursday at the Merrill Lynch Global Power and Gas Leaders Conference in New York City.

El Paso Natural Gas reported that its Window Rock 6B maintenance will extend through Monday. Flagstaff maintenance will be shortened to one day only and occurred Monday. The capacity of the North Mainline was reduced by 30 MMcf/d over the weekend, by 123 MMcf/d Monday and will be reduced by 14 MMcf/d Tuesday through Thursday. The Bowie Station will be down for generator maintenance through Tuesday, reducing the capacity of the South Mainline system by 50 MMcf/d.

American Electric Power (AEP) threw its two-week-old earnings guidance out the window Friday, after finding that higher regulated utility and wholesale power sales, combined with favorable weather, jumped quarterly earnings about 15 cents a share more than it had forecast earlier this month.

El Paso revised its schedule for North Mainline capacity reductions caused by continuing outages of Window Rock Station’s 5A and 6B units along with work on Line 1200 between Williams and Seligman Stations, Navajo Station inspections ordered by the federal Department of Transportation, and Leupp C and D Station modifications. The new dates and volume cuts (in MMcf/d) through the rest of this month are: Sept. 18-19, 150; Sept. 20, 300; Sept. 21-23, 55; Sept. 24-25, 65; Sept. 26-27, 170; and Sept. 28-30, 155. El Paso also postponed Line 1300 pigging between the Roswell and Caprock stations until Sept. 25-28, when San Juan Crossover capacity will be reduced by 50 MMcf/d.

When natural gas prices were sky high a year ago, the “window looked wide open” for the long awaited Alaska natural gas pipe, which would carry supplies from the North Slope to the Lower 48. Months later, however, the announcements from producers are practically nil and President Bush’s energy policy proposal to open up more areas for drilling is barely moving. The abundant North Slope natural gas remains frozen, in more ways than one, and whether it will actually move through a pipe at some point in this decade remain questionable.

When natural gas prices were sky high a year ago, the “window looked wide open” for the long awaited Alaska natural gas pipe, which would carry supplies from the North Slope to the Lower 48, but realistically, “it’s never been a slam dunk,” said Ed Small, an analyst with Cambridge Energy Research Associates based in Canada. He also cautioned that producers will have to have the Alaskan government’s blessing on the chosen route, or it would be a “fatal flaw in the process.”

El Paso’s delivery meter to Transwestern at the Window RockStation (Apache County, AZ) will be shut in July 24-25 forequipment upgrade

Millennium Pipeline President David Pentzien said yesterday it ismore evident now than ever before that significant additional capacityis needed to the Northeast. His remarks ran contrary to theconclusions of a recent Energy Information Administration report (seeDaily GPI, May 25), which found onlyabout 840 MMcf/d of additional capacity is needed in the near term incontrast to the more than 2 Bcf/d of capacity that is planned. ButPentzien noted recent market indicators show an undeniable need forlots more supply access.