Natural Gas Week articles from May 2004

Natural Gas Week archives from May 2004

TransCanada buys Northwest pipe.(Late News ...)
May 3, 2004... TransCanada buys Northwest pipe: TransCanada wins auction buying National Energy & Gas Transmission's Gas Transmission Northwest unit for $1.7 billion that includes $500 million in assumed debt. U.S. Bankruptcy Court to hear deal May 12. Gas...

San Jacinto hits in Eastern Gulf.(Late News ...)
May 3, 2004... San Jacinto hits in Eastern Gulf: Dominion, Spinnaker and Kerr-McGee have made deepwater natural gas discovery at San Jacinto prospect on DeSoto Canyon Block 618 in Eastern Gulf of Mexico. Spinnaker said well encountered excellent reservoir...

KeySpan shedding stake.(Late News ...)
May 3, 2004... KeySpan shedding stake: KeySpan will sell or spin off remaining 55% stake in The Houston Exploration this year. Natural gas distributor KeySpan continues reducing stake in non-core businesses with eye toward cutting debt to 50% of market...

Average cash prices & futures strip.
May 3, 2004... Cash climbs almost 30 cents for the week as it continues to pace a strong Nymex contract. [GRAPHIC OMITTED] [GRAPHIC OMITTED]

Tight eastern coal supplies may cause havoc in gas markets.
May 3, 2004... US coal markets are unusually tight heading into the summer, and producers and analysts are warning of potential delivery problems in the eastern US that could hamper coal generation and force some utilities onto natural gas. The coal...

Greens, lawmakers lash out against Colorado lease sales.
May 3, 2004... Environmental groups are once again fuming over what they see as the Bush administration's relentless efforts to open wilderness-quality public lands in the western US to oil and gas development. This time, groups such as The Wilderness...

Bullish summer forecasts push May gas toward $6/MMBtu level.
May 3, 2004... End-users will be paying up for baseload gas this month thanks to a three-day, 36 cents rally toward the $6/MMBtu pricing level as the May front-month contract rolled off the board last week at Nymex. Higher bid-week prices could cut end-user...

Consumers seek EPA rules that de-emphasize gas consumption.
May 3, 2004... A coalition of natural gas consumers who continue to be frustrated by sustained high prices is now asking the Environmental Protection Agency (EPA) to de-emphasize the use of the clean-burning fuel. The group recently wrote a letter to EPA...

Correction.(Correction Notice)
May 3, 2004... In last week's Natural Gas Week Analyst's Scoreboard chart, the full-year 2004 composite spot wellhead forecast price for John Gerdes of Southwest Securities should have been $5.11/MMBtu, or up 36 cents, from the previous 2004 forecast.

Greens file suit over seismic testing.
May 3, 2004... A coalition of environmental and preservation groups is suing the Bush administration to halt a natural gas exploration project in eastern Utah known as the Stone Cabin seismic project. The Southern Utah Wilderness Alliance (SUWA), the...

No one-size financial model possible for LNG terminals.
May 3, 2004... Most of the three dozen or so liquefied natural gas receiving terminals proposed for North America plan to use pretty much the same mechanical equipment and technology. Their financing arrangements, however, will be anything but standard, say...

Leading service firms announce price hikes for E & P support.
May 3, 2004... Two leading oil field service firms have served notice that they will raise prices for US customers in May, a move which could lead to a slowdown in onshore gas drilling activity, which has risen steadily over the last two years. ...

Over 100 LNG tankers, crews needed within next 10 years.
May 3, 2004... By 2015, the shipbuilding industry will need to put 10 to 15 new LNG carriers into operation each year to keep pace with demand and the loss of older ships retired from the world fleet. As of Apr. 1, there were 161 liquefied natural gas...

Majors probe ultra-deep shelf play in shallow Gulf of Mexico.
May 3, 2004... Maybe it's too early to write off the shallow waters of the Gulf of Mexico as an oil and gas exploration province. Despite talk of the majors abandoning the Gulf of Mexico shelf to concentrate on deepwater exploration, some of the...

LNG terminal siting often runs afoul of commmunity concerns.
May 3, 2004... Several widely different views of how to site an liquefied natural gas terminal were presented to those attending a conference on liquefied natural gas this week in Houston. In one corner was Elena Haskins Ducharme, chair of a group in...

Mild weather affects 1Q earnings reports.(Corporate Earnings)
May 3, 2004... Sempra Energy stood out among integrated natural gas companies again as its first-quarter results over shadowed the earnings of its peers as its earnings more than doubled and every business segment reported increases. Sempra's energy...

Competition heats up for DOE nuclear funding.(Current)
May 3, 2004... Nuclear equipment vendors recently decided to pledge part of their pocketbooks and join a group of companies working to secure the option to build a new nuclear plant post 2010. General Electric and Hitachi America, subsidiary of Japanese...

AT & T courts utilities for BPL options.(Current)
May 3, 2004... The number one US long-distance provider wants a piece of the broadband-over-power-lines (BPL) pie, and said it can deliver services and customers that make offering BPL more attractive to power utilities that have yet to enter the game en...

Economic rebound boosts utility profits.(Current)
May 3, 2004... An improving U.S. economy and return to stability in the battle-scarred power sector lit up quarterly profits reported by a broad swath of US utilities last week. Industry stalwart Southern Co.--which supplies electricity to the...

Merchants reach California settlement.(Current)
May 3, 2004... Dynegy and NRG Energy agreed to settle claims that they manipulated power supplies during the California energy crisis under a deal with federal and state authorities that will cost them $280 million. Federal and state regulators had...

DOE funds program to cut mercury.(Current)
May 3, 2004... Milwaukee-based We Energies has received $25 million from the US Department of Energy to reduce mercury emissions at its coal-fired power plant in Presque Isle, Michigan. The pilot project is part of a strategy to reduce emissions from all...

TransCanada to buy two Hydro plants.(Current)
May 3, 2004... TransCanada Power said it plans to buy two hydroelectric. facilities in British Columbia for C$162 million (US$118 million), which includes taking on the plants' debt. The transaction sees the Calgary-based partnership acquire companies...

Progress to add MWs at Hines Complex.(Current)
May 3, 2004... Progress Energy Florida said it will add 500 MW to its Hines Energy Complex in Polk County as part of a proposal to build its fourth phase there. Progress Energy received seven proposals from four companies in response to its request for...

ISO: New England set for summer needs.(Current)
May 3, 2004... Electric grid operator ISO New England said last week that its six-state region would have enough power for the summer air-conditioning season. As in years past, however, the ISO warned that transmission constraints in the heavily...

Progress, Cequel join forces to create Canadian income trust.(Regional Market Roundup)
May 3, 2004... Progress Energy and Cequel Energy have decided to take part in Canada's quickly expanding income trust sector. The two Calgary-based junior producers announced last week a complex transaction that puts 90% of the companies' assets into an...

Cutbank Ridge buy helps swell EnCana 1st quarter production.(Canadian Markets)
May 3, 2004... EnCana's purchase last September of 350,000 net acres in the natural gas-rich Cutbank Ridge area looks like it is quickly paying off for the Calgary-based super-independent. In the first quarter, gas production from the Cutbank Ridge area,...

Libya targets US market, others for natural gas initiatives.(World Roundup)
May 3, 2004... Libya is targeting gas exports of 4 to 5 Bcf/d in eight to ten years--roughly 40 Bcm to 50 Bcm per year by 2012-14--National Oil Co. (NOC) upstream team head Azzam Mesallati told journalists at a conference in Tripoli last week. Possible...

Boom times for US industrials spell problems ahead in gas.
May 3, 2004... Inflation concerns have been the leading talk of bond and financial markets of late, and the natural gas industry should start paying heed as well. If gas supplies are as tight this summer as many analysts expect, finding the next layer of...

Task force formed.(Late News ...)
May 10, 2004... Task force formed: Secretary of Energy Spencer Abraham announced formation of an interagency task force to identify ways to expand domestic natural gas supplies. Abraham cited energy security, consumer affordability, as key issues for...

Congressman studies reserve cuts.(Late News ...)
May 10, 2004... Congressman studies reserve cuts: U.S. Rep. John D. Dingell (D-Michigan) studying possible hearing on oil and natural gas reserve accounting. Aides said Dingell studying idea after major reserve cuts by Royal Dutch/Shell. US Securities and...

Average cash prices & futures strip.(Late News ...)
May 10, 2004... A surging crude complex pushed Nymex gas futures through the $6 mark, dragging cash prices higher. [GRAPHIC OMITTED] [GRAPHIC OMITTED]

FERC survey points to rising confidence in price reporting.(Energy Intelligence)
May 10, 2004... While still far from perfect, natural gas traders and price publishers have shown marked progress in developing more robust price indices since an industry low point in late 2002, Federal Energy Regulatory Commission (FERC) staff said last...

Louisiana puts out welcome mat to Cheniere, other LNG projects.(Energy Intelligence)
May 10, 2004... Saying the state's future economic growth depends on it, Louisiana has put out the welcome mat to the liquefied natural gas (LNG) industry. At stake, according to Louisiana Governor Kathleen Blanco, is up to $2.3 billion in revenue for the...

Gas blows through $6 barrier on jitters in crude markets.(Energy Intelligence)
May 10, 2004... Mild shoulder-month fundamentals it seems are no match for traders' attentions given the recent fireworks in crude oil markets. Gas prices blew past the $6/MMBtu threshold last week, lifted by bullish technicals as crude oil flirted with, and...

Pioneer purchase of Evergreen sure to raise investor scrutiny.(Energy Intelligence)
May 10, 2004... Is there something rotten in Denver? That's what investors were trying to determine last week after Rocky Mountains producer Evergreen Resources agreed to sell itself to Pioneer Natural Resources at a discount to its market value. Pioneer...

Correction.(Correction Notice)
May 10, 2004... The May Bid-Week numbers listed in the Cash Market Hub Trading table in the May 3 issue should have read as follows: Henry Hub, $5.94; Carthage, $5.80; Katy, $5.80; Blanco, $5.07; Waha, $5.28. The correct Bid-Week numbers appear in the table on...

EnCana well comes up empty.
May 10, 2004... EnCana has reported another disappointing drilling effort in the offshore Atlantic Canada. The independent producer said its Weyworth A-45 deepwater exploration well off the coast of Nova Scotia was unsuccessful and is being abandoned. The...

Alaska pipeline backers make case at congressional hearing.(Energy Intelligence)
May 10, 2004... Backers of the proposed natural gas pipeline from Alaska's North Slope to the US lower-48 states told members of Congress last week that the venture's eventual success depends on a combination of continued higher-than-historic natural gas...

Supreme Court denies request for review of TVA violations.(Energy Intelligence)
May 10, 2004... The US Supreme Court has denied an Environmental Protection Agency (EPA) petition for review of a high profile New Source Review (NSR) case in which the government decided to sue itself. In 1999, the EPA launched a campaign against several...

Major market prices.
May 10, 2004... MAJOR MARKET PRICES May 10, 2004 ($/MMBtu) This Weekly Bid Week Week Change for May Chicago City Gate 6.13 +0.38 5.96 New York City Gate 6.57 +0.32 6.42...

Aggressive FERC tangles with states on jurisdiction issues.(Energy Intelligence)
May 10, 2004... Federal regulators are aggressively taking steps to assert their jurisdiction over US energy projects whether through directly challenging state claims or by finding ways to advance projects held up by ambiguous federal and state rules. ...

Spot prices on intrastate pipeline systems.
May 10, 2004... SPOT PRICES ON INTRASTATE PIPELINE SYSTEMS Delivered-to-Pipeline ($/MMBtu) May 10, 2004 Pipeline This Weekly Bid Week week Change for May Louisiana...

BG deal highlights new method in Atlantic Basin spot trade.(Energy Intelligence)
May 10, 2004... Navigating some as yet uncharted waters of the Atlantic Basin liquefied natural gas (LNG) trade, UK's BG group put a cargo into Lake Charles, originating not from gas producers, like Trinidad or Algeria, but from storage at an import facility...

2004 gas price Outlook.
May 10, 2004... 2004 GAS PRICE OUTLOOK May 10, 2004/Week 19 Wellhead Delivered-to-Pipeline 12-Month Strip Nymex $6.00 $6.13 $6.371 NOTES: (1) Prices are in $/MMBtu and are for...

MMS hopes lease turnover will curb deepwater drilling fall.(Energy Intelligence)
May 10, 2004... The Minerals Management Service (MMS) says deepwater drilling in the Gulf of Mexico has declined sharply over the last two years, but it hopes that a wave of expiring leases in 2006 and 2007 will spur a rebound in activity. MMS publishes a...

North American weekly gas storage.
May 10, 2004... NORTH AMERICAN WEEKLY GAS STORAGE (Billion Cubic Feet) Region US Apr, 30 Apr. 23 Weekly Year Yr. Ago Week Week Change Ago Difference East 569.0 531.0 38.0...

Prices and differentials for major hubs and selected city gates: May 10, 2004 US$/MMBtu.
May 10, 2004... NOTES: (1) Sumas, Wash.; Kingsgate, B.C.; Emerson, Manitoba; and Niagara Falls, Ontario, are reported as major import points from Canada. [ILLUSTRATION OMITTED] (2) City Gate represents the cost of gas at the point at which the...

Reliant energy.(Reliant Trims 1Q Loss; Stands by Forecast)
May 10, 2004... Reliant Energy posted a narrower quarterly loss with company officials saying they see early signs that the depressed electricity wholesale market is starting to firm up. The company stood by its earlier forecast of adjusted earnings per share...

Williams.(Reliant Trims 1Q Loss; Stands by Forecast)
May 10, 2004... Williams has said it is on track to generate more than $1 billion in cash flows from operations this year as the company announced a net income compared to the year-ago first quarter losses. The absence of an accounting charge, stronger...

Devon energy.(Reliant Trims 1Q Loss; Stands by Forecast)
May 10, 2004... Quarterly profits rose for Devon Energy on record energy production and higher realized natural gas prices. The Oklahoma City-based oil and natural gas producer, reported first-quarter net earnings of $494 million ($2/share), verses $436...

MDU resources group.(Reliant Trims 1Q Loss; Stands by Forecast)
May 10, 2004... MDU Resources Group reported an 18% rise in its quarterly profit due to strength in natural gas and oil production and independent power production. MDU reported a first-quarter net income of $23.4 million, up from $19.9 million in 2003....

Calpine.(Reliant Trims 1Q Loss; Stands by Forecast)
May 10, 2004... San Jose, California-based Calpine reported a first-quarter loss with company officials blaming mild weather and the additional costs from new power plants coming on line. The company reported a first-quarter net loss of $71.2 million...

A strong Canadian dollar helped cut into the profits of two of Canada's top producers during the first quarter.(Reliant Trims 1Q Loss; Stands by Forecast)
May 10, 2004... A strong Canadian dollar helped cut into the profits of two of Canada's top producers during the first quarter. Talisman Energy, Canada's second largest oil exporter, said it earned C$223 million (US$162 million), down from 2003's...

Swift energy.(Reliant Trims 1Q Loss; Stands by Forecast)
May 10, 2004... First-quarter earnings for Houston-based Swift Energy more than doubled, thanks in to higher production and commodity prices. The oil and gas producer reported earnings of $14.6 million (52 cents/share) on revenue of $66 million. In the...

Noble energy.(Reliant Trims 1Q Loss; Stands by Forecast)
May 10, 2004... Houston-based Noble Energy has reported its quarterly profit more than doubled as crude oil and natural gas prices continued marching toward historic highs while production volumes also increased. The company reported a first-quarter net...

NiSource.(Reliant Trims 1Q Loss; Stands by Forecast)
May 10, 2004... NiSource reported income from continuing operations for the first quarter of $216.5 million (83cents/share) compared with $222.3 million for the same period in 2003. Company officials cited a return to normal weather, operating expense...

PG&E.(Reliant Trims 1Q Loss; Stands by Forecast)
May 10, 2004... PG&E reported $3.03 billion, or $7.21/share, in consolidated net income in the first quarter, up from $354 million in the same period in 2003. PG&E chairman, chief executive officer and President Robert D. Glynn Jr. said the corporation is on...

New entrants step up activity in Barnett Shale.(E & P Update)
May 10, 2004... Just as Devon Energy is predicting a dip in its Barnett Shale gas production after several years of exponential growth, other producers appear ready to step up their drilling and keep aggregate production rising or at least hold it steady. ...

Gas rigs vs. total rigs.
May 10, 2004... [GRAPHIC OMITTED] Gas Rigs Vs. Total Rigs Oil Rigs Gas Rigs 5/1/2000 201 632 5/1/2001 246 971 5/1/2002 136 640 5/1/2003 176 825 12/31/2003 160 966...

Storage-price-gas rig count.
May 10, 2004... [GRAPHIC OMITTED] Storage-Price-Gas Rig Count Ring Count Storage Gas Price 12/31/03 966 2567 01/30/04 938 1827 02/06/04 968 1603 03/12/04 961 ...

Emission rules costing companies billions.(Current)
May 10, 2004... If you want to tango with the electricity industry, you will have to wait until the next ball because the industry's dance card is chock full with environmental courtiers. Current and proposed environmental legislation continues to shape...

Duke selling eight Southeast plants.(Current)
May 10, 2004... Duke Energy has agreed to sell eight power plants in the Southeast to a unit of Maltin Patterson Global Opportunities Partners II for $475 million. Duke, which is selling off assets to shore up its balance sheet and focus on its regulated...

Groups rank top 50 polluting plants.(Current)
May 10, 2004... The Environmental Integrity Project (EIP) and Public Citizen have issued a report ranking the top 50 polluting power plants in the US. The report, titled, "America's Dirtiest Power Plants: Plugged Into the Bush Administration," ranks the plants...

Xcel plan focuses on coal, renewables.(Current)
May 10, 2004... Xcel Energy filed a plan with the Colorado Public Utilities Commission that will focus on acquiring 3,600 MW of electric generating capacity by 2013 mainly through coal and renewable energy sources. Under the plan, Xcel has recommended...

Comparative fuel prices.
May 10, 2004... COMPARATIVE FUEL PRICES (Cash Market) May 10, 2004 EAST COAST New York Harbor: Natural Gas Heating Residual Residual 1% Natural Gas New York Oil-No. 2 * ...

Natural gas futures and spot electricity trading.
May 10, 2004... NATURAL GAS FUTURES AND SPOT ELECTRICITY TRADING Trading Dates: May 3-May 7, 2004 New York Mercantile Exchange (NYMEX) (Henry Hub) Monday Tuesday Wednesday Thursday ...

Cash market hub trading.
May 10, 2004... CASH MARKET HUB TRADING ($/MMBtu) Henry Hub, La. Current month: May 10:$6.12 May 3:$5.76 Jan. Feb. March April May June July August 2004 6.09 5.37 5.36 5.70 2003 5.30 7.35 8.06...

Natural gas rig count.
May 10, 2004... NATURAL GAS RIG COUNT May 7: 1,153/994/86.2% Jan. Feb. March April May June July August Sept. 2004 Total 1,101 1,119 1,135 1,149 Gas 955 961 968 994 % Gas 86.7 85.9 85.2 86.5...

Duquesne Light set to join PJM grid.(Current)
May 10, 2004... Duquesne Light has agreed to integrate its Pittsburgh-based power system into the ever-expanding PJM transmission territory Jan. 1. The company would become part of PJM's western region. PJM has been the reliability coordinator for Duquesne...

Entergy: crack won't delay nuke return.(Current)
May 10, 2004... Entergy found cracking around one nozzle on the reactor vessel head at its 836-MW Arkansas 1 nuclear unit during the unit's refueling and maintenance last week. Plant spokesman Phil Fisher said the company's planned repairs of the crack were...

Devil's Tower starts flowing gas in deepwater eastern Gulf.(Regional Market Roundup)
May 10, 2004... A unit of Williams announced this week it has started receiving the first deliveries from the Devil's Tower Field at its new deepwater spar platform in the eastern Gulf of Mexico, about 150 miles south of Mobile, Alabama. The new spar is a...

Alaska.(Regional Market Roundup)
May 10, 2004... Calgary-based Enbridge has filed an application with the state of Alaska to negotiate commercial agreements for the construction and operation of the part of the Alaska Highway pipeline project to be built in the state. Patrick D. Daniel,...

Texas.(Regional Market Roundup)
May 10, 2004... Clayton Williams Energy has entered into a cash merger agreement worth $187.8 million to purchase Southwest Royalties, a privately held company based in Midland, Texas. Southwest's assets include 177 Bcfe of proved oil and natural gas...

Louisiana.(Regional Market Roundup)
May 10, 2004... The Federal Energy Regulatory Commission (FERC) issued certificates to Discovery Gas Transmission and affiliate Discovery Producer Services to proceed with a 150 MMcf/d pipeline expansion project in southern Louisiana, which is expected to...

New Mexico.(Regional Market Roundup)
May 10, 2004... Duke Energy Field Services has closed the acquisition of several processing plants and more than 1,000 miles of pipeline in New Mexico from ConocoPhillips for $74 million. Denver-based Duke Energy Field Services acquired the Hobbs,...

Spot prices on interstate pipeline systems--part 1.
May 10, 2004... SPOT PRICES ON INTERSTATE PIPELINE SYSTEMS--PART 1 Delivered-to-Pipeline ($/MMBtu) May 10, 2004 Pipeline This Weekly Bid Week Week Change for May ...

Canada loosening constraints to oil and gas development.(Canadian Markets)
May 10, 2004... Energy officials from three Canadian provinces as well as the country's top federal energy official came to the Offshore Technology Conference in Houston last week to deliver the unified message that Canada's arms are open wide to the global...

Rig count.(Canadian Markets)
May 10, 2004... Rig Count: There were 205 rigs drilling for natural gas and oil in Western Canada as of May 4, a increase of 23 from a week ago, according to the Canadian Association of Oilwell Drilling Contractors (CAODC). During the same period a year...

Working gas.(Canadian Markets)
May 10, 2004... Working gas in all Canadian storage facilities increased to 35.1% of capacity as of Apr. 30, up from 32.32% the week before, according to the most recent Canadian Enerdata gas storage survey. Canadian storage facilities were 21.5% full a...

The composite spot import price.(Canadian Markets)
May 10, 2004... The composite spot import price this week is US$5.61/MMBtu for gas leaving Canada and entering the US through six border crossing points. Natural Gas Week's May 12, 2003, average for Canadian exports was US$5.06/MMBtu. Canada's average...

ConocoPhillips solidifies global gas operations into single unit.(World Roundup)
May 10, 2004... ConocoPhillips is forming a global gas organization as a new division of its exploration and production segment. Sig Cornelius, ConocoPhillips president of US Lower 48, Latin America & midstream, will become president of the unit, effective...

Canadian price report.
May 10, 2004... CANADIAN PRICE REPORT ($U.S. per MMBtu/$Can per Gigajoule) BRITISH COLUMBIA ALBERTA Total Huntingdon/ Kingsgate/ Province ...

Gas price trends.
May 10, 2004... GAS PRICE TRENDS ($/MMBtu) CALIFORNIA ROCKY NEW TEXAS MTNS MEXICO South North Gulf Coast Gulf Coast ...

Glut of power supply forces closings of efficient CC units.
May 10, 2004... Not even the most efficient combined-cycle gas plants are safe from closure in glutted Southeast power markets, as Reliant Energy made clear last week. The Houston-based electric company said it has moth-balled an 822-MW combined-cycle gas...