Natural Gas Week articles from July 2003

Natural Gas Week archives from July 2003

Enron extension. (Late News).
July 7, 2003... US bankruptcy court judge grants extension for Enron to file its reorganization plan, saying it would be "counterproductive" to deny request. Judge Arthur Gonzalez granted delay until July 11 for company to file its Chapter 11 reorganization...

Canadian future. (Late News).
July 7, 2003... Canada's National Energy Board releases supply and demand report forecasting out to 2025. Report judged future from two scenarios, one where technology changes gradually and no change is made in terms of environmental policy, second scenario...

Get to the point. (Late News).
July 7, 2003... FERC gives approval for Dominion to receive test cargo of liquefied natural gas at its Cove Point, Maryland, receiving terminal. Shipment should come in sometime after July 23. FERC inspection early in week found satisfactory progress.

Average cash prices & futures strip.
July 7, 2003... Natural gas prices fell last week because of milder weather and decreased industrial demand due to the Independence Day holiday. [GRAPH OMITTED] [GRAPH OMITTED]

Safe-harbor, policy statement could ease price index blues.
July 7, 2003... Natural gas industry representatives last week pushed federal regulators to issue a policy statement outlining the new rules for the reporting of prices to index publishers. At least in the short-term, the industry representatives told...

Holidays, tropical storm bill keep gas on downward slide.
July 7, 2003... Gas markets have been searching for a bottom after consecutive weeks of record-level storage injections sent bulls in full retreat and prices plunging from the $6/MMBtu level. The scope of summer heat ultimately will be the largest influence...

Morgan Stanley pays $330 million for NiSource gas properties.
July 7, 2003... Most US businesses may have opted to take it easy in the days leading up to the long weekend, but not NiSource. The Indiana-based utility and natural gas pipeline company struck a deal Thursday to sell its exploration and production (E&P)...

Canada's junior E&P firms brace for tougher reserve rules.
July 7, 2003... More stringent reserve regulations set to kick in at the end of the year could result in many smaller Canadian exploration and production (E&P) companies taking downward revisions to their proven reserves, possibly reducing their value in...

ChevronTexaco looks to bring Venezuelan LNG to US by 2008-09.
July 7, 2003... In spite of Venezuela's political problems, ChevronTexaco is committed to put down its share of the total $2.1 billion investment required for the first phase of development of its recently acquired Loran-i, located in the Deltana Platform...

Major market prices.
July 7, 2003... MAJOR MARKET PRICES July 7, 2003 ($/MMBtu) This Weekly Bid Week Week Change for Jul. Chicago City Gate 5.13 -0.55 5.35 * New York City Gate 5.58 -0.58 ...

FERC transmission incentives could be boon for power plants.
July 7, 2003... Efforts by federal regulators to encourage investment in power transmission projects could be just what the doctor ordered for moribund gas-fired electric generators. Transmission incentives may not be the panacea generators have hoped for,...

Spot prices on intrastate pipeline systems.
July 7, 2003... SPOT PRICES ON INTRASTATE PIPELINE SYSTEMS Delivered-to-Pipeline ($/MMBtu) July 7, 2003 This Weekly Bid Week Pipeline Week Change for Jul. Louisiana Intrastates ...

BG wraps up sales for Egyptian LNG train to Lake Charles plant.
July 7, 2003... In a recent deal that will put more LNG into Lake Charles in the future, BG Group and its partners in the Egyptian LNG (ELNG) venture have agreed on the principal terms for sale and purchase agreements for all of the second train's 3.6 million...

Royalty valuation case victory a boon for fina and producers.
July 7, 2003... Natural gas producers garnered a legal victory recently when an appeals court ruled that the Department of Interior (DOT) must use a lower price royalty valuation when judging the royalties paid on gas sold to non-affiliated marketers from the...

2003 gas price outlook.
July 7, 2003... 2003 GAS PRICE OUTLOOK July 7,2003/Week 27 Delivered-to- 12-Month Strip Wellhead Pipeline Nymes $5.58 $5.69 $5.294 NOTES: (1) Prices are in $/MMBtu and are for the calendar year. The...

City gate prices.
July 7, 2003... CITY GATE PRICES July 7, 2003 ($/MMBtu) City Bid Week Bid Week for July for June Austin, Texas Valem Transmission Co. 5.29 ...

North American weekly gas storage.
July 7, 2003... NORTH AMERICAN WEEKLY GAS STORAGE (Billion Cubic Feet) Jun.27 Jun.20 Weekly Year Yr. Ago Region Week Week Change Ago Difference Us East 907.0 847.0...

Montana sues companies for price fixing, restricting supply. (Briefs).
July 7, 2003... Montana Attorney General Mike McGrath filed a lawsuit in a state court against several energy providers last week including Duke Energy, Enron, Dynegy, Mirant, El Paso, and BP alleging they defrauded the state's consumers out of millions of...

Cheniere looks for LNG financing. (Briefs).
July 7, 2003... Cheniere Energy is moving into the financing phase for two of its planned liquefied natural gas (LNG) import facilities to be built at Sabine Pass, Louisiana, and Corpus Christi, Texas. The company said last week that it has retained HSBC...

AES gets FERC OK for Island pipe. (Briefs).
July 7, 2003... The Federal Energy Regulatory Commission (FERC) has given preliminary environmental approval to AES' plans to build a 94-mile natural gas pipeline from the Bahamas to Florida. In a draft environmental impact statement, FERC said that the impact...

Williams closes two asset sales. (Briefs).
July 7, 2003... Williams said last week that it has closed two transactions involving the sale of assets in the company's exploration and production and midstream businesses for approximately $55 million. The first asset sale was the previously announced...

XTO buys San Juan properties. (Briefs).
July 7, 2003... Natural gas producer XTO Energy said last week that it dosed the acquisition of coalbed methane and natural gas producing properties in the San Juan Basin of New Mexico and Colorado from MarkWest Hydrocarbon for $51 million. XTO said the...

Spot prices on interstate pipeline systems.
July 7, 2003... SPOT PRICES ON INTERSTATE PIPELINE SYSTEMS Delivered-to-Pipeline ($/MMBtu) July 7, 2003 This Weekly Bid Week Pipeline Week Change for Jul....

Dow seeks diversification away from gas. (Current).
July 7, 2003... With natural gas prices holding well above $5/MMBtu in recent weeks, one of the US' largest industrial electricity cogenerators is fighting back by expanding its feedstock for power generation. Dow Chemical, which produces chemicals,...

Coyote Springs power plant online. (Current).
July 7, 2003... Avista and Mirant last week announced that their jointly developed Coyote Springs 2 power plant is now in commercial operation. The plant is a 280-MW, natural gas-fired, combined-cycle combustion plant. Avista and Mirant said they would...

Board to review NYPA plant change. (Current).
July 7, 2003... The New York State Board on Electric Generation Siting and the Environment scheduled a hearing today to consider the New York Power Authority's (NYPA) request to amend its permit to build a 500-MW combined-cycle, natural gas-fired electric...

Framatome to supply vessel heads. (Current).
July 7, 2003... Framatome ANP said last week it signed a contract with Florida Power & Light (FPL) to supply replacement reactor vessel heads for the power company's nuclear power generating units -- Turkey Point Units 3 and 4, and St. Lucie Units 1 and 2. ...

Natural gas futures and spot electricity trading.
July 7, 2003... NATURAL GAS FUTURES AND SPOT ELECTRICITY TRADING Trading Dates: Jun. 23-Jun. 27, 2003 New York Mercantile Exchange (NYMEX) (Henry Hub) Monday Tuesday Wednesday Thursday Last/Volume...

US can no longer look north to feed increasing gas demand. (Canadian Market).
July 7, 2003... Alberta regulators released a report last month that concluded that natural gas production out of the western Canadian province would steadily decline over the next decade. In its annual report on production and reserves, the Alberta Energy...

Canadian price report.
July 7, 2003... CANADIAN PRICE REPORT ($U.S. per MMBtu/$Can per Gigajoule) BRITISH COLUMBIA Huntingdon/ Kingsgate/ Total ...

Cash market hub trading.
July 7, 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.
July 7, 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...

Gas price trends.
July 7, 2003... GAS PRICE TRENDS ($/MMBtu) ROCKEY NEW CALIFORNIA MTNS MEXICO South North July 2002 Inter (well)...

Analyst: fears of winter price spikes overblown in gas market.
July 7, 2003... Dire warnings are ringing throughout Washington over the fate of gas markets this coming winter, but one noted energy economist believes fears of price spikes and shortages are overblown. In fact, gas prices could be poised for a tumble in...

Gas price report.
July 7, 2003... GAS PRICE REPORT ($/MMBtu-Spot) July 7, 2003 Intrastate Intrastate Wellhead Wellhead Bid ...

Comparative fuel prices.
July 7, 2003... COMPARATIVE FUEL PRICES (Cash Market) July 7, 2003 APPALACHIA EAST COAST New York Harbor: Natural Gas...

Return of the crooked E. (Late News).
July 14, 2003... Company formerly known as Enron files reorganization plan in New York bankruptcy court with new companies formed around natural gas pipelines--CrossCountry Energy--and overseas assets--Prisma Energy International. Plan will require 50% approval...

On the brink. (Late News).
July 14, 2003... Mirant is increasingly likely to file for bankruptcy rather than reach an out-of-court plan to refinance $4.9 billion of debt, Merrill Lynch analyst Elizabeth Parrella said last week in a report in which she downgraded the company to "sell"...

Hold, please. (Late News).
July 14, 2003... Senate Energy and Natural Resources Committee decides to postpone confirmation hearing for FERC nominee Suedeen Kelly until after August recess. Committee staff director Alex Flint said that Kelly deserves hearing outside of the "intense...

Average cash prices & futures strip. (Late News).
July 14, 2003... Despite a larger-than-expected storage injection, heat and Tropical Storm Claudette pushed gas prices higher last week. [GRAPH OMITTED]

ConocoPhillips signs LNG deal; will bring Qatari gas into US.
July 14, 2003... ConocoPhillips is wasting no time in implementing its strategy shift toward making natural gas half its business. The company announced that it will take a stake in one train of the planned Qatargas-3 liquefied natural gas (LNG) project in...

Claudette watched for impact on Gulf drilling operations.
July 14, 2003... The weekend path of Tropical Storm Claudette should point the near-term direction of gas markets, with the storm posing a potential threat to enter the heart of drilling operations in the Gulf of Mexico. Claudette entered the Gulf last...

Producers plead cases to EUB over 900 Alberta well shut-ins.
July 14, 2003... The debate over a plan by Alberta regulators to shut in more than 900 gas wells in the northern part of the province continued to rage last week between natural gas producers, oil sands developers and the provincial energy regulator. The...

House GOP creates gas crisis task force as greens cry foul.
July 14, 2003... Attempting to preempt any political fallout from a possible natural gas crisis next winter, House Speaker Dennis Hastert (R-Illinois) last Thursday named a task force of 18 Republican House members to determine the causes of the current supply...

Questar seeks second extension.
July 14, 2003... Frustrated by regulatory hurdles in California, Questar has asked the Federal Energy Regulatory Commission for another extension to complete construction and marketing efforts for the western leg of its Southern Trails Pipeline. This is...

Leaner energy service companies try to fill merchant sector gap.
July 14, 2003... The energy merchant sector may be poised for another major evolution as new, leaner energy service companies announce their presence, prepared to fill the void created by recent and possibly additional merchant bankruptcies. Eagle Energy...

US LNG imports surge in 2Q, boosted by Trinidad start-up.
July 14, 2003... Surprising few industry watchers, US liquefied natural gas (LNG) import volumes in the second quarter surged over the first. The increase is a normal seasonal trend which generally sees an increase in LNG imports during the summer months, but...

Greenspan changes his tune: LNG should back up US supplies.
July 14, 2003... Federal Reserve Chairman Alan Greenspan continued to call for an increase in the use of liquefied natural gas (LNG) as a way to stabilize prices for the commodity, though he would favor efforts to increase domestic production of natural gas...

Abraham urges conservation; announces LNG summit in fall.
July 14, 2003... US Energy Secretary Spencer Abraham announced last week that he would invite countries that use liquefied natural gas (LNG) as an energy resource to a summit this fall. The announcement came on the heels of a planned initiative by the...

Third merchant bites the dust: PG&E unit files for bankruptcy.
July 14, 2003... PG&E announced its merchant arm, PG&E National Energy Group (NEG) and several of its subsidiaries, filed for bankruptcy last week. The announcement reflects the cutting of ties between the two companies and ends speculation about which...

Two Morgan Stanley M&A deals show bullish stance on gas.
July 14, 2003... Unmistakably bullish on the prospects for the US natural gas market, investment bank Morgan Stanley has participated in different ways in the sector's last two large acquisitions. On July 3 the bank's private equity business, Morgan Stanley...

Gulf of Mexico left behind in drilling surge. (E & P Update).
July 14, 2003... Persistently strong gas prices have given a belated boost to US drilling activity in recent months, but in contrast to previous cycles, the Gulf of Mexico has been left behind. The shallow waters of the Gulf of Mexico continental shelf have...

Can wind power ease gas crunch? (Current).
July 14, 2003... Can wind energy help ease the effects of the US' natural gas shortage? Advocates for the renewable fuel source say it already has. While lawmakers continue to wrestle over whether new energy legislation should focus on production or...

Texas muni plans new coal plant. (Current).
July 14, 2003... City Public Service (CPS), one of the largest US municipally owned gas and electric utilities, plans to build a new coal-fired plant to meet its growing energy demands and keep its electricity prices down. The San Antonio-based company said...

FERC to examine Southern deals. (Current).
July 14, 2003... The Federal Energy Regulatory Commission (FERC) last week ordered an administrative law judge to launch a new proceeding against Atlanta-based Southern. Calpine and the Electric Power Supply Association asked FERC to reject 15-year...

Sempra plant cleared by judge. (Current).
July 14, 2003... A US district court judge rejected environmental organizations' attempts to halt operations at a new 600-MW natural gas-fired plant in Mexico owned by Sempra Energy Resources. The decision by Judge h-ma E. Gonzalez means that San...

Duke, Fluor to end partnership.
July 14, 2003... Duke Energy and Fluor said last week that they will end their Duke/Fluor Daniel power plant construction business, citing a dramatic decline in the construction of new power plants. The companies said they are developing a plan to dissolve...

Natural gas futures and spot electricity trading.
July 14, 2003... NATURAL GAS FUTURES AND SPOT ELECTRICITY TRADING Trading Dates: Jul. 7- Jul. 11, 2003 New York Mercantile Exchange (NYMEX) (Henry Hub) Monday Tuesday Wednesday Thursday ...

FPL's Jamaica Bay plant online.
July 14, 2003... FPL Energy said last week that its 54-MW Jamaica Bay Energy Center in Queens, New York, is now fully operational. Electricity generated at the new dual-fuel power plant is being sold to the Long Island Power Authority under a long-term...

Seminole co-op to add 310 MW.
July 14, 2003... Seminole Electric Cooperative announced plans Thursday to install another 310 MW of capacity at its Payne Creek Generating Station in Hardee County, Florida, to go into service in December 2006. The decision to add capacity and increase...

Nevada Power issues REPs.
July 14, 2003... Nevada Power issued a request for proposals (RFP) last week for long-term power contracts, beginning in 2004-06. The Las Vegas-based company said the RFP is part of the planning process in its integrated resource plan, which it filed last week...

Cash market hub trading.
July 14, 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.
July 14, 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 %...

Tennessee holds open season for Northeast pipeline project. (Regional Market Roundup).
July 14, 2003... Tennessee Gas Pipeline, a subsidiary of El Paso, last week began a non-binding open season for its proposed Freedom Trail expansion project to boost capacity into Northeast markets. The open season ends Aug. 11. The project is designed to...

NEB long-term study examines future growth of oil sands, gas. (Canadian Markets).
July 14, 2003... In its recently released long-term energy study, Canada's National Energy Board (NEB) sees rapidly growing oil sands development and continued tight natural gas markets as key underpinnings of the country's future energy market. The...

NOAA data revisions put bearish spin on 2002-03 winter.
July 14, 2003... Revised data from the National Oceanic and Atmospheric Administration (NOAA) has placed the memorable 200203 winter in a new and, ultimately, more bearish context. NOAA's Climate Prediction Center (CPC) two weeks ago acknowledged that due...

Entergy-koch tries CNG supplies.
July 14, 2003... Entergy-Koch Trading (EKT) is turning to compressed natural gas (CNG) as a supplemental s sup ply for future customer needs. EKT, the energy marketing joint venture of electricutility holding company Entergy and refining and chemicals giant...

Near bankruptcy? (Late News).
July 21, 2003... Allegheny Energy could become fifth major energy merchant to file for bankruptcy if SEC denies request to borrow up to $2.2 billion. Despite escaping bankruptcy once this year through $2.4 billion refinancing deal, Allegheny is frozen in its...

I pledge. (Late News).
July 21, 2003... Alliance to Save Energy calls on nation's industrial leaders to take "10 Percent Pledge" to reduce energy use and costs by 10% to help ease looming natural gas supply and price crisis. Addressing Capitol Hill briefing, Alliance Acting...

Average cash prices & futures strip. (Late News).
July 21, 2003... Despite well shut-ins from Hurricane Claudette, gas prices declined on mild temperatures in eastern US markets. [GRAPH OMITTED] [GRAPH OMITTED]

Mirant falls into bankruptcy after failed restructuring bid.
July 21, 2003... Mirant failed last week to refinance loans and restructure bond debt, precipitating what could be the largest bankruptcy in the US this year. The Atlanta, Georgia-based company had credit arrangements split between bank loans and bonds. It...

Switch on clean air bill signals tough time for GOP efforts.
July 21, 2003... Efforts by the Bush Administration to pass clean air legislation this session of Congress were undermined last week when Sen. Lamar Alexander (R-Tennessee) announced his intention to support a competing air pollution control plan. In...

Claudette fails to lift market with cool temps in forecasts.
July 21, 2003... Signs are not encouraging for gas market bulls when production is shut in early in the hurricane season, oil prices surge above $31/bbl, peak temperature records are broken in the western US, yet gas prices continue to slide. Hurricane...

Mexico issues tenders for MSCs in seven Burgos Basin blocks.
July 21, 2003... Pemex has published tender notices to develop natural gas in the Burgos Basin through multiple-service contracts (MSC). The long-awaited tenders are for the development, infrastructure and maintenance of non-associated gas fields and will be...

Shell forerunner to supply LNG.
July 21, 2003... In another interesting diversion on Mexico's long and winding road to establishing liquefied natural gas (LNG) receiving capacity, Royal Dutch/Shell Friday confirmed that it is tinkering with the bid terms for a 500 MMcf/d natural gas tender...

New CEO Foshee anticipating challenges of running El Paso.
July 21, 2003... The challenges associated with taking over the reins at a company with $18 billion in long-term debt, a bunch of irate stockholders, management turnover and a junk credit rating would turn off any number of candidates, but Douglas L. Foshee...

Dominion earnings are softer.
July 21, 2003... Though it won't be pursuing Allegheny properties in Pennsylvania, Dominion Resources is still trolling for valuable baseload assets, according to dog. Thomas Capps, Dominion's chairman and chief executive officer, told analysts in its...

Dynegy restructuring buys time.
July 21, 2003... Dynegy last week bought a few years of breathing room through a series of complex financial transactions that will reduce the amount of debt due in 2005-2006 and re tructures an onerous $1.5 billion obligation the later this year. The...

Little guys able to stay afloat through marginal field assets.
July 21, 2003... As the big fish of the oil and gas industry consolidate and shed mature upstream assets that no longer interest them, they create valuable business opportunities for industry minnows in a process that also helps to maximize oil and gas...

US independents expected to deliver gas-fueled profit surge.
July 21, 2003... US upstream independents are expected to deliver sharp year-over-year earnings increases as they report second-quarter financial results in the coming weeks, due mainly to the persistent strength of natural gas prices. However, analysts...

Major Market Prices.
July 21, 2003... MAJOR MARKET PRICES July 21, 2003 ($/MMBtu) This Weekly Bid Week Week Change for Jul. Chicago City Gate 5.05 -0.27 5.35 * New York City Gate 5.42 -0.40 ...

Setbacks, new CEO put Anadarko squarely in takeover crosshairs.
July 21, 2003... A string of oil and gas production shortfalls and the surprise resignation of Chief Executive John Seitz earlier this year have turned the once-mighty Anadarko into a likely takeover target in the minds of some Wall Street analysts. ...

Spot Prices on Intrastate Pipeline Systems.
July 21, 2003... SPOT PRICES ON INTRASTATE PIPELINE SYSTEMS Delivered-to-Pipeline ($/MMBtu) July 21, 2003 This Weekly Bid Week Pipeline Week Change for Jul. Louisiana...

Freeport LNG aims to be first new LNG terminal in 25 years.
July 21, 2003... Developers of the planned 1.5 Bcf/d liquefied natural gas (LNG) import terminal at Freeport, Texas, believe their project has a good chance of becoming the first such facility built in the US in more than a quarter of a century. It...