Path: bloom-picayune.mit.edu!snorkelwacker.mit.edu!news.media.mit.edu!americast.com!americast.com!usa-post Newsgroups: usa-today.energy,americast.usa-today.energy From: usa-post@AmeriCast.Com Organization: American Cybercasting Approved: usa-post@AmeriCast.com Subject: energy Thu, Aug 27 1992 Date: Thu, 27 Aug 92 05:59:07 EDT Message-ID: 08-27 0000 DECISIONLINE: Energy USA TODAY Update Aug. 27, 1992 Source: USA TODAY:Gannett National Information Network SHELL AND PEMEX SIGN AGREEMENT: Shell Oil Co. and Petroleos de Mexicanos, the national oil company of Mexico, agreed Wednesday to form a joint venture that will operate Shell's refinery in Deer Park, near Houston. Pemex is to acquire 50% of the facility and supply it with crude oil. For its part, Shell will sell Pemex unleaded gasoline for sale in Mexico under a long-term agreement. SHELL CRUDE SUPPLY WILL STEADY: An agreement made Wednesday between Shell Oil Co. and Petroleos de Mexicanos will give Shell a steady supply of cheap crude that it needs to boost refining profit margins. In exchange, Pemex gets the gasoline it needs to meet growing demand in Mexico. Shell expects to sell Pemex about 45,000 barrels of gasoline a day while Pemex will put about 100,000 barrels of crude into the U.S. market daily. SOUTHERN AND SLOVAK AGREE: Atlanta-based Southern Electric International Inc. said Wednesday it has agreed with the Slovak Power Enterprise to serve as owner's engineer for rehabilitation and repowering of the 1,320-megawatt Vojany power plant in the eastern Czech and Slovak Federal Republic. SEI recently completed an examination of the station and recommended a number of options to improve the facility. CHAMBERS MAY TAKE ACTION: Chambers Development Co. Inc. said Wednesday it is prepared to take actions to protect its contract with the Passaic County (N.J.) Utilities Authority. Chambers said the county signed a memorandum of understanding with a closely held Pennsylvania company to transport and dispose of its waste, although there are still 10 years remaining on Chambers' contract with the authority. MET EDISON FILES TO SELL BONDS: Metropolitan Edison Co. filed Wednesday with the Securities and Exchange Commission to sell up to $300 million of first mortgage bonds. Metropolitan Ed, a unit of General Public Utilities Corp., will use the proceeds for construction and other purposes. UGI didn't name any underwriters in the registration statement. UGI owns two other electric utilities in addition to Metropolitan Ed. COMPANIES TO EXPLORE IN LIBYA: Two Canadian oil companies, Westcoast Petroleum Ltd. and Chieftain International Inc., announced Wednesday that each had independently signed exploration agreements with Fina Exploration Libya B.V., a wholly owned subsidiary of Petrofina of Belgium. The commitment includes a 12-well drilling program in 3.9 million acres in the Sirte Basin of Libya. JUDGE APPROVES COLUMBIA MEDIATOR: Columbia Gas Systems Inc. and its creditors have agreed on a mediator to help establish a procedure for estimating claims. U.S. Bankruptcy Judge Helen Balick said Wednesday she would give preliminary approval to the appointment. Charles P. Normandin of Ropes & Gray in Boston will mediate. Balick set a Sept. 20 deadline for objections. The next hearing is set for Sept. 30. NEVADA POWER SEEKS LOWER RATES: Nevada Power Co. has filed with the Public Service Commission of Nevada for a downward adjustment in rates due to lower than expected planning costs. The $2.1 million or .37% overall decrease in rates is due to under budget expenses for resource planning during the period of July 1, 1991, to June 30, 1992. These costs are recovered dollar for dollar and do not impact earnings. EL PASO CUTS POWER FROM PLANT: El Paso Electric Co. expects to stop making payments on its leases for power from the Palo Verde nuclear power plant, reducing its electricity draw from the facility by 46%, officials said Wednesday. The company is attempting to emerge from Chapter 11 bankruptcy. The utility, which serves 250,000 customers, said it should be able to meet all electric supply commitments. APACHE COMPLETES DISCOVERIES: Apache Corp. announced Wednesday the completion of two new pay discoveries on the Gulf Coast. In Louisiana's Welsh field, the No. 1 MW Fee was completed flowing 235 barrels of oil per day from one of seven Miocene zones that indicated production between 1,286 and 4,490 feet. In Texas, the Mackey No.1 tested 2.2 million cubic feet of gas and 250 barrels of condensate per day in La Sal Vieja field. UGI FILES TO SELL STOCK: UGI Corp. filed Wednesday with the Securities and Exchange Commission to sell 2.3 million shares of common stock. Donaldson, Lufkin & Jenrette will underwrite the stock sale with Goldman Sachs and Smith Barney, Harris Upham & Co. UGI, the parent company for a natural gas utility, an electric utility, and a propane distribution business, will use the proceeds to reduce debt. ENERGY PRICES RISE: Energy prices were mostly higher Wednesday at the New York Mercantile Exchange as analysts expressed concerns about domestic refinery production following Hurricane Andrew's vicious treatment of Louisiana. Light Sweet crude oil for delivery in October settled at $21.21 per barrel, up 6 cents. September-delivery contract for unleaded gasoline rose 0.09 cent to settle at 62.22 cents. ANDREW RAISES OIL AND GAS PRICES: At least a dozen major refineries in Louisiana and Texas shut down or curtailed production after Hurricane Andrew blew inland. At the New York Mercantile Exchange, home heating oil for delivery in September settled at 58.12 cents a gallon. Natural gas for delivery in October settled at $1.882 per 1,000 cubic feet, off 4.7 cents. Energy Editor: Martin Baucom. (1-919-855-3491) Making copies of USA TODAY Update (Copyright, 1992) for further distribution violates federal law. This article is copyright 1992 Gannett News Service. Redistribution to other sites is not permitted except by arrangement with American Cybercasting Corporation. For more information, send-email to usa@AmeriCast.COM