Christmas

Anticipated demand allowed Algonquin to accept “a limited amount” of due-shipper imbalance make-up nominations for Christmas Day. However, the pipeline said no due-shipper gas would be available Thursday.

The Williams Companies got an early Christmas gift last Wednesday when the Federal Energy Regulatory Commission reaffirmed its Oct. 12 certificate that allowed Williams to reopen and expand the Cove Point LNG import terminal in Lusby, MD. The company faced the possibility of losing the certificate when the Commission, in response to sharp criticism from Sen. Barbara A. Mikulski (D-MD), initiated a review of the national security concerns associated with reactivating the LNG facility.

FERC’s “Christmas gift to the nation,” according to Chairman Pat Wood, was its approval of the first regional power transmission organization (RTO), covering basically half of the nation from North Carolina to North Dakota and as far south as Texas and Arkansas. The decision was lauded by consumer advocates and business organizations in the Midwest as a “positive first step to ensuring that the Midwest serves as an efficient and effective gateway for suppliers’ energy.”

Pressured by a triumvirate of bearish factors — weather,technicals and cash prices — natural gas futures plodded lower inan abbreviated, pre-holiday session Friday as weak longs continuedto shed their positions. However, instead of liquidating theirlongs entirely, traders elected to roll their prompt holdings intoout months. At the closing bell, the February contract was 23.6cents lower at $8.472 while the summer strip (Apr.-Oct.) was 6.7cents higher on the day at $6.085.

If you got a lump of coal in your stocking this Christmas,rejoice. It could be the only thing left to heat your home by theend of winter. There is a growing consensus among gas marketexperts that there will be a shortage by March if the weather staysnormal or colder than normal.

The swing trading pattern immediately following Christmas didn’tseem very much different from the days preceding the holiday: agenerally softer market, with declines of up to a dime Monday atmost points, arrayed against conspicuously higher prices fordeliveries into the New York City area. One thing that did change,however, was generally flat numbers for the Rockies and California,markets that had participated in the overall weakness last week.

British Gas Trinidad and Tobago Ltd. (BGTTL) may get an earlyChristmas present. It has asked FERC to issue a preliminarydetermination (PD) on Southern LNG’s proposal to recommission itsliquefied natural gas terminal facility at this Wednesday’smeeting. FERC has placed the project on the agenda — so BGTTL ishalf way there — but whether it will issue a PD is quite anothermatter.

British Gas Trinidad and Tobago Ltd. (BGTTL) may get an earlyChristmas present. It has asked FERC to issue a preliminarydetermination (PD) on Southern LNG Inc.’s proposal to recommissionits liquefied natural gas terminal facility at the Dec. 15 regularmeeting. FERC has placed the project on the agenda — so BGTTL ishalfway there — but whether it will issue a PD is quite anothermatter.

Natural gas futures surged again yesterday amid concerns thatproduction shortfalls associated with a sudden barrage of tropicalstorm and hurricane activity will put pressure on an already tightsupply-demand situation. Fresh off a 28-cent price run late lastweek, the September contract tacked on an additional 12.6 centsyesterday to finish at $3.064 after notching a fresh high at $3.08.Estimated volume was healthy, with 101,460 contracts changinghands.