NGI All News Access

Northern Natural’s innovative volumetric rate proposal, whichcould provide customers with a method of better managing weatherrisk, is headed to a technical conference and further FERC andindustry scrutiny.

Two oil field service titans joined forces last week to create anew seismic oil and gas exploration business, a move that analystssay will reshape the seismic industry. Baker Hughes andSchlumberger have signed a memorandum of understanding under whichSchlumberger’s surface seismic business Geco-Prakla and BakerHughes’ seismic unit Western Geophysical would become Western GECO.

GRI, formerly the Gas Research Institute, filed itsfourth-to-last annual research, development and demonstrationprogram application last week with FERC, requesting a budget of $70million and approval of its 2001-2005 RD&D Plan.

PG&E Energy Services all but completed its exit from theunregulated energy commodity and related services businesses withthe announcement last week it has sold its remaining servicecontracts and related assets to a unit of Chevron Corp. Thecontracts cover commercial, industrial and institutional customersspread around the country. The two San Francisco-based companieswould not disclose terms of the deal, but said it is expected toclose in mid-July.

Columbia Energy Group shareholders today are expected to approvethe company’s proposed merger with NiSource Inc., which wouldcreate a mega energy powerhouse serving nine states and more than 4million customers, stretching from Chicago in the west to NewEngland in the east and south to the Gulf of Mexico. NiSourceshareholders gave a thumbs up yesterday, with nearly 65% of theoutstanding shares in approval, representing 80% of the sharesvoted.

Out of the multiple commodities now trading on EnronOnlineworldwide, including gas, power, oil, coal, pulp and paper, cleanair credits, bandwidth, weather and credit derivatives,petrochemicals and plastics, North American natural gas still topsthe list of most actively traded. The rapidly growing e-commercesite, which Enron claims is the world’s largest with more than $50billion in transactions so far this year, now consumes much morethan 50% of Enron’s wholesale commodity transactions, includingmore than 10 Bcf/d of in the first quarter.

A consortium of 21 energy and utility companies have formed anew company, Pantellos Corp., to operate an e-procurement web siteannounced earlier this year, and hired a tech company to developit.

Duke Energy Gas Transmission said yesterday it opened two 400MMcf/d interconnections between its East Tennessee pipeline systemand Texas Eastern Transmission (Tetco), paving the way for ETNGcustomers to access more diverse supplies from the Gulf Coastregion.

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.