Natural Gas Week articles from February 2003

Natural Gas Week archives from February 2003

Full steam ahead. (Late News).
February 3, 2003... Full steam ahead. President's call in State of the Union address to advance $1.2 billion hydrogen fuel cell research program spurs key Republicans to accelerate consideration of energy legislation. In speech, Bush outlined energy plan and...

Earning impaired. (Late News).
February 3, 2003... Earning impaired. Dynegy on Friday posts $341 million loss ($1.15/share) for fourth quarter of 2002, and a loss of $2.8 billion for year. Majority of losses come on after-tax charges totaling $213 million in 4Q02 and $2.5 billion for year...

Shareholder revolt? (Late News).
February 3, 2003... Shareholder revolt? El Paso is gearing up for proxy fight with Coastal founder Oscar S. Wyatt, who is reportedly putting together list of nominees to replace current El Paso directors. He will present proposal to shareholders this spring before...

Average cash prices & futures strip.
February 3, 2003... Natural gas prices slid on average last week as weather warmed, but a hefty storage withdrawal was reported. [GRAPH OMITTED]

Bulls still rule US gas market, but players keep eyes on demand.
February 3, 2003... US natural gas market players have been inundated with bullish fundamental news--such as further confirmation of production declines, weakening Pacific Northwest hydroelectric conditions, and sliding working gas in storage stocks--but...

Anadarko's new Arctic Platform may revolutionize icy drilling.
February 3, 2003... Until now, gas and oil drilling in Arctic Alaska and northern Canada has been limited to a few winter months when the tundra and muskeg are frozen enough to support the weight of heavy rigs. But Anadarko Petroleum is about to test its new...

Local opposition is overstated to Wyomings CBM development.
February 3, 2003... Opponents of coalbed methane (CBM) drilling in Wyoming's Powder River Basin have used bogus arguments and overstated public opposition to development of the resource, senior state and federal officials told a Houston conference last Friday. ...

LNG projects target Mexico, offshore waters.
February 3, 2003... After several years' effort to develop new outlets for liquefied natural gas (LNG) in the US, most project sponsors will concede a central point: The chances of a new onshore terminal being built in the downstream markets most in need of the...

Major Market Prices.
February 3, 2003... MAJOR MARKET PRICES February 3, 2003 ($/MMBtu) This Weekly Bid Week Week Change for Feb. Chicago City Gate 5.53 -0.33 5.70 New York City Gate 8.34 -3.81 7.37...

FERC report notes manipulation, advises players on new controls.
February 3, 2003... The US natural gas market faces the potential for continued market manipulation, among other problems, according to a new report from the oversight office of the Federal Energy Regulatory Commission (FERC). FERC's Office of Market Oversight...

Report says southern pipe route the more feasible alternative.
February 3, 2003... As supporters of two northern natural gas pipelines race to get their projects built first, a recent Canadian federal government study said the Yukon is better prepared for pipeline construction than the Northwest Territories (NWT). The...

Pioneer, Apache earnings up, but demand destruction looms.
February 3, 2003... Pioneer Natural Resources used a fourth-quarter earnings conference call last week to tout its latest natural gas discovery in the Gulf of Mexico, while Apache used a similar platform to voice concerns that current high natural gas prices could...

Spot Prices on Intrastate Pipeline Systems.
February 3, 2003... SPOT PRICES ON INTRASTATE PIPELINE SYSTEMS Delivered-to-Pipeline ($/MMBtu) February 3, 2003 This Weekly Bid Week Pipeline Week Change for Feb. Louisiana Intrastates...

2003 Gas Price Outlook.
February 3, 2003... 2003 GAS PRICE OUTLOOK February 3, 2003/Week 5 12-Month Strip Wellhead Delivered-to-Pipeline Nymex $4.96 $5.10 $5.016 NOTES: (1) Prices are in $/MMBtu and are...

Former Dynegy trader indicted; more cases are likely to follow.
February 3, 2003... US Attorneys indicted a former Dynegy trader last week for giving false price data to a natural gas reporting publication, which should further erode confidence in the veracity of the reported price indices used in the industry. Nor is the...

FERC eyes pipe creditworthiness though gas confiscation axed.
February 3, 2003... The Federal Energy Regulatory Commission (FERC) last week shot down proposals by natural gas pipeline operators to confiscate the gas of defaulting shippers, though it did accept new creditworthiness standards reflecting the post-Enron business...

Composite Spot Delivered-to-Pipeline Price.
February 3, 2003... COMPOSITE SPOT DELIVERED-TO-PIPELINE PRICE January 1991 to Present ($/MMBtu) Jan. Feb. March April May June July August Sept. Oct. 1991 1.66 1.41 1.33 1.31 1.27 1.19 1.15 1.27 1.52 1.68 1992...

Gunnison CBM plans advancing, but legal wrangling continues.
February 3, 2003... Gunnison Energy recieved a boost from the latest court decision in a bitter legal battle over drilling for coalbed methane (CBM) in Colorado's North Fork Valley, but the local regulators and activists trying to stop the drilling scored points...

Salt Cavern Storage.
February 3, 2003... SALT CAVERN STORAGE (Billion Cubic Feet) Jan 24 MMcfd MMcfd Bcf Bcf Facility State Max Max...

Texas state senator vows deregulation change. (Current).
February 3, 2003... A Texas lawmaker believes the state's electric deregulation law includes a defective amendment and has said he will introduce legislation to fix the problem. But most aspects of the Texas plan have been working well, according to players and...

Report details Massachusetts program. (Current).
February 3, 2003... A recent report from a non-profit group in Massachusetts draws a relatively positive picture of that state's ongoing transition to electricity competition, and finds several reasons for optimism about the future. The Associated Industries...

InterGen to install more SCR. (Current).
February 3, 2003... MEXICALI, Mexico -- InterGen last week announced a plan to install additional selective catalytic reduction (SCR) technology on its La Rosita facility. The company had previously committed to install the technology on the two units of La...

Winergy wants to build tower. (Current).
February 3, 2003... CONCORD, Massachusetts -- Winergy is seeking a permit from the US Army Corps of Engineers to install, operate, and maintain a fixed tower and oceanographic instrumentation in Atlantic waters, about seven nautical miles southeast of Nantucket...

DWR files suit against Allegheny. (Current).
February 3, 2003... SACRAMENTO, California -- The California agency charged with buying power during the state's energy crisis said it had filed a breach of contract lawsuit against an affiliate of Hagerstown, Maryland-based Allegheny Energy. The lawsuit,...

Comparative Fuel Prices.
February 3, 2003... APPALACHIA Appalachian Pool Dlvd (Util) Ohio/Big Sandy River Coal $30.00/ton $6.31/MMBtu $1.25/MMBtu COMPARATIVE FUEL PRICES (Cash Market) February 3, 2003 ...

Natural Gas Futures and Spot Electricity Trading.
February 3, 2003... NATURAL GAS FUTURES AND SPOT ELECTRICTIY TRADING Trading Dates: Jan, 27-Jan. 31, 2003 New York Mercantile Exchange (NYMEX) (Henry Hub) Monday Tuesday Wednesday Thursday Last/Volume...

Mirant, Nevada Power sign deal.
February 3, 2003... ATLANTA and LAS VEGAS -- Mirant said last week that it entered into three long-term power contracts with Nevada Power, under which Mirant will provide 325 MW of capacity and electricity to the utility. The contracts are subject to the approval...

California town builds peaker.
February 3, 2003... COLTON, California -- The Colton (California) Public Utilities Department (PUD) has started construction on its 43-MW Agua Mansa power plant. Thomas Clarke, the Colton PUD's electric utility director, said the department negotiated a $43...

Cash Market Hub Trading.
February 3, 2003... CASH MARKET HUB TRADING ($/MMBtu) Henry Hub, La Jan. Feb. March April May June July 1995 1.48 1.54 1.52 1.59 1.64 1.65 1.44 1996 ...

Natural Gas Rig Count.
February 3, 2003... NATURAL GAS RIG COUNT Jan. Feb. March April May June July August Sept. 2000 Total 774 763 773 805 844 878 942 987 1011 Gas 631 616 599 609 644 677 733 779 ...

New storage projects on track to boost capacity in Northeast. (Regional Market Roundup).
February 3, 2003... Two storage projects located in western New York are conducting open seasons for customers interested in new capacity to supply the often bottlenecked Northeast market. Interest should be high considering the recent price spikes in the region...

Spot Prices on Interstate Pipelines Systems -- Part 1.
February 3, 2003... SPOT PRICES ON INTERSTATE PIPELINES SYSTEMS--PART 1 Delivered-to-Pipeline ($/MMBtu) February 3, 2003 This Weekly Bid Week Pipeline Week...

Georgia. (Regional Market Roundup).
February 3, 2003... Atlanta-based AGL Resources announced last week that a subsidiary, Georgia Natural Gas, has reached an agreement to purchase an additional 20% interest in SouthStar Energy Services, according to a Securities and Exchange Commission filing. ...

British Columbia. (Regional Market Roundup).
February 3, 2003... Westcoast Energy last week got the go-ahead from Canada's National Energy Board to expand its Southern Mainline natural gas pipeline system in British Columbia. The project still faces provincial approval. Westcoast is proposing a $270...

North Dakota/Montana. (Regional Market Roundup).
February 3, 2003... The US Federal Energy Regulatory Commission (FERC) last week gave the environmental go-ahead to the Grasslands Pipeline Expansion project. The 247-mile, 16-inch diameter pipeline expansion is slated to bring an additional 80 MMcf/d of natural...

Canadian 4Q02 earnings strong, but shell cuts Sable reserves. (Canadian Markets).
February 3, 2003... Unlike their US cousins, Canadian energy companies last week continued to report strong fourth-quarter and 2002 earnings -- though Shell Canada announced some troubling reserve news for Atlantic Coast production. Shell Canada announced a...

Canadian Price Report.
February 3, 2003... CANADIAN PRICE REPORT ($U.S. per MMBtu/$Can per Gigajoule) --BRITISH COLUMBIA-- Huntingdon/ Kingsgate/ Total Sumas ...

City Gate Prices.
February 3, 2003... CITY GATE PRICES February 3, 2003 ($/MMBtu) Bid Week Bid Week City for Feb. for Jan. Austin, Texas Valero Transmission Co. 5.36 4.72...

Gas Price Trends.
February 3, 2003... GAS PRICE TRENDS ($/MMBtu) ROCKY NEW CALIFORNIA MTNS MEXICO TEXAS Gulf Coast ...

Industrials face more erosion of future US gas market share.
February 3, 2003... Industrials have been under the gun in planning fuel purchases in recently volatile US gas markets, prompting calls to Congress for help in managing rising fuel bills (NGW Jan. 27,p3). But the sector's lot is not likely to improve over the next...

Gas Price Report.
February 3, 2003... GAS PRICE REPORT ($/MMBtu--Spot) February 3, 2003 Interstate Interstate Wellhead Wellhead Bid...

Composite Spot Wellhead Price.
February 3, 2003... COMPOSITE SPOT WELLHEAD PRICE January 1991 to Present ($/MMBtu) Jan. Feb. March April May June July August Sept. Oct. 1991 1.57 1.30 1.26 1.23 1.20 1.11 1.07 1.19 1.43 1.59 1992 1.29 1.07...

Going, going, gone. (Late News).
February 10, 2003... Bankrupt Enron is auctioning emission reduction credits in California and Texas. Credits totaling 650 tons/year of emission allowances are on block in California's San Joaquin Valley, San Francisco Bay Area, Sacramento Valley and northern...

Muni exception. (Late News).
February 10, 2003... Standard & Poor's Ratings Services says public power entities -- electric cooperatives, joint action agencies, and municipal electric utilities -- had fairly smooth 2002 compared to their investor-owned counterparts. Of 197 public utilities,...

Gas franchise. (Late News).
February 10, 2003... Province of Nova Scotia last Friday awards 25-year gas distribution franchises to Heritage Gas -- partnership of SaskEnergy, Scotia Investments, and AltaGas -- and Strait Area Gas -- partnership between towns of Port Hawkesbury and Mulgrave....

Average cash prices & futures strip. (Late News).
February 10, 2003... Natural gas prices jumped last week on yet another huge storage withdrawal. [GRAPH OMITTED] [GRAPH OMITTED]

Heavy withdrawals inspire bulls as US gas breaks $6/MMBtu mark.
February 10, 2003... Traditionally when US gas prices spike to levels seen of late, some balancing factor comes into play: demand destruction and fuel switching two years ago, or a rush by producers to ramp up drilling during prior years. But that balancing factor...

Markets lose switching option as US resid demand wheezes out.
February 10, 2003... Natural gas markets are discovering this winter that fuel-switching doesn't pack the same punch in taming runaway prices as in the past. While demand for gas was breaking records across the eastern US during the recent Arctic cold, residual...

El Paso in a fight for survival; company announces LNG exit.
February 10, 2003... Executives at El Paso could be forgiven for thinking they are under siege. On one side is the threat of a proxy fight headed by its largest individual shareholder whose group wants to oust the incumbent board of directors and most of...

Kelliher likely to be blocked until Democrats get FERC nominee.
February 10, 2003... Federal Energy Regulatory Commission (FERC) nominee Joseph Kelliher will have his confirmation hearing this week before the Senate Energy and Natural Resources Committee, but Senate Democrats plan on blocking his final confirmation until a...

Sides debate impact of clearing as some seek federal mandate.
February 10, 2003... Credit clearing exchanges are being eyed by the energy merchant industry as a way out of their current credit mess, but it remains unclear whether the industry will embrace the exchanges and even how much it can revive natural gas and power...

Devon's new horizontal drilling ups production with fewer wells.
February 10, 2003... Devon Energy said last week that early results of its first foray into horizontal drilling in the Barnett Shale region of North Texas have been promising, potentially opening up a much large area of its acreage there for gas production. ...

Illinois utility watchdog group calls for heavy Nicor penalty.
February 10, 2003... The local utility watchdog group in Illinois that exposed a major accounting scandal involving one of the state's largest utilities now wants that company to pay up. Last week, the Chicago-based Citizens Utility Board (CUB) filed a motion...

Bush budget boosts development hikes environmental spending.
February 10, 2003... President Bush last week proposed to raise $2.4 billion through lease sales in the Arctic National Wildlife Refuge (ANWR), a key piece of his fiscal 2004 budget that continues his pledge of increasing domestic oil and gas production. The...

Major Market Prices.
February 10, 2003... MAJOR MARKET PRICES February 10, 2003 ($/MMBtu) This Weekly Bid Week Week Change for Feb. Chicago City Gate 6.19 +0.66 5.70 New York City Gate 7.32 ...

Spot Prices on Intrastate Pipeline Systems.
February 10, 2003... SPOT PRICES ON INTRASTATE PIPELINE SYSTEMS Delivered-to-Pipeline ($/MMBtu) February 10, 2003 This Weekly Bid Week Pipeline Week Change for Feb. Louisiana...

Mexico seeking Texas expertise for Burgos Basin exploitation.
February 10, 2003... In its attempt to exploit the natural gas reserves of Mexico's Burgos Basin, Mexican state oil company Pemex plans to seek expertise from private companies active in South Texas, a Pemex official said last week. Mexico is currently a...

CNR moves forward on Horizon; Kyoto impact to be monitored.
February 10, 2003... Despite uncertainties of how the Kyoto Protocol will impact gas-hungry oil sands projects in Canada, Canadian Natural Resources (CNR) said last week it would proceed with the engineering and design phase of its proposed 232,000-b/d Horizon Oil...

Salt Cavern Storage.
February 10, 2003... SALT CAVERN STORAGE (Billion Cubic Feet) Jan 31 MMcfd MMcfd Bcf Bcf Facility State Max Max ...

2003 Gas Price Outlook.
February 10, 2003... 2003 GAS PRICE OUTLOOK February 10, 2003/Week 6 12-Month Strip Wellhead Delivered-to-Pipeline Nymex $5.25 $5.39 $5.342 NOTES: (1)Prices are in $/MMBtu and are...

Producers differ on gas price sustainability. (E & P Update).
February 10, 2003... Are natural gas prices above $5/MMBtu here to stay -- an inevitable consequence of desperately tight supplies -- or are they destined to fall steeply at the first sign of a moderate drilling recovery? Producers differ in opinion on this...

US utilities address global warming issues. (Current).
February 10, 2003... US utilities and other power generators have been moving to clean up their acts as economic realities and pressure from environmental groups make action a no-brainer. For example, Xcel Energy recently announced that its Sherburne County,...

APPA decries partial PUHCA repeal. (Current).
February 10, 2003... A major utility service organization last week released a report that blames many of the current problems in the energy industry on the partial repeal of long-established industry legislation designed to rein in utility abuses. The...

Massachusetts rejects cleanup delay. (Current).
February 10, 2003... SALEM, Massachusetts -- In a move that may lead to the early shutdown of a big New England power plant, Massachusetts Gay. Mitt Romney said last week that the state rejected PG&E's request to delay the cleanup of its Salem Harbor station. ...

Williams sells plant, ends contract. (Current).
February 10, 2003... TULSA, Oklahoma -- Williams last week announced that it had sold its 170-MW power plant in Worthington, Indiana, to Hoosier Energy and terminated its power load serving full-requirements contracts with Hoosier for cash totaling $67 million. ...

Mirant completes plant purchase. (Current).
February 10, 2003... MADISON, Wisconsin -- Mirant last week completed the sale of its 309-MW natural gas-fired, simplecycle power plant in Neenah, Wisconsin, to Alliant Energy Resources for $109 million. The two companies had come to a sales agreement last July....

Comparative Fuel Prices.
February 10, 2003... COMPARATIVE FUEL PRICES (Cash Market) February 10, 2003 EAST COAST Natural Gas New York Harbor: New York Heating Residual Residual City Gate ...

Natural Gas Futures and Spot Electricity Trading.
February 10, 2003... NATURAL GAS FUTURES AND SPOT ELECTRICITY TRADING Trading Dates: Feb. 3- Feb. 7, 2003 New York Mercantile Exchange (NYMEX) (Henry Hub) Monday Tuesday Wednesday Thursday Last/Volume...

Teco, Panda sign power sales deal. (Current).
February 10, 2003... GILA BEND, Arizona -- Teco Power Services and Panda Energy last week said they had signed a 200-MW purchased power agreement with Nevada Power for the natural gas-fired Gila River Power Station. The agreement, which is subject to regulatory...

CSC line controversy continues. (Current).
February 10, 2003... NEW HAVEN, Connecticut -- Canada's TransEnergie said last week that it wants a Connecticut court to order the state to allow power flow on its Cross Sound Cable (CSC) between Connecticut and Long Island, according to a letter to a state task...

Cash Market Hub Trading.
February 10, 2003... CASH MARKET HUB TRADING ($/MMBtu) Henry Hub, La. Jan. Feb. March April May June July August Sept. Oct. 1995 1.48 1.54 1.52 1.59 1.64 1.65 1.44 1.56 1.63 1.76 1996 2.92 4.41 3.00 2.71...

Natural Gas Rig Count.
February 10, 2003... NATURAL GAS RIG COUNT Jan. Feb. March April May June July August Sept. 2000 Total 774 763 773 805 844 878 942 987 1011 Gas 631 616 599 609 644 677 733 779 810...

CMS obtains regulatory approval for Lake Charles pipe expansion. (Regional Market Roundup).
February 10, 2003... CMS Trunkline Gas last week obtained approval to expand a pipeline that connects the company's liquefied natural gas (LNG) facility at Lake Charles in Calcasieu Parish, Louisiana, with the company's Trunkline Gas pipeline system. This approval...

Transcontinental Gas Pipe Line. (Regional Market Roundup: Southeast).
February 10, 2003... Transcontinental Gas Pipe Line, a unit of Williams, last week asked FERC for permission to phase construction and reduce the overall size of the previously approved Momentum Project. The $189 million project would be reduced to 323 MMcf/d...

El Paso Field Services. (Regional Market Roundup: Wyoming).
February 10, 2003... El Paso Field Services, a subsidiary of Houston-based El Paso, announced last week the sale of 18 natural gas gathering systems located in Wyoming for $37 million to Denver-based Western Gas Resources. The transaction -- part of El Paso's 2003...

Plains Exploration & Production announced last week an agreement to acquire 3TEC Energy. (Regional Market Roundup: California).
February 10, 2003... Plains Exploration & Production announced last week an agreement to acquire 3TEC Energy for a combination of cash and stock. 3TEC shareholders are due to receive $8.50/share in cash and 0.85 Plains shares for each 3TEC share. Houston-based...

Spot Prices on Interstate Pipeline Systems.
February 10, 2003... SPOT PRICES ON INTERSTATE PIPELINE SYSTEMS Delivered-to-Pipeline ($/MMBtu) February 10, 2003 This Weekly Bid Week Bid Week Pipeline Week Change for Feb....

Group eyes use of nuclear power to drive oil sands operations. (Canadian Markets).
February 10, 2003... As more and more companies race to tap Canada's massive oil sands reserves, demand for natural gas to power those operations is putting a strain on supply as rising gas prices increase operational costs and lower profits. But a study currently...

Rig count. (Canadian Markets).
February 10, 2003... There were 607 rigs drilling for natural gas and oil in Western Canada as of Feb. 4, the same as the previous week, according to the Canadian Association of Oilwell Drilling Contractors (CAODC). During the same period a year ago, CAODC...

Working gas in all Canadian storage facilities decreased to 37.9% of capacity as of Jan. 31. (Canadian Markets).
February 10, 2003... Working gas in all Canadian storage facilities decreased to 37.9% of capacity as of Jan. 31, down from 43.2% the week before, according to the most recent Canadian Enerdata gas storage survey. Canadian storage facilities were 72.6% full a...

The composite spot import price this week is US$5.52/MMBtu for gas leaving Canada and entering the US through six border crossing points. (Canadian Markets).
February 10, 2003... The composite spot import price this week is US$5.52/MMBtu for gas leaving Canada and entering the US through six border crossing points. Natural Gas Week's Feb. 11, 2002, average for Canadian exports was US$2.03/MMBtu. Canada's...

Canadian Price Report.
February 10, 2003... CANADIAN PRICE REPORT ($U.S. per MMBtu/$Can per Gigajoule) BRITISH COLUMBIA ALBERTA Huntingdon/ Kingsgate/ Total ...

Gas Price Trends.
February 10, 2003... GAS PRICE TRENDS ($/MMBtu) ROCKY NEW CALIFORNIA MTNS MEXICO South North February 2002 Inter (well) -- ...

Mexico evaluates LNG options to meet gas supply shortfall.
February 10, 2003... Mexico's natural gas industry has a big challenge: demand is projected to grow by about 7%/year over the next decade while state-owned oil company Pemex has demonstrated no ability to expand domestic gas production, much less meet torrid demand...