Natural Gas Week articles from June 2002

Natural Gas Week archives from June 2002

Questionable trading.(Late News ...)
June 3, 2002... Questionable trading. TransAlta admits using "export of California" and "ricochet" trading strategies being investigated in California energy market. Canadian electricity generator bought power in California where prices are capped then sold...

Louisiana LNG.(Late News ...)
June 3, 2002... Louisiana LNG. Dynegy subsidiary Hackberry LNG Terminal asks FERC for permission to site, construct, and operate 1.5-Bcf/d liquefied natural gas terminal in Hackberry, Louisianna. Proposed facility expected to be operational by fourth quarter...

Job candidate?(Late News ...)
June 3, 2002... Job candidate? Chief executive spots at two energy merchants are open. Possible candidate to fill opening at either Dynegy or CMS Energy could be Paul Anderson, former BHP and PanEnergy chairman and chief executive. He left BHP after recent...

Another delay.(Late News ...)
June 3, 2002... Another delay. Foothills Pipe Lines asks Alaska for delay in right-of-way application connected to $20 billion Alaska Highway gas pipeline project, citing producer uncertainty over legislation guaranteeing commodity prices and loans. Opponents...

Average cash prices & futures strip.(Late News ...)
June 3, 2002... Natural gas prices fell last week, despite some hot weather, after a bearish weekly storage report. [ILLUSTRATION OMITTED]

Rater Moody's slams merchants for accounting, poor disclosure.
June 3, 2002... In a damning report entitled, Long on Debt--Short on Cash Flow, credit ratings agency Moody's Investors Service said last Friday that energy merchants may lack investment grade characteristics, slamming the sector for its weak balance sheets,...

Steady working gas injections lead to falling near-term prices.
June 3, 2002... Natural gas market players still expect summer's heat to help trim the current working gas in storage surplus, and still expect production declines to significantly tighten the market going forward, but the recently slack industrial demand is...

Gas market volatility likely as traders pull in their horns.
June 3, 2002... The retrenchment occurring at major energy trading desks portends technical volatility ahead for gas prices, such as the bout seen following Enron's implosion. The impact potentially could reconfigure the shape of forward pricing. Activity...

Merchants look to restructuring to restore investor confidence.
June 3, 2002... In the early days of the US space program, when chimpanzees were still the 'test pilots," scientists used mild electric shocks to train the animals on which buttons to push and in what order. On one flight, however, a malfunction caused the...

Nymex launches service for 25 OTC energy contracts.
June 3, 2002... In an effort to ease traders' fears of counterparty credit risk and boost confidence in the derivatives market, the New York Mercantile Exchange (Nymex) last week launched clearing services for 25 over-the-counter (OTC) energy contracts. ...

Major market prices.
June 3, 2002... MAJOR MARKET PRICES June 3, 2002 ($/MMBtu) This Weekly Bid Week Week Change for June Chicago City Gate 3.30 -0.14 3.40 New York City Gate ...

Dynegy's Watson next exec to go after precipitous stock decline.
June 3, 2002... The post-Enron crisis in the energy merchant sector claimed its biggest name to date last week as Dynegy Chairman and Chief Executive Chuck Watson, one of the pioneers of the gas and electricity trading and marketing business, resigned under...

Spot prices on intrastate pipeline systems.
June 3, 2002... SPOT PRTCES ON INTRASTATE PIPELINE SYSTEMS Delivered-to-Pipeline ($/MMBtu) June 3, 2002 This Weekly Bid Week Pipeline Week Change for June ...

US buys back east gulf leases; decision could set precedent.
June 3, 2002... In a decision that could have far-reaching implications in oil and gas lease disputes, the US government said last week that it had reached two separate agreements with oil and gas companies to buy back leases for $235 million in order to...

2002 gas price outlook.
June 3, 2002... 2002 GAS PRICE OUTLOOK June 3, 2002/Week 22 12-Month Strip Wellhead Delivered-to-Pipeline Nymex $3.04 $3.16 $3.590 ...

FERC rules on El Paso capacity by converting all shippers to CD.
June 3, 2002... Federal regulators last week issued a final ruling on the contentious issue of pipeline capacity allocation on the El Paso Natural Gas system, finding that the current system is "unjust and unreasonable" and requiring a new set of shipper...

Composite spot wellhead price.
June 3, 2002... COMPOSITE SPOT WELLHEAD PRICE January 1990 to Present ($/MBtu) Jan. Feb. March April May June July 1990 2.23 1.68 1.42 1.39 1.39 1.40 1.36 1991 1.57 1.30 1.26 1.23 1.20 1.11 1.07...

Composite spot delivered-to-pipeline price.
June 3, 2002... COMPOSITE SPOT DELIVERED-TO-PIPELINE PRICE January 1990 to Present ($/MMBtu) Jan. Feb. March April May June July 1990 2.41 1.82 1.56 1.60 1.59 1.60 1.54 1991 1.66 1.41 1.33 1.31 1.27...

Ailing merchants sell assets; cash-rich firms could benefit.
June 3, 2002... Energy companies are solidifying their core business operations by selling various non-core or under-performing assets in an effort to decrease debt, increase cash flow, and please Wall Street. It is one way the merchant energy sector continues...

Newfield to buy struggling EEX, establishes firm in deepwater.
June 3, 2002... In the end, EEX was the little engine that couldn't. Since its inception in the mid-1990s, the small Houston-based independent has strived to play alongside the major oil companies in the deepwater Gulf of Mexico, hoping to strike the next...

Prices and differential for major hubs and selected city gates.
June 3, 2002... NOTES: (1) Sumas, Wash.; Kingsgate, B.C.; Emerson, Manitoba; and Niagara Falls, Ontario, are reported as major import points from Canada. (2) City Gate represents the cost of gas at the point at which the city's local distribution...

Salt cavern storage.
June 3, 2002... SALT CAVERN STORAGE (Billion Cubic Feet) MMcfd MMcfd Max Max Facility State Injection Withdraw ...

Summer looms large for deregulated Ontario.
June 3, 2002... Ontario officials so far are pleased with the results of the first month of the province's foray into electricity deregulation and remain confident that the marketplace will be able to handle the demands of the summer months. However,...

S&P details round-trip risk.
June 3, 2002... Different sectors of the US economy have reacted in different ways to the news that several power trading companies took part in "round-trip" trades (NGW May 27,p3), but Standard & Poor's (S&P) last week spelled out the trading strategy's...

Illinois power to join PJM group.(Current)
June 3, 2002... DECATUR, Illinois -- Illinois Power last week announced its intention to join the Pennsylvania-New Jersey-Maryland (PJM) Interconnection, although it would prefer to join as a participant in an independent transmission company, according to...

Duke gets NRC license extension.(Current)
June 3, 2002... WASHINGTON, D.C. -- Duke Energy won preliminary approval from the Nuclear Regulatory Commission (NRC) to extend the operating license for the company's McGuire nuclear power plant near Huntersville, North Carolina, for 20 years. The NRC...

Comparative fuel prices.(Current)
June 3, 2002... COMPARATIVE FUEL PRICES (Cash Market) June 3, 2002 EAST COAST Natural Gas New York Harbor: New York Heating Residual Residual City Gate Oil-No. 2 * 0.30% ...

Natural gas futures and spot electricity trading.(Current)
June 3, 2002... NATURAL GAS FUTURES AND SPOT ELECTRICITY TRADING Trading Dates May 27 - May 31, 2002 New York Mercantile Exchange (NYMEX) (HENRY HUB) Monday Tuesday Wednesday Thursday ...

Sempra signs services agreement.(Current)
June 3, 2002... HAMMOND, Louisiana -- Sempra Energy Solutions last week reached an agreement worth $6.7 million with Southeastern Louisiana University (SLU). The contract--which Sempra said would save SLU about $662,000/year in energy costs--encompasses...

Denver-area plant now operating.(Current)
June 3, 2002... ARVADA, Colorado -- Plains End, a new 111-MW natural gas-fired peaking power plant owned by PG&E National Energy Group, began commercial service last week in the Denver area. The company said the technology used at Plains End allows it to...

Cash market hub trading.(Current)
June 3, 2002... CASH MARKET HUB TRADING ($/MMBtu) Henry Hub, La. Jan. Feb. March April May June 1994 2.34 2.71 2.21 2.04 1.92 1.90 1995 1.48 1.54 1.52 1.59 1.64 1.65 1996 2.92 4.41 3.00 ...

Natural gas rig count.(Current)
June 3, 2002... NATURAL GAS RIG COUNT Jan. Feb. March April May June July August 1999 Total 587 542 526 496 516 558 588 639 Gas 461 425 412 371 380 434 478 527 % Gas...

Teppco buys Burlington system; Val Verde gathers coal seam gas.(Regional Market Roundup)
June 3, 2002... Houston-based Teppco Partners last week signed a deal to acquire the Val Verde Gathering System, located in the San Juan Basin of New Mexico, for $444 million. Teppco signed the deal with Burlington Resources Gathering, a subsidiary of...

Chevron Texaco got the nod last week from the Federal Trade Commission (FTC) for the sale of the Discovery Natural Gas System to Duke Energy Field Services, a unit of Duke Energy.(Gulf of Mexico)
June 3, 2002... Chevron Texaco got the nod last week from the Federal Trade Commission (FTC) for the sale of the Discovery Natural Gas System to Duke Energy Field Services, a unit of Duke Energy. The divestiture of this Gulf of Mexico pipeline system is a...

Bedminster, New Jersey-based NUI will begin an open season this week (June 5) seeking interest in up to 7 Bcf of firm gas storage to be developed at the Richton Salt Dome storage facility in Perry County, Mississippi.(Mississippi)
June 3, 2002... Bedminster, New Jersey-based NUI will begin an open season this week (June 5) seeking interest in up to 7 Bcf of firm gas storage to be developed at the Richton Salt Dome storage facility in Perry County, Mississippi. The open season will...

Spot prices on interstate pipeline systems--Part 1.(Regional Market Roundup)
June 3, 2002... SPOT PRICES ON INTERSTATE PIPELINE SYSTEMS--PART 1 Delivered-to-Pipeline ($MMBtu) June 3, 2002 This Weekly Bid Week Bid Week Pipeline Week Change for Jun. for May...

Iroquois gas transmission system got the go-ahead last week from the Federal Energy Regulatory Commission (FERC) for expansion of its pipeline system to supply a planned 1,080-MW natural gas-fired electric plant in Athens, New York, which is in the Hudson Valley south of Albany.(New York)
June 3, 2002... Iroquois Gas Transmission System got the go-ahead last week from the Federal Energy Regulatory Commission (FERC) for expansion of its pipeline system to supply a planned 1,080-MW natural gas-fired electric plant in Athens, New York, which is in...

Colorado Interstate Gas.(Rocky Mountains)
June 3, 2002... Colorado Interstate Gas, a subsidiary of Houston-based E1 Paso, received approval last week from FERC to expand its pipeline system by 54 miles to allow shipment of an additional 45 MMcf/d. The project is dubbed the Raton Basin expansion...

Spot prices on interstate pipeline systems--Part 2.(Regional Market Roundup)
June 3, 2002... SPOT PRICES ON INTERSTATE PIPELINE SYSTEMS--PART 2 Delivered-to-Pipeline ($/MMBtu) June 3, 2002 This Weekly Bid Week Bid Week Pipeline Week Change for Jun. for...

Klein, Knowles to ink agreement establishing tight relationship.(Canadian Markets)
June 3, 2002... Alberta Premier Ralph Klein and Alaska Governor Tony Knowles are expected to sign an agreement tomorrow beefing up communications between the two and establishing a formal working relationship. While the memorandum of understanding covers a...

Rig Count.(Canadian Markets)
June 3, 2002... Rick Count: There were 164 rigs drilling for natural gas and oil in Western Canada as of May 28, an increase of 20 from a week ago, according to the Canadian Association of Oilwell Drilling Contractors (CAODC). During the same period a...

Working gas.(Canadian Markets)
June 3, 2002... Working gas in all Canadian storage facilities increased to 55.4% of capacity as of May 24, up from 53.0% the week before, according to the most recent data available from the Canadian Gas Association (CGA). Canadian storage facilities were...

The composite spot import price.(Canadian Markets)
June 3, 2002... The composite spot import price this week is US$2.78/MMBtu for gas leaving Canada and entering the US through six border crossing points. Natural Gas Week's June 4, 2001, average for Canadian exports was US$3.60/MMBtu. Canada's average...

Canadian price report.
June 3, 2002... CANADIAN PRICE REPORT ($U.S. per MMBtu/$Can per Gigajoule) BRITISH COLUMBIA Huntingdon/Kingsgate/ Total Sumas Eastport ...

City gate prices.
June 3, 2002... CITY GATE PRICES June 3, 2002 ($/MMBtu) Bid Week Bid Week City for June for May Austin, Texas Valero Transmission Co. 3.12 3.32...

Gas price trends.
June 3, 2002... GAS PRICE TRENDS ($/MMBtu) ROCKY NEW CALIFORNIA MTNS MEXICO South North June 2001 Inter (well) - - 2.46 2.53 Intra (well) ...

Florida peaking demand to rise with start of gulfstream pipe.
June 3, 2002... The Gulfstream Pipeline delivered its first natural gas to Florida last week, and not soon enough for downstream shippers weary of service disruptions on the Florida Gas Transmission (FGT) system. Currently Gulfstream, a joint project of...

The Natural Gas Week composite spot wellhead prices this week is $3.06/MMBtu, 6 cents less than last week and 43 cents less than the June 4, 2001, average.
June 3, 2002... The Natural Gas Week composite spot wellhead prices this week is $3.06/MMBtu, 6[cents] less than last week and 43> less than the June 4, 2001, average. The spot delivered-to-pipeline price this week is $3.15/MMBtu, 6> less than last week and...

Polar positions?(Late News...)
June 10, 2002... Environmental Protection Agency report blames climate change on emissions from burning fossil fuels, something Bush administration has been loathe to admit. Bush decries report as coming from "the bureaucracy." Mike Toman, climate change...

Power to juice.(Late News...)
June 10, 2002... Houston's former Enron Field is now Minute Maid Park. Juice maker agreed to pay more than $100 million for 28-year deal placing brand on Astros' home. Enron had 30-year, $100 million deal until company filed for bankruptcy after huge financial...

Hydro headache.(Late News...)
June 10, 2002... Hydro One's future remains uncertain as Ontario Premier Ernie Eves scrambles to come up with alternative to initial public offering, struck down by court. Compounding matters, company's board quits after government introduces legislation to...

Average cash prices & futures strip.(Late News...)
June 10, 2002... Natural gas prices fell for the fourth consecutive week as demand again failed to materialize.

Fallout from FERC investigation threatens power sales authority.
June 10, 2002... Federal regulators final]y grew tired of speaking softly and decided to swing their big stick by threatening energy merchants where it hurts most--their ability to trade electricity at market prices. The Federal Energy Regulatory Commission...

Gas prices trending downward, but summer spikes expected.
June 10, 2002... Steady storage injections, relatively mild weather in key cooling regions, and a strong gas-directed rig count are continuing to pressure the natural gas market despite the approach of summer. While the US Northeast and Upper Midwest should...

Recent increase in LNG imports softens supply blow to market.
June 10, 2002... Declining US gas deliverability is one of the primary underpinnings of gas price bullishness, but its impact has been blunted in recent months by a substantial rise in liquefied natural gas (LNG) imports. Many analysts have noted a...

Canadian imports in question as more cash flows into Oilsands.
June 10, 2002... Canadian energy companies--in the midst of a C$63 billion (US$43 billion) spending spree on oilsands development--saw production of the tar-like bitumen surpass conventional Oil output for the first time last year. On the heels of that...

Lehman bearish on power sector.
June 10, 2002... Lehman Brothers last week issued an overwhelmingly bearish report for the independent power sector, advising potential investors to wait for a share price trough in mid- to late-2003 "and then look for improving trends in late-2003/early-2004."...

Merchants could take a bath in mass sale of E&P assets.
June 10, 2002... Energy merchants are putting more and more upstream assets up for sale as they attempt to shore up weak balance sheets and regain the confidence of the investment community. Unfortunately, some of these companies were guilty of paying hefty...

Mulva named Executive of the Year.
June 10, 2002... James J. Mulva, chairman and chief executive officer of Phillips, will be honored as the recipient of the Petroleum Executive of the Year Award for 2002, EIG President Thomas Wallin announced last week. Mulva was chosen for this prestigious...

EIA sees rising US gas demand, but prices could slide further.
June 10, 2002... The Energy Information Administration (EIA) is predicting a jump in summer natural gas demand along with overall increases in demand through 2002 and 2003, although the agency sees 2002 wellhead prices sliding to below $3/Mcf. In its...

Trading scandal staffing cuts lead to slow growth for UBS.
June 10, 2002... Not long ago, Enron traders were accustomed to trading everything from natural gas to computer chips. But today, those traders--many of whom now work for the energy division of Swiss bank UBS Warburg--are having to get used to deal-making in a...

Major market prices.
June 10, 2002... MAJOR MARKET PRICES June 10, 2002 (STdmtu) This Weekly Bid Week Week Change for June Chicago City Gate 3.18 -0.12 3.40 New...

FERC assesses capacity release following removal of price caps.
June 10, 2002... For the energy industry, the end of September will mean not just the possible end to price controls in California, but also the end to a regulatory experiment lifting the price caps on capacity release transactions on natural gas pipelines. ...

Spot prices on intrastate pipeline systems.
June 10, 2002... SPOT PRICES ON INTRASTATE PIPELINE SYSTEMS Delivered-to-Pipeline ($/MMBtu) June 10, 2002 This Weekly Bid Week Pipeline Week Change for June ...

Salt cavern storage.
June 10, 2002... SALT CAVERN STORAGE (Billion Cubic Feet) Facility State MMcfd MMcfd Bcf Max Max Capacity Injection Withdraw...

Officials sign formal agreement for Alaska, Alberta relations.
June 10, 2002... As expected, Alberta Premier Ralph Klein and Alaska Governor Tony Knowles signed an agreement last week beffing up cooperation between the two and establishing a formal working relationship. While the memorandum of understanding covers a...

Prices and differentials for major hubs and selected city gates.
June 10, 2002... (1) Sumas, Wash.; Kingsgate, B.C.; Emerson, Manitoba; and Niagra Falls, Ontario, ate reported as major import points from Canada. (2) City Gate represents the cost of gas at the point at which the city's local distribution company takes...

Enron fined for over-scheduling in deregulated Texas market.
June 10, 2002... The Texas Public Utilities Commisson (PUCT) recently gave Enron Power Marketing (EPM) a notice of intent that included more than $7 million in proposed administrative penalties for "engaging in anti-competitive behavior" in the Texas market...

2002 gas price outlook.
June 10, 2002... 2002 GAS PRICE OUTLOOK June 10, 2002/Week 23 12-Month Strip Wellhead Delivered-to-Pipeline Nymex $3.03 $3.15 $3.570 NOTES: (1) Prices are in $/MMBtu and are for...

Deep gas makes El Paso top producer in Texas.(E&P Update)
June 10, 2002... Three years ago, El Paso wasn't even in the exploration and production (E&P) business. Running natural gas pipelines, operating gas gathering and processing facilities, and marketing gas and power were the drivers of its growth in both earnings...

Economics questionable, but Nukes making gains.(Current)
June 10, 2002... Nuclear power is currently a huge influence on the spring and summer natural gas market as it completes with gas to power the nation's air conditioners and keep beverages cold. Carol Freedenthal, principal of Jofree Energy Consulting in...

Mirant completes state line sale.(Current)
June 10, 2002... RICHMOND, Virginia--Mirant last week completed the sale of Mirant Stare Line Ventures to Dominion for approximarely $182 million. Mirant and Dominion agreed to the sale back in February. With the sale, Dominion acquires 100% ownership of...

Comparative fuel prices.(Current)
June 10, 2002... COMPARATIVE FUEL PRICES (Cash Market) June 10, 2002 Natural Gas EAST COAST New York Harbor: New York Heating Residual Residual City Gate Oil-No. 2* ...

TXU buys 260-MW Texas power plant.(Current)
June 10, 2002... DALLAS--TXU Energy acquired the 260-MW Encogen One natural gas-fired power plant in Sweetwarer, Texas, from CES Acquisition of Maryland. TXU formerly purchased all of the output from the combined-cycle plant under a long-term contract that...

PSE&G, El Paso amend agreements.(Current)
June 10, 2002... NEWARK, New Jersey--PSE&G and El Paso Merchant Energy umended non-utility generation power purchase agreements for El Paso's Camden, Bayonne, and Eagle Point cogeneration facilities. El Paso paid PSE&G $166.5 minion and agreed to provide...

Natural gas futures and spot electricity trading.
June 10, 2002... NATURAL GAS FUTURES AND SPOT ELECTRICITY TRADING Trading Dates Jun. 3-Jun 7,2002 New York Mercantile Exchange (NYMEX) (Henry Hub) Monday Tuesday ...

APB brokers Nymex-cleared deal.
June 10, 2002... LOUISVILLE Kentucky--APB Energy last week brokered the first New York Mercantile Exchange (Nymex) cleared over-the-counter power product for the Pennsylvania-New Jersey-Maryland Interconnection-West location. APB provides voice and...

Fortistar completes plant purchase.
June 10, 2002... WHITE PLAINS, New York -- Fortistar last week completed the acquisition of a power plant and greenhouse from Oxbow Power. The plant is a 55-MW combined-cycle gas-fired cogeneration facility located in North Tonawanda, New York, that has...

Cash market hub trading.
June 10, 2002... CASH MARKET HUB TRADING ($MBtu) Henry Hub, La. Jan. Feb. March April May June July August 1994 2.34 2.71 2.21 2.04 ...

Natural gas rig count.
June 10, 2002... NATURAL GAS RIG COUNT Jan Feb. March April May June July August 1999 Total 587 542 526 496 516 558 588 639 Gas 461 425 412 371 ...

Unocal seeks FERC permission for keystone storage services.(Regional Market Roundup)
June 10, 2002... Unocal Keystone Gas Storage (Keystone), a subsidiary of Unocal, has asked the Federal Energy Regulatory Commission (FERC) for permission to offer interstare service and to charge market-based rares at irs kermit, Texas-based Keystone Gas...

Spot prices on interstate pipeline systems--Part 1.
June 10, 2002... SPOT PRICES ON INTERSTATE PIPELINE SYSTEMS--PART 1 Delivered-to-Pipeline ($/MMBtu) June 10, 2002 Pipeline This Weekly Bid Week Bid Week 2001 ...

Duke Energy Field Services and Duke Energy Fuels lost a round in their dispute.(Texas)
June 10, 2002... Duke Energy Field Services and Duke Energy Fuels lost a round in their dispute with Tulsa-based American Central Gas Technologies (ACGT). At issue is the natural gas processing market in Panola County, Texas--home of the Carthage Hub--which is...

Southern LNG, a subsidiary of El Paso, has filed with the Federal Energy Regulatory Commission (FERC) for a major expansion.(Southeast)
June 10, 2002... Southern LNG, a subsidiary of El Paso, has filed with the Federal Energy Regulatory Commission (FERC) for a major expansion at irs Elba Island liquefied natural gas terminal in Savannah, Georgia. Southern LNG plans to install a new storage...