Cold weather helped many Western points avoid the prices dropsin the East that generally ranged from a nickel to 15 centsTuesday. It was snowing Monday and Tuesday in the Salt Lake Cityarea and that is expected to continue today, a trader told DailyGPI. Only the Southwest basins and Waha were left out of the West’sfirmness, likely because they were getting no demand support at allfrom intrastate Texas and Midwest markets, sources said.
However, Gulf Coast and Midcontinent traders look for at leastsome leveling off today if not a rebound. Although prices startedway down, all pipes were priced at their lowest early on and attheir highest in the last deals of the day, a Gulf Coast marketersaid. One reason was that the River Bend nuclear plant in Louisianawent down, resulting in more gas buying by Entergy, he said. AMidcontinent source reported a similar situation, saying, “We sawgood buying kick in when cash prices tried to dip into the $2.20s.”Panhandle Eastern and Northern Natural-demarc made strongcomebacks, especially in the late going, he said.
Sonat and Appalachian/Northeast points took the biggest pricehits of about 15 cents. A producer regretted selling early intoSonat in the low $2.30s after hearing of later numbers in the midto high $2.30s. But she was surprised that it recovered to thathigh a level because “so much gas is out looking for a home.”However, her company remains “cautiously bullish” at this time.
Malin was able to remain flat in the mid $2.30s due to NOVAallocations limiting Canadian exports, a marketer said. Also,PG&E Gas Transmission-Northwest is doing some maintenance inconcert with the NOVA work, he added.
You would think Sumas prices would fall and take down theRockies market with them, but it’s not happening, one source said.Thus, Rockies gas is trading at near-parity with San Juan-Blanco.”We were a buyer at Blanco and backed off our Rockies transport. Itmade more sense than trying to move Rockies gas to the [San Juan]basin.”
A marketer is seeing a Midcontinent bid-ask basis range of minus13-15 for May. With April cash currently in the low $2.30s, thatleaves a bit of “wiggle room” for April cash to move higher or forfutures to come off, he said.
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