NGI All News Access

What Goes Up (Gas Prices) Now Coming Down

Cash prices continued to drop going into the weekend asexpected. Moderating weather and the usual lower weekend loads werethe obvious reasons for softening, sources said. Despite theoverall downward trend, falls were only 1-3 cents on several pipesin the Gulf Coast and Midcontinent. Again, the points that hadrisen most rapidly earlier in the week-such as Northeast citygates,Northern Natural-demarc and Waha-were the ones seeing the steepestdeclines.

March 16, 1998

SABRE Strikes Two Software Links

SABRE Energy Network last week announced two software interfaceswith other companies’ products it says will make life easier forshippers wrangling with multiple pipeline bulletin boards. Itseparately announced seamless interfaces of its forthcoming SEN*Netproduct with products from TransEnergy Management and LatitudeTechnologies.

March 16, 1998

Dominion Makes Bid for Archer

Dominion Resources unit Dominion Energy has agreed to pay (US)$128 million, C$7.60/share, to acquire Archer Resources of Calgary,AB. The deal gives Dominion Energy control of Archer’s dailyproduction of 72 MMcf/d of gas and 1,500 b/d of oil in Alberta,plus Archer’s 16 processing facilities and over 500,000 undevelopedacres.

March 16, 1998

April Futures Remain Bound to Tight Range

Just as the old saying about the lion and the lamb goes, no onecan ever be sure what kind of weather March will bring. This lackof clear fundamental direction has made its way to the New YorkMercantile Exchange, where the spot April contract was unable tobreak outside of a tight $2.115-$2.205 trading range last week.Since April had virtually no room to move, it is fitting the spotmonth could settle the week only 0.8 cents higher at $2.137.

March 16, 1998

Enron to Boost Bammel Storage Deliverability

Bammel Natural Gas Storage and its connections to Houston PipeLine are due for a major upgrade, Enron announced last week. Thecompany plans to drill four new storage wells and construct a12-mile, 30-inch diameter pipeline adjacent to an existing HPL linethat will increase Bammel’s withdrawal capacity nearly 20% to 1.4Bcf/d. The $28 million project is designed to enhance services forHPL’s Texas Gulf Coast industrial markets and Houston-based gasutilities, Enron said. It is expected to be completed by year end.

March 16, 1998

In Brief

National Fuel Supply Corp. started an open season last week for1,500,000 Dth of firm storage capacity and 110-day storage andassociated transportation services. Up to 500,000 Dth is availableunder negotiated rates with a $0.45/Dth/year capacity charge and anindex-based formula for withdrawals. The rate formula “givescustomers the ability necessary to hedge the floor and share in anyupside provided by this service,” said NFGS’s Ronald C. Kraemer. Storage injections start April 1.

March 16, 1998

FERC Calls for Testimony on Complaint Procedures

The Federal Energy Regulatory Commission last week announced itwill hold a symposium later this month to address reform of itscomplaint procedures.

March 16, 1998

FERC Calls for Testimony on Complaint Procedures

The Federal Energy Regulatory Commission last week announced itwill hold a symposium later this month to address reform of itscomplaint procedures.

March 16, 1998

Crystal Oil Closes Petal Storage Deal

Crystal Oil Co. of Shreveport, LA, last week closed on itspreviously announced acquisition of Petal Gas Storage Co. Theacquisition of Petal will complement and provide synergies with thesalt dome storage facility already owned by Hattiesburg Gas StorageCo., a subsidiary of Crystal, and which is located less than onemile from the Petal facility. With the acquisition of Petal,Crystal’s subsidiaries will have more than 6.7 Bcf of gas storageworking capacity with the ability to deliver in excess of 670MMcf/d in this major corridor to the northeastern gas markets. JoeAverett, Crystal president, said the acquisition makes Crystal thelargest independent provider of salt cavern gas storage in the U.S.

March 16, 1998

Analyst Says Mexican Tariff Holds Up Pipes

The current North American Free Trade Agreement (NAFTA) tariffon gas imports into Mexico is holding up pipeline development fromthe U.S. to northern Mexico, said consultant George Baker of Baker&amp Associates.

March 16, 1998