Electric Load Helps Generate Higher Gas Prices
Cash prices continued on an upward track Thursday, although the
gains were a bit smaller than those posted Wednesday. A few
increases barely exceeded a nickel, such as at Waha and the Houston
Ship Channel, where Texas air conditioning load is growing.
Northeast citygates tended to go up about a nickel as a source
reported storage demand rising there now that the injection season
is under way. Most other points rose between 2 and 4 cents. It's
the same old story about why the market has been fairly strong this
week, a trader said-power generation load, a firm screen and
Florida was under another "power alert" Thursday following an
explosion that killed one worker and injured 45 and shut down a
TECO Energy coal-fired power plant (1,270 MW) near Tampa. The alert
resulted from TECO "issuing public appeals for conservation due to
the explosion at the Gannon Plant," according to the Florida
Reliability Coordinating Council. The state's first such alert of
the year occurred Tuesday during hot weather while several power
plants were down for spring maintenance.
Florida's electric generation load again boosted prices into
Florida Gas Transmission, said a marketer quoting Zone 2 deals at
$2.07-08. He thinks the Florida market will remain strong for some
time, especially as state officials and utilities are concerned
that the TECO plant may not be back in service by the summer.
Actually, all Gulf Coast pipes serving the hot and muggy South are
currently pretty strong in both pricing and gas volumes, the
marketer and other sources noted. Sonat, Henry Hub and Transco
Station 65 numbers were also in the mid- to high- $2.00s Thursday.
"I've got one word for you about this market: strong," said a
producer reporting South Texas sales over $2. "It's actually even
stronger than we expected coming into the month. April was
certainly a good month to enter long on supply." He reported
getting many calls each trading day asking for gas since April 1.
There was a lot of demand in San Juan Basin and the California
border due to the West Coast remaining unseasonably cool, a
©Copyright 1999 Intelligence Press Inc. All rights reserved. The
preceding news report may not be republished or redistributed, in
whole or in part, in any form, without prior written consent of
Intelligence Press, Inc.