Natural Gas Week articles from May 2003

Natural Gas Week archives from May 2003

Hotline. (Late News).
May 5, 2003... The Department of Energy said its inspector general is investigating possible ethics violations by Federal Energy Regulatory Commissioner (FERO) Chairman Pat Wood m and FERO Commissioner Nora Brownell for a controversial Mar. 26 phone call with...

All in the family. (Late News).
May 5, 2003... Federal prosecutors brought indictments last week against 11 former Enron executives, most in former broadband unit. Enron execs hyped success of unit to inflate Enron stock and cash in, feds charge, including a bogus sale of an interest in a...

Average cash prices & futures strip. (Late News).
May 5, 2003... A 35.4[cents] plunge at the close of the Nymex May contract Monday set the tone for trading last week. [GRAPH OMITTED]

Signs of market rebalancing may weigh on spring gas prices.
May 5, 2003... If utilities plan an aggressive push to refill lagging storage inventories they will be hard-pressed to find a better time to make their move. Forecasts point to little weather demand ahead to compete with storage buying in major markets and,...

Exxon claims tech breakthrough with pressurized LNG process.
May 5, 2003... The new steel developed by Exxon Mobil and its Japanese partners may have another application besides line pipe for long-distance, high-pressure natural gas transmission systems (NGW Apr. 28,p7). Exxon is planning to use the product in...

Acid leak claims another nuke, should boost texas gas demand.
May 5, 2003... Yet another nuclear plant has fallen under scrutiny due to a boric acid leak and, while the long-term implications for the nuclear industry remain unknown, in the short-term the downed plant will almost certainly mean more summer gas demand in...

BLM decision clears way for CBM drilling in Powder River Basin.
May 5, 2003... The US Bureau of Land Management (BLM) issued a final record of decision last week paving the way for the drilling of tens of thousands of new coalbed methane (CBM) wells on federal land in the Powder River Basin of Wyoming and Montana. ...

Trinidad train 2 starts early, adding to LNG momentum in US.
May 5, 2003... The Atlantic LNG (ALNG) consortium said last week its Train 3 expansion in Trinidad started three months ahead of schedule, paving the way for further increases in liquefied natural gas (LNG) imports already arriving at a record-setting pace in...

Major market prices.
May 5, 2003... MAJOR MARKET PRICES May 5, 2003 ($/MMBtu) This Weekly Bid Week Week Change for May Chicago City Gate 5.30 -0.22 5.19 New York City Gate 5.66 -0.36 ...

FERC orders 11 firms to show they've corrected reporting Ills.
May 5, 2003... Federal regulators last week gave 11 energy trading companies 45 days to show that they have corrected problems in reporting natural gas deals to index publishers. The Federal Energy Regulatory Commission (FERC) last Wednesday ordered...

Spot prices on intrastate pipeline systems.
May 5, 2003... SPOT PRICES ON INTRASTATE PIPELINE SYSTEMS Delivered-to-Pipeline ($/MMBtu) May 5, 2003 This Weekly Bid Week Pipeline Week Change for May Louisiana Intrastates LIG,...

US Senate passes Energy bill by thwarting FFRC's SMD plan.
May 5, 2003... The Senate Energy and Natural Resources Committee passed a comprehensive energy bill last week when Republicans drew ranks on the contentious electricity title after a last minute compromise was reached on the issue of Standard Market Design...

2003 gas price outlook.
May 5, 2003... 2003 GAS PRICE OUTLOOK May 5, 2003/Week 18 Wellhead Delivered-to- 12-Month Strip Pipeline Nymex $5.53 $5.67 $5.330 NOTES: (1) Prices are in $/MMBtu and are for the calendar year. The...

Kerr-McGee seeks critical mass for atwater valley hub in GOM.
May 5, 2003... Kerr-McGee said last Wednesday it will drill several deepwater exploration wells in the Atwater Valley area of the Gulf of Mexico later this year with a view to obtaining the critical mass needed to establish a new hub for gas production. ...

City gate prices.
May 5, 2003... CITY GATE PRICES May 5, 2003 ($/MMBtu) Bid Week Bid Week City for May for Apr. Austin, Texas Valero Transmission Co. 5.03 * ...

Mirant says overstated profits by $188 million over two years.
May 5, 2003... While other energy companies are reporting first-quarter earnings, Mirant is just reporting year-end 2002 numbers and was forced to restate earnings for 2001 and 2000, in which it revealed last week it had overstated income by $188 million. ...

Cold 1Q weather boost results for most merchants, utilities.
May 5, 2003... Cold winter weather and resulting high commodity prices proved a boon to merchant energy companies with utility businesses and hard generation assets, helping many post better-than-expected first quarter results and restoring some investor...

Composite Spot Wellhead Price.
May 5, 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...

Composite spot Delivered-to-Pipeline Price.
May 5, 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 1919 1.15 1.27 1.52 1.68 1992...

Salt cavern storage.
May 5, 2003... SALT CAVERN STORAGE (Billion Cubic Feet) MMcfd MMcfd Apr 25 Max Max Bcf Bcf Facility State Injection...

White paper steps back from FERC's SMD goals. (Current).
May 5, 2003... The Federal Energy Regulatory Commission (FERC) last week hit the streets with its long-awaited Standard Market Design (5MB) white paper that--to the disappointment of many--moved away from the ambitious effort to standardized the entire US...

Wepco reaches $600M settlement. (Current).
May 5, 2003... A Wisconsin Energy subsidiary has agreed to pay $600 million in a Clean Air Act (CAA) settlement with the Environmental Protection Agency (EPA) and Department of Justice (DOJ) to reduce 72,300 tons/year of sulfur dioxide ([SO.sub.2]) and 32,600...

Con Ed signs 500-MW deal for NYC. (Current).
May 5, 2003... NEW YORK -- Consolidated Edison (Con Ed) said last week it agreed to a 10-year contract to purchase 500 MW of electric capacity and energy from Astoria Energy. The power will come from a new natural gas-fired power plant to be built in Astoria,...

BPA allowed to cancel Enron deals. (Current).
May 5, 2003... WASHINGTON, D.C. -- The US Department of Justice (DOJ) gave the Bonneville Power Administration (BPA) permission to pay about $99 million to terminate long-term electricity deals with bankrupt Enron, Sen. Ron Wyden (DOregon) said last Tuesday....

Coyote springs set to power up. (Current).
May 5, 2003... HERMISTON, Oregon -- Avista, following a series of equipment failures and delays, said last Wednesday its 280-MW Coyote Springs H gas-fired power plant in Oregon should come online by mid-year. Chief Executive Gary Ely said during a...

Comparative fuel prices.
May 5, 2003... COMPARATIVE FUEL PRICES (Cash Market) May 5, 2003 EAST COAST Natural Gas Natural Gas New York Harbor: Texas New York Heating ...

Natural gas futures and spot electricity trading.
May 5, 2003... NATURAL GAS FUTURES AND SPOT ELECTRICITY TRADING Trading Dates Apr. 28 May 2, 2003 New York Mercantile Exchange (NYMEX) (Henry Hub) Monday Tuesday Wednesday Thursday Last/Volume...

Cross Sound Cable suffers setback.
May 5, 2003... HARTFORD, Connecticut -- The Connecticut Supreme Court denied Cross Sound Cable's (CSC) request for an emergency review of its 24-mile, 330-MW transmission line beneath the Long Island Sound last week. State Attorney General Richard Blumenthal...

Calpine sells king city interest.
May 5, 2003... SAN JOSE, California -- Calpine said last Wednesday it completed the sale of its 60% interest in the 115-MW King Citypower plant to GE Structured Finance for about $82 million. Calpine will hold the remaining interest in the subsidiary, as well...

NYC to use wastewater plant gas.
May 5, 2003... NEW YORK -- New York Power Authority (NYPA) trustees last Tuesday authorized spending up to $700,000 to install up to a 250-kW generating unit to harness the gas by-product from the Owl's Head wastewater treatment plant in Brooklyn to produce...

Cash market hub trading.
May 5, 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.
May 5, 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 ...

FERC approves calypso project to ship LNG gas from bahamas. (Regional Market Roundup).
May 5, 2003... The Federal Energy Regulatory Commission (FERC) last week gave commercial approval to the $144 million Calypso Pipeline Project. The 42-mile long Calypso line is designed to ship 832 MMcf/d from a proposed liquefied natural gas (LNG) terminal...

Transcontinental Gas Pipe Line. (Regional Market Roundup: Southeast).
May 5, 2003... Williams last week announced the startup of a 269 MMcf/d expansion on its Transcontinental Gas Pipe Line (Transco) system, representing Phase I of the two-phase Momentum Expansion Project. The first phase will provide additional firm...

Shell Mexico. (Regional Market Roundup: Mexico).
May 5, 2003... Shell Mexico announced last week that its proposed liquefied natural gas (LNG) regasification terminal in Baja California was granted an environmental permit by Semarnet, Mexico's federal environmental agency. The terminal is to be located in...

Puget Sound Energy. (Regional Market Roundup: Washington).
May 5, 2003... Puget Sound Energy (PSE) and Williams' Northwest Pipeline said last week that they have agreed to have Northwest construct a pipeline expansion project to increase the reliability of PSE's natural gas system in Snohomish County in western...

Vector Pipeline. (Regional Market Roundup: Michigan).
May 5, 2003... Vector Pipeline, operated and part owned by Enbridge, received the go-ahead from FERC to increase the maximum permitted capacity of the line to 1.33 Bcfld from a previous 1 Bcf/d FERC granted an amended presidential permit after receiving no...

New company hoping to cash in on fire sale of merchant assets.
May 5, 2003... Another investment bank is getting into the midstream natural gas business, in partnership with two veteran executives from the sector. Warburg Pincus is joining forces with newly formed Targa Resources of Houston--and its two principals...

Spot prices on interstate pipeline systems.
May 5, 2003... SPOT PRICES ON INTERSTATE PIPELINE SYSTEMS Delivered-to-Pipeline ($/MMBtu) May 5, 2003 This Weekly Bid Week Pipeline week Change for May ...

East Coast Canada loses luster As Petro-Canada Abandons well. (Canadian Markets).
May 5, 2003... Another setback has hit Canada's East Coast energy play, with Petro-Canada and its partners abandoning an expensive exploration well in the Flemish Pass. Petro-Canada reported last week the Mizzen L-11 well didn't find economic quantities...

Canadian price report.
May 5, 2003... CANADIAN PRICE REPORT ($U.S. per MMBtu/$Can per Gigajoule) BRITISH COLUMBIA Huntingdon/ Kingsgate/ Total ...

Gas price trends.
May 5, 2003... GAS PRICE TRENDS ($/MMBtu) ROCKY NEW CALIFORNIA MTNS MEXICO South North May 2002 ...

Reduction in liquids stripping helping boost US gas supply.
May 5, 2003... While analysts hold out little hope for organic growth in US gas production this year (NGW Apr.28,p3), producers have other means at their disposal to boost available supply to the market. Several midstream operators last week reported a...

Gas price report.
May 5, 2003... GAS PRICE REPORT ($/MMBtu-Spot) May 5, 2003 Interstate Intrastate Wellhead Wellhead Bid ...

Shopping expedition? (Late News).
May 12, 2003... Could Berkshire Hathaway Chief Executive Warren Buffett, buyer of bargain-priced energy assets, be eyeing Minneapolis firms NRG Energy or parent Xcel Energy? Minneapolis Star Tribune reports Buffett met in Minneapolis recently with Xcel Chief...

Waves of interest. (Late News).
May 12, 2003... City by the Bay is now turning to that body of water as potential source of electricity for its entire population. San Francisco last week decided to spend $2 million on pilot project that uses energy from tides to generate electricity....

Bull run: analysts boost 2003 gas price forecasts to $5.30. (NGW's Analyst Scoreboard).
May 12, 2003... Don't look for low gas prices any time soon if the analysts in this quarter's NGW Price Forecast Scoreboard divine the market correctly. Last Oct. 28-when we first asked the analysts to forecast the 2003 composite spot wellhead price --...

Early summer heat in Southeast spurs jump in US gas prices.
May 12, 2003... Summer arrived early across Texas and the Southeast, and weather forecasts point to above-normal temperatures lingering in these regions into the near future. This added heat will complicate much-needed efforts to rebuild low storage...

California bill pushes envelope on gas price reporting debate.
May 12, 2003... While the gas industry and federal regulators hash out the best path to bolster gas price indices used to clear transactions, legislation currently working through the California State Senate would impose the state's own stamp on the issue and...

SEC probes KMP's Tejas Gas purchase.
May 12, 2003... Federal regulators have launched an informal investigation of Kinder Morgan Energy Partners' (KMP) purchase last year of Tejas Gas. The Securities and Exchange Commission (SEC) is looking into KMP's public disclosures regarding the...

Mexico pushes open gas pricing to better link to US markets.
May 12, 2003... Slowly but surely, Mexican natural gas imports are becoming more sensitive to US gas pricing. That's important because as more gas flows between the two countries, Mexican gas purchases will exert a greater influence on already tight US supply....

B.C. officials expect end to offshore drilling moratorium.
May 12, 2003... Not wanting to be left behind by what is expected to be an offshore Canada drilling boom, British Columbia's energy minister said last week that the province is moving to try to develop an oil and gas industry off Canada's westernmost province...

Major Market Prices.
May 12, 2003... MAJOR MARKET PRICES May 12, 2003 ($/MMBtu) This Weekly Bid Week Week Change for May Chicago City Gate 5.59 +0.29 5.49 New York City Gate 5.99 +0.33 ...

Devon ups Barnett Shale drilling; horizontal wells to rise five-fold.
May 12, 2003... Devon Energy -- which recently completed its acquisition of Ocean Energy to become the largest US independent producer -- is stepping up the pace of its gas-drilling program in the prolific Barnett Shale play in North Texas. Encouraged by...

Spot prices on intrastate pipeline systems.
May 12, 2003... SPOT PRICES ON INTRASTATE PIPELINE SYSTEMS Delivered-to-Pipeline ($/MMBtu) May 12, 2003 This Weekly Bid Week Pipeline Week Change for May ...

ConocoPhillips sets gas goals, will pursue two frontier pipes.
May 12, 2003... ConocoPhillips wants to change its mix of oil and natural gas reserves and production to an even split between the two hydrocarbons instead of being heavily weighted toward the crude side. Over the next 10 years, the company aims to achieve...

Cheniere hires CMS' LNG Guru to implement gulf LNG strategy.
May 12, 2003... Determined to capitalize on what it sees as a 10 Bcf/d liquefied natural gas (LNG) import market in the near future, Cheniere Energy has hired on one of the industry's big guns to head up its LNG division. The Houston-based company said...

Salt cavern storage.
May 12, 2003... SALT CAVERN STORAGE (Billion Cubic Feet) May 2 MMcfd MMcfd Bcf Bcf Facility State Max Max ...

Two more nuclear power plants found to have cracking in heads.
May 12, 2003... Two more nuclear power plants have been added to the list of pressurized water reactors (PWRs) plagued by cracking, but neither industry regulators nor analysts believe there is any cause for alarm. Cracking was discovered during recent...

2003 Gas price outlook.
May 12, 2003... 2003 GAS PRICE OUTLOOK May 12, 2003/Week 19 Delivered-to- 12-Month Strip Wellhead Pipeline Nymex $ 5.82 $5.94 $5.808 NOTES: (1) Prices are in $/MMBtu and are for the calendar year. The...

MMS pushes deep-shelf to stem Gulf declines. (E & P Update).
May 12, 2003... Natural gas output from the Gulf of Mexico -- a region that has historically provided the US with roughly 25% of its gas needs -- is expected to drop sharply in the coming years, the US Minerals Management Service (MMS) acknowledged in a report...

Storage-price-gas rig count.
May 12, 2003... Storage-Price-Gas Rig Count Total Rigs Gas Rigs 5/1/1999 516 380 5/1/2000 844 644 5/1/2001 1234 997 5/1/2002 826 690 4/4/2003 972 782 4/11/2003 979 ...

NPCC: connecticut supplies tight.
May 12, 2003... Electricity supplies for the US Northeast should be ample for this summer except for some areas of Connecticut according to assessment from the Northeast Power Coordinating Council (NPCC) released last week. NPCC coordinates reliability of...

Tampa turns to gas to meet EPA settlement. (Current).
May 12, 2003... Tampa Electric has started to generate natural gas-fired electricity at a converted coal plant as part of a Clean Air Act (CAA) settlement with the Environmental Protection Agency (EPA). Tampa Electric, a subsidiary of Teco Energy, was the...

Mirant seeks to defer payments. (Current).
May 12, 2003... ATLANTA -- Troubled utility Mirant said last week it would ask creditors to defer principal repayments on billions of dollars worth of loans. The company said it would put up its "unencumbered assets" as collateral. Mirant said it is in...

APS Inks deal with Pinnacle, Teco. (Current).
May 12, 2003... PHOENIX -- Arizona Public Service (APS) entered into a contract last week to receive 1,700 MW of electricity from sister company Pinnacle West Energy, Pinnacle West Capital -- the parent of both companies -- said in an SEC filing last week. The...

Comparative fuel prices.
May 12, 2003... COMPARATIVE FUEL PRICES (Cash Market) May 12, 2003 EAST COAST Natural Gas Natural Gas New York Harbor: Texas New York Heating ...

KeySpan gets approval for NY plant. (Current).
May 12, 2003... MELVILLE, New York -- The New York State Board on Electric Generation Siting and the Environment last week gave KeySpan approval to build and operate the Spagnoli Road Energy Center, a 250-MW combined-cycle electric generating facility on Long...

Natural gas futures and spot electricity trading.
May 12, 2003... NATURAL GAS FUTURES AND SPOT ELECTRICITY TRADING Trading Dates: May 5- May 9, 2003 New York Mercantile Exchange (NYMEX) (Henry Hub) Monday Tuesday Wednesday Thursday Last/Volume...

St Paul CH&P plant now operating. (Current).
May 12, 2003... ST. PAUL, Minnesota -- St. Paul Cogeneration announced last week that its combined heat and power biomass plant is now in full operation and is providing electricity to Xcel Energy and hot water to District Energy. The new biomass plant --...

Cleco sells plant to entergy. (Current).
May 12, 2003... PERRYVILLE, Louisiana -- Cleco said last week that it agreed to sell a 725-MW natural gas-fired power plant to a unit of Entergy, a move which will boost the company's cash flow and trim its 2003 earnings. Cleco said the sale, which it...

Cash market hub trading.
May 12, 2003... CASH MARKET HUB TRADING ($/MMBtu) Jan. Feb. March April May June July Henry Hub, La. 1995 1.48 1.54 1.52 1.59 1.64 1.65 1.44 1996 2.92 4.41...

Natural gas rig count.
May 12, 2003... NATURAL GAS RIG COUNT Jan. Feb. March April May June July 2000 Total 774 763 773 805 844 878 942 Gas 631 616 599 609 644 677 733...

Marathon receives CRE permit for Baja California LNG complex. (Regional Market Roundup).
May 12, 2003... Marathon Oil announced last week that the Tijuana Regional Energy Center, a joint project of Marathon subsidiary Gas Natural Baja California, Mexico's Grupo CGS, and Bermuda-based Golar LNG received a permit from Mexico's Comision Reguladora de...

Spot prices on interstate pipeline systems.
May 12, 2003... SPOT PRICES ON INTERSTATE PIPELLINE SYSTEMS -- PART 1 Delivered-to-Pipeline ($/MMBtu) May 12, 2003 This Weekly Bid Week Bid Week Pipeline Week Change For...

Canadian E&Ps strong earnings stem from high oil, gas prices. (Canadian Markets).
May 12, 2003... Several of Canada's top producers saw their first-quarter earnings rise in the wake of high oil and gas prices due to a large number of external market factors including the war in Iraq, a cold North American winter, and declining natural gas...

Canadian price report.
May 12, 2003... CANADIAN PRICE REPORT ($U.S. per MMBtu/$Can per Gigajoule) BRITISH COLUMBIA Huntingdon/ Kingsgate/ Total Sumas...

Gas price trends.
May 12, 2003... GAS PRICE TRENDS ($/MMBtu) ROCKY NEW CALIFORNIA MTNS MEXICO South North May 2002 ...

SSB: outlook murky for summer but extreme heat not expected.
May 12, 2003... A great deal of variability in week-to-week and month-to-month temperature trends is expected this summer but a repeat of last season's unusual heat is not anticipated, the meteorological team at Salomon Smith Barney (SSB) predicted last week....

Gas price report.
May 12, 2003... GAS PRICE REPORT ($/MMBtu--Spot) May 12, 2003 Interstate Intrastate Wellhead Wellhead Bid ...

Bad affiliates. (Late News).
May 19, 2003... Western utility Idacorp agreed Friday to pay $5.8 million fine to settle allegations it operated its transmission grid in discriminatory manner, FERO said Friday. FERO ordered utility's Idaho Power affiliate to return $5.8 million to parent...

Sharp insights. (Late News).
May 19, 2003... "If we are to reach the desired storage level of 3 [Tcf] to 3.5 [Tcf] of natural gas by the end of October, we must inject much more into storage than the usual weekly average of 60 [Bcf] ,"US Energy Secretary Spencer Abraham told National...

Thanksgiving leftovers. (Late News).
May 19, 2003... New $100 million Minnesota power plant owned by owned by Fibrowatt, Philadelphia-based joint venture between Fibrowatt Ltd. and Energy Power Resources, will be first plant in US to burn turkey waste to generate 50MW of power. Minneapolis-based...

Average cash prices & futures strip.
May 19, 2003... Natural gas prices continued their climb last week despite an upward revision in the previous week's gas storage report. [GRAPH OMITTED] [GRAPH OMITTED]