Over the weekend Florida Gas Transmission was finally able to endan Overage Alert Day notice for its market area that had been ineffect about a week and a half (see Daily GPI, July 13). However, the pipeline found itnecessary to issue a new OAD notice Monday, effective until furthernotice, with a 15% tolerance for negative daily imbalances.
Articles from Able
Those who had expected cash bullishness to continue Wednesday,based on the July futures contract’s move to previously unknownheights on the previous day, were in for a big disappointment.Wednesday’s screen achieved most of its drastic downturn while cashwas still trading. And while hot weather remained fairly severe onthe West Coast, it cooled off considerably in the Northeast.
To prepare for the coming peak period of electricityconsumption, the New York State Public Service Commission (PSC) hasannounced it will monitor the state’s wholesale electric marketduring this first summer of its operation. The market now isadministered by the New York Independent System Operator (NY ISO),an independent non-profit organization that operates the state’sbulk power system and administers a competitive wholesale marketfor electricity.
In its new two-part capacity allocation proposal filed at FERC lastweek (See Daily GPI, Feb. 11) El Pasoestimates it will be able to assign “pathed” or very firm rights to3,590 MMcf/d out of the 5,100 MMcf/d of contract demand and billingdeterminants applicable to its firm transportation agreements.
Prices continued to exhibit mild firmness Thursday, and sourceswere able to point out several contributing factors: a risingscreen, colder weather than expected both in western Canada andpushing southward into the central U.S., and Wednesday afternoon’sbullish storage report.
Despite moderating temperatures pervading much of the countryyesterday, gas futures were able to inch higher and take back asmall portion of recent losses as traders positioned themselvesahead of the release of fresh weather and storage news. March andApril contracts closed up 4.5 cents a piece at $2.54 and $2.507,respectively, while the 12-month strip grew 3.3 cents to $2.614.
After several successive days of stagnation, the cash marketfinally was able to use a little bit of screen support andexpectations of colder weather moving into major market areas toget out of its rut Tuesday. Prices ranged from flat in theSouthwest basins to more than a nickel higher at New Englandcitygates and for intra-Alberta and several related western points.Most quotes rose between 3 and 5 cents.
Despite a round of midday profit taking, the natural gas futuresmarket was able to eke out a modest advance amid continued see-sawtrading activity yesterday. The September contract led all othermonths, posting a 1.9-cent gain en route to a $2.727 close.Estimated volume was robust with 86,261 contracts changing hands.