Even with December indexes hitting record heights across theboard, swing trading for the first day of the month managed toone-up the bidweek numbers. All points were priced from marginallyto substantially above index levels Thursday.

The Southern California border continued to awe sources, peakingat $21 in a huge range of $7. And there’s virtually no prospect forrelief in sight at this point. “SoCal prices will go through theroof when it [the LDC] goes to daily balancing,” a western suppliersaid. “I might have a party when that happens.” Many expect thedaily balancing rule to be triggered sometime this month when SoCalGas storage levels fall to 40 Bcf.

Prices in California and the rest of the West will come underadded pressure as Alliance Pipeline ramps up volumes and takes gasfrom Western Canada, which might ordinarily have headed south,eastward instead. After a series of delays, Alliance feels it’sfinally ready to take the big step of official operational startuptoday (see related story).

Alliance is having little market impact initially. Intra-Albertapricing is getting a little boost, said a Calgary source, “but it’snot screaming by any means.” He and a Chicago citygate traderagreed that the long anticipatory period for startup probably meantmost of its impact already had been factored into the market.Vector, a new takeaway pipe for the Chicago area, is also duetoday, said the second trader. It won’t be at 100% but will beincreasing volumes as the bugs are worked out, he said. “Chicagohas a lot of transportation infrastructure to handle theseadditions, so I don’t see any negative result for swing citygateprices during December.”

Reaction to the huge storage withdrawal report Wednesdayafternoon, along with sharply higher futures prices in Access thatnight and again in Thursday’s regular session, did the most topropel incremental prices higher, several traders said. A bit ofcolder weather contributed, they said, but it wasn’t enough to playa major role.

Despite the overall strength, a Gulf Coast buyer found numbersdeclining as the morning wore on. He picked up a Texas Eastern-WestLA package at $6.05 near deadline, about 20 cents belowearly-morning quotes.

In the final day of bidweek business, volumes were lessening,but prices were still rising in several markets, especially Chicagoand California. Chicago buyers hoping for a last-day softening weredenied as Thursday quotes went as high as the $6.60s. Theyattributed the run-up mostly to the big jump in January futures.

Meanwhile California kept bidding prices up as the currentsupply pinch seemed destined to grow only worse. “Index premiumshave been crazy,” said a border trader, saying they went from 40cents early to as much as $1.20.

“I’ve been talking to a few industrials in California andthey’re really hurting,” said a marketer. “They’ve blown out theirenergy budgets.”

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