Natural Gas Week articles from August 2002

Natural Gas Week archives from August 2002

The big house. (Late News).
August 5, 2002... Former Enron CFO Andy Fastow, under investigation for pocketing millions while company went down tubes, will sell 11,000-square-foot mansion under construction in Houston's River Oaks section. Internal report accused him of making at least $30...

Ladyfern decline? (Late News).
August 5, 2002... Calgary-based First Energy Capital says Ladyfern production in northeast British Columbia is declining at 65%/year and current production of 700 MMcf/d will be about 400 MMcf'd by end of 2002, and 150 MMcf/d by end of 2003. If estimates prove...

Safety first. (Late News).
August 5, 2002... Mexico publishes safety guidelines for construction, operation of liquefied natural gas (LNG) plants. Several large energy companies have announced plans to build storage and regasification terminals, but have been delayed by lack of...

Watchdog win. (Late News).
August 5, 2002... Federal judge rejects efforts by Bush administration to resist handing over documents related to energy task force headed by Vice President Dick Cheney. Judicial Watch and Sierra Club looking for influence by energy companies, including...

Average cash prices & futures strip. (Late News).
August 5, 2002... Natural gas prices advanced last week despite a sub-$3/MMBtu August futures contract close and the resulting relatively weak bid-week. [GRAPH OMITTED] [GRAPH OMITTED]

Heat fails to slow injections as autumn bearishness increases.
August 5, 2002... With nearly a full traditionally hot, muggy month left in summer there remains a lot of air conditioning load to satisfy, but some gas industry players and observers are questioning whether that matters at all, given the state of domestic...

Rescues for Williams and Dynegy fail to steady shaken sector.
August 5, 2002... Wall Street hailed last-minute financial rescues for Dynegy and Williams last week, but the good cheer did not extend to others in the stricken merchant sector. A downgrade at PG&E Corp., and highly negative sector comments from credit-rating...

Browne frank on BP's outlook; merchant business not an option.
August 5, 2002... Financially troubled energy merchants contacted BP about joint ventures and other arrangements, but the UK-based supermajor elected to pass on those opportunities, Chief Executive John Browne said. "We looked very carefully at what this...

Gas production still falling, though declines less from 1Q.
August 5, 2002... Second-quarter production results support the widely held view of a looming deliverability problem in the US gas market, though the data is not likely to spark a near-term rally in gas prices, as transpired in the previous quarter. Bulls...

Elba Island agreement reached.
August 5, 2002... In an out of court settlement reached last Thursday over regasification tariffs at the Elba Island, Georgia, liquefied natural gas (LNG) terminal operated by El Paso's Southern LNG subsidiary, BG and its partners in the Trinidad Atlantic LNG...

Correction.
August 5, 2002... An article in the Jul. 29 edition of Natural Gas Week contained erroneous information regarding terminal rates for the nation's liquefied natural gas (LNG) receiving facilities (NGW Jul. 29,p6). The article inaccurately asserts that a...

FERC unveils market proposal to standardize US power grid.
August 5, 2002... The Federal Energy Regulatory Commission (FERC) last week proposed mandatory rules for the US electricity market that will attempt to standardize it nationwide and prevent a repeat of California's 2000-01 energy crunch. FERC unveiled its...

Major market prices.
August 5, 2002... MAJOR MARKET PRICES August 5, 2002 ($/MMBtu) This Weekly Bid Week Week Change for Aug. Chicago City Gate 2.94 +0.02 2.91 New York City Gate 4.34 +0.97 3.42...

Shell, Exxon disappoint street as lower margins hit results.
August 5, 2002... Supermajors Exxon Mobil and Royal Dutch/Shell disappointed investors last week, announcing second-quarter profits that fell below market expectations. Shell Chairman Phil Watts admitted the figures were "below our aspirations" and that Shell...

Spot prices on intrastate pipeline systems.
August 5, 2002... SPOT PRICES ON INTRASTATE PIPELINE SYSTEMS Delivered-to-Pipeline ($/MMBtu) August 5, 2002 This Weekly Bid Week Pipeline Week Change for Aug. Louisiana...

Trading losses hit merchants; sector's outlook remains weak.
August 5, 2002... This is not a fun time to be in the natural gas and electricity marketing and trading business. Credit woes, asset write-downs, reduced growth rates, and tighter margins put a number of companies into the red for the second quarter, and others...

2002 gas price outlook.
August 5, 2002... 2002 GAS PRICE OUTLOOK August 5, 2002/Week 31 12-Month Strip Wellhead Delivered-to-Pipeline Nymex $2.84 $2.96 $3.410 NOTES: (1) Prices are in $/MMBtu and are...

Democrats eye NSR reform battle as November elections loom.
August 5, 2002... Prominent Senate Democrats last week put the Bush administration on notice that they would block its proposed sweeping changes to air pollution rules if their environmental and health concerns were not addressed. Sens. John Edwards...

FERC addresses RTO formation, orders implementation by 2004.
August 5, 2002... The Federal Energy Regulatory Commission (EERC) last week gave final approval to plans by the former Alliance companies to join either the PJM Interconnection or the Midwest Independent System Operator (MISO). FERC also ordered PJM and MISO to...

Composite Spot Wellhead Price.
August 5, 2002... COMPOSITE SPOT WELLHEAD PRICE January 1990 to Present ($/MMBtu) Jan. Feb. March April May June July August Sept. Oct. 1990 2.23 1.68 1.42 1.39 1.39 1.40 1.36 1.32 1.37 1.56 1991 1.57 1.30...

Composite Spot Delivered-to-Pipeline Price.
August 5, 2002... COMPOSITE SPOT DELIVERED-TO-PIPELINE PRICE January 1990 to Present ($/MMBtu) Jan. Feb. March April May June July August Sept. Oct. 1990 2.41 1.82 1.56 1.60 1.59 1.60 1.54 1.49 1.52 1.74 1991...

Salt cavern storage.
August 5, 2002... SALT CAVERN STORAGE (Billion Cubic Feet) Jul 26 MMcfd MMcfd Bcf Bcf Facility State Max ...

Cape wind project could provide offshore boost. (Current).
August 5, 2002... The first offshore wind farm proposal in the US, off pristine Cape Cod, has some of the most environmentally conscious residents up in arms. Cape Cod, Nantucket Sound, and Martha's Vineyard residents are notoriously vigilant in civil affairs...

Alcoa closures made permanent.
August 5, 2002... Some US industrial manufacturers have recently seen a silver lining in the dark cloud of the current US economy in the form of the declining value of the dollar, but recovery has been slow and heavy energy consumers are still showing signs of...

RKS sees on-site opportunities. (Current).
August 5, 2002... NORTH SALEM, New York -- Increasing demand for improved power quality and reliability for energy-intensive enterprises-heightened by the actual financial and productivity impacts of power interruptions -- points to a potentially promising...

PSEG Nuclear to boost Hope Creek. (Current).
August 5, 2002... HANCOCKS BRIDGE, New Jersey -- PSEG Nuclear said last week that it plans to produce more power at its 1,067-MW Hope Creek plant in southern New Jersey. The company cited preliminary studies showing that about 10% more electricity can be...

TXU contributes to undersea link. (Current).
August 5, 2002... DALLAS -- TXU Energy said last week that it will provide $15 million in development capital to Atlantic Energy Partners, which is developing a proposed undersea cable transmission link between New Jersey and New York called the Neptune Regional...

Comparative fuel prices.
August 5, 2002... COMPARATIVE FUEL PRICES (Cash Market) August 5, 2002 EAST COAST New York Harbor: Natural Gas Natural Gas Texas New York Heating ...

Natural gas futures and spot electricity trading.
August 5, 2002... NATURAL GAS FUTURES AND SPOT ELECTRICITY TRADING Trading Dates: Jul. 29-Aug. 2, 2002 New York Mercantile Exchange (NYMEX) (Henry Hub) Monday Tuesday Wednesday Thursday Last/Volume...

Rainy River wants to build peaker. (Current).
August 5, 2002... SUPERIOR, Wisconsin -- Rainy River Energy, a unit of Minnesota Power, is seeking final approval from regulators in Wisconsin to build a $70 million, 170-MW peaker power plant, a company spokesman said last week. The plant will be fueled by...

FuelCell to move test power plant. (Current).
August 5, 2002... DANBURY, Connecticut - FuelCell Energy last week received approval from the US Department of Energy's (DOE) National Energy Technology Laboratory to advance the demonstration of a 2-MW direct fuel cell power plant operating on coal-derived gas...

Cash market hub trading.
August 5, 2002... CASH MARKET HUB TRADING ($/MMBtu) Jan. Feb. March April May June July August Sept. Oct. 1994 2.34 2.71 2.21 2.04 1.92 1.90 1.96 1.66 1.49 1.51 1995 1.48 1.54 1.52 1.59 1.64 1.65 1.44 1.56...

Natural gas rig count.
August 5, 2002... NATURAL GAS RIG COUNT Jan. Feb. March April May June July 1999 Total 587 542 526 496 516 558 588 Gas 461 425 412 371 380 434 478 %...

Cogentrix purchase cancelled; Aqulia now selling contracts. (Regional Market Roundup).
August 5, 2002... Kansas City-based Aquila had a difficult period last week as it called off its planned acquisition of Cogentrix Energy due to uncertainty in the electric power market. The merchant trader also was forced to put its pipeline and storage...

Transcontinental Gas Pipe Line. (Regional Market Roundup: North Carolina).
August 5, 2002... Transcontinental Gas Pipe Line got the okay from the Federal Energy Regulatory Commission (FERC) to abandon a sales service agreement under Rate Schedule FS with the Public Service Company of North Carolina, effective Mar. 31,2003. The rate...

Yankee Gas Services. (Regional Market Roundup: Connecticut).
August 5, 2002... Berlin, Connecticut-based Yankee Gas Services, a subsidiary of Northeast Utilities, last week outlined its 2002 system expansion plans. In 2002, Yankee expects to invest approximately $4.5 million to install 12 miles of new gas mains to...

Tennessee Gas Pipeline. (Regional Market Roundup: Texas).
August 5, 2002... Tennessee Gas Pipeline, a subsidiary of El Paso, got the environmental go-ahead last week from the Federal Energy Regulatory Commission (FERC) for its South Texas Expansion Project (STEP). The STEP project will provide up to 320 MMcf/d of...

Southern California Gas. (Regional Market Roundup: Southern California).
August 5, 2002... Southern California Gas (SCG), a subsidiary of Sempra Energy, began service last week on the last of four planned gas pipeline expansion projects in California. SCG touted the projects as important to preventing a recurrence of spiking natural...

Spot prices on interstate pipeline systems.
August 5, 2002... SPOT PRICES ON INTERSTATE PIPELINE SYSTEMS Delivered-to-Pipeline ($/MMBtu) August 5, 2002 This Weekly Bid Week Pipeline Week Change for Aug. ...

Offshore drilling coming to BC? Final decision within 18 months. (Canadian Markets).
August 5, 2002... Canada's natural resources minister promised the federal government will make a final decision on whether to lift its moratorium on drilling off British Columbia's Pacific coast within 12 to 18 months. Natural Resources Minister Herb...

Canadian price report.
August 5, 2002... CANADIAN PRICE REPORT ($U.S. per MMBtu/$Can per Gigajoule) BRITISH COLUMBIA ALBERTA Huntingdon/ Kingsgate/ Total...

City gate prices.
August 5, 2002... CITY GATE PRICES August 5, 2002 ($/MMBtu) Bid Week Bid Week City for August for July Austin, Texas Valero Transmission Co. ...

Gas price trends.
August 5, 2002... GAS PRICE TRENDS ($/MMBtu) ROCKY NEW CALIFORNIA MTNS MEXICO South North August 2001 ...

WSI: El Nino fears overblown, expect early winter in Midwest.
August 5, 2002... Talk of an El Nino this winter, and the resulting mild weather that has accompanied the phenomenon in the past, has tempered bullish psychology in out-month gas futures. But some private meteorologists claim those worries are overblown. ...

Gas price report.
August 5, 2002... GAS PRICE REPORT ($/MMBtu--Spot) August 5, 2002 Interstate Intrastate Wellhead Wellhead Bid ...

Rig Count. (Canadian Markets).
August 5, 2002... There were 265 rigs drilling for natural gas and oil in Western Canada as of Jul. 30, a decrease of 18 from a week ago, according to the Canadian Association of Oilwell Drilling Contractors (CAODC). During the same period a year ago, CAODC...

Working gas. (Canadian Markets).
August 5, 2002... Working gas in all Canadian storage facilities increased to 81.6% of capacity as of July 26, up from 80.5% the week before, according to the most recent data available from the Canadian Gas Association (CGA). Canadian storage facilities...

The composite spot import price. (Canadian Markets).
August 5, 2002... The composite spot import price this week is US$2.26/MMBtu for gas leaving Canada and entering the US through six border crossing points. Natural Gas Week's Aug. 6, 2001, average for Canadian exports was US$2.86/MMBtu. Working gas...

Devon Energy. (Late News).
August 12, 2002... Digging in. Devon Energy considers C$400 million (US$253 million) oil sands project in northern Alberta. Jackfish project near Christina Lake could produce 35,000 b/d of bitumen by 2007 and contains estimated 250 million bbl of recoverable...

Three Mile Island. (Late News).
August 12, 2002... Emergency use only. Beginning Thursday, Pennsylvanians who live or work within 10 miles of state's five nuclear plants can pick up pills that give partial protection against radiation. Individuals near Three Mile Island, Peach Bottom, and other...

Enron. (Late News).
August 12, 2002... No show. City of Tacoma, Washington, asks Ohio federal court to enforce subpoena against John Forney, former Enron electricity trader in Portland, after he fails to appear for deposition in Columbus, Ohio, last Wednesday. Tacoma is challenging...

Average cash prices & futures strip. (Late News).
August 12, 2002... Natural gas prices slipped last week, though a bullish storage report was issued last Thursday. [Graph Omitted]

Industrials showing strength, but rebound is still tentative.
August 12, 2002... While White House economic advisors have been reassuring US citizens that an economic recovery is underway -- and that the possibility of a double-dip recession is remote -- signs in the private sector are mixed. Strength in the US industrial...

EIA throws wrench in the market as storage stems downward tide.
August 12, 2002... Natural gas prices have slipped from around the $3.10/MMBtu level throughout the month of June to the recent $2.80-$2.85 range, and the commodity may have picked up some additional load in the process. Or maybe production has declined even...

Aquila exits trading business, sheds Texas gas storage assets.
August 12, 2002... Troubled energy merchant Aquila took several major steps last week in its quest to improve its financial health and win back investor confidence. The Kansas City-based company said it is looking for a buyer for its 79.9% stake in Avon...

Rockies producers need pipes; trapped gas receives discount.
August 12, 2002... With natural gas production in the Rocky Mountain regions increasing and pipeline capacity already tight, both expanded and new systems dearly are needed. The issue facing pipeline owners and developers is whether producers will assume the...

Scotian Shelf could fill gaps left by Canadian field declines.
August 12, 2002... The Scotian Shelf offshore Nova Scotia will play a significant role over the next five to 10 years as Canada looks to replace dwindling production from its Western Canadian Sedimentary Basin. Last week, Lehman Brothers said Canadian natural...

Rockies CBM battle continues.
August 12, 2002... Environmentalists in Colorado may have won a major victory in their quest to stop coalbed methane drilling when a local commission recently ruled against some test wells (NGW Jul.29,p3), but they're not resting on their laurels. The Grand...

CMS mulls sale of key assets including pipes, LNG facility.
August 12, 2002... CMS Energy is considering selling several of its key pipeline assets and its liquefied natural gas (LNG) facility in a move designed to strengthen the company's balance sheet and win back investor confidence. In releasing its...

FERC, Davis square off again over cal ISO board selections.
August 12, 2002... California Gay. Gray Davis last week urged the state grid operator to ignore a Federal Energy Regulatory Commission (FERC) order, setting the stage for a nasty showdown of state versus federal authority. The standoff began with two letters...

Major market prices.
August 12, 2002... MAJOR MARKET PRICES August 12, 2002 ($/MMBtu) This Weekly Bid Week Week Change for Aug. Chicago City Gate 2.73 -0.21 2.91 New York City Gate 3.08 -1.25 3.42...

Williams eyeing growth in E&P even after Selling Jonah field.
August 12, 2002... Energy merchant Williams is past its liquidity problems and rebuilding itself as an integrated natural gas pipeline company with a large exploration and production (E&P) component, said Ralph Hill, senior vice president and general manager of...

EI Paso punished by write-downs as firm embraks on further cuts.
August 12, 2002... Asset write-downs, not trading losses, caused El Paso to report negative results for the second quarter, though earnings from natural gas and trading were down. The company said it lost $45 million (8cents/share) on revenues of $3 billion,...

Spot prices on interstate pipeline systems.
August 12, 2002... SPOT PRICES ON INTRASTATE PIPELINE SYSTEMS Delivered-to-Pipeline ($/MMBtu) August 12, 2002 This Weekly Bid Week Pipeline Week Change for Aug. ...

Salt cavern storage.
August 12, 2002... SALT CAVERN STORAGE (Billion Cubic Feet) Aug 2 MMcfd MMcfd Bcf Bcf Facility State Max ...

Capacity issue left unresolved, El Paso returns case to FERC.
August 12, 2002... El Paso Natural Gas told federal regulators earlier this month that it rejected a proposal from its full requirement (FR) shippers to alleviate capacity allocation problems, claiming that the FR shippers' plan was based on an incorrect...

Trading activity much slimmer, but markets still functioning.
August 12, 2002... Are the energy markets working in the wake of the collapse of Enron and the financial crisis facing the rest of the sector? Sort of, said industry executives at the Colorado Oil & Gas Association's Rocky Mountain Natural Gas Strategy...

2002 gas price outlook.
August 12, 2002... 2002 GAS PRICE OUTLOOK August 12, 2002/Week 32 12-Month Strip Wellhead Delivered-to-Pipeline Nymex $2.81 $2.93 $3.387 NOTES: (1)Prices are in $/MMBtu and are...

Upstream M&A activity up in second quarter. (E&P Update).
August 12, 2002... The number of worldwide upstream mergers and acquisitions (M&A)-as well as reserve values-rebounded Last quarter from first-quarter levels; however, the total value of deals dipped because of a waning number of expensive corporate transactions....

Gas rigs vs. total rigs. (E&P Update).
August 12, 2002... Gas Rigs Vs. Total Rigs Total Rigs Gas Rigs 8/1/1998 792 565 8/1/1999 639 527 8/1/2000 987 779 8/1/2001 1251 1032 7/3/2002 862 716 7/12/2002 848 ...

Storage-price-gas rig count. (E&P Update).
August 12, 2002... Storage-Price-Gas Rig Count In storage gas rigs 6/7 1,974 710 6/14 2,096 709 6/21 2,184 698 6/28 2,288 697 7/3 2,353 716 7/12 2,422 711 7/19 2,486 725...

Captive coal munis paying higher freights. (Current).
August 12, 2002... Municipal power companies and railroads are squaring off aver the issue of captive customers on rail lines, which the municipal utilities claim is causing higher prices for their customers due to higher costs for shipping the coal that their...

Minnesota to see turkey power. (Current).
August 12, 2002... Minnesota, the largest producer of turkeys in the world, may get one of the first US electric generating plants fueled by turkey litter. "The [Minnesota] plant may be one of, if not the first plants to us turkey litter [to generate...

Duke's Clovis plant approved. (Current).
August 12, 2002... CLOVIS, New Mexico -- The New Mexico Regulation Commission gave final approval to Duke Energy's proposed 1,200-MW Clovis Energy Facility last week. According to Duke spokeswoman Diana Vavrek, the plant was originally scheduled to come on...

Minnesota Power plant canceled. (Current).
August 12, 2002... DULUTH, Minnesota -- Minnesota Power and a Finnish-owned paper company have canceled plans to build a power plant (NGW Aug. 5, p12) because the project was not cost effective. Minnesota Power and Blandin Paper -- owned by UPM-Kymmene of...

NRG transfers plant to Shaw. (Current).
August 12, 2002... MINNEAPOLIS -- NRG Energy reached an agreement last week with the Shaw Group to transfer the assets of a Holmesville, Mississippi, power plant project to Shaw. As a result of the transfer, NRG -- a subsidiary of Xcel Energy -- will receive $43...

Pepco seeking power proposals. (Current).
August 12, 2002... WASHINGTON, D.C. -- Potomac Electric Power (Pepco) issued a request for proposals to supply some of the company's default service in the District of Columbia and Maryland, the utility said in a statement Last week. Default services are for...

Comparative fuel prices. (Current).
August 12, 2002... COMPARATIVE FUEL PRICES (Cash Market) August 12, 2002 EAST COAST Natural Gas Natural Gas New York Harbor: Texas New York Heating ...

NB Power prepares for competition.
August 12, 2002... FREDERICTON, New Brunswick - Moving a step closer to opening New Brunswick's electricity market to competition, NB Power filed papers with the provincial government last week to establish a price the utility will charge other companies to use...

Acadia starts Louisiana plant.
August 12, 2002... SAN JOSE, California - Acadia Power Partners -- a joint venture between Calpine and Cleco Midstream Resources -- announced last week that the Acadia Power Project in Louisiana began operations, and will generate more than 1,000 MW. Calpine...

Natural gas futures and spot electricity trading.
August 12, 2002... NATURAL GAS FUTURES AND SPOT ELECTRICITY TRADING Trading Dates: Aug. 5-Aug. 9, 2002 New York Mercantile Exchange (NYMEX) (Henry Hub) Monday Tuesday Wednesday Thursday Last/Volume...

Cash market hub trading.
August 12, 2002... CASH MARKET HUB TRADING ($/MMBtu) Henry Hub, La. Jan. Feb. March April May June July 1994 2.34 2.71 2.21 2.04 1.92 1.90 1.96 1995 1.48 1.54...

Natural gas rig count.
August 12, 2002... NATURAL GAS RIG COUNT Jan. Feb. March April May June July August Sept. 1999 Total 587 542 526 496 516 558 588 639 696 Gas 461 425 412 371 380 434 478 527 565 ...

Rockies pipe expansions sought to boost Mid-Continent access. (Regional Market Roundup).
August 12, 2002... Two new pipeline projects were announced last week to boost access for Rockies gas supplies-which has been squeezed by infrastructure constraints this summer-to eastern markets in the Mid-Continent region. Kinder Morgan Interstate Gas...