Daily GPI

Progas Storage and Marketing, based in Abilene, TX (unrelated toCalgary-based ProGas), announced plans yesterday to develop 40 Bcfof working storage capacity along major interstate pipelines in theIllinois and Appalachian basins over the next four years.

An industry-wide meeting to discuss whether the Gas IndustryStandards Board (GISB) should develop standards for retail andwholesale power, as well as retail natural gas, has beenre-scheduled for Feb. 14 in Washington D.C.

After all the winter storm excitement in recent weeks, themarket appeared to be growing calmer Wednesday yet still managed tokeep pushing prices higher. Most of the upticks were between anickel and a little over a dime, with the Northeast remaining thebastion of dollar-plus increases.

The groundhog must have chewed a hole into a CNG storagefacility, judging from the massive withdrawal that the American GasAssociation reported last week. At 242 Bcf, the withdrawal ranks asthe third largest since AGA started its survey six years ago. Itwas the largest for the last week in January.

Enron North America Corp. has formally notified El Paso NaturalGas that it is bailing out of its Block II capacity agreement forabout 600 MMcf/d of firm capacity because it asserts the conditionsoriginally spelled out in its contract with the pipeline “have notbeen satisfactorily completed.”

BP Amoco and Atlantic Richfield Co. (Arco) say they will fightthe Federal Trade Commission in court for their right to merge.Wednesday the FTC said it would seek a preliminary injunction infederal District Court to block the merger.

Dynegy and Illinova completed their merger to create a newcompany, called Dynegy, with market capitalization of more than $10billion. The company has interests in power plants with more than14,000 MW of domestic generating capacity, average worldwide gassales of more than 10 Bcf/d and more than 1.4 million retailcustomers. The combined company has more than $12 billion in assetsand $22 billion in projected annual revenues from energy operationsthroughout North America and Europe.

Questar filed a motion at FERC earlier this week requestingauthority to construct, own and operate facilities that coulddeliver up to 250 MMcf/d into the Kern River system near Elberta,UT.

In announcing a $4 billion deal with Duke Energy North Americato provide power generation supplies and related services, GE PowerSystems said it has entered into one of the largest commitments ofits type in U.S. history.