Natural Gas Week articles from March 2003

Natural Gas Week archives from March 2003

Price problem? (Late News).
March 3, 2003... Despite soaring energy prices, only 9% of Americans describe cost and availability of natural gas, electricity, gasoline and other forms of energy as "state of crisis," according to a recent Gallup poll. Another 40% say country has "major...

More Nigerian LNG. (Late News).
March 3, 2003... Shipping sources tell Natural Gas Week that Nigeria LNG has contracted to send up to 13 cargoes of liquefied natural gas (LNG) to the US between April and October. Supply relief welcome, but global LNG cargoes still expected to be tight this...

Manipulation-free. (Late News).
March 3, 2003... Commodity Futures Trading Commission (CFTC) says market forces, not manipulation, drove gas prices to spike this week. CFTC attributed rapid futures price rise to extremely bullish fundamentals. CFTC increased surveillance of Nymex energy pits...

Lodi sale approved. (Late News).
March 3, 2003... California Public Utilities Commission approves WHP Acquisition's 50% purchase of Lodi Gas Storage. Change will not affect rates, terms, or conditions under which Lodi operates. Concerns over affiliate issues slowed approval until Aquila sold...

Average cash prices & futures strip.
March 3, 2003... Natural gas prices soared last week as cold weather and operational flow orders prompted a supply bidding war. [GRAPH OMITTED] [GRAPH OMITTED]

Gas storage, pipeline situation drive March gas to record highs.
March 3, 2003... The natural gas market is in an extremely precarious position due to low storage stocks and continuing weather-related demand, but the extent of the industrial "demand destruction" and damage to the fuel's reputation for dependability won't be...

Drilling boom deemed unlikely despite natural gas price surge.
March 3, 2003... The steady rise in winter gas prices -- punctuated by last week's record-breaking spike at the New York Mercantile Exchange -- harkens back to the 2000-01 heating season when US markets saw similar volatility. But there is a critical, and...

CCRO indices 'best practices' has some controversial issues.
March 3, 2003... The Committee of Chief Risk Officers (CCRO) last week unveiled their recommendations for restoring confidence in natural gas and electricity reporting indices that will require audits of indices, confidentiality agreements between companies and...

Devon takes a deepwater plunge with $5.3 billion Ocean merger.
March 3, 2003... Devon Energy has agreed to buy Ocean Energy in a $5.3 billion deal that will make it the biggest US-based independent oil and gas producer and give it a significant deepwater exploration presence in the US Gulf of Mexico and West Africa. ...

North Texas hit by flame-outs.
March 3, 2003... Briefly, gas pilot lights went out for some residents of the Dallas/Fort Worth area last week when a severe snowstorm sent heating demand soaring and drained linepack faster than pipelines could replace it. TXU Gas (formerly Lone Star)...

Liquidity situations improving for merchants El Paso, Williams.
March 3, 2003... After about a year of ratings downgrades, cash crunches, and asset sales, two beleaguered energy merchants may be seeing light at the end of the tunnel. Both El Paso and Williams got goad news last week, though El Paso's good news was...

Major Market Prices.
March 3, 2003... MAJOR MARKET PRICES March 3, 2003 ($/MMBtu) This Weekly Bid Week Week Change for Mar. Chicago City Gate 13.42 +6.87 9.30 New York City Gate 15.92 +7.33...

Trinidad, Venezuela squabble may impede future LNG imports.
March 3, 2003... Straight answers are hard to come by these days on the status of the two liquefied natural gas (LNG) export ventures best positioned to serve the increasingly supply-starved US market: Trinidad's Atlantic LNG and Venezuela's Deltana projects....

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

Allegheny gains some liquidity; financials may need restating.
March 3, 2003... Allegheny Energy's efforts to dig itself out of a looming bankruptcy -- due in part to an over-reliance on trading -- gamed ground amid bittersweet news last week The company said it had new and restructured credit facilities which give it...

2003 Gas Price Outlook.
March 3, 2003... 2003 GAS PRICE OUTLOOK March 3, 2003/Week 9 Delivered-to- 12-Month Strip Wellhead Pipeline Nymex $6.18 $6.32 $5.901 NOTES: (1) Prices are in $/MMBtu and are for the calendar year. The...

Oneok's, PG&E's 4Q02 results paint wildly differing pictures.
March 3, 2003... Tulsa, Oklahoma-based Oneok is one of the few companies with merchant trading operations that not only survived last year, but thrived in the troubled business. Oneok, an integrated gas company, last week released its year-end 2002...

Composite Spot Wellhead Price.
March 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...

Witnesses urge greater access as check for rising gas prices.
March 3, 2003... With natural gas prices soaring throughout the country, industry representatives testified before the Senate Energy and Natural Resources Committee last week to urge the government to allow more land access for natural gas drilling and for the...

Composite Spot Delivered-to-Pipeline Price.
March 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...

Salt Cavern Storage.
March 3, 2003... SALT CAVERN STORAGE (Billion Cubic Feet) Feb 21 MMcfd MMcfd Bcf Bcf Facility State Max Max ...

Euopean firms slow US expansions. (Current).
March 3, 2003... US utilities--many on the block or looking for an infusion of capital due to heavy debt loads -- may not get much help from acquisitive European companies, as has be en suggested in recent months. First, the United Kingdom's Centrica --...

Duke subsidiary's accounting investigated. (Current).
March 3, 2003... Duke Energy recently acknowledged receipt of a subpoena from a Western District of North Carolina grand jury seeking information related to questions about accounting practices between 1998 and 2001, and the company said it is cooperating with...

NYISO says summer power adequate. (Current).
March 3, 2003... GUILDERLAND, New York -- The New York Independent System Operator (NYISO) last week released its peak load forecast and capacity outlook for New York's electricity this summer, and deemed the power supplies for New York City, Long Island and...

Calpine settles on Geysers RMR. (Current).
March 3, 2003... SAN JOSE, California -- Calpine announced that the Federal Energy Regulatory Commission (FERC) has approved a "reliability must-run (RMR) settlement agreement," which applies to 13 of the company's 19 geothermal power plants at the Geysers...

White Wave turns to all wind. (Current).
March 3, 2003... BOULDER, Colorado -- White Wave, the maker of Silk soymilk, last week announced that it will replace the electricity used in all of its manufacturing and operations with wind energy. White Wave initiated its wind energy support program in...

Nymex reports more OTC clearing. (Current).
March 3, 2003... NEW YORK CITY -- The New York Mercantile Exchange (Nymex) posted more than 100 transactions for clearing in one day on its multilateral, electronic trading clearing mechanism, ClearPort. Clearing over-the-counter (OTC) energy trades has...

Davis-Besse restart work continues. (Current).
March 3, 2003... AKRON, Ohio -- FirstEnergy Nuclear Operating (FENOC), a subsidiary of FirstEnergy, said last week that it has made significant progress in the return of its DavisBesse nuclear plant to service by placing the last of 177 fuel assemblies in the...

Idaho Power issues request for bids. (Current).
March 3, 2003... BOISE, Idaho -- Idaho Power last week issued a formal request for proposals seeking bids for the construction of up to 200 MW of additional generation to support the growing seasonal demand for power in the company's Idaho and Oregon service...

Comparative Fuel Prices.
March 3, 2003... COMPARATIVE FUEL PRICES (Cash Market) (Marh 3, 2003) EAST COAST Natural Gas Natural Gas New York Harbor: Texas New York Heating Residual...

Natural Gas Futures and Spot Electricity Trading.
March 3, 2003... NATURAL GAS FUTURES AND SPOT ELECTRICITY TRADING Trading Dates: Feb. 24-Feb. 26, 2003 New York Mercantile Exchange (NYMEX) (Henry Hub) Monday Tuesday Wednesday Thursday Last/Volume...

Natural Gas RIG Count.
March 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 631 616 599 609 644 677 733 779 810 ...

Cash Market Hub Trading.
March 3, 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...

CIG seeking federal permission for storage expansion project. (Regional Market Roundup).
March 3, 2003... Colorado Interstate Gas (CIG) last week asked the Federal Energy Regulatory Commission (FERC) for the go-ahead on its Fort Morgan Compressor Station Expansion Project in Morgan County, Colorado, which is about 60 miles northeast of Denver. ...

Saskatchewan. (Regional Market Roundup).
March 3, 2003... Calgary-based Foothills Pipe Lines began an open season last week for 971.9 MMcf/d of its existing capacity between the Alberta/Saskatchewan border and the Monchy, Saskatchewan, interconnect with Northern Border Pipeline. The capacity will...

Texas. (Regional Market Roundup).
March 3, 2003... North Carolina-based Progress Energy said last week that its Progress Fuels subsidiary entered into agreements to buy about 162 natural gas wells from three privately owned Texas companies. The new assets will add another 50% to Progress Fuels'...

Canada. (Regional Market Roundup).
March 3, 2003... Houston-based Anadarko Petroleum said last week that it has drilled a natural gas discovery in the Saddle Hills area of Alberta, expanding the proven and probable reserves to 130 Bcf from 90 Bcf of gas from this multi-zone play. The Saddle...

Illinois. (Regional Market Roundup).
March 3, 2003... Dominion Retail, a subsidiary of Richmond, Virginia-based Dominion, said last week that it acquired approximately 132,000 commercial and residential customers accounts in deregulated natural gas markets in northern Illinois. The accounts were...

Spot Prices on Interstate Pipeline Systems.
March 3, 2003... SPOT PRICES ON INTERSTATE PIPELINE SYSTEMS Delivered-to-Pipeline ($/MMBtu) March 3, 2003 This Weekly Bid We Bid Week Pipeline Week Change for Mar. for...

Two setbacks for Nova Scotia won't quell province's optimism. (Canadian Markets).
March 3, 2003... Despite two recent setbacks, the Nova Scotia natural gas industry is still promising and officials aren't ready to throw in the towel just yet. But both EnCana, North America's largest independent gas and oil producer, and Gaz...

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

Republicans introduce clear skies.
March 3, 2003... Prominent House Republicans last week introduced Legislation to codify President Bush's Clear Skies Initiative, which is designed to lower power plant and industrial emissions. Reps. William J. "Billy" Tauzin (R-Louisiana) and Joe Barton...

City Gate Prices.
March 3, 2003... CITY GATE PRICES March 3, 2003 ($/MMBtu) Bid Week Bid Week City for Mar. for Feb. Austin, Texas Valero Transmission Co. 7.91 * 5.36 Boston,...

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

Industrials take heavy punch from spiking US gas market.
March 3, 2003... It took awhile, but last week's extraordinary surge in gas prices finally wrought the brutal round of industrial demand destruction which analysts had anticipated this winter. Despite a steady upward march in gas prices, evidence has been...

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

Prices and Differentials for Major Hubs and Selected City Gates.
March 3, 2003... PRICES AND DIFFERENTIALS FOR MAJOR HUBS AND SELECTED CITY GATES March 3, 2003 US$/MMBtu Sumas, Wash. $8.09 AECO-C Hub $8.07 Kingsgate, B.C. $8.07 Malin, Ore. $8.16 Opal,...

Necesitan electricidad. (Late News).
March 10, 2003... Mexico's electricity capacity reserves will be tight this summer because of water and natural gas shortages, state-owned Federal Electricity Commission (CFE) warns. CFE says natural gas supplies from state oil monopoly Pemex will be 150 MMcf/d...

Subpoenaed. (Late News).
March 10, 2003... Neil Baston, attorney appointed by bankruptcy court to examine collapse of Enron, subpoenas group of Credit Suisse First Boston (CFSB) investment bankers as part of probe. One of seven subpoenaed is Adebayo Ogunlesi, who ran CFSB's oil and gas...

Just say no. (Late News).
March 10, 2003... Interstate Natural Gas Association of America (INGAA) asks Federal Energy Regulatory Commission (FERC) not to establish generic creditworthiness standards for pipelines seeking to protect themselves from financially troubled customers....

Average cash prices & futures strip. (Late News).
March 10, 2003... Natural gas prices were destined for a fall last week as mild weather cooled off an overheated market. [GRAPH OMITTED] [GRAPH OMITTED]

Storage heading to record lows, but demand destruction present.
March 10, 2003... With signs of natural gas demand destruction now being seen on a daily basis and storage stocks dipping toward record lows, the main question facing the gas market is when demand will decline to a level that allows peak summer power generation...

Power generation and oil sands to compete for future supplies.
March 10, 2003... Natural gas prices have been sent spiraling in recent weeks as a continental cold snap boosted demand and drained already depleted gas storage levels across both the US and Canada. Experts at the Canadian Energy Research Institute's natural gas...

Nigeria LNG rides to the rescue of supply-starved US gas market.
March 10, 2003... Nigeria is poised to become the first significant source of new liquefied natural gas (LNG), aside from nearby Trinidad, for the supply-starved US markets, Natural Gas Week has learned. After determining its annual delivery program, state...

Energy industry supports bill encouraging offshore facilities.
March 10, 2003... Representatives of the oil and gas industry backed legislation last week to encourage both ancillary offshore oil and natural gas facilities and offshore renewable energy projects, while environmental groups rejected it for fear that the bill...

NGW applauds CCRO effort on price indices. (Perspective).
March 10, 2003... The release of 'best practices' for natural gas price reporting and index construction by the Committee of Chief Risk Officers (CCRO) (NGW Feb. 24,p1) -- on the heels of announcements from the IntercontinentalExchange (ICE) regarding increased...

Once the industry's doormat, TCPL now poised for growth.
March 10, 2003... Whether it was brains, luck, or a Ouija board that guided TransCanada PipeLines (TCPL) first out of the international arena, then out of natural gas marketing, the moves proved to be the best actions the company could have taken at the time....

More ammonia plants shuttered.
March 10, 2003... More ammonia and fertilizer producers have shut down facilities due to high natural gas prices (NGW, Mar. 3,p20).. Terra Industries said last week it has ceased production at its facilities in Blytheville, Arkansas, and Woodward, Oklahoma,...

Alleged manipulation evidence could soon be released by FERC.
March 10, 2003... The never-ending saga of California's energy crisis was back with a vengeance last week, as state officials filed the results of their discovery process and federal regulators deciding to release protected information collected by the...

Major market prices.
March 10, 2003... MAJOR MARKET PRICES MARCH 10, 2003 ($/MMBtu) This Weekly Bid Week Week Change for Mar. Chicago City Gate 8.76 -4.66 9.30 New York City Gate 11.05...

CenterPoint cuts credit deal; Calpine makes accounting change.
March 10, 2003... Some US energy merchants last week pinned down aspects of their credits problems, and while some others continue to wrestle with creditors, no defaults appear imminent. CenterPoint Energy--the regulated holding company for former Reliant...

Spot prices on intrastate pipeline systems.
March 10, 2003... SPOT PRICES ON INTRASTATE PIPELINE SYSTEMS Delivered-to-Pipeline ($/MMBtu) MARCH 10, 2003 This Weekly Bid Week Pipeline Week Change for Mar. Louisiana...

Aspects of House energy bill could stifle passage in Senate.
March 10, 2003... Experts handicapping the chances for the House of Representatives' comprehensive energy bill are divided in their predictions, as the bill not only contains some of the same provisions that killed last year's version but also an equally...

Salt Cavern Storage.
March 10, 2003... SALT CAVERN STORAGE (Billion Cubic Feet) Feb 28 MMcfd MMcfd Bcf Bcf Facility State Max Max ...

BP, ConocoPhillips eyeing LNG to fuel future power generation.
March 10, 2003... High natural gas prices due to tight supplies may have put a damper on short-term demand growth, but the impact should be short lived, said executives of two leading gas producers and marketers. Mike Stice, ConocoPhillips Gas and Power...

BP exec sounds familiar call: more gas supply to be necessary.
March 10, 2003... Market forces are working for the North American natural gas industry, but major changes are needed to reduce price spikes and ensure year-round supply, according to a senior industry executive. Tim Bullock, president of BP Gas & Power...

2003 gas price outlook.
March 10, 2003... 2003 GAS PRICE OUTLOOK MARCH 10, 2003/Week 10 12-Month Strip Wellhead Delivered-to-Pipeline Nymex $6.22 $6.37 $6.006 NOTES: (1) Prices are in $/MMBtu and are...

EIA's Rosy gas supply projections in doubt. (E & P Update).
March 10, 2003... US gas production may have peaked and be heading inevitably into decline in future years, even if high prices lead to increased drilling and construction of a pipeline to import gas from Alaska. The US Energy Information Administration...

Gas Rigs Vs. Total Rigs.
March 10, 2003... Gas Rigs Vs. Total Rigs Total Rigs Gas Rigs 3/1/1999 526 412 3/1/2000 773 599 3/1/2001 1163 912 3/1/2002 763 617 1/31/2003 873 728 2/7/2003...

Debate continues on SMD plan implementation. (Current).
March 10, 2003... The Federal Energy Regulatory Commission's (FERC) Standard Market Design (SMD) plan has irked a number of players in the power industry, but Standard & Poor's (S&P) analyst Peter Rigby said last week that SMD might hold the key to lifting the...

US to subsidize pollution-free plant. (Current).
March 10, 2003... Secretary of Energy Spencer Abraham recently announced a $1 billion venture to develop a virtually emissions- and greenhouse gas-free coal-fired power plant under its new program called FutureGen. Combustion of fossil fuels to generate...

Nymex expands PJM power offerings. (Current).
March 10, 2003... NEW YORK -- The board of directors of the New York Mercantile Exchange (Nymex) said it approved launch plans for its three financially settled Pennsylvania/New Jersey/Maryland (PJM) electricity futures contracts last week, with the monthly...

CEC licenses Magnolia Project. (Current).
March 10, 2003... BURBANK, California -- The California Energy Commission (CEO) last week approved state licensing for the Southern California Public Power Authority's (SCPPA) Magnolia Power Project (MPP), which is scheduled to begin generating electricity for...

Comparative fuel prices.
March 10, 2003... COMPARATIVE FUEL PRICES (Cash Market) MARCH 10, 2003 EAST COAST Natural Gas Natural Gas New York Harbor: Texas New York Heating ...

Natural gas futures and spot electricity trading.
March 10, 2003... NATURAL GAS FUTURES AND SPOT ELECTRICITY TRADING Trading Dates: Mar. 3-Mar, 7, 2003 New York Mercantile Exchange (NYMEX) (Henry Hub) Monday Tuesday Wednesday Thursday Last/Volume...

California Self-Generation pays off.
March 10, 2003... LOS ANGELES -- Southern California Gas said it will present a $630,000 incentive check to Techni-Cast for installing a $2.1 million high-efficiency cogeneration system, which produces electricity and "usable heat." Techni-Cast, a ferrous...

Entergy plant nearly complete.
March 10, 2003... HARRISON COUNTY, Texas -- A spokesman for Entergy confirmed last week that the company is nearing completion of the construction of its Harrison County Electrical Generating Station. The company has begun the cleaning and final checkout of the...

Cash market hub trading.
March 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.
March 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 %...

Contango exercises its option to acquire more of Freeport LNG. (Regional Market Roundup).
March 10, 2003... Contango Oil & Gas announced last week that is has exercised its option with Cheniere Energy to acquire a 10% interest in Freeport LNG Development, a limited partnership formed to develop a liquefied natural gas (LNG) receiving terminal in...

Wyoming. (Regional Market Roundup).
March 10, 2003... Tulsa, Oklahoma-based Williams announced last week that its midstream business has been selected by Shell Exploration & Production affiliates to process incremental natural gas produced by Shell from the Pinedale Anticline formation in...

Spot prices on interstate pipeline systems.
March 10, 2003... SPOT PRINCES ON INTERSTATE PIPELINE SYSTEM -- PART 1 Delivered-to-Pipeline ($/MMBtu) MARCH 10, 203 This Weekly Bid Week Pipeline Week ...

Texas Public Utility Commission. (Regional Market Roundup: Texas).
March 10, 2003... Last week, the Texas Public Utility Commission (PUG) adjusted its "price-to-beat" electric rate rules in an effort to head off the effects of natural gas-related price spikes. Natural gas fuels roughly two-thirds of Texas power generation, and...

AltaCanada Energy. (Regional Market Roundup: Montana).
March 10, 2003... Calgary-based AltaCanada Energy said last week that it has acquired the right to earn up to 90,603 acres located about 35 miles south of the Canadian border in Blame County, Montana. The acquisition is through a farm-in agreement entered into...