revised - bullets 7 / 7 usgt
sold 20 , 000 mmbtu / d of daily firm space moving gas for the weekend from pg & e
topock to socal needles at $ . 10 / mmbtu . this was somewhat of a novel deal in
that the california price spreads opened up and gas became trapped at pg & e .
once our station 4 compressor becomes fully operational , this opportunity
will likely dry up .
enron n . a .
representatives contacted us this week to discuss our possible participation
in a gas storage field using a depleted reservoir on navajo land near
farmington , nm . third party developers approached ena looking for assistance
in moving the project forward .
new tariff services
marketing consensus was reached to delay any further development of
transwestern ' s hourly firm service until the potential markets of power plant
loads become operational . during this interim period , park ' n ride services
provided on an intra - day basis shall be priced incrementally higher than park
' n ride services provided on a timely basis . any resulting market response
will provide indications of market willingness to pay premium transport rates
for hourly transportation service .
el paso
el paso merchant services needs to re - scrub their verbal offer to
transwestern of a $ 15 million lump sum " pre - payment " option of fuel
monetization for their combined 65 , 000 mmbtu / d of san juan to california
capacity . el paso did not take into consideration the different termination
dates of the two contracts ( 25 , 000 mmbtu / d pg & e permanent release contract ,
and 40 , 000 mmbtu / d gallup expansion contract ) in their analysis . a revised
proposed lump sum payment offer is expected mid - next week .
el paso field services
met with ep representatives to discuss a possible interconnect near wt - 1 .
the i / c would be sized for 40 , 000 mmbtu / d . ep proposes to pay for and set
compression to flow this gas into our high pressure line and has agreed to a
volume commitment of 20 , 000 mmbtu / d for up to 2 years . an added advantage is
most of the volume would come from the constrained atoka area which would
allow agave to increase deliveries to tw .
caithness corp .
caithness has decided to move forward on their 1000 mw generation project in
northwest arizona . the 2 - phase project would initially consume 80 , 000
mmbtu / d of gas . the proposed location is 40 miles south of tw ' s line near
wickieup , az . we are meeting with caithness reps next week . projected
in - service date for the plant is early 2002 .
wt - 2 cooler expansion
level b cost estimates are being prepared . revenue / cost savings
assumptions predict $ 500 , 000 annual revenue to support the expenditure . once
installed , the project would give tw an additional 50 , 000 mmbtu / d capacity on
the east end . financial evaluations will be done once the cost estimate is
received .
ngpl winkler interconnect
ngpl notified us this week the reactivated point should be operationally
ready to flow gas on july 17 ( about 2 weeks ahead of schedule ) . this will
hopefully provide new system supply to tw ' s east end of about 80 -
90 , 000 / mmbtu / d .
revised - bullets 7 / 7
usgt
sold 20 , 000 mmbtu / d of daily firm space moving gas for the weekend from pg & e
topock to socal needles at $ . 10 / mmbtu . this was somewhat of a novel deal in
that the california price spreads opened up and gas became trapped at pg & e .
once our station 4 compressor becomes fully operational , this opportunity
will likely dry up .
enron n . a .
representatives contacted us this week to discuss our possible participation
in a gas storage field using a depleted reservoir on navajo land near
farmington , nm . third party developers approached ena looking for assistance
in moving the project forward .
new tariff services
marketing consensus was reached to delay any further development of
transwestern ' s hourly firm service until the potential markets of power plant
loads become operational . during this interim period , park ' n ride services
provided on an intra - day basis shall be priced incrementally higher than park
' n ride services provided on a timely basis . any resulting market response
will provide indications of market willingness to pay premium transport rates
for hourly transportation service .
el paso
el paso merchant services needs to re - scrub their verbal offer to
transwestern of a $ 15 million lump sum " pre - payment " option of fuel
monetization for their combined 65 , 000 mmbtu / d of san juan to california
capacity . el paso did not take into consideration the different termination
dates of the two contracts ( 25 , 000 mmbtu / d pg & e permanent release contract ,
and 40 , 000 mmbtu / d gallup expansion contract ) in their analysis . a revised
proposed lump sum payment offer is expected mid - next week .
el paso field services
met with ep representatives to discuss a possible interconnect near wt - 1 .
the i / c would be sized for 40 , 000 mmbtu / d . ep proposes to pay for and set
compression to flow this gas into our high pressure line and has agreed to a
volume commitment of 20 , 000 mmbtu / d for up to 2 years . an added advantage is
most of the volume would come from the constrained atoka area which would
allow agave to increase deliveries to tw .
caithness corp .
caithness has decided to move forward on their 1000 mw generation project in
northwest arizona . the 2 - phase project would initially consume 80 , 000
mmbtu / d of gas . the proposed location is 40 miles south of tw ' s line near
wickieup , az . we are meeting with caithness reps next week . projected
in - service date for the plant is early 2002 .
wt - 2 cooler expansion
level b cost estimates are being prepared . revenue / cost savings
assumptions predict $ 500 , 000 annual revenue to support the expenditure . once
installed , the project would give tw an additional 50 , 000 mmbtu / d capacity on
the east end . financial evaluations will be done once the cost estimate is
received .
ngpl winkler interconnect
ngpl notified us this week the reactivated point should be operationally
ready to flow gas on july 17 ( about 2 weeks ahead of schedule ) . this will
hopefully provide new system supply to tw ' s east end of about 80 -
90 , 000 / mmbtu / d .