Battle

There may be a U.S.-European battle brewing over spot liquefied natural gas (LNG) cargoes, according to Southwest Securities analysts. There’s a limit on spot LNG and in order to continue attracting this limited supply, gas prices in the United States will have to stay above $4.50 through 2007 and maintain a positive Nymex-International Petroleum Exchange (IPE) gas futures basis differential.

As the battle rages on over shutting in natural gas wells for the purpose of preserving crude bitumen recovery from the Wabiskaw-McMurray formation located in northern Alberta, province regulators revised downward the number of gas wells they believe should be closed.

As the battle rages on over shutting in natural gas wells for the purpose of preserving crude bitumen recovery from the Wabiskaw-McMurray formation located in northern Alberta, province regulators revised downward the number of gas wells they believe should be closed.

Tennessee Gas Pipeline has come under fire at FERC for a proposed tariff filing that would allow the pipe to terminate a replacement shipper’s capacity contract if the original shipper who released the capacity was found to be a credit risk and its contract dissolved. Tennessee could then subject the replacement shipper’s capacity to open-season bidding by other potential shippers.

The results of a geological study released earlier this month by the Alberta Energy and Utilities Board (EUB) will be used by Alberta regulators to determine if gas production shut-ins should be increased to preserve crude bitumen recovery from fields in northeastern Alberta. Some producers said last week the study indicates a greater than expected association of gas with bitumen, which could mean the loss of more gas production.

The results of a geological study released last Friday by the Alberta Energy and Utilities Board (EUB) will be used by Alberta regulators to determine if gas production shut-ins should be increased to preserve crude bitumen recovery from the region. Some producers said the study indicates a greater than expected association of gas with bitumen.

U.S. District Judge Harold Baer, Jr. in Manhattan has agreed with Allegheny Energy that its counterclaims against Merrill Lynch should be heard by the court, particularly the charges regarding whether Allegheny was misled when it purchased Global Energy Markets (GEM) from Merrill in 2001 for $490 million and a 2% equity interest in the trading unit.

U.S. District Judge Harold Baer, Jr. in Manhattan has agreed with Allegheny Energy that its counterclaims against Merrill Lynch should be heard by the court, particularly the charges regarding whether Allegheny was misled when it purchased Global Energy Markets (GEM) from Merrill in 2001 for $490 million and a 2% equity interest in the trading unit.

Natural gas futures Wednesday remained locked in a battle between the competing forces of fundamental bearishness and technical bullishness. Buyers were the first to exert their influence Wednesday, propelling the prompt month to a $4.90 high in the first 35 minutes of trading. Bears battled back, however, and rerouted the market to the downside ahead of Thursday’s release of fresh storage data. December futures closed at $4.738, down 12.7 cents for the session.