Summary Report - 3rd Quarter, 2000

The Office of Natural Gas & Petroleum Import & Export Activities prepares quarterly reports showing natural gas import and export activity. Companies are required, as a condition of their authorizations, to file quarterly reports. This report is for the 3rd quarter of 2000 (July - Sept.).

Attachment A shows the percentage of takes to maximum firm contract levels and the weighted average per unit price for each of the long-term importers during the 5 most recent reporting quarters.

Attachment B shows volumes and prices of gas purchased by long-term importers & exporters during the past 12 mos.

Attachment C shows volume and price data for gas imported on a short-term or spot market basis.

Attachment D shows the gas exported on a short-term or spot market basis to Canada and Mexico.

Third Quarter Highlights: As shown below, there were notable changes in activity compared to 3rd quarter 1999.

See details below for more information.

Puerto Rico Imports: This calendar quarter marks the first time LNG imports into Puerto Rico have been reported. These imports are shown in the Table above, the quarterly summary page showing imports by type of DOE imports authorization (on next page), and in Attachment B-1 (p. 22). However, the imports are not reflected in any of the summary totals found on this page, as the summaries are only for trade pertaining to continental U.S.

There were delays in the commercial start-up of the Alliance Pipeline but it became operational on December 1, 2000. Alliance imported 4.62 Bcf in the third quarter for testing purposes.

EcoElectrica, L.P. imported LNG from Trinidad & Tobago into Puerto Rico for the first time in July. A total of 6.6 Bcf was imported in the 3rd quarter. The LNG is used to fuel a 461-megawatt combined-cycle cogeneration plant on the southern coast of Puerto Rico near the city of Ponce.

During the third quarter, seven importers of LNG (Distrigas Corporation; Duke Energy LNG; CMS Marketing Services & Trading Co.; Sempra Energy Trading Corporation; Coral Energy Resources, L.P.; Enron International Gas Sales Co.; and Amoco Energy Trading Corporation) brought in 32 cargoes from six countries (Algeria, Australia, Nigeria, Qatar, Trinidad, and Oman), totaling 73.6 Bcf.

Third Quarter Data: Comparing 3rd quarter 2000 to 3rd quarter 1999 data, total imports under long-term contracts declined slightly. Specifically, natural gas imports under all long-term contracts totaled 357.5 Bcf, compared to 358.8 Bcf in the third quarter of 1999. Of this total, long-term Canadian imports were down 2 percent (328.6 v. 334.1 Bcf). The average price of this gas was $3.83 per MMBtu, which is 68 cents higher than the preceding quarter and $1.39 or 57 percent higher than the third quarter of 1999. Long-term LNG imports increased to 28.9 Bcf. Under LNG long-term imports, Distrigas imported 2.4 Bcf from Algeria at an average price of $3.44 per MMBtu and 22.1 Bcf from Trinidad at $2.98 per MMBtu. Duke imported 4.4 Bcf from Algeria at $3.33 per MMBtu.

During the third quarter, 85 companies used short-term authorizations to import 588.0 Bcf of gas, which is a 6.5 percent increase over the third quarter of 1999 (552.1 Bcf). Of this total, 543.1 Bcf was imported from Canada at an average price of $3.88 per MMBtu, compared to 513.8 Bcf at $2.30 in the third quarter of 1999, and 496.8 Bcf at $3.25 in the previous quarter. Imports from Mexico totaled 0.2 Bcf at an average price of $4.88, compared to 14.5 Bcf at $2.44 in the third quarter of 1999 and 0.8 Bcf at $2.97 last quarter. Short-term LNG imports totaled 44.7 Bcf for the quarter, compared to 26.2 Bcf last quarter. Under short-term LNG import contracts, Duke imported 0.7 Bcf from Algeria at an average price of $3.33 per MMBtu; Sempra imported 3.7 Bcf from Trinidad at $3.39 per MMBtu; Amoco imported 1.8 Bcf from Trinidad at $3.80 per MMBtu; and Enron imported 2.7 Bcf from Oman at $3.58 per MMBtu. CMS imported 3.6 Bcf from Australia at $2.79 per MMBtu; 19.6 Bcf from Qatar at $3.26 per MMBtu; and 2.5 Bcf from Nigeria at $4.37 per MMBtu. Coral imported 4.9 Bcf from Oman at $2.44 per MMBtu and 5.2 Bcf from Nigeria at $3.18 per MMBtu.

Approximately 30 percent of the short-term Canadian imports occurred at Eastport, ID at an average price of $3.74 per MMBtu; 24 percent at Port of Morgan, MT at $3.76; 11 percent at Sumas, WA at $3.47; 11 percent at Noyes, MN at $4.04; 10 percent at Niagara Falls, NY at $4.32; 6 percent at Calais, ME at $4.31; 4 percent at Waddington, NY at $4.35; and 4 percent at other entry points at $4.09.

In addition, 21 short-term export authorizations were used, exporting a total of 44.3 Bcf of gas. Eight companies exported 12.6 Bcf to Canada, at an average price of $4.29 per MMBtu. Thirteen companies exported 31.7 Bcf to Mexico at $4.57 per MMBtu. Finally, 16.8 Bcf of LNG was exported to Japan at $4.28 per MMBtu (delivered).

Year to Date Data: Comparing the first 9 months of 2000 with the first 9 months of 1999, total gas imports increased 4 percent (2,755.9 v. 2,652.3 Bcf) and total gas exports increased 44 percent (174.9 v. 121.7 Bcf). Canadian imports increased by 97 Bcf or nearly 4 percent (2,589.5 v. 2,490.8 Bcf); Mexican imports decreased 88 percent (5.0 v. 40.6 Bcf); and LNG imports increased 33 percent (161.4 v. 120.9 Bcf). Exports to Canada increased 97 percent (48.9 v. 24.8 Bcf) and exports to Mexico increased 64 percent (79.2 v. 48.2 Bcf). LNG exports to Japan decreased 4 percent (46.8 v. 48.7 Bcf).

This quarter's focus report is "Recent Developments and Trends in Cross-Border Gas Trade." Any questions or comments about this report should be directed to Yvonne Caudillo at (202)586-4587 or by E-mail at yvonne.caudillo@hq.doe.gov.