It didn’t surprise any traders when the cash market was theteensiest bit softer Wednesday. What did prompt some expressions ofamazement was that prices held up as strongly as they did. Betweena falling futures screen and overall weaker demand fundamentals, itseemed that prices should have dropped at least a nickel or more,one source said. Instead, few points were down more than a coupleof pennies, and some registered flat showings. Northern NaturalGas, serving a market area with near-winter-like chill, evenmanaged small gains.

The market “felt” strong even if prices fell slightly, amarketer said. He reported robust demand from Midwest utilities,where a cold front was moving into the region. Chicago and Michigancitygates were among the points showing little or no decline.

South Texas prices, especially at Agua Dulce, are being hurt bythe total shut-in of Zone 1 on Florida Gas Transmission, a tradersaid. “We’re having to replace all the MOPS (Matagorda OffshorePipeline System) gas we were selling” into FGT-Zone 1, he said.”Luckily we have only one more day to put up with it,” as the Zone1 maintenance outage will end Friday. Another source reckoned theoutage as worth at least an extra penny in Zones 2 and 3. FGT-Zone3 normally trades about a penny below Henry Hub but currently is atflat basis, he said. And Zone 2, normally flat to the Hub, now hasa penny premium, he added.

Wednesday’s early pricing was influenced slightly lower by thesoftness in Tuesday evening Access futures trading, according toone marketer. She felt that further futures losses in regulartrading Wednesday forebodes still-weaker cash numbers today.

The Rockies was one of the rare markets with several pipes offby more than 2 cents. Expect similar softness to continue as theWest shakes off more and more of last week’s chilly weather, amarketer said. Another source essentially seconded that emotion,saying hydropower should be kicking in much more strongly inwestern energy markets within the next week or two. The reports hewas hearing said hydropower should be at least as plentiful as itwas last spring.

Intra-Alberta quotes were flat in the C$2.54 area, a Calgarytrader said. Processing plant turnarounds in the province should beincreasing before the end of April, she said, so the resultantsupply constraints likely will provide some late-month support forprices.

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