On one side, Gulf of Mexico shut-ins are returning faster than expected, and imports of Canadian gas have increased; on the other the colder weather has arrived and LNG is going to Europe instead of the United States. These are the factors in play and behind the current high natural gas prices, FERC staff told the commissioners in a natural gas market update at Thursday’s regular meeting.
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Consultant: Market Bulls Dodged Bullet Thanks to Cold Weather
Had the cold weather of the last couple weeks not arrived, the gas storage surplus compared to long-term historical averages would have swelled to “well over 500 Bcf.” As a result, gas market bulls have “dodged a bullet” at least temporarily, according to consultant Stephen Smith of Stephen Smith Energy Associates.
Northeast Spikes Contrast with Mixed Pricing in Gulf Coast, Dips in Midcontinent and West
With super-cold weather not yet arrived but on the way, Northeast citygates soared Thursday, with some points rising a dollar or more. But otherwise there wasn’t much price strength to be found in trading for the long holiday weekend. Gulf Coast numbers were mixed, and quotes for the Midcontinent/Midwest and West fell uniformly.
Pemex Chief Warns of Gas Deficit, Posts Contracts for Development
The imbalance between natural gas production and gas consumption in Mexico “has already arrived at critical levels,” according to Raul Munoz, CEO of Petroleos Mexicanos (Pemex). Munoz, as point man for President Vicente Fox’s administration, is working to convince opponents that private investment is the best answer to ensuring Mexico’s energy future.
Pemex Chief Warns of Gas Deficit, Posts Contracts for Development
The imbalance between natural gas production and gas consumption in Mexico “has already arrived at critical levels,” according to Raul Munoz, CEO of Petroleos Mexicanos (Pemex). Munoz, as point man for President Vicente Fox’s administration, is working to convince opponents that private investment is the best answer to ensuring Mexico’s energy future.
West’s Widespread Heat Stifles Power Grid
Extreme heat continued yesterday in the Pacific Northwest andArizona and above normal temperatures arrived in New England,prompting the California Independent System Operator (Cal-ISO) andthe New England ISO to issue calls for conservation and to warn ofshort supplies.
Canadian North Eager to Get New Production Flowing
With a striking new drilling success confirming that thelong-awaited time has arrived for making a start on developingnatural gas in the Canadian North, natives and authorities thereare laying out welcome mats.
Excess Canadian Capacity Adds Up to a Hot IT Market
Competition has arrived in Canadian gas transportation, but onlya case that is escalating into a big one before the National EnergyBoard will tell who gets what out of the changed pipeline grid.The battle — now heating up on paper, to be followed by hearingsbeginning Jan. 18 — is over a proposal to establish minimum,”reserve” or floor prices for excess capacity on TransCanadaPipeLines Ltd.Round one has already been won by the pipeline’scustomers. After receiving strongly-worded protests, the NEBrejected an appeal by TransCanada to adopt floor prices effectiveNov. 1 or the start of the new gas contract year and heatingseason.
All New Canadian Capacity Market
Competition has arrived in Canadian gas transportation, but onlya case that is escalating into a big one before the National EnergyBoard will tell who gets what out of the changed pipeline grid.The battle — now heating up on paper, to be followed by hearingsbeginning Jan. 18 — is over a proposal to establish minimum,”reserve” or floor prices for excess deliveries by TransCanadaPipeLines Ltd.Round one has already been won by the pipeline’scustomers. After receiving strongly-worded protests, the NEBrejected an appeal by TransCanada to adopt floor prices effectiveNov. 1 or the start of the new gas contract year and heatingseason.
Northeast Price Drops Lead General Weekend Decline
The usual softness that accompanies a lower-demand weekendperiod arrived on schedule Friday. Price movement ranged from flatat some Rockies points to down as much as a dime in the Gulf Coast.Once more, mild weather along the East Coast caused Northeastcitygates to register the biggest declines of 15 cents or more,with Transco’s Zone 6-NYC pool again topping the list with a fallof about 30 cents. The Zone 6 slide into the mid $2.30s left ittrading little more than 20 cents above the production area’sTransco Station 65.