El Paso’s Caprock (NM) Station is down for emergency maintenancethat began Tuesday and will last at least through March 31. Afterthat point one of the two compressor units should be available, thepipeline said. San Juan Crossover capacity is being limited toabout 550 MMcf/d. El Paso encouraged shippers to use theTranswestern interconnect at Window Rock (AZ) to maximize flowsfrom San Juan Basin.
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Screen Rally, Short-Covering Nudge Cash Upward
In what some sources referred to as “winter’s last hurrah,” cashprices began the week on an up-note as they garnered momentum froma futures rally and continued covering of first-of-month shortpositions. Cash prices at most trading areas around the countrygained 1-3 cents from weekend levels.
Futures Rebound to Pull Even With Cash
After halting a three-day, 25-cent price slide Tuesday, naturalgas futures slowly began to build yesterday what bulls would liketo think is a base on which further gains will be added. Andalthough it is far from universal, that sentiment was echoed byothers who think that the confluence of relatively strong cashprices and rallying crude oil prices are supportive factors fornatural gas. The April contract finished 3.1 cents higher at $1.748in light trading.
El Paso Takes Another Stab at Expanding Bondad
Believing in the saying that “if at first you don’t succeed, tryagain,” El Paso began a new open season Friday to solicit interestin firm service agreements to move gas on an expansion of theBondad Line in the San Juan Basin. A previous attempt at a Bondadexpansion ultimately broke down after FERC rejected some of thetariff provisions last year, leading the primary expansion shipperto withdraw from the project and FERC to vacate its projectcertification (see Daily GPI, Jan. 7, 1998; Oct. 19, 1998; Dec. 11,1998; and Jan. 18, 1999).
El Paso Takes Another Stab at Expanding Bondad Line
Believing in the saying that “if at first you don’t succeed, tryagain,” El Paso began a new open season Friday to solicit interestin firm service agreements to move gas on an expansion of theBondad Line in San Juan Basin. A previous attempt at a Bondadexpansion ultimately broke down after FERC rejected some of thetariff provisions last year, leading the primary expansion shipperto withdraw from the project and FERC to vacate its projectcertification (see NGI, Sept. 7, 1998; Oct. 19, 1998; Dec. 14,1998; and Jan. 18, 1999).
Super Drillship Begins Service in Gulf
Conoco and R&B Falcon Corp.’s Deepwater Pathfinderultra-deep-water drillship began a five-year work program in theGulf of Mexico. The ship, which is the first new vessel capable ofdrilling in 10,000 feet of water, will fulfill a $400 milliondrilling program for Conoco. The ship is expected to drill up tofour wells in its first year of operation, with the firstexploratory well being drilled at Garden Banks Block 783. Conocohas interests in 295 deep-water leases.
March Futures Nearly Break Above Down Trendline
While the March Nymex futures contract began Friday’s tradingsession on yet another up-note, a late sell-off brought it backdown to settle 2.9 cents lower on the day. The spot month went upas high $1.875, where it flirted with crossing over the 40-daymoving average, only to finish the day at $1.80.
KN Begins Another Year of Choice
KN Energy began its Choice Gas program in Nebraska for1999-2000, which will enable nearly all of its service territorycustomers to choose their gas supplier. Last year more than 68% ofeligible Nebraskans selected their supplier under the program.”Choice Gas in Nebraska was very successful in its first year andshould be even better this year,” said Dan Watson, KN distributionoperations general manager.
Transportation Note
A systemwide entitlement against overtakes that began Dec. 19 onNorthwest remained in effect going into the holiday weekend.Northwest said Wednesday it would continue to operate under a Stage1 entitlement at 3% because it had not seen sufficient improvementin system conditions. However, as of Wednesday the entitlement waslifted on points south of Kemmerer (WY) Station.
Frontier Energy Begins North Carolina Gas Flow
Frontier Energy, North Carolina’s newest gas utility, beganflowing gas in Surry, Wilkes and Yadkin counties. “With more than50 miles of newly installed gas main pressurized, we’re officiallyup and running,” said Andrew Rea, chairman of Frontier Energy. “Injust eight months, we were able to complete the first phase of oursystem and start serving customers.”