Message-ID: <1239602.1075860897354.JavaMail.evans@thyme>
Date: Fri, 1 Feb 2002 09:58:23 -0800 (PST)
From: rebrooks@earthlink.net
To: rebrooks@rbac.com
Subject: GPCM News: 2/1/02: Dynegy Takes Over Northern Natural: FERC
 ApprovesTuscarora Expansion
Mime-Version: 1.0
Content-Type: text/plain; charset=us-ascii
Content-Transfer-Encoding: 7bit
X-From: Robert E. Brooks <rebrooks@earthlink.net>
X-To: 'GPCM Distribution' <rebrooks@rbac.com>
X-cc: 
X-bcc: 
X-Folder: \Kim_Watson_Mar2002\Watson, Kimberly\E-mail Bin
X-Origin: Watson-K
X-FileName: kwatson (Non-Privileged).pst

From http://www.enerfax.com <http://www.enerfax.com/> :

 

Dynegy Takes Over Northern Natural Gas Pipeline 

 

Dynegy, which acquired the Northern Natural Gas pipeline from Enron
after investing $1.5 billion in the energy trader, will take

over the pipelines trading and marketing today. The system, valued at
$2.7 billion, runs 16,600 miles from Texas to the Great Lakes. Enron had
contested the takeover after Dynegy backed out of its plan to buy Enron
for $23 billion in November. Earlier this month, Enron gave up the
pipeline, but is proceeding with a $10 billion lawsuit against Dynegy
for terminating their deal. Northern Natural has a capacity of 4.3 Bcf
of natural gas per day and has valuable connection points with other
pipelines. Although Dynegy operates many pipelines, Northern Natural is
their first foray into pipeline ownership. Dynegy paid $23 million to
complete the purchase and named Daniel Dienstbier as the systems
president, a position he held before becoming president of Enron's Gas
Pipeline Group in 1985. Dynegy also assumed $900 million of Northern
Natural's debt. Enron employees will run and maintain Northern Natural
until Enron's option to buy it back expires June 30th. But most think
that is unlikely to happen, given Enron's current state of affairs. 

 

FERC Approves Tuscarora Pipeline Expansion

 

The  has given final approval to Tuscarora Gas Transmission's plan to
expand its pipeline system to bring more natural gas to industrial
customers in northern Nevada. The Tuscarora natural gas pipeline was
built in 1995 in a partnership between Sierra Pacific Resources and
TransCanada PipeLines. The $60 million, 14-mile pipeline extension would
almost double the capacity in the area from 125 MMcf per day to 220 MMcf
per day. The expanded pipeline capacity will serve Duke Energy's 540 MW
plant near Wadsworth, Nevada and Morgan Stanley's 360 MW power plant
near Reno. The 229-mile pipeline stretches from Malin, Oregon through
northern California to Sierra Pacific's Tracy power station near Reno. 

 

Bob Brooks

GPCM Natural Gas Market Forecasting System

http://gpcm.rbac.com <http://gpcm.rbac.com/>