Burst

Looking to capitalize on the burst of activity and increased production volumes coming out of the Appalachian Basin of central West Virginia, NiSource Inc. unit Columbia Gas Transmission Corp. has once again partnered with MarkWest Energy Partners LP to expand gas gathering and processing services for the region.

Looking to capitalize on the burst of activity and increased production volumes coming out of the Appalachian Basin of central West Virginia, NiSource Inc. unit Columbia Gas Transmission Corp. has once again partnered with MarkWest Energy Partners LP to expand gas gathering and processing services for the region.

Following through on leftover momentum from Friday and a renewed burst of strength from the neighboring crude futures market, natural gas futures sprung above $11 on Monday to record a $11.210 high before closing out the day at $11.178, up 40.1 cents from last week’s close.

After trading higher in the overnight Sunday Globex session, May natural gas futures burst even higher during Monday’s regular session, recording a high of $11.360 before going off the board at $11.280, up 31.7 cents from Friday’s close. With the May contract expired, attention now turns to June futures, which peaked at $11.455 on Monday before settling at $11.329, up 22.8 cents from Friday’s close.

Continuing its burst of activity over the past 12 months, Nymex Holdings Inc. subsidiary The New York Mercantile Exchange Inc. (Nymex) said last week it intends to team with the Montreal Exchange (MX) to form a strategic alliance that will produce a joint venture company to serve the Canadian energy industry. The strategic alliance will include Nymex purchasing a 10% stake in the Canadian financial derivatives exchange for just north of US$70 million.

Continuing its burst of activity over the past 12 months, Nymex Holdings Inc. subsidiary The New York Mercantile Exchange Inc. (Nymex) said Wednesday it intends to team with the Montreal Exchange (MX) to form a strategic alliance that will produce a joint venture company to serve the Canadian energy industry. The strategic alliance will include Nymex purchasing a 10% stake in the Canadian financial derivatives exchange for just north of US$70 million.

Keeping downward pressure on natural gas futures prices despite the burst of cold into eastern regions, traders on Friday pushed November natural gas lower for a third consecutive session, dropping the contract 80.7 cents, or 12.5%, over the last three days of the week. The prompt month closed 12.3 cents lower Friday to close out the week at $5.659, which is 76.8 cents lower than the previous week’s close.

After exploring lower Thursday on a bearish natural gas storage report, January natural gas futures took the chance to jump back to the high side in Thursday night Access trading and again on Friday. The prompt month settled Friday at $7.457, up 45.7 cents for the day and up 61.4 cents for the week.

While convinced the oil price is a bubble ready to burst at any time, Canadians see a firm floor holding up under natural gas — and not least because it is a struggle to maintain their contribution to the North American “continental market.” Consensus forecasts north of the border draw a sharp contrast between the oil and gas markets.