Bidweek Quotes Mostly Flat; Late March Mixed
Most sources were seeing bidweek prices running approximately
flat Monday compared to the previous Friday, although a marketer
said some Southwest numbers were "up about a penny." On the other
hand, a buyer who paid in the low $1.70s in the NGPL Midcontinent
pool Friday said he was hearing of $1.69 deals Monday.
San Juan-Blanco quotes for April were in the $1.57-59 range but
tending to back off slightly after hitting $1.59, one trader said.
Similarly, another trader saw Chicago citygates retreating to
$1.87-88 after peaking at $1.89.
South Texas basis for Texas Eastern and Tennessee is tighter
than usual at minus 7.25, a trader said. She indicated basis of
minus 9-10 was more appropriate for that market at this time of
For a Rocky Mountain region utility buyer, it was the same story
as last bidweek: no matter how low sellers were willing to go on
their price offers, he had absolutely nowhere to take the gas.
"We'll be living off storage for at least another month," he said.
While a Calgary trader was calling this "one of the quietest
bidweeks I can remember in some time," a California source
commented, "It was very hectic today [Monday]. It seemed that all
the marketers waited to do business until the last minute."
The late March swing market turned in a mixed performance
Monday, with small price declines of a couple of cents or so in the
East arrayed against small increases in the West. A marketer said
he saw a small but significant "kick up in gas burns for electric
generation on the West Coast." The Palo Verde and San Onofre
nuclear plants both had units going down for refueling, he noted,
saying power prices were sharply on the rise. Arizona Public
Service shut its 1,221 MW Palo Verde 2 nuclear unit for refueling
Friday, and Southern California Edison shut down the 1,047 MW San
Onofre 3 unit for refueling and maintenance on Saturday. San Onofre
is expected to be down for 55 days.
Despite the East's general swing softening, a marketer reported
Henry Hub starting slightly lower at $1.81-82 but then gradually
trending higher to converge with April business. Late deals for
both months were done at $1.865, she said.
A Rockies trader said incremental prices were inching up late in
the morning, mostly in sympathy with a slightly stronger screen
that waited until afternoon to settle down just 0.2 cents.
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