Natural Gas Week articles from March 2002

Natural Gas Week archives from March 2002

AEP, duke tops in marketing; market expansion led to growth.
March 4, 2002... New names stand atop the lists of the top 20 North American natural gas and power marketers for the first time in years as Enron, the long-time standard-bearer collapsed in a monumental credit crisis and loss of counterparty confidence in early...

Defying commodity price slump, wall street smitten with E&P.
March 4, 2002... The sky was the limit for the US upstream one year ago -- gas prices were near record highs and looked likely to remain there, while oil prices were firm. One recession later, oil demand is shaky and gas prices could head for the gutter by...

Weather provides rally impetus, but stocks a drag for near term.
March 4, 2002... Temperatures will be several degrees Fahrenheit below normal this week in the US Midwest and Northeast, but the plethora of natural gas in storage and strong incentives for capacity holders to keep it there will continue to cap prices. ...

Going for green. (Late News).
March 4, 2002... Going for green. It's more riveting than Olympics figure-skating fiasco, with more twists than slalom skiing. More Americans are following fallout from Enron's collapse than recent Olympic Games in Salt Lake City, according to poll by Pew...

Sempra's out. (Late News).
March 4, 2002... Sempra's out. Nova Scotia Utility and Review Board (UARB) releases Sempra Energy from franchise to distribute natural gas to 75% of province. Sempra won 25-year franchise in November 1999 but last June cited "unforeseen circumstances...beyond...

TXU's in. (Late News).
March 4, 2002... TXU's in. Dallas-based TKU buys UK retail, trading business of Amerada Hess for US$165 million including working capital estimated at $113 million. TXU's UK supply business now stands at around 5.5 million residential energy customers and about...

Average cash prices & futures strip. (Late News).
March 4, 2002... Natural gas prices rose slightly last week after the March Nymex gas futures contract closed higher than February. [Graph omitted] [Graph omitted]

Capacity release rules issued as FERC eyes pipe flexibility.
March 4, 2002... Federal regulators last week introduced new rules for capacity release timelines, while at the same time approving Kern River Transmission's massive California pipeline expansion and the merger between Duke Energy and Westcoast Energy. The...

Composite spot wellhead price.
March 4, 2002... COMPOSITE SPOT WELLHEAD PRICE January 1990 to Present ($/MMBtu) Jan. Feb. March April May June July August Sept. 1990 2.23 1.68 1.42 1.39 1.39 1.40 1.36 1.32 1.37 1991 1.57 1.30...

Enforcement official leaves EPA.
March 4, 2002... The resignation of a top US environmental enforcement official last week after he expressed frustration about what he saw as a move to weaken air pollution rules and enforcement, caused major upheaval at the Environmental Protection Agency...

Merchant firm troubles continue as credit, debt issues threaten.
March 4, 2002... Even as Enron's own situation assumes some form of stability, albeit on a modest scale, the virulent disease uncorked in the wake of its spectacular collapse continues to spread to more energy merchant and midstream services companies. And...

Major market prices.
March 4, 2002... MAJOR MARKET PRICES March 4, 2002 ($/MMBtu) This Weekly Bid Week Week Change for Mar. Chicago City Gate 2.49 +0.11 2.42 New York City Gate 2.91 +0.29 2.74...

Composite spot delivered-to-pipeline price.
March 4, 2002... COMPOSITE SPOT DELIVERED-TO-PIPELINE PRICE January 1990 to Present ($/MMBtu) Jan. Feb. March April May June July August Sept. Oct. 1990 2.41 1.82 1.56 1.60 1.59 1.60 1.54 1.49 1.52 1.74 1991...

Marathon, AES push LNG plans; both refocus on core businesses.
March 4, 2002... Marathon Oil last week further positioned itself as an integrated gas company by announcing plans to build a $900 million re-gasification plant for imported liquefied natural gas (LNG) in Mexico, and a North Sea gas pipeline to serve the UK...

Salt cavern storage.
March 4, 2002... SALT CAVERN STORAGE (Billion Cubic Feet) MMcfd MMcfd Feb 22 Max Max Bcf Bcf Facility State Injection...

UBS adding former enron staff; judge approves creditor inquiry.
March 4, 2002... Barbara shook, Sjar Skjaevealnd Swiss-owned investment bank UBS Warburg dismissed reports last week that it was having trouble retaining former Enron employees in the natural gas and power trading operations it bought from the bankrupt...

H&P spins off its E&P division to focus on drilling business.
March 4, 2002... Cimarex Energy -- a new upstream oil and gas entity being spun off from Helmerich & Payne (H&P) of Tulsa, Oklahoma -- is merging with Denver-based independent Key Production to create a larger independent producer with a strong presence in the...

2002 Gas price outlook.
March 4, 2002... 2002 GAS PRICE OUTLOOK March 4, 2002/Week 9 12-Month Strip Wellhead Delivered-to-Pipeline Nymex $2.50 $2.63 $2.806 NOTES: (1) Prices are in $/MMBtu and...

Accounting issues hit upstream as hanover restates earnings.
March 4, 2002... Natural gas compression services company Hanover Compressor said last week that it is restating its earnings going back to the start of 2000 because it had booked revenue it hadn't collected. But Wall Street has been mixed in its reaction to...

Watson says dynegy moving on, sees enron as energy aberration.
March 4, 2002... Dynegy has put Enron in its rearview mirror and is forging ahead with the same strategy it has followed for 17 years, Chairman and Chief Executive Chuck Watson said last week. He called the collapse of the one-time energy-trading giant and...

City gate prices.
March 4, 2002... CITY GATE PRICES March 4, 2002 ($MMBtu) Bid Week Bid Week City for Mar. for Feb. Austin, Texas Valero Transmission Co. 2.39 ...

CPUC seeks abrogation of long-term deals. (Current).
March 4, 2002... Though western power markets are extremely quiet, the political clamor over power prices is still making quite a racket, as recent events attest. Last week, California officials sought to have the state's long-term power contracts thrown out at...

Centrica, NewPower agree to merge.
March 4, 2002... UK energy company Centrica last week signed an agreement to acquire NewPower Holdings -- the parent of The New Power Co. -- on the same day NewPower reported a full-year 2001 net loss of $212.8 million ($3.59/share). While the deal was...

ACC approves SouthWestern plant. (Current).
March 4, 2002... PHOENIX--The Arizona Corporation Commission (ACC) approved an application by SouthWestern Power Group for a certificate of environmental compatibility for its proposed 1,000-MW natural gas-fired power plant in Bowie, Arizona. The Bowie...

Dominion buys Mirant coal plant. (Current).
March 4, 2002... RICHMOND, Virginia -- Dominion and Mirant reached an agreement last week under which Dominion will purchase Mirant's State Line Ventures unit. The assets include the State Line power station, a 515-MW coal-fired generation facility outside...

PJM adds Rockland's eastern unit. (Current).
March 4, 2002... VALLEY FORGE, Pennsylvania--Pennsylvania-New Jersey-Maryland Interconnection (PJM) recently expanded to include Rockland Electric's Eastern Division in Bergen County, New Jersey. PJM will control electric transmission in the division, which...

Comparative fuel prices.
March 4, 2002... COMPARATIVE FUEL PRICES (Cash Market) March 4, 2002 EAST COAST Natural Gas Natural Gas New York Harbor: Texas New York Heating ...

Natural gas futures and spot electricity trading.
March 4, 2002... NATURAL GAS FUTURES AND SPOT ELECTRICITY TRADING Trading Dates: February 25 - March 1, 2002 New York Mercantile Exchange (NYMEX) (Henry Hub) Monday Tuesday Wednesday Thursday ...

LIPA delays decision on purchases.
March 4, 2002... UNIONDALE, New York -- The Long Island Power Authority's (LIPA) board of trustees has scheduled a meeting for Mar. 12 to consider whether it should purchase five power plants and 42 peaking units on the island that are currently owned by...

Illinova dyes privatizing utility.
March 4, 2002... HOUSTON -- Dynegy said last week that its subsidiary Illinova subsidiary is looking to buy the outstanding preferred stock of Illinois Power for about $46 million, in a move to possibly take it private. If the stock purchase is successful,...

Cash market hub trading.
March 4, 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 ...

Natural gas rig count.
March 4, 2002... NATURAL GAS RIG COUNT Jan. Feb. March April May June July August Sept. 1999 Total 587 542 526 496 516 558 588 639 696 Gas 461 425 412 371 380 434 478 527 ...

NUI energy to build storage; mississippi facility planned. (Regional Market Roundup).
March 4, 2002... NUI Energy Brokers (NUIEB), a subsidiary of NUI, plans to develop a three-well salt dome storage facility near Richton, Mississippi, just east of Hattiesburg. The facility is slated to be a quick-fill, quick-withdrawal facility with a working...

Mid-Atlanti. (Regional Market Roundup).
March 4, 2002... NiSource unit Columbia Gas Transmission received approval last week from the Federal Energy Regulatory Commission (FERC) to expand its pipeline system to provide natural gas to a planned power plant at the Pennsylvania-Delaware border. The...

Florid. (Regional Market Roundup).
March 4, 2002... Florida Gas Transmission (FGT) was given preliminary FERC approval last week for its Phase VI expansion project. The $105 million project--which still awaits a federal environmental impact review--would add 121 MMcf/d of natural gas capacity to...

Spot Prices on Interstate Pipeling Systems.
March 4, 2002... SPOT PRICES ON INTERSTATE PIPELINE SYSTEMS Delivered-to-Pipeline ($/MMBtu) March 4, 2002 This Weekly Bid Week Bid Week Pipeline week Change for Mar. for Feb....

Louisiana. (Regional Market Roundup).
March 4, 2002... Egan Hub Partners, a subsidiary of fluke Energy Gas Transmission, asked FERC for permission to construct a third storage cavern at the Jennings salt dome in Acadia Parish, Louisiana. Last June, Egan Hub received the go-ahead from FERC to...

Mississippi. (Regional Market Roundup).
March 4, 2002... Michael Sultan Petal Gas Storage, a subsidiary of El Paso Energy Partners, will hold a non-binding open season later this month for up to 5 Bcf of natural gas storage capacity in order to evaluate interest in a proposed expansion of its...

Canadian supply growth ebbing though ladyfern to ease fall. (Canadian Markets).
March 4, 2002... Canadian natural gas production was up about 6% in 2001 over 2000 levels -- almost 1 Bcf/d -- but the outlook for this year isn't as bright. Almost half that growth came from Ladyfern in northeastern British Columbia, which produced 500...

Rig count. (Canadian Markets).
March 4, 2002... Rig Count: There were 458 rigs drilling for natural gas and oil in Western Canada as of Feb. 26, a decrease of 34 from a week ago, according to the Canadian Association of Oilwell Drilling Contractors (CAODC). During the same period a year...

Working gas. (Canadian Markets).
March 4, 2002... Working gas in all Canadian storage facilities decreased to 64.0% of capacity as of Feb. 22, down, from 65.3% the week before, according to the most recent data available from the Canadian Gas Association (CGA). Canadian storage facilities...

The composite spot import price. (Canadian Markets).
March 4, 2002... The composite spot import price this week is US$2.33/MMBtu for gas leaving Canada and entering the US through six border crossing points. Natural Gas Week's Mar. 5,2001, average for Canadian exports was US$8.17/MMBtu. Canada's average...

Canadian price report.
March 4, 2002... CANADIAN PRICE REPORT ($U.S. per MMBtu/$Can per Gigajoule) BRITISH COLUMBIA Huntingdon/ Kingsgate/ Total ...

Gas price trends.
March 4, 2002... GAS PRICE TRENDS ($/MMBtu) ROCKY NEW CALIFORNIA MTNS MEXICO TEXAS Gulf Coast South...

Regional precipitation trends point to gas demand ebb, rise.
March 4, 2002... Weather often moves in cycles, as any meteorologist would note. The weather in two US regions are trending in sharply different directions, which will have local and regional consequences on gas and power markets this spring and summer. It...

Gas price report.
March 4, 2002... GAS PRICE REPORT ($/MMBtu--Spot) March 4, 2002 Interstate Interstate Wellhead Wellhead Bid ...

Canadian coalbed methane comes as PanCanadian starts wells.
March 4, 2002... Calgary-based PanCanadian Energy and the Canadian arm of Fort Worth, Texas-based Quicksilver Resources have begun coalbed methane (CBM) production from the Palliser block program in Alberta in what they claim is the first significant CBM...

Spot prices on intrastate pipeline systems.
March 4, 2002... SPOT PRICES ON INTRASTATE PIPELINE SYSTEMS Delivered-to-Pipeline ($/MMBtu) March 4, 2002 This Weekly Bid Week Pipeline Week Change for Mar. Louisiana...

Ramping up. (Late News).
March 11, 2002... Additional 40 MMcf/d of natural gas begins flowing from Ladyfern following completion, commissioning of Canadian Natural Resources' Ladyfern Sales natural gas pipeline, bringing daily production to 215 Mmcf/d. Pipeline runs 7.5 miles from...

Who's to blame? (Late News).
March 11, 2002... Federal Reserve Chairman Alan Greenspan sees no need to reexamine federal oversight of trading of derivatives. In appearance before Senate Banking Committee, Greenspan was asked if he saw links between lax regulation of derivatives and collapse...

Waning interest? (Late News).
March 11, 2002... Desert Crossing Gas Storage and Transportation System cuts back project due to lower-than-expected interest. Originally, $600 million-$700 million project would have provided 10 Bcf of storage in Arizona and included 800 MMcf/d pipeline between...

Seeing green. (Late News).
March 11, 2002... Bush administration hits another setback when federal judge orders nine agencies, including Department of Energy (DOE), to turn over documents relating to development of energy policy to Judicial Watch. Another federal judge orders DOE to turn...

Average cash prices & futures strip. (Late News).
March 11, 2002... Natural gas prices advanced again as cool weather and a relatively supportive storage report pushed the market. [Graph omitted] [Graph omitted]

Gas rallies on late cold temps, but softer market approaching.
March 11, 2002... Winter is just about over, but the natural gas market -- fueled by recent cold weather, growing expectations about an economic recovery, and last week's technical rally -- continues to show near-term strength. But late-March and April...

Industrial demand to recover, but some sectors still shaken.
March 11, 2002... The domestic industrial sector has gone through a rough patch over the past 18 months, but while some signs point to a recovery -- and the resulting recovery in natural gas demand -- it may not happen as swiftly as some in the gas industry...

Merchant sector recovery seen as Williams sells Kern pipeline.
March 11, 2002... Have the effects of Enron's spectacular collapse run their course among the energy merchant sector? The group's performance on Wall Street last week suggested that Enron's deleterious impact on credit ratings and share prices was certainly...

Exxon follows successful model as major expands gas business.
March 11, 2002... Exxon Mobil and oil have been synonymous since John D. Rockefeller set up his first refinery more than 100 years ago, but a good bit of the company's future is going to depend on natural gas -- in a number of product forms. Natural gas...

Merchants' Exchange enters energy.
March 11, 2002... The Chicago-based Merchants' Exchange -- an old exchange with some new technology -- plans to launch six new energy futures contracts later this month in a bid to serve a segment of the market that exchange officials say is not served by the...

Senate moves on energy debate; votes on safety, Alaska pipe.
March 11, 2002... Partisanship took a backseat as the US Senate last week voted by overwhelming majorities to endorse a southern route for a proposed natural gas pipeline from Alaska to the Lower 48 states and an amendment that would require the government to...

Correction.
March 11, 2002... PG&E National Energy Group should have been ranked No. 11 on NGW's Top 20 North American Gas Marketers chart with physical volumes of 8.4 Bcf/d for the full year 2001. Fourth quarter 2001 volumes were 2.85 Bcf/d, while volumes for 2000 were 6.5...

Tariffs will boost pipe costs, But US industry strengthened.
March 11, 2002... Natural gas pipeline companies will face higher costs for pipeline steel in the wake of President George W. Bush's decision last week to impose high tariffs against imported sources of steel. But on the plus side for gas producers, a rebound in...

Major market prices.
March 11, 2002... MAJOR MARKET PRICES March 11, 2002 ($/MMBtu) This Weekly Bid Week Week Change for Mar. Chicago City Gate 2.66 +0.16 2.42 New York City Gate 3.00 +0.08 2.74...

M&NP files for pipe expansion; gas capacity to grow to 1 Bcf/d.
March 11, 2002... Maritimes & Northeast Pipeline (M&NP) filed an application with Canada's National Energy Board (NEB) last week to expand the capacity of its natural gas pipeline system by 66%. Once complete, the Phase IV expansion project will allow M&NP to...

Breathitt's FERC days numbered? Kelliher's confirmation awaits.
March 11, 2002... The days on the Federal Energy Regulatory Commission (FERC) for Linda Breathitt may be few, according to several industry sources which claim that the Kentucky Democrat will not receive a new nomination after her term expires in June. ...

Spot prices on intrastate pipeline systems.
March 11, 2002... SOPT PRICES ON INTRASTATE PIPELINE SYSTEMS Delivered-to-Pipeline ($/MMBtu) March 11, 2002 This Weekly Bid Week Pipeline Week Change for Mar. Louisiana...

Nuke maintenance season begins, but sources differ on effects.
March 11, 2002... As pre-summer maintenance season for the power markets sets in, traders and analysts differ as to the extent of its upward affect on power prices and natural gas demand. But it will have some effect. "I'm trying not to be a bear," said one...

Salt cavern storage.
March 11, 2002... SALT CAVERN STORAGE (Billion Cubic Feet) MMcfd MMcfd Max Max Bcf Facility State Injection Withdrawn Capacity ...

New political leader in Mexico could bring about energy reform.
March 11, 2002... The former governor of Mexico's oil and gas-rich Tabasco state, Roberto Madrazo, was sworn in last week as the new leader of Mexico's former ruling party, the Institutional Revolutionary Party (PRI), after a narrow victory in an election marred...

2002 Gas Price Outlook.
March 11, 2002... 2002 GAS PRICE OUTLOOK March 11, 2002/Week 10 12-Month Strip Wellhead Delivered-to-Pipelin Nymex $2.74 $2.87 $3.179 NOTES: (1) Prices are in $/MMBtu and are for...

Limited interest in MMS sale; majors cut costs. (E & P Update).
March 11, 2002... With just two weeks remaining before the next central Gulf of Mexico lease sale, a spokesman for the US Minerals Management Service (MMS) said there has been no great rush to submit bids. Analysts say some companies may be put off by low...

Exxon Mobil showed last week that the bottom line is what really matters. (E & P Update).
March 11, 2002... There are three ways that major oil companies can increase their profits: higher commodity prices, increased output volumes, or lower operating costs. Since companies have no control over commodity prices and have not been very successful...

Gas Rigs Vs. Total Rigs.
March 11, 2002... Gas Rigs Vs. Total Rigs Total Rigs Gas Rigs 3/1/1998 932 601 3/1/1999 526 412 3/1/2000 773 599 3/1/2001 163 912 2/1/2002 853 709 2/8/2002 838 ...

FERC's powers grow in wake of court decision. (Current).
March 11, 2002... The Federal Energy Regulatory Commission (FERC) won a clear victory from the US Supreme Court last week in their efforts to move forward with the development of regional transmission organizations (RTO). However, it is less clear what the...

Accounting issues in the spotlight.
March 11, 2002... The spectacular collapse of Enron has prompted investors to take a greater interest in the arcane world of corporate accounting, particularly issues related to off-balance sheet debt and liquidity. Suddenly, the fine print of annual reports is...

Dynegy signs Crescent Power Deal. (Current).
March 11, 2002... FORT WORTH, Texas -- In one of the largest commercial real estate-related energy contracts ever signed in Texas, Crescent Real Estate Equities has entered into an agreement with Dynegy to provide electricity to a majority of Crescent's...

NYPA Exec warns on power needs. (Current).
March 11, 2002... ALBANY, New York -- The New York Power Authority (NYPA) President and Chief Executive Eugene W. Zeltmann is calling for a three-pronged approach to meeting the state's electricity needs, warning that the current easing in growth of power demand...

PUC approves EES customer transfer. (Current).
March 11, 2002... AUSTIN, Texas -- The Public Utility Commission of Texas issued an order last week approving a procedure to allow for the transfer of customer contracts from Enron Energy Services (EES) -- a subsidiary of the failed industry giant that filed for...

Comparative fuel prices.
March 11, 2002... COMPARATIVE FUEL PRICES (Cash Market) March 11, 2002 EAST COAST Natural Gas Natural Gas New York Harbor: Texas New York Heating...

Natural gas futures and spot electricity trading.
March 11, 2002... NATURAL GAS FUTURES AND SPOT ELECTRICITY TRADING Trading Dates: March 4 - March 8, 2002 New York Mercantile Exchange (NYMEX) (Henry Hub) Monday Tuesday Wednesday ...

CalISO to maximize megawatts. (Current).
March 11, 2002... FOLSOM, California -- In the wake of California's energy problems last year, the state's Independent System Operator (ISO) is attempting to create new opportunities for alternative energy resources. As such, the ISO is launching a pilot...

Clarus unveils California plan. (Current).
March 11, 2002... SAN DIEGO -- Clarus Energy is embarking on a program that it said will help stranded direct access business customers. It's called the Clarus Energy Alternative and businesses in California that purchase from an energy service provider and are...

Cash market hub trading.
March 11, 2002... CASH MARKET HUB TRADING ($/MMBtu) Jan. Feb. Mar April May June July August Sept. Henry Hub, La. 1994 2.34 2.71 2.21 2.04 1.92 1.90 1.96 1.66 1.49 1995 1.48 1.54 1.52...

Natural gas rig count.
March 11, 2002... NATURAL GAS RIG COUNT Jan. Feb. March April May June July August Sept. 1999 Total 587 542 526 496 516 558 588 639 696 Gas 461 425 412 371 380 434 478 527 ...

NEB to hold expansion hearing, new capacity expected in '03. (Regional Market Roundup).
March 11, 2002... A Westcoast Energy application to expand its Southern Mainline System in British Columbia will undergo a two-phase public hearing before Canada's National Energy Board. The Southern Mainline system starts approximately 64.5 miles southwest...