Soaring wholesale gas prices this winter forced two Maryland retail gas marketers to cut services to some or all of their customers, and one of the marketers, Maryland Natural Gas & Electric/Operators Energy Services (OES), is now facing potential penalties for dumping customers without the required 60-day notice.
NGI The Weekly Gas Market Report
Articles from NGI The Weekly Gas Market Report
MarkWest Adds Southwest Pipes with $38M Purchase of Pinnacle
Appalachian gas processing company MarkWest Energy Partners LP (MWE) plans to make a footprint in the Southwest region by purchasing Pinnacle Natural Gas Co. and affiliates from Energy Spectrum Partners LP for about $38 million. The deal gives MarkWest three Texas natural gas pipelines, transporting about 1.1 Bcf/d to several power plants, and 18 gas gathering systems, gathering about 44 MMcf/d. The transaction is expected to close March 28.
FERC Fails to Act on Long-Term Western Power Contracts
Despite clear evidence of western spot power and gas market manipulation, FERC made no decision last week on whether billions of dollars in long-term western wholesale power contracts negotiated in 2000 and early 2001 should be scrapped or altered. The Commission vaguely indicated that the contracts would be upheld and sent back to a settlement judge, and that suggestion angered western senators, who said the Commission is not meeting its responsibility under the Federal Power Act.
Water Levels Improve in Northwest; Southwest Still Dry as a Bone
Water levels have increased in the Pacific Northwest, according to the Northwest River Forecast Center (NRFC), which last Thursday raised its forecast for the region in the midst of steady precipitation from an influx of storms over the past two weeks. However, in the Southwest, Lake Powell water levels are at record lows and unlikely to recover soon.
Industry Gives Regional Energy Body Plan Thumbs Down
A recent legislative proposal floated by Sen. Pete Domenici (R-NM) that would allow states to coordinate their own regional transmission and market designs through so-called regional energy services commissions (RESC) drew a bevy of skeptical comments from several electric industry representatives at a Senate hearing on Thursday.
Californians, Industry React to FERC Investigations
“Show me the money” continued to be the refrain from California state officials from the governor on down in the wake of the Federal Energy Regulatory Commission’s conclusion that wholesale energy markets were significantly manipulated in 2000-2001. Duke Energy claimed vindication, while companies cited claimed FERC’s evidence was distorted. And there was a concerted groan from all sides who are desperately waiting for the fat lady to sing.
Nexen Buys Deepwater Gulf Field Interests from BP for $136M
Calgary-based Nexen Inc. said it bought the remaining 40% interest in the Gulf of Mexico’s deepwater Aspen field and remaining interests in five exploration blocks in the greater Aspen area from BP Exploration and Production for US$136 million.
CCRO Urges Transaction Reporting to Price Surveys
The Committee of Chief Risk Officers (CCRO), pointing to gaps in gas price reporting during the March bidweek, has urged energy buyers and sellers to continue to submit data on transactions to “index developers” during the transition time until its complex and detailed new rules can be put in place. At the same time, another group, the Process Gas Consumers (PGC) representing end users whose processes require the use of natural gas, has advised FERC Chairman Pat Wood it is “strongly” opposed to the federal government taking a hand in the price reporting process for natural gas.
Senator Asks Ashcroft to Probe Possible Energy Fraud
Citing newly released documents issued by FERC, Sen. Dianne Feinstein (D-CA) on Wednesday called on U.S. Attorney General John Ashcroft to investigate fraud and antitrust violations that may have occurred during the 2000-2001 western energy crisis.
Shell Plans E&P Cutbacks, Targets Asset Sales in U.S. and Europe
Royal Dutch/Shell Group’s managing director on Wednesday said the oil major plans to trim between $500 million and $800 million of costs and cut staff 15% over the next four years within its oil and natural gas exploration and production (E&P) business worldwide. Walter van de Vijver also confirmed that Shell has targeted nearly $500 million in assets worldwide this year, including some in the United States and Gulf of Mexico.