Natural Gas Week articles from August 2003

Natural Gas Week archives from August 2003

Rockies permits. (Late News ...).
August 4, 2003... Rockies permits. Bush administration forms committee to find faster ways for energy companies to obtain drilling permits on federal lands in Rocky Mountains. President made energy exploration in western US focal point of his plan to reduce...

Power shortage? (Late News ...).
August 4, 2003... Power shortage? West is at risk of being short energy within next few years if new generation projects aren't begun soon, energy experts tell federal regulators. Western electricity market is currently overbuilt, but not as much as other...

Average cash prices & futures strip.
August 4, 2003... Persistently cool temperatures across major eastern markets kept natural gas prices sliding last week. [GRAPHICS OMITTED]

Senate approves energy bill in 'hollow victory' for Democrats.
August 4, 2003... After days of sometimes bitter partisan fighting, the Republican-controlled Senate Friday took the extraordinary step of approving a broad energy bill 84-14 crafted and passed when Democrats were in charge last year. But it may be only a hollow...

Layoffs, cost-cutting fuel Anadarko takeover speculation.
August 4, 2003... Anadarko Petroleum Chief Executive Robert Allison refused to tip his hand when asked Friday about speculation that his company could soon be acquired by one of the majors, saying he was unable to respond despite the persistent prodding of...

Lower prices firm gas demand, but summer heat still elusive.
August 4, 2003... Many market watchers believe a bottom is near after a steady fall in gas prices since early June. But bulls are receiving no cooperation from Mother Nature, with a lack of interregional hot weather keeping prices and demand soil. There are...

Shell plans mega-LNG terminal for Western Gulf of Mexico.
August 4, 2003... With Exxon Mobil planning possibly two mega-terminals to receive liquefied natural gas (LNG), Royal Dutch/Shell Group, the world's largest LNG producer, couldn't be far behind in developing its own capacity. The company is expected to file...

Another LNG project proposed to serve New England region.
August 4, 2003... The site of one of Massachusetts' "filthy five" coal- and oil-fired power plants is being considered for a liquefied natural gas (LNG) receiving terminal, the second LNG proposal to emerge in the state in as many weeks. The Somerset LNG...

Offshore LNG faces unique problems.
August 4, 2003... Offshore liquefied natural gas (LNG) receiving terminals may seem the best solution to potential "NIMBY" (not in my backyard) or "BANANA" (build absolutely nothing anywhere near anybody) problem but they have their own disadvantages that...

CFTC settles price manipulation claims with Williams, Enserco.
August 4, 2003... In a flurry of announcements, the Commodity Futures Trading Commission (CFTC) settled allegations of natural gas price manipulation with three companies last week for a combined $43 million in civil penalties. Along with a $20 million...

Major market prices: August 4, 2003 ($/MMBtu).
August 4, 2003... MAJOR MARKET PRICES August 4, 2003 ($/MMBtu) This Weekly Bid Week Week Change for Aug. Chicago City Gate 4.71 -0.18 4.70 New York City Gate 5.06 ...

FERC disallows use of basis deals in negotiated rates.
August 4, 2003... Two recent decisions handed down by federal courts and regulators will have major ramifications on the types of rates pipelines can charge their shippers. The Federal Energy Regulatory Commission (FERC) on July 25 issued an order on its...

Spot prices on intrastate pipeline systems: Delivered-to-Pipeline ($/MMBtu) August 4, 2003.
August 4, 2003... SPOT PRICES ON INTRASTATE PIPELINE SYSTEMS Delivered-to-Pipeline ($MMBtu) August 4, 2003 This Weekly Bid Week Pipeline Week Change for Aug. Louisiana Intrastates LIG,...

Mild weather lowers earnings for many integrated utilities.
August 4, 2003... Mild weather in the second quarter hampered earnings for many integrated utilities. Many continue to sell assets, restructure operations and refinance debt. Duke Energy announced second quarter 2003 net income was $424 million (46...

Cool Papa prospect a duster for integrated producer Murphy.
August 4, 2003... Murphy Oil's deepwater drilling program in the Gulf of Mexico has turned up another disappointment--a dry hole on the highly touted Cool Papa prospect in Green Canyon Block 380. Cool Papa--with an estimated pre-drill reserve potential of...

2003 gas price outlook: August 4, 2003/week 31.
August 4, 2003... 2003 GAS PRICE OUTLOOK August 4, 2003/Week 31 12-Month Strip Wellhead Delivered-to-Pipeline Nymex $5.43 $5.50 $5.027 NOTES: (1) Prices are in $/MMBtu and are...

Most producers score with higher gas prices. (Corporate Earnings).
August 4, 2003... High gas prices during the second quarter of 2003 fattened the bottom line of most producers reporting earnings last week. BG Group--a leading importer of liquefied natural gas to the US--reported strong growth in second-quarter earnings....

Composite spot wellhead price January 1991 to present ($/MMBtu).
August 4, 2003... COMPOSITE SPOT WELLHEAD PRICE January 1991 to Present ($/MMBtu) Jan. Feb. March April May June July August 1991 1.57 1.30 1.26 1.23 1.20 1.11 1.07 1.19 1992 1.29 1.07 1.13 1.31...

Composite spot Delivered-to-Pipeline Price: January 1991 to present ($/MMBtu).
August 4, 2003... COMPOSITE SPOT DELIVERED-TO-PIPELINE PRICE January 1991 to Present ($/MMBtu) Jan. Feb. March April May June July August 1991 1.66 1.41 1.33 1.31 1.27 1.19 1.15 1.27 1992 1.44 1.21 ...

North American weekly gas storage (billion cubic feet).
August 4, 2003... NORTH AMERICAN WEEKLY GAS STORAGE (Billion Cubic Feet) Jul. 18 Jul. 11 Weekly Year Yr. Ago Region Week Week Change Ago Difference US East 1160.0 ...

Prices and differentials for major hubs and selected city gates: August 4, 2003 US$/MMBtu.
August 4, 2003... PRICES AND DIFFERENTIALS FOR MAJOR HUBS AND SELECTED CITY GATES August 4, 2003 US$/MMBtu Sumas, Wash. $4.02 Malin, Ore. $4.29 Los Angeles City Gate $5.12 Topock, Ariz. $4.64 AECO-C Hub ...

SoCal offers plan for future generation. (Current).
August 4, 2003... Southern California Edison (SoCal) may become the first California utility to buy a power plant outside of a joint venture since the state deregulated in March 1998. The utility, a subsidiary of the energy company Edison International,...

Cold War weapons to fuel nuke.
August 4, 2003... The largest public power company in the US will generate electricity at one of its nuclear plants with Cold War leftovers of weapons-grade nuclear material. The Tennessee Valley Authority (TVA) expects to receive shipments of the...

New England plant begins operation.
August 4, 2003... Exelon Generation announced Thursday that the 800-MW Fore River Generating Station in Weymouth, Massachusetts, has begun commercial operations. The station, a natural gas-fired combined cycle unit, will provide power to the New England...

Comparative fuel prices (cash market) August 4, 2003.
August 4, 2003... COMPARATIVE FUEL, PRICES (Cash Market) August 4, 2003 EAST COAST Natural Gas Natural Gas New York Harbor: Texas New York Heating Residual...

NRC OKS South Texas nuke restart.
August 4, 2003... The Nuclear Regulatory Commission (NRC) said Friday it approved the restart of the 1,250-MW South Texas 1 nuclear unit near Bay City, Texas. The NRC "concluded the plant's operator had taken all the necessary actions with respect to the...

Three new Sempra projects online.
August 4, 2003... Sempra Energy Resources' three new power plant projects in Arizona, California and Mexico are now operational. Combined, the three natural gas-fired projects produce about 1,500 MW of power for the Pacific Southwest. Sempra spent more than...

Natural gas futures and spot electricity trading trading dates: Jul. 28-Aug. 1 2003.
August 4, 2003... NATURAL, GAS FUTURES AND SPOT ELECTRICITY TRADING Trading Dates: Jul. 28- Aug. 1, 2003 New York Mercantile Exchange (NYMEX) (Henry Hub) Monday Tuesday Wednesday Thursday ...

We Energies to purchase wind power.
August 4, 2003... Wisconsin utility We Energies said last week it signed 20-year agreements to purchase electricity from three windpower farms to be developed in the Badger State. The Milwaukee-based utility said the projects, expected in the next two years,...

TransAlta completes Sheerness sale.
August 4, 2003... TransAlta said Thursday it completed the sale of its 50% interest in the two-unit, 756-MW coal-fired Sheerness Generating Station, located about 100 miles northeast of Calgary. TransAlta sold the facility to TransAlta Cogeneration, a...

Williams ends Allegheny power deal.
August 4, 2003... Williams said Friday that it has agreed to end a power contract with Allegheny Energy, reaping $128 million and enabling Allegheny to further disentangle itself from the energy trading business. Tulsa, Oklahoma-based Williams said the deal...

Cash market hub trading ($/MMBtu).
August 4, 2003... CASH MARKET HUB TRADING ($/MMBtu) Henry Hub, La. Jan. Feb. March April May June July August 1995 1.48 1.54 1.52 1.59 1.64 1.65 1.44 1.56 1996 2.92 4.41...

Natural gas rig count.
August 4, 2003... NATURAL GAS RIG COUNT Jan. Feb. March April May June July August 2000 Total 774 763 773 805 844 878 942 987 Gas 631 616 599 609 644 677 733 779 %...

Two pipelines hold open season for new capacity in Rockies.
August 4, 2003... Cheyenne Plains Gas Pipeline (CPGP), a unit of Colorado Interstate Gas (CIG), is conducting an open season through Aug. 14 for possible expansion of capacity on its line slated to extend from the Cheyenne Hub to interconnections near Greensburg...

Spot prices on interstate pipeline systems--Part 1: Delivered-to-Pipeline ($/MMBtu) August 4, 2003.
August 4, 2003... SPOT PRICES ON INTERSTATE PIPELINE SYSTEMS--PART 1 Delivered-to-Pipeline ($/MMBtu) August 4, 2003 This Weekly Bid Week Bid Week Pipeline Week Change for Aug. for Jul. ANR...

Spot prices on interstate pipeline systems--Part 2: Delivered-to-Pipeline ($/MMBtu) August 4, 2003.
August 4, 2003... SPOT PRICES ON INTERSTATE PIPELINE SYSTEMS--PART 2 Delivered-to-Pipeline ($/MMBtu) August 4, 2003 This Weekly Bid Week Bid Week 2002 Pipeline Week Change for Aug. for Jul....

EnCana pays $20 million fine for subsidiary's false reporting.
August 4, 2003... Calgary-based EnCana, the world's largest independent natural gas producer, agreed last week to pay US$20 million to federal energy regulators in the US to settle allegations it tried to fix natural gas prices south of the border two years ago....

Canadian price report ($U.S. per MMBtu/$Can per Gigajoule).
August 4, 2003... CANADIAN PRICE REPORT ($U.S. per MMBtu/$Can per Gigajoule) BRITISH COLUMBIA Huntingdon/ Kingsgate/ Total Sumas ...

City gate prices: August 4, 2003 ($/MMBtu).
August 4, 2003... CITY GATE PRICES August 4, 2003 ($/MMBtu) Bid Week Bid Week City for August for July Austin, Texas Valero Transmission Co. ...

Gas price trends ($/MMBtu).
August 4, 2003... GAS PRICE TRENDS ($/MMBtu) ROCKY NEW CALIFORNIA MTNS MEXICO TEXAS Gulf Gulf ...

Unbowed by gas price declines, analyst predicts spikes ahead.
August 4, 2003... Despite the downdraft in natural gas prices since June, longstanding bulls at brokerage firm Raymond James are not ceding ground in their outlook. While most analysts have grown cautious on gas prices, Raymond James is predicting potential...

CBM bonanza.(Late News ...)
August 11, 2003... Alaska has 40% more coal than all of the Lower 48 states combined and its coal beds could hold a staggering 1,000 Tcf of methane gas, enough to fuel the entire country for decades, according to US Geological Survey. Now, after years of talk...

More LNG.(Late News ...)
August 11, 2003... During second-quarter earnings call, Calpine says it is looking to liquefied natural gas (LNG) to meet its growing fuel supply needs in North American power generation (see story,p6). Company says it is considering receiving terminal that could...

Average cash prices & futures strip.(Late News ...)
August 11, 2003... A technical short-covering rally at Nymex spurred by a lower-than-expected storage injection report lead gas prices higher last week. [GRAPHICS OMITTED]

Georgia Strait may be latest target of state regulatory halt.
August 11, 2003... Another major pipeline project--the Georgia Strait Crossing sponsored by Williams and BC Hydro--has apparently run aground on the same regulatory shoals threatening two planned northeast pipelines, according to FERC staff. The Georgia Strait...

OCS inventory unlikely to emerge from GOP-controlled conference.
August 11, 2003... The decision by Republican Senate leaders to replace their energy bill with an earlier Democratic bill has basically killed any chance to compel an inventory of oil and gas reserves on the Outer Continental Shelf(OCS) in this session of...

Signs of tightening market lead to major nymex gas rally.
August 11, 2003... This week's storage report from the Energy Information Administration (EIA) will likely set the tone for gas trading in the month of August and could lead to a revival of flagging bullish spirits flit demonstrates a return of baseload...

Ammonia plants still suffering despite falling gas prices.
August 11, 2003... Natural gas prices have fallen $3 from their March highs, but that may still not be enough to end the ongoing pain of the ammonia industry. While 11 ammonia plants representing about 20% of US capacity have been permanently closed over the...

Chemical turnaround? Not so fast.
August 11, 2003... Is the struggling chemical sector poised for a turnaround? Not so fast, says a top credit-reporting agency. Standard & Poor's Ratings Services recently issued a report stating that confidence in the industry's much-anticipated recovery is...

Task force, key BLM decision could speed drilling in rockies.
August 11, 2003... Rocky Mountain natural gas producers know they sit atop billions of cubic of feet of gas reserves, but for years, government land-use restrictions and fierce lobbying by environmental groups have kept producers off millions of acres. ...

Senators challenge Mexican MSCs.
August 11, 2003... Opposition legislators in Mexico look likely to make good on threats to mount a constitutional challenge to multiple service contracts (MSC), a means by which oil company Pemex hopes to attract private development of gas reserves without...

Two Oil Sands Projects advance; may keep Northern gas from US.
August 11, 2003... Two more gas-hungry oil sands projects in Canada moved ahead last week with Canadian Natural Resources announcing it was proceeding with its Horizon Oil Sands Project while the joint Nexen-OPTI Canada Long Lake Oil Sands Project received...

Pipeline neophyte MidAmeriean eyes new Kern River expansion.
August 11, 2003... The first natural gas on the expanded Kern River pipeline started flowing just three months ago, and already the pipeline's owner is talking about another expansion to serve a Rocky Mountain region that is starved for new pipeline capacity. ...

Second-quarter results mixed for number of industry players.
August 11, 2003... Despite higher revenues from stronger commodity prices, Sempra Energy's second quarter earnings fell 21% due to higher operating expenses. Net income was $116 million (55 cents/share) on revenue of $1.8 billion verses earnings of $147 million...

Infrastructure will determine LNG's contribution to supply.
August 11, 2003... Liquefied natural gas (LNG) won't be either a short-term or long-term solution to North America's tightening supply situation without infrastructure adequate to handle the growing volumes, says a long-time US LNG executive. "We don't have...

New pipes a tough task for Rockies producers.(E&P Update)
August 11, 2003... Rockies gas producers have for years been urging lawmakers to open up--or at least ease the restrictions on--federal lands. The land access issue is indeed an important one for Rockies producers, but many industry experts say the issue...

FERC clears Duke on power withholding claims.(Current)
August 11, 2003... In a move it hopes will bolster confidence in the energy sector, the Federal Energy Regulatory Commission (FERC) has notified dozens of companies--including Duke Energy--that they have been cleared of allegations that they may have withheld...

Dominion continues asset buys.(Current)
August 11, 2003... Fresh from a successful hunt, acquisition-prone Dominion Resources continues to search for new baseload generation in the Northeast. Last week, the diversified energy company based in Richmond, Virginia, spent only a fraction of its surplus...

Industrials call for new rules.(Current)
August 11, 2003... A group of chemical, paper, steel and other industrial firms said Thursday that federal energy regulators need to issue anti-manipulation market rules to mend the current "crazy quilt" of vague regional standards. Responding to what it...

Comparative fuel prices.(Current)
August 11, 2003... COMPARATIVE FUEL PRICES (Cash Market) August 11, 2003 APPALACHIA Appalachian Pool Dlvd (Util) Ohio/Big Sandy River Coal $32.45/ton $5.05/MMBtu $1.35/MMBtu...

CEC okays first phase of plant.(Current)
August 11, 2003... The California Energy Commission (CEC) has recommended approval of the first phase of the 1,000-MW Cosumnes power plant planned by the Sacramento Municipal Utility District (SMUD). The municipal utility proposed to build the $595 million,...

FERC to release contract info.(Current)
August 11, 2003... FERC is expected to release this week the confidential power supply contracts that Entergy and Southern signed with their affiliates. In June, FERC questioned eight long-term contracts signed by Entergy, saying the utility may have given...

Wisconsin coal plant approved.(Current)
August 11, 2003... The Public Service Commission of Wisconsin and the state's Department of Natural Resources have released the final Environmental Impact Statement (EIS) on Wisconsin Energy's Proposal to build and operate 1,800 MW of coal-fired electric...

Natural gas futures and spot electricity trading.(Current)
August 11, 2003... NATURAL GAS FUTURES AND SPOT ELECTRICITY TRADING Trading Dates: Aug. 4-Aug. 8, 2003 New York Mercantile Exchange (NYMEX) (Henry Hub) Monday Tuesday Wednesday Thursday ...

PG&E tests New York power plant.(Current)
August 11, 2003... PG&E's National Energy Group (NEG) is testing the three 330-MW gas-fired generating units at its Athens, New York, power plant, located 30 miles south of Albany. A spokeswoman at NEG said the units, slated to go into commercial operation...

Sempra power plant approved.(Current)
August 11, 2003... The California Energy Commission has approved Sempra Energy Resources' plans for the Palomar Energy project, a natural gas-fired, 550-MW power plant in Escondido, California. Sempra said the estimated two-year construction project will commence...

Cash market hub trading.(Current)
August 11, 2003... CASH MARKET HUB TRADING ($/MMBtu) Henry Hub, La. Current month: Aug. 11:$4.84 Aug. 4:$4.68 Jan. Feb. March April May June July August 2003 5.30 7.35 8.06 5.27 5.78 5.84 5.04 2002...

Natural gas rig count.(Current)
August 11, 2003... NATURAL GAS RIG COUNT Aug. 8: 1074/920/85.7% Aug. 1: 1097/937/85.4% Jan. Feb. March April May June July August 2003 Total 854 907 941 983 1034 1067 1081 Gas 718 750 ...

Tennessee announces new Texas system to move gas to Mexico.(Regional Market Roundup)
August 11, 2003... Tennessee Gas Pipeline placed its South Texas Expansion Project into service on Aug. 1. The project connects Tennessee's existing South Texas system in Hidalgo County to Gasoducto del Rio, a new natural gas pipeline in northern Mexico. The...

Kinder Morgan plans to significantly expand the capacity of its Oil Springs natural gas storage facility in eastern Carbon County, Wyoming.(Wyoming)
August 11, 2003... Kinder Morgan plans to significantly expand the capacity of its Oil Springs natural gas storage facility in eastern Carbon County, Wyoming. The proposed expansion project would expand the facility's cycling capability by as much as 10 times to...

Kinder Morgan Energy Partners and Nicor have launched a firm capacity open season for their Advantage Southern Pipeline project.(Midcontinent)
August 11, 2003... Kinder Morgan Energy Partners and Nicor have launched a firm capacity open season for their Advantage Southern Pipeline project, which is slated to extend from the Cheyenne Hub to the Midcontinent. The open season is to continue through Aug....

Spot prices on interstate pipeline Systems--Part 1.(Regional Market Roundup)
August 11, 2003... SPOT PRICES ON INTERSTATE PIPELINE SYSTEMS--PART 1 Delivered-to-Pipeline ($/MMBtu) August 11, 2003 This Weekly Bid Week Bid Week Pipeline Week Change for Aug. for Jul. ...

National Fuel Gas Supply has asked the Federal Energy Regulatory Commission (FERC) for the go-ahead to build a direct connection between the Hebron Storage Field in Potter County, Pennsylvania.(Northeast)
August 11, 2003... National Fuel Gas Supply has asked the Federal Energy Regulatory Commission (FERC) for the go-ahead to build a direct connection between the Hebron Storage Field in Potter County, Pennsylvania, and an existing 24-inch transmission line called...

The Federal Energy Regulatory Commission (FERC) has released a favorable Draft Environmental Impact Statement on the proposed Calypso Pipeline Project.(Florida)
August 11, 2003... The Federal Energy Regulatory Commission (FERC) has released a favorable Draft Environmental Impact Statement on the proposed Calypso Pipeline Project. The 42-mile long Calypso line is slated to ship 832 MMcf/d from a proposed liquefied natural...

Spot prices on interstate pipeline Systems--Part 2.(Regional Market Roundup)
August 11, 2003... SPOT PRICES ON INTERSTATE PIPELINE SYSTEMS--PART 2 Delivered-to-Pipeline ($/MMBtu) August 11, 2003 This Weekly Bid Week Bid Week 2002 Pipeline Week Change for Aug. for Jul....

ConocoPhillips report backs decision to shut-in gas wells.(Canadian Markets)
August 11, 2003... Massive oil sands deposits in northern Alberta would be rendered inaccessible with current technology if nearby natural gas reserves were removed, energy giant ConocoPhillips says. Releasing hundreds of pages of previously confidential...

Canadian price report.(Canadian Markets)
August 11, 2003... CANADIAN PRICE REPORT ($U.S. per MMBtu/$Can per Gigajoule) BRITISH COLUMBIA Huntingdon/ Kingsgate/ Total Sumas ...

Canadian drilling to skyrocket.(Canadian Markets)
August 11, 2003... With Canadian energy firms flush with cash to invest, the drilling sector will set a new record this year, an industry group predicted last week. The Petroleum Services Association of Canada (PSAC) released a new drilling forecast,...

Gas price trends.
August 11, 2003... GAS PRICE TRENDS ($/MMBtu) ROCKY NEW CALIFORNIA MTNS MEXICO TEXAS Gulf Coast South North ...

EEA: degree day revisions point to better supply outlook.
August 11, 2003... Revisions to last winter's heating degree data continue to roil analysts' perceptions of the gas market, suggesting a market balance not as tight as first thought. In their new monthly update, Arlington, Virginia-based Energy and...

Blackout.(Late News ...)
August 18, 2003... The Northeast blackout on Thursday and Friday delayed Natural Gas Week's publication until Saturday afternoon because our main editorial computer is housed in New York City. It also disrupted publication of NGW's Daily Price Snapshot on...

About face.(Late News ...)
August 18, 2003... When Northeast lost power Thursday, Connecticut welcomed supply from Cross-Sound Cable from New York after fighting it. Long-dormant, underwater electric cable running from Long Island to Connecticut ramped up early Friday after Department of...

Capitalizing on catastrophe.(Late News ...)
August 18, 2003... Northeast blackout proved a boon for stocks of distributed generation makers, who were among Wall Street's biggest gainers last Friday. Investors bid up shares of fuel cell makers Plug Power, FuelCell Energy and Active Power from 20% to 26% on...

Average cash prices & futures strip.(Late News ...)
August 18, 2003... Rising temps in the Northeast and Midwest pushed prices up, but sentiment turned bearish after an above-expectation storage injection. [GRAPHIC OMITTED]