NGI The Weekly Gas Market Report

Duke Energy Gas Transmission told shippers on the former southern Westcoast mainline in British Columbia that it has deferred construction of its proposed expansion project in an effort to minimize costs and because some unexpected capacity became available.

Susan Kennedy was quickly cleared by the Senate Rules Committee for confirmation as the new commissioner at the California Public Utilities Commission. Statewide consumer, utility and environmental groups appeared to support the appointment of the former Democratic Party and governor’s adviser. Confirmation by the full Senate is expected later this month. In part of her questioning, Kennedy said she was unhappy with the level of the so-called exit fees assigned late last year by the CPUC for direct access customers in California. At their current levels, she said it would take 10 to 20 years for bundled utility customers to get their fair share from the customers buying their own power supplies from third-party providers.

FERC will hear oral arguments this Wednesday related to bids by Nevada Power Co., Sierra Pacific Power Co. and two other western-based power entities to reform several power contracts they entered into with power suppliers during the height of the 2000-2001 western energy crisis, the Commission said last week.

Black Hills Corp. announced last Tuesday it is initiating an internal investigation of its past trade reporting practices in response to a request for information from the Commodity Futures Trading Commission (CFTC).

A rapidly falling U.S. natural gas supply and increased power demand will lead to higher liquefied natural gas (LNG) imports over the next 10 years, according to a detailed analysis by Thomas R. Driscoll of Lehman Brothers.

Kern River Gas Transmission received final authorization from FERC on Friday to begin transportation services May 1 on its massive 2003 Expansion Project. Company officials told the Commission last Monday that construction was on schedule and shippers needed about seven days to line up gas supply and market commitments and to make their nominations on the pipeline.

Independent producer Canadian Superior Energy Inc. said last Wednesday El Paso Corp.’s Canadian production subsidiary has agreed to join in developing and drilling its Mariner natural gas prospect offshore Nova Scotia, which is believed to hold potential reserves of more than 1 Tcf. This marks the second time the two producers have teamed up in the region.

Steve Letbetter, chairman and CEO of Reliant Resources Inc. (RRI), became the latest top-level casualty of the collapse in the energy marketing industry after announcing his resignation last week. Board member Joel V. Staff, former CEO of National Oilwell Inc., has assumed Letbetter’s responsibilities until a new CEO is elected.

Goldman Sachs Group Inc. has agreed to pay $456 million in cash for El Paso Corp.’s interests in East Coast Power LLC, which owns the natural gas-fired 940 MW Linden cogeneration facility in New Jersey.