Natural Gas Week articles from May 2002

Natural Gas Week archives from May 2002

Late nomination.(Late News ...)
May 6, 2002... Late nomination. White House sends Joseph Kelliher's nomination to Federal Energy Regulatory Commission to Senate. Kelliher, Republican and advisor to Energy Secretary Spencer Abraham, would replace Democrat Linda K. Breathitt, whose term...

Wood memorial.(Late News ...)
May 6, 2002... Wood memorial. US International Trade Commission gave final approval Thursday to stiff tariffs on imports of Canadian softwood lumber, ruling the shipments harm domestic producers. Decision, approved 4-0 and effective later this month, means...

At the wire.(Late News ...)
May 6, 2002... At the wire. US scientists may have found way to make common lights up to 12 times more efficient. Researchers at Department of Energy's Sandia National Laboratories in New Mexico found they could trap heat in bulb's filament and emit more...

Average cash prices & futures strip.(Late News ...)
May 6, 2002... A relatively strong May bid-week led to another weekly gas market gain. [GRAPHICS OMITTED]

Bulls still control gas market after further production drops.
May 6, 2002... The issue of declining production--further confirmed last week by several major domestic gas producers (see story, p20)--is trumping other gas market fundamentals, particularly high storage levels, and driving up bullishness for the remainder...

El Paso to develop offshore LNG to capitalize on bullishness.
May 6, 2002... El Paso is developing a series of offshore liquefied natural gas (LNG) receiving facilities to be located first in the Gulf of Mexico, then offshore the Atlantic Coast. The project is called El Paso Energy Bridge, El Paso Executive Vice...

Canadians deride tax credits, threaten own NWT pipe subsidy.
May 6, 2002... Canadian government and industry officials have blasted the US Senate's plan to provide tax credits to Alaska gas producers, saying the credits are unfair subsidies. Canada may consider giving assistance to the proposed Mackenzie Valley...

Setback for coalbed methane? Ruling questions BLM leasing.
May 6, 2002... Coalbed methane development in Wyoming's Powder River Basin--one of the few growth areas for natural gas producers--seems to have suffered a setback through a Department of Interior ruling that found the agency used outdated environmental...

Merchant share price volatility could create takeover targets.
May 6, 2002... The vicious cycle that has characterized the last several months for the merchant energy sector on Wall Street continued last week for several industry players. The shakeout is likely to continue in the near-term as merchants attempt to satisfy...

Retail power volumes sought.
May 6, 2002... Natural Gas Week will soon expand its current quarterly coverage of gas and electricity volumes to include a separate report that covers the growing competitive retail markets. This enhancement falls in line with the emerging markets and...

Major market prices: May 6, 2002.
May 6, 2002... MAJOR MARKET PRICES May 6, 2002 ($/MMBtu) This Weekly Bid Week Week Change for May Chicago City Gate 3.62 +0.09 3.38 New York City Gate 3.90 +0.06 ...

Is Enron rebirth a pipe dream? Firm details plan for emergence.
May 6, 2002... Enron last week revealed the details of its reorganization plan to creditors, disclosing how it intends to cobble together a group of discrete assets into something it believes can survive as an ongoing entity. The phoenix-like creature...

Storage groups eye southwest; region home to power projects.
May 6, 2002... The southwestern US has become a hotbed of gas and power industry activity due to the growth in population and industry in the region, which has led to one of the fastest growing energy markets in North America. Last week's Federal Energy...

Spot prices on intrastate pipeline systems.
May 6, 2002... SPOT PRICES ON INTRASTATE PIPELINE SYSTEMS Delivered-to-Pipeline ($/MMBtu) May 6, 2002 This Weekly Bid Week Pipeline Week Change for May ...

Cal ISO unveils market design; price caps, must-offer at issue.
May 6, 2002... California officials last week unveiled their new market design plan that depends on keeping the current West-wide market mitigation methods in place, while slowly moving toward a marketplace that reflects better functioning markets in the...

2002 gas price outlook: May 6, 2002/week 18.
May 6, 2002... 2002 GAS PRICE OUTLOOK May 6, 2002/Week 18 12-Month Strip Wellhead Delivered-to-Pipeline Nymex $3.32 $3.45 $3.973 NOTES: (1) Prices are in $/MMBtu and are...

Earnings comparisons to past affected by some special items.
May 6, 2002... Most energy merchants and integrated utilities are glad the first quarter of 2002 is over, but a few bucked the trend due to special circumstances either this year or last. Dynegy reported a net loss of $140 million (41 cents/share) on...

Composite spot wellhead price: January 1990 to present.
May 6, 2002... COMPOSITE SPOT WELLHEAD PRICE January 1990 to Present ($/MMBtu) Jan. Feb. March April May June July August 1990 2.23 1.68 1.42 1.39 1.39 1.40 1.36 1.32 1991 1.57 1.30 1.26 1.23 ...

Composite spot delivered-to-pipeline price: January 1990 to present ($/MMBtu).
May 6, 2002... COMPOSITE SPOT DELIVERED-TO-PIPELINE PRICE January 1990 to Present ($/MMBtu) Jan. Feb. March April May June July August 1990 2.41 1.82 1.56 1.60 1.59 1.60 1.54 1.49 1991 1.66 1.41...

Salt cavern storage.
May 6, 2002... SALT CAVERN STORAGE (Billion Cubic Feet) MMcfd MMcfd Facility State Max Max Injection Withdraw Hattiesburg ...

Tenaska, Oxy partner in new Ercot market.(Current)
May 6, 2002... Tenaska Power Services (TPS) has teamed up with Occidental Energy Ventures (OEV) to manage and market electricity for wholesale and large industrial customers in the $16 billion Electric Reliability Council of Texas (Ercot) power market. ...

Power storage development continues.(Current)
May 6, 2002... Development of electricity storage, long the holy grail of the power industry, got a boost last week through a financing deal for a major industry player. Ridge Energy Storage and Grid Services executed an agreement with EP Energy Finance,...

Ontario deregulation opens smoothly.(Current)
May 6, 2002... Ontario's deregulated electricity market opened without a hitch last week, and the new spot price of electricity stayed within the anticipated range for an average spring day. Some critics of the Ontario government's deregulation plan had...

InterGen finances Baja plant.(Current)
May 6, 2002... MEXICALI, Mexico -- InterGen will be funding and financing credit facilities for La Resita Energy, a 1,065-MW natural gas-fired, combined-cycle power plant in Baja California. With an estimated cost of about $748 million, the project will be...

Chippewas eyeing Wisconsin plant.(Current)
May 6, 2002... DANBURY, Wisconsin -- The St. Croix Chippewa Indian tribe of Wisconsin is undertaking a comprehensive study to determine the feasibility of developing a small-scale natural gas-fired power plant on reservation land in Danbury. The plant would...

NRC approves two TVA uprates.(Current)
May 6, 2002... SODDY-DAISY, Tennessee -- The Nuclear Regulatory Commission (NRC) last week approved a request by the Tennessee Valley Authority (TVA) to increase generating capacity at the authority's Sequoya nuclear power plant--units 1 and 2--by 1.3%, or 15...

Comparative fuel prices.
May 6, 2002... COMPARATIVE FUEL PRICES (Cash Market) May 6, 2002 EAST COAST Natural Gas Natural Gas New York Harbor: Texas New York ...

Natural gas futures and spot electricity trading: trading dates: Apr. 29-May 3, 200.
May 6, 2002... NATURAL GAS FUTURES AND SPOT ELECTRICITY TRADING Trading Dates: Apr. 29-May 3, 200 New York Mercantile Exchange (NYMEX) (Henry Hub) Monday Tuesday Wednesday ...

Calpine facility enters operation.
May 6, 2002... HOUSTON -- Calpine announced last week that its Channel Energy Center (CEC) has entered combined-cycle operations ahead of schedule and will sell steam and electricity under a 20-year agreement to Lyondell-Citgo Refining. CEC entered...

Exelon looks into Clinton Nuke site.
May 6, 2002... CHICAGO -- Exelon Generation has begun preparing an application seeking Nuclear Regulatory Commission (NRC) approval for the possible addition of a new nuclear power plant at the Clinton nuclear plant in DeWitt County, Illinois. NRC...

Cash market hub Trading.
May 6, 2002... CASH MARKET HUB TRADING ($/MMBtu) Henry Hub, La. Jan. Feb. March April May June July 1994 2.34 2.71 2.21 2.04 1.92 1.90 1.96 1995 1.48 1.54 1.52...

Natural gas rig count.
May 6, 2002... NATURAL GAS RIG COUNT Jan. Feb. March April May June July 1999 Total 587 542 526 496 516 558 558 Gas 461 425 412 371 380 434 ...

Southeastern pipes expanding to service growing gas market.(Regional Market Roundup)
May 6, 2002... Williams'Sundance Expansion Project last week began serving the rapidly growing southeastern gas market Duke Energy'sPatriot Project took another step toward the same. Williams' Sundance project went into service last week increasing...

Williams last week announced plans to introduce a new Internet-based capacity marketing and trading platform called WGPeMarketing.(Oklahoma)
May 6, 2002... Williams last week announced plans to introduce a new Internet-based capacity marketing and trading platform called WGPeMarketing. The new electronic platform is designed to help natural gas pipeline customers buy products and services...

Spot prices on interstate pipeline systems--Part 1.(Regional Market Roundup)
May 6, 2002... SPOT PRICES ON INTERSTATE PIPELINE SYSTEMS--PART 1 Delivered-to-Pipeline ($/MMBtu) May 6, 2002 This Weekly Bid Week Pipeline Week Change for...

Kinder Morgan Interstate Gas Transmission.(Rocky Mountains)
May 6, 2002... Kinder Morgan Interstate Gas Transmission (KMIGT) last week announced an open season to offer firm storage service at the Cheyenne Market Center points located near the Cheyenne Hub in Weld County, Colorado, and the Huntsman Storage Facility in...

Legend natural gas has completed its first purchase.(Texas)
May 6, 2002... Legend Natural Gas has completed its first purchase, a $56.1 million acquisition of producing natural gas properties in South Texas and the Gulf Coast from Anadarko Petroleum. Legend is a Houston-based limited partnership formed last year...

Ohio VAlley Hub (OVH), an indirect subsidiary of Evansville, Indiana-based Vectren.(Indiana)
May 6, 2002... Ohio Valley Hub (OVH), an indirect subsidiary of Evansville, Indiana-based Vectren, last week asked FERC for the go-ahead to use 11,000 MMBtu/d of excess pipeline capacity and 10,000 MMBtu/d of excess storage capacity on behalf of interstate...

Spot prices on interstate pipeline systems--Part 2.(Regional Market Roundup)
May 6, 2002... SPOT PRICES IN INTERSTATE PIPELINE SYSTEMS--PART2 Delivered-to-Pipeline ($/MMBtu) May 6, 2002 This Weekly Bid Week Pipeline Week Change for...

Canadian activity remains high as Ladyfern gas volumes grow.(Canadian Markets)
May 6, 2002... Canadian gas exports to the US hit a record high last year, according to Canada's National Energy Board (NEB). Although no new major pipelines were constructed in Canada last year, net exports topped 3.6 Tcf, up 3% from 2000 and up 26% over...

Rig count.(Canadian Markets)
May 6, 2002... Rig Count: There were 110 rigs drilling for natural gas and oil in Western Canada as of Apr. 30, an increase of two from a week ago, according to the Canadian Association of Oilwell Drilling Contractors (CAODC). During the same period a...

Working gas.(Canadian Markets)
May 6, 2002... Working gas in all Canadian storage facilities increased to 50.0% of capacity as of Apr. 26, up from 49.1% 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)
May 6, 2002... The composite spot import price this week is US$3.23/MMBtu for gas leaving Canada and entering the US through six border crossing points. Natural Gas Week's May 7, 2001, average for Canadian exports was US$4.55/MMBtu. Canada's average...

Canadian price report.
May 6, 2002... CANADIAN PRICE REPORT ($U.S. per MMBtu/$Can per Gigajoule) BRITISH COLUMBIA ALBERTA Huntington/ Kingsgate/ Total Sumas ...

City gate prices: May 6, 2002 ($/MMBtu).
May 6, 2002... CITY GATE PRICES MAY 6, 2002 ($/MMBtu) Bid Week Bid Week CITY for May for Apr. Austin, Texas Valero Transmission Co. ...

Gas price trends.
May 6, 2002... GAS PRICE TRENDS ($/MMBtu) ROCKY NEW CALIFORNIA MTNS MEXICO TEXAS South North Gulf Coast Gulf Coast ...

Shortfall in BP's production confirms fast drop in supply.
May 6, 2002... First-quarter production results continue to trickle in below estimates, demonstrating a US gas deliverability fall of much greater magnitude than most anticipated. The data is resoundingly bullish for prices, analysts agree. With about...

The natural gas week composite spot wellhead prices this week is $3.34/MMBtu, 14 cents more than last week and $1.10 less than the May 7, 2001, average.
May 6, 2002... The Natural Gas Week composite spot wellhead prices this week is $3.34/MMBtu, 14 cents more than last week and $1.10 less than the May 7, 2001, average. The spot delivered-to-pipeline price this week is $3.43/MMBtu, 12 cents more than last week...

Moratorium.(Late News)
May 13, 2002... Connecticut legislature passes bill placing one-year moratorium on state approvals of new gas pipelines and power cables under Long Island Sound and a 9-month delay on approvals for overland power transmission projects. Gov. John Rowland, who...

Pipeline approval.(Late News)
May 13, 2002... FERC gives environmental approval Friday to Williams' $240 million Evergreen Expansion with mitigating measures. Project will add 28 miles to existing Northwest Pipeline system from Sumas to Chehalis, Washington, to meet demands of new electric...

Outlook dim.(Late News)
May 13, 2002... Outlook dim. General Electric says it doesn't foresee business recovery this year. Reasons include softening gas turbine sales. Firm forecasts sales of 260 units this year, 150 in 2003, and 50 in 2004. Subsidiary GE Power Systems and Sithe...

Average cash prices & futures strip.(Late News)
May 13, 2002... Natural gas prices remained relatively flat last week as mild weather failed to inspire the market. [GRAPHIC OMITTED]

LDCs fear loss of reliability from gas-hogging power plants.
May 13, 2002... The rising influence of merchant power plants is altering how US gas pipelines operate and, as utilities and some regulators fear, to the potential detriment of other customers' service. These power plants may represent a tremendous growth...

Gas market under bulls' control in smooth switch to EIA storage.
May 13, 2002... Expectations for a turbulent market ahead of the storage handover to the US Energy Information Administration (EIA) turned out to be overblown, as were fears of a huge upward revision in working gas storage levels. Despite a still-hefty surplus...

Enron memos detail strategies, taint entire merchant sector.
May 13, 2002... Last week's release of memoranda documenting Enron's manipulation of the California electricity market unleashed a firestorm of controversy throughout the merchant energy sector. The revelations could portend terrible ramifications for the...

Spot prices on intrastate pipelines systems.
May 13, 2002... SPOT PRICES ON INTRASTATE PIPELINE SYSTEMS Delivered-to-Pipeline ($/MMBtu) May 13, 2002 This Weekly Bid Week Pipeline Week Change for May Louisiana...

Salt cavern storage.
May 13, 2002... SALT CAVERN STORAGE (Billion Cubic Feet) MMcfd MMcfd Facility State Max Max Injection Withdraw ...

Prices and differentials for major hubs and selected city gates.
May 13, 2002... PRICES AND DIFFERENTIALS FOR MAJOR HUBS AND SELECTED CITY GATES May 13, 2002 US$/MMBtu [ILLUSTRATION OMITTED] NOTES: (1) Sumas, Wash.; Kingsgate, B.C.; Emerson, Manitoba; and Niagara Falls, Ontario, are reported as major...

Study reaffirms industry fears: Alaska pipeline still too risky.
May 13, 2002... Despite efforts of lawmakers to help push along a natural gas pipeline from Alaska's North Slope to the Lower 48, an engineering study by the producers says the project is still not economically feasible--at least for now. The...

Millennium pipe gets mixed news.
May 13, 2002... Officials with the Millennium Pipeline finally have mason to celebrate as the final hurdle in their permitting was crossed with the announcement that the pipeline and officials from Mount Vernon, New York, have reached an agreement over the...

Merchant bloodbath continues; more disclosures crush stocks.
May 13, 2002... If it were a legal case, all charges would be thrown out on ex post facto grounds, meaning the allegations raised were totally legal at the time committed. Consequently, nothing to prosecute would exist. Such rules, however, do not...

Report points to LDC measures aimed at ensuring reliability.
May 13, 2002... In the future, local distribution companies (LDC) must be allowed to engage in hedging strategies and electric utilities must be able to use more demand-side mechanisms in order to provide sustainable, affordable energy, according to a new...

Global LNG business expansion leads to new facility standards.
May 13, 2002... The commercial side of the international liquefied natural gas (LNG) business is prompting changes in the type of facilities and the ways they are used as the industry expands on both the supply and demand sides. For example, the American...

Major market prices.
May 13, 2002... MAJOR MARKET PRICES May 13, 2002 ($/MMBtu) This Weekly Bid Week Week Change for May Chicago City Gate 3.61 -0.02 3.38 New...

Official says volatility hurts; Apache lambastes paper trading.
May 13, 2002... One of North America's biggest natural gas producers has a big problem with how the gas market works. Price volatility may be a good thing for energy traders--allowing them to reap huge profits--but excessive volatility is limiting oil and gas...

2002 gas price outlook.
May 13, 2002... 2002 GAS PRICE OUTLOOK May 13, 2002/Week 19 12-Month Strip Wellhead Delivered-to-Pipeline Nymex $3.34 $3.46 $4.028 NOTES: (1) Prices are in $/MMBtu and are for...

Eastern Canada eyed for drilling, pipe plans.(E&P Update)
May 13, 2002... Billions of dollars will be spent on natural gas drilling and pipelines in the harsh waters offshore the eastern Canadian provinces of Nova Scotia and Newfoundland and Labrador in the next few years, and that sum includes only the projects...

Gas rigs vs. total rigs.
May 13, 2002... Gas Rigs Vs. Total Rigs Total Rigs Gas Rigs 5/1/1998 855 580 5/1/1999 516 380 5/1/2000 844 644 5/1/2001 1234 997 4/5/2002 738 591...

Storage-price-gas rig count.
May 13, 2002... Storage-Price-Gas Rig Count gas rigs Bcf in storage 3/8 624 1,608 3/15 610 1,558 3/22 605 1,489 3/29 609 1,424 4/5 ...

House Yucca passage adds to nuke momentum.(Current)
May 13, 2002... The march of the nuclear industry continues unabated as the US House overwhelmingly voted to pass a resolution backing the Yucca Mountain waste repository. The industry is also preparing for possibly its first new license application in more...

DOE report highlights transmission.
May 13, 2002... US Department of Energy (DOE) Secretary Spencer Abraham last week issued a report that supported the creation of regional transmission organizations (RTOs), recommended transmission line construction be of the "merchant" variety, and asked...

AEP to join PJM Interconnection.(Current)
May 13, 2002... COLUMBUS, Ohio -- American Electric Power (AEP) and the Pennsylvania-New Jersey-Maryland Interconnection (PJM) have entered into a "memorandum of understanding" whereby AEP would become a member of PJM. AEP would join PJM-West as either a...

BPA delays proposed power line.(Current)
May 13, 2002... SEATTLE -- The Bonneville Power Administration (BPA) said last week that opposition from environmental groups has caused it to delay for one year a proposed power line designed to improve the reliability of electrical service in the Seattle...

Comparative fuel prices.(Current)
May 13, 2002... COMPARATIVE FUEL PRICES (Cash Market) May 13, 2002 EAST COAST Natural Gas New York Harbor: New York Heating Residual Residual City Gate Oil--No....

Calpine Canada powers up plant.(Current)
May 13, 2002... CAMPBELL RIVER, British Columbia -- In an attempt to meet growing demand for electricity on Vancouver Island, Calpine Canada has put its 230-MW Island Cogeneration facility into commercial operations. The gas-fired facility interconnects...

Alliant chooses Wind power provider.(Current)
May 13, 2002... CEDAR RAPIDS, Iowa -- Alliant Energy Interstate Power and Light selected Clipper Windpower to provide it with 150,000 MWh of new wind energy, which could power 20,000 homes/year in the Hawkeye State. The initiative is part of the company's...

Natural gas futures and spot electricity trading.
May 13, 2002... NATURAL GAS FUTURES AND SPOT ELECTRICITY TRADING Trading Dates: May 6-10, 2002 New York Mercantile Exchange (NYMEX) (Henry Hub) Monday Tuesday Last/Volume ...

Tenaska brings power plant online.(Current)
May 13, 2002... BILLINGSLEY, Alabama -- The Tenaska Lindsay Hill Generating Station is now in commercial operation. Under a long-term fuel-conversion service agreement with Williams Energy Marketing and Trading, the 846-MW facility--which began operating...

NRC to meet with PPL Susquehanna.(Current)
May 13, 2002... WASHINGTON, D.C. -- The Susquehanna nuclear plant, which failed to have enough employees on duty several times last year, will propose changes in its emergency preparedness plan, the Nuclear Regulatory Commission (NRC) said last week. NRC...

Cash market hub trading.
May 13, 2002... CASH MARKET HUB TRADING ($/MMBtu) Henry Hub, La. Jan. Feb. March April 1994 2.34 2.71 2.21 2.04 1995 1.48 1.54 1.52 1.59 1996 2.92 ...

Natural gas rig count.
May 13, 2002... NATURAL GAS RIG COUNT Jan. Feb. March April 1999 Total 587 542 526 496 Gas 461 425 412 371 % Gas 78.6 78.5 78.3 74.8 2000 Total 774...

Trailblazer expansion on line; capacity increase of 324 MMcf/d.(Regional Market Roundup)
May 13, 2002... Kinder Morgan Energy Partners (KMP) last week placed into service a $59 million expansion project for its Trailblazer Pipeline which runs 436 miles from Rockport Colorado, to Beatrice, Nebraska. The expansion increases transportation on the...

Chanute, Kansas-based Infinity last week closed on the purchase of 116,100 net acres of coalbed methane properties.(Rocky Mountains)
May 13, 2002... Chanute, Kansas-based Infinity last week closed on the purchase of 116,100 net acres of coalbed methane properties located in the Sand Wash Basin of Colorado and Wyoming. The acreage was acquired from Phillips Petroleum and Tom Brown for...

Spot prices on interstate pipeline systems--Part 1.(Regional Market Roundup)
May 13, 2002... SPOT PRICES ON INTERSTATE PIPELINE SYSTEMS--PART 1 Delivered-to-Pipeline ($/MMBtu) May 13, 2002 This Weekly Bid Week Pipeline Week Change for May ...