Traders who had been pleading for more market volatility duringa long period of relatively little price movement got it in spadesMonday-at least the ones who deal in eastern markets did. Numbersin the East rose by anywhere from 10 to 20 cents, with many pointsup by 15 cents or more. Western increases were considerably moresubdued; many were only a nickel or so, with San Juan Basin’suptick of about a dime leading the region.

Monday’s price surge was the result of cold weather in thenorthern U.S. and more “following the screen,” a marketer said.Although the Henry Hub futures contract eventually finished the dayat not quite a full penny higher, its early dalliance in the $1.90area set the tone for rising cash, he said. Also, there was somecarryover effect from the screen’s rise of nearly a dime Friday,which came too late to affect cash trading that day, he added.

More than one source mentioned receiving a lot of LDC calls forintra-day gas, proving weather was a significant factor in theeastern price increases, one said. Another who saw Northeastcitygates rising by more than a dime as trading progressed saidTransco’s Leidy Line was providing no secondary service Monday forCanadian gas coming southward, and that situation will continuetoday. She had the perception of “very strong storage pulls” in theNortheast region.

Several traders expressed doubt that the eastern price strengthwill continue. One noted the screen’s late retreat, saying, “$1.90seems to be the ceiling.”

A Midcontinent source saw two reasons to expect declining pricessoon. One: he had a plant go down, leaving him with available gasto sell on Northern Natural Gas, but despite the pipe’s market areabeing in a winter storm, he was unable to find any takers on a 13MMcf/d package. Two: in addition, “I also move a lot of capacityrelease on NNG into the market zone. Typically when it gets coldand there is significant demand, I would lose transportation.”However, he said he didn’t lose any transportation Sunday, Mondayor for today.

A big aggregator in western markets said price rises were muchsmaller in that region because “the West just doesn’t have theweather that the East does.” A marketer agreed, calling the West’smodest firming “purely screen driven.” Weather is fairly mild andpower prices were starting to fall again Monday, he said. Anyuptick is a time to sell gas in the West, he said, but hydropowerseason is coming up and will force gas eastward, which means pricesshould come off “big time.”

Intra-Alberta numbers were already starting to lose ground, as aCalgary trader who averaged in the mid C$2.30s during the morningsaid an electronic trading service was showing C$2.30 pricing thatafternoon.

Northwest Pipeline reported succesfully restoring service Mondaymorning through the Columbia Gorge area and to Northwest NaturalGas in North Bonneville, WA, following installation of a temporary16-inch surface pipeline. The service was cut off Feb. 26 by arupture of Northwest Pipeline’s 26-inch mainline in the region (seeDaily GPI, March 1).

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