2005

Coming off record 2005 profits approaching a billion dollars, San Diego-based Sempra Energy is looking to solidify more of its high-profile natural gas projects in the weeks and months ahead with cash from some of its ongoing merchant electricity sector sales, according to CEO Donald Felsinger.

The Treasury Department is seeking to repeal a provision of the Energy Policy Act of 2005 (EPAct) that gives natural gas utilities faster depreciation — 15 years rather than 20 years — of their pipeline distribution facilities through January 2011. The agency also proposes to strip away tax incentives for oil and gas exploration.

Forecasting the rest of the 2005-2006 winter season and updating its spring/summer 2006 outlook, MDA EarthSat Energy Weather said Friday it expects February to revert to colder temperatures for much of the country, while the summer will bring mixed conditions.

Less than a month after completing its most recent expansion (see Daily GPI, Dec. 27, 2005), Eastern Shore Natural Gas Co. (ESNG), a subsidiary of Chesapeake Utilities Corp. serving the Delmarva Peninsula, said this week it has filed an application with the Federal Energy Regulatory Commission (FERC) requesting authority to construct new pipeline facilities in Pennsylvania and Delaware.

Texas Eastern noted that in a letter dated Nov. 10, 2005, it had informed all firm storage customers that it would monitor storage activity and, if necessary, issue customer-specific OFOs to those who exceeded their recommended maximum withdrawal limits. The first period in the recommended withdrawal plans ended Dec. 31, and on Wednesday Texas Eastern issued five customer-specific OFOs, that will take effect Jan. 9. The orders require an affected customer to deliver its contract’s firm transportation MDQ (Maximum Daily Quantity) “under Rate Schedules CDS, FT-1 and SCT, as applicable, in the most downstream zone of delivery to the maximum extent contractually feasible prior to utilizing storage services.” Texas Eastern said the OFOs will be canceled when customer inventories are restored to planned levels.

FERC on Wednesday approved Equitrans LP’s request to begin the pre-filing process for a proposed greenfield pipeline that would transport Appalachian natural gas production in eastern Kentucky to the Mid-Atlantic and Northeast markets.

After opening on Wednesday 28 cents lower than Tuesday’s settle, January natural gas quickly found support at $13.630 before exploring higher. Fluctuating weather reports and storage uncertainty allowed traders to push the prompt month to the day’s high of $14.400 before closing a few minutes later at $14.271, up 19.1 cents on the day.

After hitting their head on resistance at the $14.490 level in the overnight Access trading session, January natural gas futures opened Tuesday’s regular session at $13.950. Following tests in both directions during the regular session, the prompt month ended up settling near flat at $14.080, up just 3.7 cents from Monday’s close.

Capping a wild week of trading that saw a new all-time prompt month high and settle, January natural gas futures recorded their third consecutive down day Friday, stamping the week’s overall trend as weak. The prompt month Friday closed out the week at $13.633, down 14.8 cents on the day and 67.9 cents lower than the previous Friday’s close.