NGI The Weekly Gas Market Report

In an attempt to avoid electricity shortages predicted in the state by the end of the decade, Minnesota legislators passed a compromise energy bill last week that among other things, improves energy conservation, requires statewide planning for energy needs and clarifies regulations for building power plants and transmission lines. The legislation (SF022) is expected to be signed by Gov. Jesse Ventura and enacted in 2002.

In an effort to improve the reliability of the Pacific Northwest’s natural gas supply, the Federal Energy Regulatory Commission has approved an application by NW Natural Gas Co. to provide storage services to the interstate gas market. With FERC’s ruling, NW Natural will be able to use the surplus of its 10 Bcf of underground storage capacity at Mist, OR, to help address the region’s energy challenges.

Unocal Corp. said on Friday that its Canadian subsidiary, Northrock Resources Ltd., has entered into an agreement via a take-over bid offer to acquire all of the common shares of Tethys Energy Inc., a Calgary-based oil and gas exploration company operating in Western Canada, for approximately C$144 million (US$93 million).

The Mackenzie Valley and Beaufort offshore pipeline proposals got a slight push forward last week following two days of meetings with all of those responsible for regulating energy developments in the Northwest Territories. The agreement, coordinated by the National Energy Board, would set up a draft framework for a single environmental assessment process to review the proposals.

In a strategic deal that would create the world’s third-largest offshore driller, Pride International agreed to buy Marine Drilling Cos. for $1.92 billion in an all-stock deal last Thursday. The new company, to be called Pride International, has already received approval by both boards.

©Copyright, 2001 Intelligence Press. All rights reserved. Thepreceding news report may Not be republished Or redistributed, in wholeOr in part, without prior written consent of Intelligence Press .

Williams Cos. CEO Cuba Wadlington Jr. said last week that his company is committing itself to build a pipeline to deliver natural gas from the North Slope to markets in Alaska, Canada and the Lower 48 and announced a feasibility study has begun that will look at new petrochemical investments in Alaska, which could finance the pipeline.

PG&E Gas Transmission, Northwest announced plans to construct a gas pipeline lateral across Washington state that would bring gas to new power plants and LDC load from GTN’s mainline. The project, called the Washington Lateral (WL), would begin at GTN’s mainline in eastern Washington, bear west toward central Washington and terminate at or near Northwest Pipeline’s mainline system in western Washington’s Interstate-5 corridor. The WL is intended to serve developing electric generation projects and local gas distribution needs along and at the terminus of the route, PG&E said. The WL also may have the capability to deliver gas to NPC’s Spokane and Wenatchee Laterals as well as to its mainline south of Seattle. For more information contact GTN’s Dave Van Driel, Randy Hunter, Dave Sloan or Jim Schoene.

The Pennsylvania Public Utility Commission (PUC) during its regular meeting last Thursday approved the merger of Morristown, NJ-based GPU Energy and FirstEnergy Corp. by a 5-0 vote on a motion by Commissioner Terrance J. Fitzpatrick, but decided to postpone a decision on GPU’s request to raise rates by a 4-1 count with Commissioner Nora Mead Brownell dissenting.