After disrupting and shutting in Gulf of Mexico oil and natural gas production areas, Hurricane Katrina continues to make her impact felt in both physical destruction of property and technical hang-ups in energy markets. The delivery committee of the New York Mercantile Exchange Inc. (NYMEX) convened Monday morning to review deliveries in progress related to the NYMEX Division natural gas futures contract for August 2005.

As a result of that meeting, NYMEX said late Monday that it would extend the delivery period of its contract for one day, through Sept. 1, 2005. All other contract terms remain unchanged. Also, all September deliveries are to be conducted in compliance with standard NYMEX terms.

The NYMEX delivery committee convened again Monday afternoon to review the status at the Henry Hub facility in Louisiana with regard to outstanding deliveries on the August 2005 NYMEX Division natural gas futures contracts.

Sabine Pipe Line said Monday afternoon that following a preliminary assessment in the wake of the hurricane, its Henry Hub delivery point in Louisiana “avoided significant damage.” The company noted that it has begun accepting intraday nominations for all receipt and delivery points on the Sabine system. “As individual flows are reinstated, Sabine will return to full service, ending the force majeure condition previously noticed,” the company said.

NYMEX said, “In light of these developments, the NYMEX delivery committee recommends the following related to the August 2005 natural gas futures contract deliveries. Consistent with its powers cited in NYMEX rule 220.18 Section (C)(6), which was referenced earlier [Monday], all participants are to immediately resume nominations/deliveries related to any remaining NYMEX obligations for August 2005 natural gas futures deliveries. Lastly, consistent with the prior notice, ADPs [alternate delivery procedures] may be conducted in the August 2005 contract pursuant to NYMEX rule 220.17A.”

NYMEX also reported Monday that it set daily volume records on Aug. 29 in NYMEX Access trading for overall volume, natural gas and heating oil futures contracts. During the overnight Access trading session, overall volume on NYMEX Access reached 100,767 contracts, exceeding the 100,568 contracts traded on July 7. Natural gas futures hit 18,333 contracts, surpassing the 18,010 contracts traded on Feb. 25, 2003 and heating oil futures traded 8,457 contracts, breaking the previous record of 7,023 contracts traded on Nov. 9, 2004.

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