Natural Gas Week articles from March 2004

Natural Gas Week archives from March 2004

Nice fixer-upper.(Late News ...)
March 1, 2004... Nice fixer-upper: Chevron Texaco will move into never occupied building built for failed energy trader Enron in downtown Houston. Chevron will move 3,700 employees into office tower, consolidating five of seven offices in Houston area, as well...

New player.(Late News ...)
March 1, 2004... New player: Add Marathon Oil to list of active North American players in fast-growing liquefied natural gas (LNG) sector. Marathon expects first cargo of 2.8 Bcf of imported LNG to arrive at El Paso's, Elba Island, Georgia, receiving terminal...

E Pluribus Unum.(Late News ...)
March 1, 2004... E Pluribus Unum: Constellation Energy Group is consolidating subsidiaries Alliance Energy Services, Blackhawk Energy Services and Kaztex Energy Management into new division. Constellation NewEnergy-Gas Division will be full-service provider of...

Average cash prices & futures strip.(Late News ...)
March 1, 2004... Cash market sees mild late week rally on high storage withdrawal. [GRAPHIC OMITTED] [GRAPHIC OMITTED]

Early spring fever is keeping US LNG terminals humming along.(Energy Intelligence)
March 1, 2004... Outside of a near-term supply crunch at the Lake Charles terminal in Louisiana, imports of liquefied natural gas (LNG) appear robust for the coming spring in US gas markets. The US traditionally receives scant LNG supply in the winter due...

EnCana plans huge Rockies pipe to move gas to midcontinent.
March 1, 2004... EnCana is taking into its own hands the Rockies natural gas pipeline problem. North America's top independent detailed plans late last week to build a 1.3-Bcf/d pipeline in the Rocky Mountain region, a gas-rich area where output is limited...

Mild weather keeps gas prices soft going into end of winter.
March 1, 2004... Gas markets appear soft through the last month of the North American heating season, particularly with widespread warm weather anticipated through early March. But there is substantial debate about pricing levels through the balance of 2004....

Revitalized Burlington is sold on North American gas plays.
March 1, 2004... After a major expansion into Canada and the divestment of properties with steep decline rates in the US, a revitalized Burlington Resources is confident that it can generate steady, profitable growth from its core North American gas business....

TransCanada launches US foray with purchase of PG&E pipeline.
March 1, 2004... Canadian gas pipeline giant TransCanada said last Tuesday that it will acquire the US interstate gas pipeline assets of PG&E for $1.7 billion, including debt assumption. The assets include the main gas pipeline through the US Pacific...

Correction.(Correction Notice)
March 1, 2004... The Feb. 23 edition of Natural Gas Week incorrectly reported Anadarko Petroleum's allocation of worldwide exploration and development spending in 2004. The correct allocations are 80% to development and 20% to exploration.

Kelly warns FERC may impose gas quality standard rules.
March 1, 2004... The Federal Energy Regulatory Commission (FERC) may have to step in with a rulemaking if pipelines, producers and end-users cannot reach an agreement on uniform gas quality standards, one commissioner warned. FERC Commissioner Suedeen Kelly...

Major market prices.
March 1, 2004... MAJOR MARKET PRICES March 1, 2004 ($/MMBtu) This Weekly Bid Week Week Change for Mar. Chicago City Gate 5.10 -0.16 5.15 New York City Gate 5.70 -0.11 5.86...

Acquisitive XTO makes bet on North Texas Barnett Shale play.
March 1, 2004... XTO Energy has wasted little time dipping into its piggy bank this year, announcing nearly $450 million in deals in a month's time focused around gas properties in Texas and Louisiana. The Fort Worth-based independent last week said it had...

Composite spot wellhead price.
March 1, 2004... COMPOSITE SPOT WELLHEAD PRICE January 1992 to Present ($/MMBtu) Jan. Feb. March April May June July August Sept. Oct. 2004 5.90 4.79 2003 5.15 6.91 7.14 4.94 5.48 5.63 4.87 4.88 4.46 4.50...

IECA chastizes FERC on prices; demands mandatory reporting.
March 1, 2004... In light of the millions of dollars in fines levied against companies and the ongoing prosecutions for past fraud, an organization made up of energy users is pressing for mandatory reporting of natural gas price deals by energy trading firms....

Anadarko considers LNG option; will boost tight gas drilling.
March 1, 2004... Anadarko Petroleum is considering participation in LNG projects in a handful of core operating areas outside North America to help countries market "stranded" gas reserves. "We want to have three to five core areas over time...

Composite spot delivered-to-pipeline price.
March 1, 2004... COMPOSITE SPOT DELIVERED-TO-PIPELINE PRICE January 1992 to Present ($/MMBtu) Jan. Feb. March April May June July August Sept. Oct. 2004 6.30 4.82 2003 5.40 7.10 7.25 5.07 5.53 5.69 4.97 4.97...

State and federal regulators learn to adjust to new world.
March 1, 2004... Fitch Ratings released a new report last week examining the changing roles of state and federal regulators as the energy sector continues to sort itself out in the new post-Enron landscape. State regulators continue to address changes with...

Spot prices on intrastate pipeline systems.
March 1, 2004... SPOT PRICES ON INTRASTATE PIPELINE SYSTEMS Delivered-to-Pipeline ($/MMBtu) March 1, 2004 This Weekly Bid Week Pipeline Week Change for Mar. ...

EnCana, sempra report strong year-end financial numbers.
March 1, 2004... Natural gas production may be in decline industrywide, but EnCana continues increasing its output quarter after quarter. Fourth-quarter gas sales for the Calgary-based independent were 2.68 Bcf/d, up 4% from a year ago, according to...

North American weekly gas storage.
March 1, 2004... NORTH AMERICAN WEEKLY GAS STORAGE (Billion Cubic Feet) Feb. 20 Feb. 13 Weekly Year Yr. Ago Region Week Week Change Ago Difference US East 689.0 ...

Prices and differentials for major hubs and selected City Gates.
March 1, 2004... March 1, 2004 US$/MMBtu 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...

2004 Gas price Outlook.
March 1, 2004... 2004 GAS PRICE OUTLOOK March 1, 2004/Week 9 12-Month Strip Wellhead Delivered-to-Pipeline Nymex $5.30 $5.43 $5.614 NOTES: (1) Prices are in $/MMBtu and are for...

Northeast clean-coal plant expected in July.(Current)
March 1, 2004... The Northeast could see additional, and cheaper electricity supplies possibly in time for summer with the planned startup of a new clean-coal power plant. Reliant currently operates the vintage 196-MW coal-fueled Seward power plant in the...

Williams settles with utilities.(Current)
March 1, 2004... Williams has reached a settlement agreement with Pacific Gas & Electric (PG&E) and Southern California Edison (SCE) resolving claims that the gas supplier overcharged for electricity and manipulated energy markets during the California 2000-01...

IECA praises DOE on credits.(Current)
March 1, 2004... The Industrial Energy Consumers of America (IECA) has praised the US Department of Energy's (DOE) decision not to award transferable emissions credits through its Greenhouse Gas Registry program, which it fears could lead to even higher natural...

Texas PUC adopts enforcement rule.(Current)
March 1, 2004... Participants in the wholesale electric market in Texas are now subject to a new enforcement rule that the state's Public Utility Commission (PUC) adopted. According to the commission, the rule, which went into effect Sunday, is designed to...

Comparative fuel prices.
March 1, 2004... COMPARATIVE FUEL PRICES (Cash Market) March 1, 2004 APPALACHIA Appalachian Pool Dlvd (Util) Ohio/Big Sandy River Coal $49.50/ton $5.47/MMBtu ...

Natural gas futures and spot electricity trading.
March 1, 2004... NATURAL GAS FUTURES AND SPOT ELECTRICITY TRADING Trading Dates: Feb. 23-Feb. 27, 2004 New York Mercantile Exchange (NYMEX) (Henry Hub) Monday Tuesday Wednesday Thursday Last/Volume...

Calpine gains project financing.(Current)
March 1, 2004... Calpine has completed a $250 million financing for the 600-MW Rocky Mountain Energy Center currently under construction in Weld County, Colorado. Once the natural gas-fueled electric generating facility is completed in June, Calpine said...

Hearings held on emissions plan.(Current)
March 1, 2004... The Bush administration held public hearings in Chicago, Philadelphia and Raleigh-Durham, North Carolina, last week to discuss a controversial plan to reduce emissions and air pollutants spewed by electric generating plants. The...

Cash market hub trading.
March 1, 2004... CASH MARKET HUB TRADING ($/MMBtu) Henry Hub, La. Current month: Mar.1:$5.14 Jan. Feb. March April May June July August Sept. 2004 6.09 5.37 2003 5.30 7.35 8.06...

Natural gas rig count.
March 1, 2004... NATURAL GAS RIG COUNT Feb. 27: 1134/971/85.6% Feb. 20: 1,114/954/85.6% Jan. Feb. March April 2004 Total 1,101 1,119 Gas 955 961 % Gas 86.7 85.9 2003 Total 854 907 ...

Murkowski urges states to join group backing Alaska gas plans.(Regional Market Roundup)
March 1, 2004... Speaking to a meeting of his fellow governors in Washington, D.C., Alaska Gov. Frank H. Murkowski announced he is forming an "Alaska Gas Support Alliance" among gas-producing and gas-consuming states. "Over the upcoming weeks and month, I...

Spot prices on interstate pipeline systems--part 1.
March 1, 2004... SPOT PRICES ON INTERSTATE PIPELINE SYSTEMS--PART 1 Delivered-to-Pipeline ($/MMBtu) March 1, 2004 This Weekly Bid Week Pipeline Week Change for Mar. ...

Cold Canadian weather shrinks January well output 300 MMcf/d.(Canadian Markets)
March 1, 2004... The US didn't get any help from Canada on the natural gas front during January's cold spells. The cold weather was wreaking its own havoc on wellheads in the field, cutting into output by about 300 MMcf/d, according to estimates by investment...

Equatorial Guinea's delays hurt Marathon's LNG project plans.(World Roundup)
March 1, 2004... Marathon's planned $1 billion plus LNG project in Equatorial Guinea could be in for turmoil and delay, as the government abruptly changed financing plans shortly before its $400 million five-year loan package was due for syndication. The...

Canadian price report.
March 1, 2004... CANADIAN PRICE REPORT ($U.S. per MMBtu/$Can per Gigajoule) BRITISH COLUMBIA ALBERTA Huntingdon/ Kingsgate/ Total ...

City gate prices.
March 1, 2004... CITY GATE PRICES February 2, 2004 ($/MMBtu) Bid Week Bid Week City for Mar. for Feb. Austin, Texas Valero Transmission Co. 4.76 ...

Gas price trends.
March 1, 2004... GAS PRICE TRENDS ($/MMBtu) ROCKY NEW CALIFORNIA MINS MEXICO TEXAS Gulf Coast Gulf Coast South North ...

Upbeat '04 outlook for ammonia bodes well for industrial sector.
March 1, 2004... The year ahead is shaping up to be a bullish one for the ammonia and fertilizer industries, a sign that industrial gas demand should be stronger in 2004. Ammonia producers in North America have had little reason to crow since the late...

Gas price report.
March 1, 2004... GAS PRICE REPORT ($/MMBtu--Spot) March 1, 2004 Interstate Intrastate Delivered Delivered Wellhead Wellhead To Pipeline To Utility Bid...

Costly delay.(Late News ...)
March 8, 2004... Costly Delay. News of Syncrude oil sands project delay and escalating costs sent shares of Canadian Oil Sands Trust down C$7.18, or 13.5 percent, Friday. Trust said late Thursday that Syncrude project in northern Alberta will take months longer...

Va. bill advances.(Late News ...)
March 8, 2004... Va. Bill Advances. In 12-9 vote, House of Delegates' Commerce and Labor Committee passed and amended Senate Bill 651 extending rate caps through 2010 to protect consumers from unregulated monopoly suppliers if competition fails to develop by...

Storm brewing.(Late News ...)
March 8, 2004... Storm Brewing. Environmentalists are raising red flags over plans to build wind farm on Pelican Island in Galveston, Texas. Groups are concerned about safety of millions of birds that migrate through area annually. 150-MW wind farm would...

Average cash prices & futures strip.(Late News ...)
March 8, 2004... Cash jumped for the weekend despite a weak storage injection and light demand.

Political influence questioned in BLM changes for Otero Mesa.
March 8, 2004... A new study released by an environmental watchdog group is targeting a family-owned oil and gas developer in New Mexico for its alleged undue influence on the Bush Administration. Last week, the Campaign to Protect America's Lands (CPAL)...

Mexican land grab dashes hopes for Marathon Baja LNG terminal.
March 8, 2004... It's not often that police barricades signal the end of a liquefied natural gas (LNG) project. But Marathon Oil's last hopes for building a regasification terminal in the Mexican city of Tijuana were blocked--literally--when the Baja California...

Bearish storage report is no match for surging crude prices.
March 8, 2004... The prospects of unusually strong oil prices through the first half of 2004--and record US gasoline prices this spring--are supporting higher natural gas prices despite mild end of winter weather and healthy storage. Speculators have been...

Innovative platform puts smaller deepwater fields within reach.
March 8, 2004... An innovative deepwater platform nearing completion in a fabrication yard near Corpus Christi, Texas, has set off a buzz of interest within the offshore oil and gas industry. The floating "cell spar" platform is being built for...

Jurisdictional fight brewing with FERC, CPUC over project.
March 8, 2004... California state regulators are claiming jurisdiction over a new liquefied natural gas (LNG) terminal planned for Long Beach setting the stage for a potentially nasty fight over the role of state authorities in approving the spat of new LNG...

Land access is also an issue for Canadian well operators.
March 8, 2004... Land access issues have a slightly different meaning in Canada than in the US, but they are equally hot topics. In the US, the land access issue generally refers to government-owned lands off limits to drilling by statute or regulatory...

McMoRan files for approval of Main Pass LNG terminal project.
March 8, 2004... McMoRan Exploration's Freeport-McMoRan Energy subsidiary last week submitted its license application to the US Coast Guard to develop a $440 million liquefied natural gas (LNG) receiving terminal located at its Main Pass Energy Hub in the Gulf...

Ultra Petroleum says it's only getting started in Pinedale.
March 8, 2004... Ultra Petroleum has grown rapidly in its first five years, but Chief Executive Mike Watford says the company's gas operations in Wyoming's Green River Basin have only shown a fraction of their true potential so far. "Those of us sitting...

Canada forges new energy path by looking to coalbed methane.
March 8, 2004... North America's natural gas supply outlook may not be as grim as some forecasts would indicate, but significant contributions from existing sources will be limited, according to industry executives at the Canadian Energy Research Institute's...

Correction.(Correction Notice)
March 8, 2004... The Bid-week prices for Maumee, Ohio, and Broad Run, W.Va., published in the Mar. 1 edition of Natural Gas Week, should have been $5.31/MMBtu and $5.34/MMBtu, respectively. In the same edition, the 2004 Gas Price Outlook Wellhead and...

Mid-American talks Alaska pipeline.
March 8, 2004... BP and ConocoPhillips said they have each been holding informal discussions with Mid-American Energy to discuss proposals for a natural gas pipeline on Alaska's North Slope. Although Mid-American would not confirm nor deny any such...

Talisman expands output in New York.
March 8, 2004... While outside attention has focused on its exit from Sudan and its growing operations in other exotic overseas locales, Canadian independent Talisman has been quietly expanding its Appalachian Basin gas production in upstate New York. ...

Major market prices.
March 8, 2004... MAJOR MARKET PRICES March 8, 2004 ($/MMBtu) This Weekly Bid Week Week Change for Mar. Chicago City Gate 5.31 +0.21 5.15 New York City Gate 5.69 -0.02 5.86...

Spot prices on intrastate pipeline systems.
March 8, 2004... SPOT PRICES ON INTRASTATE PIPELINE SYSTEMS Delivered-to-Pipeline ($/MMBtu) March 8, 2004 This Weekly Bid Week Pipeline Week Change for Mar. ...

2004 gas price outlook.
March 8, 2004... 2004 GAS PRICE OUTLOOK March 8, 2004/Week 10 12-Month Strip Wellhead Delivered-to-Pipeline Nymex $5.48 $5.61 $5.712 NOTES: (1) Prices are in $/MMBtu and are for...

Prices and differentials for major Hubs and selected City Gates.
March 8, 2004... March 8, 2004 US$/MMBtu 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...

North American weekly gas storage.
March 8, 2004... NORTH AMERICAN WEEKLY GAS STORAGE (Billion Cubic Feet) Feb. 27 Feb. 20 Weekly Year Yr. Ago Region Week Week Change Ago Difference US East 630.0 ...

Kern River expansion alters Rockies dynamics.
March 8, 2004... A major expansion of the Kern River pipeline system has dramatically altered market dynamics in the Rockies, leading to surplus deliverability in the Southwest and much higher regional wellhead prices. Historically, Rockies gas producers...

Pipeline capacity utilization.
March 8, 2004... PIPELINE CAPACITY UTILIZATION Pipeline Point Name Capacity Colorado Interstate Gas Cheyenne 590,000 Columbia Gas Transmission Leach 2,218,000...

Clean-coal technology could crowd out gas.(Current)
March 8, 2004... If a number of coal plants are commissioned across the country, according to a new Standard and Poor's (S&P) credit report, gas-fired merchant generators hoping for some semblance of recovery might end up ruined. Swami Venkataraman, an S&P...

NRC investigating Palo Verde incident.(Current)
March 8, 2004... The US Nuclear Regulatory Commission (NRC) last week began a special inspection to evaluate problems with the Palo Verde Nuclear Generating Station in Arizona. Arizona Public Service (APS) shut down the 1,270-MW Palo Verde 2 nuclear unit...

California looks to add transmission.(Current)
March 8, 2004... Officials from three California agencies--Energy Commission, Public Utilities Commission (PUC) and Power Authority--said they are making progress in adding power lines to the state's congested energy grid, but need to better work with federal...

AEP to sell stake in Texas nuke.(Current)
March 8, 2004... American Electric Power (AEP) plans to sell its 25.2% stake in the South Texas Project nuclear power plant to Canadian uranium producer Cameco for about $332.6 million--including $54 million for fuel and non-fuel inventory--as part of its...

NRC approves nuke plant upgrade.(Current)
March 8, 2004... The US Nuclear Regulatory Commission (NRC) has approved a 6% generating capacity increase for the 557-MW Kewaunee nuclear power unit in Wisconsin. Output at the unit, located near Green Bay, will rise to 590 MW by the end of May, the NRC said....

Wisc. PUC revises environmental report.(Current)
March 8, 2004... Wisconsin utility regulators have issued a revised environmental report for a $640 million project by Wisconsin Energy to build a 1,000-MW power plant. In January, a Wisconsin county court had asked the state Public Service Commission to...

Cinergy dives into broadband.(Current)
March 8, 2004... The idea that broadband over power lines (BPL) can offer Internet service to consumers via utility power lines at speeds five times faster than traditional dial up and at rates significantly below cable modem or digital subscriber line options...

Comparative fuel prices.
March 8, 2004... COMPARATIVE FUEL PRICES (Cash Market) March 8, 2004 APPALACHIA Appalachian Pool Dlvd (Util) Ohio/Big Sandy River Coal $52.00/ton $5.62/MMBtu ...

Natural gas futures and spot electricity trading.
March 8, 2004... NATURAL GAS FUTURES AND SPOT ELECTRICITY TRADING Trading Dates: Mar. 1- Mar. 5, 2004 New York Mercantile Exchange (NYMEX) (Henry Hub) Monday Tuesday Wednesday Thursday Last/Volume...

Cash market Hub trading.
March 8, 2004... CASH MARKET HUB TRADING ($/MMBtu) Henry Hub, La. Current month: Mar. 8: $5.27 Mar. 1: $5.14 Jan. Feb. March April May June July 2004 6.09 5.37 2003 5.30...

Natural gas rig count.
March 8, 2004... NATURAL GAS RIG COUNT March 5: 1,129/964/85.3% Jan. Feb. March April May June July August 2004 Total 1,101 1,119 Gas 955 961 %Gas 86.7 85.9 2003 Total 854 907 ...

Duke sheds West Texas assets, Encore buys up Cortez holdings.(Regional Market Roundup)
March 8, 2004... Texas saw two major asset sales last week, as Duke Energy Field Services completed the $62 million sale of its West Texas assets to a Regency Gas Services affiliate, and Fort Worth, Texas-based Encore Acquisition inked a deal to buy Cortez Oil...

Spot prices on interstate pipeline systems--part 1.
March 8, 2004... SPOT PRICES ON INTERSTATE PIPELINE SYSTEMS--PART 1 Delivered-to-Pipeline ($/MMBtu) March 8, 2004 This Weekly Bid Week Pipeline Week Change...

TransCanada CEO says backed loans needed for Alaska pipe.(Canadian Markets)
March 8, 2004... TransCanada PipeLines President and Chief Executive Hal Kvisle agrees with some of the Alaskan North Slope producers that US government loan guarantees may be necessary to ensure construction of the long-awaited natural gas transportation...

US firm says Conoco conspired to seize holdings in Timor Sea.(World Roundup)
March 8, 2004... Having failed to get legal satisfaction in Australia, a US minnow has filed suit in Washington, D.C, accusing the governments of Australia, East Timor and Indonesia--as well as US major ConocoPhillips--of conspiring to seize control of...

Canadian price report.(World Roundup)
March 8, 2004... CANADIAN PRICE REPORT ($U.S. per MMBtu/$Can per Gigajoule) -BRITISH COLUMBIA- Huntingdon/ Kingsgate/ Total Sumas ...

Picacho Pipeline moves forward.
March 8, 2004... Pacific Texas has completed the centerline staking process for its 825-mile Picacho Pipeline proposed to transport gas from Texas to New Mexico and Arizona. The centerline flagging process identifies any potential problems along the...

Gas price trends.
March 8, 2004... GAS PRICE TRENDS ($/MMBtu) ROCKY NEW CALIFORNIA MTNS MEXICO TEXAS Gulf Coast Gulf Coast South North ...

EIA: supply restrictions could wipe out 4.5 Tcf of demand.
March 8, 2004... Restrictions on natural gas supply on the US mainland could wipe out up to 4.5 Tcf of natural gas demand by 2025, the Energy Information Administration (EIA) concluded in a new report. EIA's Analysis of Restricted Natural Gas Supply Cases...