Daily GPI

Marking the start of construction related to projects thatultimately will increase pipeline capacity into New England by morethan 20%, Portland Natural Gas Transmission System (PNGTS) andMaritimes & Northeast Pipeline began a crossing of thePiscataqua River between Newington, NH, and Eliot, ME. The crossingis the first stage in the construction of the PNGTS/Maritimes JointFacilities Project, which represents the southernmost portion ofeach pipeline.

Union Pacific Resources Group (UPR) closed on its acquisition ofNorcen Energy Resources. The companies’ boards approved the dealJan. 26. UPR initiated a tender offer for the 51.5% of Norcen’s stock not owned or controlled by Noranda Inc., a shareholder of49.5% Norcen common stock.

The Independent Petroleum Association (IPAA) has filed a lawsuitagainst the Department of the Interior, claiming that through a newnatural gas royalty regulation DOI’s Minerals Management Service iscollecting a larger share of royalties than it is entitled to.

“Total Energy” may be an “unforgettable” brand name in this ageof energy convergence, as the small New York energy services firmTotal Energy Corp. claims, but would someone actually buy the nameand make it their own? Total Energy’s consultant R.J. RuddenAssociates thinks so, though Richard J. Rudden, president of thefirm, admits he’s never heard of a company buying another’s brandname. “I can’t say I’ve heard of that. But I know it’s nothing fora large national energy company to spend tens of millions ofdollars on brand imaging.”

El Paso Natural Gas conceded Wednesday it discontinueddiscounting interruptible transportation early this year, but saidits action was primarily due to its new status as “swing supplier”of California-bound transportation – a position that it says givesit free reign to charge maximum IT rates.

Transwestern said its La Plata compressor station will be downthrough Thursday, March 5, for construction. There will be zerovolumes flowing from the Ignacio area to the Blanco Hub.Interconnects affected are NWPL-La Plata, WFS Ignacio Plant, andAmoco Florida River Plant. Capacity from the Blanco Hub to Thoreauwill remain at 800,000 MMcf/d. The same scenario also will applyMarch 28 through 31, Transwestern said.

A FERC options paper outlining various gas issues, whichCommission staff has been compiling since last fall, is scheduledto go to the full Commission next week – an indication FERC willtake action very soon. Commissioners are at odds, however, overwhether the gas issues will be addressed on a comprehensive basisor individually.

FERC dealt KN Interstate Gas Transmission a serious blow lastweek in ordering the pipeline to explain a 41% overrun in the costof its Pony Express Pipeline Project and prove the project stillmeets the Commission’s test for rolled-in rate treatment.

Consolidated Edison announced it plans to sell two-thirds (5,500MW) of its New York City electric generation plants in an auctionstarting this summer. Its plants will be divided into threebundles. Each bundle will include a major generating facility-theRavenswood Generating Station in Long Island City, the AstoriaGenerating Station in Astoria, or the Arthur Kill Station on StatenIsland-and gas turbine generating facilities in Queens andBrooklyn. The company plans to sell two of the bundles throughauction and retain the remaining bundle, which has not yet beenidentified. It expects to receive authorization from the New YorkState Public Service Commission (PSC) by July 1. The auctionprocess would begin later that month, with the winning bidders tobe announced in January 1999.