Very few points were left trading above $2 as flat to lowernumbers dominated the cash market Wednesday. Citygates in theNortheast and Midwest (just barely) and the Appalachian pipes(again, just barely) constituted most of the $2-plus survivors,although some Louisiana points such as Henry Hub, Sonat and TranscoStation 65 recorded $2.00-even quotes at the high end of theirranges. Although quotes straddled the $2 level, Houston ShipChannel was the rare Gulf Coast point still averaging above $2.
A marketer thought Columbia-Appalachia’s drop was due to peopleanticipating a weak Nymex screen because of futures dropping duringTuesday afternoon’s Access session. Wednesday’s cheapest TCOpurchases were early, he said, because cash prices startedrebounding after the screen essentially held flat in the morning.
Other than a production-shutting hurricane, about the only thingthat will resurrect Gulf Coast pricing anytime soon is sustainedhot weather in the “mid-pipe region” (such as Transco’sAlabama/Georgia/Carolinas/Virginia segment), a Texas source said.
A Houston-based producer, calling it “another dull day in thegas market,” said returning heat in Texas didn’t seem to be doingmuch to boost mostly flat to slightly lower Texas Gulf Coastprices. But he figured prices at Waha, which in the low $1.90s wastrading only about a nickel under Katy, was getting support fromheavy purchases by TU Electric and other North Texas powerutilities.
A marketer reported Midcontinent deals in the low $1.90s and mid$1.90s on ONG and NorAm-east, respectively, compared to $1.86-88for interstates Panhandle Eastern and NGPL. The higher ONG andNorAm prices were generated by high air-conditioning load in theirOklahoma and Arkansas market areas, he said.
Despite Northwest intensifying its shipper warnings about highlinepack and possible entitlement (see Transportation Notes), Sumasprices were flat to a little higher based on support from risingintra-Alberta numbers, a Calgary source said. Canadian gas, alongwith PG&E citygates and Southern California border quotes, wererare markets seeing increases of more than a penny or so Wednesday.The PG&E rise occurred even with the utility issuing a mildhigh-linepack OFO that takes effect today (see TransportationNotes).
One trader considered AGA’s storage injection report of 86 Bcf”slightly bullish,” saying most people had been expecting 90-100Bcf or more.
Out-month basis is getting crushed, said a marketer reportingJuly-October basis for Chicago/Michigan citygates around plus 4.5and for Dawn at minus 2.5. You can’t cover variable transport costsfrom the Gulf or Midcontinent at those levels, he claimed.”Canadian gas works, of course,” he added, but the Midwest is goingto need more supply than that.
©Copyright 1998 Intelligence Press Inc. All rights reserved. Thepreceding news report may not be republished or redistributed, inwhole or in part, in any form, without prior written consent ofIntelligence Press,Inc.
© 2021 Natural Gas Intelligence. All rights reserved.
ISSN © 1532-1231 | ISSN © 2577-9877 |