NGI The Weekly Gas Market Report

The New York Mercantile Exchange’s (Nymex) natural gas pitprobably will be a lot more active and may be more efficient onWednesdays, starting March 1. The exchange along with several majormarket players have convinced the American Gas Association to moveup by two hours the release of its influential gas storage report.

The shape of Dynegy changed significantly last week with thecompletion of the company’s merger with Illinova and the unloadingof some major Midcontinent gathering and processing assets

As El Paso Energy sets about to become the biggest and best inpractically every sector of the natural gas and electric industry,its key gas pipeline subsidiary – El Paso Natural Gas – hasdistinguished itself on another front: it holds the record at FERCfor the most complaints filed against a single company.

Joe B. Foster, the new chief — at least for now — of BakerHughes Inc., is promising improved performance to shareholders inthe wake laggard stock performance and the disclosure of accountingirregularities that have launched a slew of investor lawsuits.

Potomac Electric Power Co.’s (Pepco) strategy of getting out ofpower generation, focusing on its wires and distribution businessesand emphasizing its non-regulated side is in full swing, says theutility’s top executive.

Progas Storage and Marketing, based in Abilene, TX (unrelated toCalgary-based ProGas), announced plans last week to develop 40 Bcfof working storage capacity along major interstate pipelines in theIllinois and Appalachian basins over the next four years.

The Federal Energy Regulatory Commission last week proposedreinstating its authority to make well determinations so thatqualified producers can obtain Section 29 tax credits for high-costgas wells that were drilled prior to 1993.

Merger turmoil and tight margins are putting the screws to quitea few energy marketers, but Frost & Sullivan still sees plentyof room for the industry to grow. Several of the top-20 marketersof 1998 have exited the market, while other companies have beenspurred to acquire assets and start online trading, according to arecent study by the group.

Two asset management deals were announced last week, one with aCanadian producer group and another with a northeastern LDC.