Bigger

The slope for sliding prices got considerably steeper in nearly all of the market Thursday, although a few western points managed to hang tough with flat performances. The factors of mild weather pervading much of the East, prior-day futures weakness, lack of tropical storm threats to offshore production and realized expectations of a bearish storage report all contributed to the overall softening.

Following much bigger gas cost rate changes in the two previous years, Intermountain Gas, a natural gas distribution company in southern Idaho, has asked state regulators for a $22.1 million, or 10%, boost in rates, effective July 1. The Idaho Public Utilities Commission has asked for comments on the annual purchased gas adjustment (PGA) by June 11.

A cash price rally continued into a second day Tuesday despite getting only modest support from weather fundamentals. Advances tended to get larger at most eastern points, but grew smaller in the West as the region’s unseasonable heat wave was expected to begin subsiding after Wednesday.

Due to “significant” customer response, Cheyenne Plains Gas Pipeline Co., a subsidiary of El Paso Corp., said it plans to use 36-inch diameter pipe rather than 30-inch pipe as originally proposed in its application to FERC in May for the Cheyenne Plains pipeline — a 380-mile natural gas pipeline that will extend from Cheyenne, WY to Greensburg, KS.

With imported liquefied natural gas (LNG) expected to take on a bigger role in U.S. energy markets, Energy Secretary Spencer Abraham plans to tour the soon-to-be-reactivated Cove Point LNG terminal in eastern Maryland today to become acquainted first-hand with the frozen fuel that is attracting so much attention.

With imported liquefied natural gas (LNG) expected to take on a bigger role in U.S. energy markets, Energy Secretary Spencer Abraham said Wednesday he plans to tour the soon-to-be-reactivated Cove Point LNG terminal in eastern Maryland next week to become acquainted first-hand with the fuel that is attracting so much attention.

Isn’t there a saying about the bigger they come, the harder they fall? Following a Tuesday in which quite a few Gulf Coast and Midcontinent production area points recorded their biggest numbers ever, the cash market was diving Wednesday about as fast as it had rocketed higher in the first two trading days of the week. Eastern markets, along with Waha/Permian Basin in the West, saw average declines that tended to range from about $5 to $24. Because they hadn’t soared to such stratospheric levels previously, other western points mostly saw smaller price drops of $1-3.

The Texas Public Utilities Commission (PUC) is asking state lawmakers to allow it to beef up the financial penalties it can impose for violations of state law or its own rules as they relates to errant behavior in the state’s power markets. The current $5,000 penalty may not be enough of a deterrent to prevent power companies from trying to exercise market power or game those markets, the PUC said.

Houston-based El Paso Corp. announced Friday it has agreed to sell its 14.4% interest in the Canadian and U.S. segments of the Alliance Pipeline, Aux Sable natural gas liquids (NGL) plant and associated facilities to Calgary-based Enbridge Inc. for an estimated $165 million. At the same time, Fort Chicago Energy Partners, also based in Calgary, AB, said it was taking steps to increase its share of the Canada-to-U.S. pipeline.