In an effort to capture the rewards and pass along savings madepossible by performance-based rates, NIPSCO Industries and its newaffiliate Bay State Gas are combining gas supply operations. TheMidwest and New England LDCs manage firm loads of about 500 MMcf/dand most of that will be procured on the daily spot market in thefuture, said NIPSCO’s Dan Gavito, vice president of corporate gassupply.
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Richmond, VA-based Dominion Energy Inc. is completing its purchaseof gas producer Remington Energy Ltd., of Calgary, AB in a deal valuedat nearly US$300 million that will give Dominion a stake in AlliancePipeline. Still to be completed is its $6.3 billion deal to buyConsolidated Natural Gas (CNG) which was originally announced inFebruary just days before the Remington buyout was revealed (See Daily GPI, Feb. 25, 1999).
CMS Energy Corp. subsidiary CMS Continental Natural Gas Inc.agreed with Pennaco Energy Inc., and CMS corporate affiliate CMSOil and Gas to gather coal-bed methane gas from the Powder RiverBasin in Wyoming and Montana. CMS Continental is to providelong-term, low-pressure gathering. The deal includes an acreagededication of more than 580,000 acres in the Powder River Basinwithin the previously announced CMS Oil and Gas/Pennaco Energy Areaof Mutual Interest.
Dynegy Inc. project affiliate Rockingham Power L.L.C. signed along-term gas interconnection agreement with Williams’ Transcopipeline. Williams’ interconnection will provide capacity for up to222 MMcf/d to fuel Dynegy’s proposed 800-megawatt (MW) generationfacility in Rockingham County, NC. Construction on theinterconnection is scheduled to be completed in December. “Naturalgas power generation is increasing and we look forward toadditional opportunities to expand our pipeline system to meet thisgrowing demand,” said Frank Ferazzi, vice president of customerservice and rates, Williams Gas Pipeline-Transco.
The Natural Gas Supply Association (NGSA) shuffled its executiveorganization Tuesday, yet its hunt for a new president continues.The NGSA said it still does not have a timeline for an appointmentto the presidency post, but it hopes to get the job filled quickly.
Rentech Inc. of Denver signed an exclusive agreement withPhoenix Gas Systems LLC (PGS) of Long Beach, CA, to develop amodular system to produce liquid hydrocarbons from gas and othercarbon-bearing materials. Rentech developed a process to convertgas, solid, and liquid carbon-bearing materials into super-clean,high-value fuels, products and chemicals. Products includesulfur-free, aromatic free diesel fuel (Ecodiesel), naphtha andwaxes. The process is known as the Fischer-Tropsch (FT) process orGas-to-Liquids (GTL). The naphtha and diesel fuel produced areideal fuels for the “advanced fuel cell” concept currently beingdeveloped for use in transport and utility vehicles.
CMS Energy, announcing completion of the $2.2 billion deal tobuy Duke Energy’s Panhandle Eastern and Trunkline pipeline and LNGassets, also has acquired a president and COO for the new CMSPanhandle Pipeline companies. Christopher A. Helms had been Duke’sgeneral manager of business development and managing director ofits PanEnergy Services Europe subsidiary.
Most sources were seeing bidweek prices running approximatelyflat Monday compared to the previous Friday, although a marketersaid some Southwest numbers were “up about a penny.” On the otherhand, a buyer who paid in the low $1.70s in the NGPL Midcontinentpool Friday said he was hearing of $1.69 deals Monday.
Expiration day in the natural gas pit had a little something foreveryone Monday. While bears were greeted yesterday morning by alower open that paved the way for declines to the $1.80 level,aggressive afternoon buying put a smile on bull-traders’ faces asit led the April contract back above Friday’s best levels. But whenall the dust had settled and the final settlement price was handeddown from the data room at Nymex, neither bull nor bear could claimthe see-saw battle as a victory or a defeat. April finished downjust 0.2 cents at $1.852 and the May contract echoed that sentimentclosing 0.2 cents lower to $1.883.
If acquisition talks between BP Amoco and Atlantic Richfield Co.(Arco) do lead to a deal, BP Amoco also would acquire the 82% ofVastar Resources held by Arco. What could or would happen afterthat is anybody’s guess, said John S. Herold analyst John Parry.