Account

Taking the Tropical Depression 10-induced shut-in production into account, October natural gas futures bumped higher on Friday after scouting out support in morning trade. After notching a $5.800 low, the prompt month climbed higher, recording a high of $6.130 before settling at $6.080, up 7.2 cents on the day but 19.9 cents lower than the previous week’s close.

Those searching the skies for storm-driven relief for falling natural gas prices should lower their sights and take into account the extensive earthquake damage to a major Japanese nuclear power plant recently. That’s just what FBR Research is doing in predicting Japan’s increased demand for LNG to fill its 8,200 MW power gap could cut into supplies for the U.S. market, leading to tightening the domestic natural gas market.

Those searching the skies for storm-driven relief for falling natural gas prices should lower their sights and take into account the extensive earthquake damage to a major Japanese nuclear power plant recently. That’s just what FBR Research is doing in predicting Japan’s increased demand for liquefied natural gas (LNG) to fill its 8,200 MW power gap could cut into supplies for the U.S. market, leading to tightening the domestic natural gas market.

A substantial amount of unconventional natural gas reserves await discovery in North America, both in existing basins and new areas, and likely will account for 42% of U.S. gas supply by 2010, according to a report by UK-based energy consulting firm Wood Mackenzie. Unconventional gas, which includes coalbed methane, tight gas sands and shale gas, accounted for 27% of U.S. supply in 2005.

A substantial amount of unconventional natural gas reserves await discovery in North America, both in existing basins and new areas, and likely will account for 42% of U.S. gas supply by 2010, according to a report by UK-based energy consulting firm Wood Mackenzie. Unconventional gas, which includes coalbed methane, tight gas sands and shale gas, accounted for 27% of U.S. supply in 2005.

Columbia Gas reminded Firm Storage Service (FSS) customers of a section in their rate schedule requiring that account volumes on Feb. 1 not exceed 65% of the Storage Contract Quantity (SCQ). Additionally, the maximum inventory on April 1 shall not exceed 25% of SCQ, Columbia said, adding that failure to comply with the April 1 requirement may result in forfeiture of quantities above the 25% level.

Between now and 2015 the Atlantic basin liquefied natural gas (LNG) market will grow to about half of the world market, and North America will account for half of the basin’s LNG demand. Along the way there will be “drastic structural changes” in LNG liquefaction as well as in shipping as train capacities double.

As a sign of some stabilization of a declining Jackson Prairie storage account balance, Northwest revised its Unauthorized Overrun Entitlement (see Daily GPI, Dec. 9) from a Stage I (at 3% imbalance tolerance) to a Stage III (13%) until further notice Monday. The entitlement affects all Receiving Party customers north of the Kemmerer (WY) Compressor Station. “To avoid penalties and a potential OFO through the Green River and Kemmerer Compressor Stations, Northwest requests your immediate cooperation and assistance to stay within your scheduled volumes by bringing on additional supplies north of Kemmerer,” the pipeline told customers, adding that it appreciated their quick response to its request to pay back imbalances owed to Northwest north of Kemmerer this past week. Customers who still owe gas to Northwest north of Kemmerer were encouraged to make payback arrangements as soon as possible. A suspension of Northwest deliveries to a CIG interconnect due to a line rupture late last week about 22 miles south of the Green River Compressor Station (see Daily GPI, Dec. 9) remained in effect Monday with no prognosis for restoration of service provided.

FERC on Thursday issued guidance on how jurisdictional natural gas pipelines should account for costs stemming from the implementation of new pipeline integrity management requirements of the Department of Transportation’s Office of Pipeline Safety (OPS).