With the conspicuous exception of San Juan Basin, pricescontinued to rise by about a dime or more at most points Thursday.While still firming, the market’s increases were smaller than thoseon Wednesday.

San Juan quotes stuck out like a sore thumb by falling more thana dime in both the Blanco and Bondad pools on El Paso. One sourceoffered that maintenance on El Paso’s North System is backing up180 MMcf/d through Saturday, “and that coupled with the fact thateverybody and their brother is long from the first of the month isdepressing the price there [San Juan]” (see Transportation Notes).He did note, however, that an unnamed “large player” was offeringfixed price swing swaps in the Blanco pool Thursday. A westernaggregator said EnronOnline started the day with a San Juan bid-askspread in the $3.40s, “and for whatever reasons everybody elsefollowed their [EOL’s] lead.”

A marketer said she’s quit trading San Juan because the gas”doesn’t flow well enough for me to make any money. I’m alwaysgetting cut.”

The rest of the market was calming down a bit for most sources.The screen was only modestly higher, but many traders were lookingforward to other regions besides the Southwest experiencing summerheat again.

A Texas trader said there was still fairly strong electricgeneration demand within the state, “but California is stilldriving our market.” Any gas that could get to Waha and points westwas trying to go there, she said. Even some Louisiana gas wastrying to get into El Paso via NGPL through displacement, sheadded, and she suspected that Sabine was bringing some Louisianasupplies west into Texas intrastate pipes with the aim of reachingWaha. (Waha prices around $4.20 were even with or above most GulfCoast pipes.)

For a while it looked like California might break its string ofStage Two Electrical Emergencies. But the state’s IndependentSystem Operator finally had to go to Stage Two towardsmid-afternoon, citing the loss of 400 MW caused by mechanicalfailure at a Northern California generating plant.

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