Happy HolidayWishes from RBAC
 
The energy industry has seen enormous change in 2001.  The year is ending on an ominous note with the collapse of Enron and collateral damage to people and firms doing business with it.  Unfortunately, many people have had their lives turned upside down in just a few weeks.  We wish them luck in finding new positions in other firms, energy-related or not.  In spite of these unfortunate events, we hope that they, as well as those of you who haven't had that misfortune, take the opportunity to enjoy the good cheer that family and friends can bring during the holiday season.  We have enjoyed working directly with many of you.  Others of you, we have had the great fortune to meet, to discuss the issues of the day, to show you our wares.  We are thankful for all of this and looking forward to an even more exciting year in 2002.  Happy Holidays everyone!
 
From http://www.enerfaxgold.com :
 
VenezuelaSeeks LNG Deal
 
    Venezuelahopes to sign a 4 million tonneper year LNG deal with 
ajoint venture by Exxon Mobil, Shell, Mitsubishi and state-owned 
Petroleosde Venezuela, which was formed to capitalize on growing 
demandfrom the AtlanticBasin. The country's 1st LNG exports could 
occurwithin the next 6 years if the project moves forward quickly 
enough. Venezuelahas tried for over a decade to make a deal to 
exportnatural gas from its offshore Pariaregion near Trinidad. The 
Venezuelan project has languished because of rapidly growing LNG 
exportsfrom countries such as Trinidadand Nigeria. Some say 
predictionsof rising demand in Europeand US has given Venezuelan 
LNG exports a small window of opportunity. However, if Venezuela
latcheson to a partner with power generation capabilities, it would 
createan integrated project with a guaranteed market. The South 
American nation is also considering building a large industrial hub 
nearGuiriato  link natural gas from the offshore Pariaand nearby 
Deltanaareas to a LNG plant, from which it could travel west for 
domesticuse and fuel proposed petrochemical and chemical plants. 
 
Husky's White Rose Oil Project Gains Governmental Approval
  
    Husky Energy has gained governmental approval for the $1.5 
billionWhite Rose oil field off Newfoundland, making it the 
province's3rd major offshore project. Husky said it would review 38 
conditionsattached to the approval before making its own decision to 
proceed, probably within 3 months. The company is the operator and 
owns72.5% of the 230 million barrel project, which is about 220 
mileseast of  St. John's. Petro-Canada owns the remaining share of 
White Rose. If the companies decide to proceed, production would 
beginin late 2004. Output is expected to climb to 100,000 bpd. 
Current plans call for the field to be developed using a floating 
production, storage and offloading vessel. The project would follow 
thenearby Hiberniaproject, which began operation in 1997, and Terra 
Nova, scheduled to start soon following delays and cost overruns. As 
partof the 38 conditions, Husky must provide a more complete 
analysisof oil and natural gas reserves in sections of White Rose by 
2007. The floating production, storage and offloading vessel must 
alsoallow room for a possible natural gas processing plant, because 
thefield contains major reserves of natural gas which are not part 
ofthe current development plan, regulators said. Husky estimates the 
naturalgas reserves at 2 Tcf, while the Canada-Newfoundland Offshore 
Petroleum Board puts the number at 3.1 Tcf. 
 
From http://www.enerfax.com :
 
-------------------------------------------------------------
AGA Natural Gas Storage Report
 
           Week                                     Prev      
          Ending     Prev                   Prev    Year    
| Region |12/14/01 | Week | Diff | % Full | Year | % Full| 
| Prod   |  881    |  883 |  -2  |  92%   |  524 |  55%  |      
| East   | 1742    | 1779 | -37  |  95%   | 1285 |  70%  |  
| West   |  438    |  444 |  -6  |  87%   |  304 |  60%  |   
       
| Total  |3061    | 3106 | -45  |  93%   | 2113 |  64%  |  
-------------------------------------------------------------
 
FERC Won't Block LNG Plant Reopening
 
    The FERC says it will not rescind the operating certificate for a 
LNG plant located near the Calvert Cliffs nuclear power plant in 
southernMaryland. The FERC says the Coast Guard has adequate safety 
measuresin place for the plant. Last October, approval was given for 
restartingthe plant despite concerns that the facility could 
allegedlybe subject to sabotage that would threaten the nearby 
nuclearplant. Several congressmen and activists had asked for a 
reviewof the national security concerns raised over the LNG plant 
whichWilliams wants to reopen and expand. Williams wants to resume 
LNG shipments to the Cove Point plant next Springand also plans to 
builda 5th storage tank at the site that could hold up to 2.5 Bcf. 
 
From http://www.gasdaily.com :
 
FERC Approves Millennium - Almost
 
The FERC has approved the Millennium Pipeline project, except for the last two mile stretch in Mount Vernon, New York.  The 442 mile, 700 mmcfdproject is designed to terminate at a high pressure interconnect with Consolidated Edison near Mount Vernon.  FERC has given Millennium's sponsors, including Columbia Gas, 60 days to work out an agreement with WestchesterCountyofficials for those disputed last two miles.  When and if such agreement is achieved and final approval is given by FERC, the project's Canadian piece must still be approved by the National Energy Board.
 
Bob Brooks
GPCM Natural Gas Market Forecasting Systemhttp://gpcm.rbac.com