Work

North Carolina-based power plant developer Cogentrix is currently in talks with Dynegy and banks to resolve a Dynegy subsidiary’s default under loan agreements tied to the construction of an 816 MW power plant located in Louisiana. The default was automatically triggered in the wake of several ratings agencies lowering their credit ratings on Dynegy.

As Senate and House negotiators met last Thursday to work on the omnibus energy bill, Rep. Joe Barton (R-TX) offered for consideration a “discussion draft” proposal that would make it illegal for companies and individual parties to participate in round-trip, or “wash,” trades involving electricity. It did not address natural gas round-trip activities, but Barton spokeswoman Samantha Jordan said the draft was a “first step,” and that there was a “possibility” a ban on similar trades on the gas side would be added later.

As Senate and House negotiators met Thursday to work on the omnibus energy bill, Rep. Joe Barton (R-TX) offered for consideration a “discussion draft” proposal that would make it illegal for companies and individual parties to participate in round-trip, or “wash,” trades involving electricity. While it did not address natural gas round-trip activities, Barton spokeswoman Samantha Jordan noted the draft was a “first step,” and there was a “possibility” that a ban on similar trades on the gas side would be added later.

As Senate and House negotiators met Thursday to work on the omnibus energy bill, Rep. Joe Barton (R-TX) offered for consideration a “discussion draft” proposal that would make it illegal for companies and individual parties to participate in round-trip, or “wash,” trades involving electricity. While it did not address natural gas round-trip activities, Barton spokeswoman Samantha Jordan noted the draft was a “first step,” and there was a “possibility” that a ban on similar trades on the gas side would be added later.

Its reliance on a company’s capital adequacy to determine credit ratings may work for most, but Standard & Poor’s plans to “refine” its analysis methods for energy marketers and traders because of the “recent developments” within the industry. S&P, which began covering the energy trading sector in 1997, noted that the continued price volatility for both power and natural gas markets, the “bilateral and unregulated nature” of the sector and a “lack of adequate trading infrastructure” all played a part in its decision to revamp its methods.

Looking to help meet North America’s ever-increasing appetite for natural gas, companies such as El Paso Corp. and Shell have been looking outside the box to find new sources of natural gas, and new methods to deliver it to the continent. El Paso announced that it has finalized LNG agreements with a Norwegian consortium, while Shell has proposed its floating liquefied natural gas technology (FLNG) for Timor Sea production. Shell also announced last week that it will invest in the first LNG export project in Venezuela, which intends to tap 10 Tcf of gas reserves and send them to the U.S. East Coast (see related story).

ChevronTexaco Corp. informed the Securities and Exchange Commission last week that it has started to lay off 7% of its work force, or about 4,000 employees out of a total of 57,000, as part of a program designed to trim $1.2 billion/year in overhead following its merger. The cuts are in line with what the companies expected last year when their merger was first announced.

ChevronTexaco Corp. informed the Securities and Exchange Commission this week that it has started to lay off 7% of its work force, or about 4,000 employees out of a total of 57,000, as part of a program designed to trim $1.2 billion/year in overhead following its merger. The cuts are in line with what the companies expected last year when their merger was first announced.

The U.S. Department of Energy (DOE) has indicated that it will work with natural gas utilities and pipelines to strengthen the industry’s infrastructure and enhance reliability through a $10 million program contained in a FY 2002 spending bill, the American Gas Association said last week. The group added that the bill is nearing final approval in Congress.