Closes

Calgary’s Pembina Pipeline Corp. and Provident Energy Ltd. agreed Monday to merge in a C$3.2 billion ($3.1 billion) transaction that would create a Canadian giant with oil and natural gas pipelines to transport crude and natural gas liquids (NGL), midstream gas processing and an energy marketing arm.

Ending a three-day streak of lower closes by the thinnest of margins, prompt-month natural gas futures on Friday traded below $4 for the first time since the December contract did it on Nov. 19. However, January futures ended up rallying to close at $4.066, up 1.8 cents from Thursday’s finish but down 35.1 cents from the previous week’s finish.

Keeping the week’s streak of lower closes intact, August natural gas futures — still faced with abysmal fundamentals — pushed lower on Wednesday to close at $3.795, down 4 cents on the day and 31 cents on the week.

The House last Thursday passed for a second time the $300 billion farm legislation that closes the “Enron Loophole,” which has allowed portions of large electronic trading platforms to circumvent the full oversight of the Commodity Futures Trading Commission (CFTC) for years.

The House Thursday passed for a second time the $300 billion farm legislation that closes the “Enron Loophole,” which has allowed portions of large electronic trading platforms to circumvent the full oversight of the Commodity Futures Trading Commission (CFTC) for years. Lawmakers were expected to vote later Thursday on Title III of the farm bill, which was inadvertently left out of the first bill sent to President Bush, and which forced the second vote.

Congress forwarded legislation to President Bush last Thursday that closes the “Enron Loophole,” which has allowed large electronic trading platforms to circumvent the full oversight of the Commodity Futures Trading Commission (CFTC) for years.

Congress forwarded legislation to President Bush Thursday that closes the “Enron Loophole,” which has allowed large electronic trading platforms to circumvent the full oversight of the Commodity Futures Trading Commission (CFTC) for years.

The Long Beach, CA, municipal gas utility’s 30-year, $900 million natural gas pre-pay supply contract with Merrill Lynch Commodities Inc. closes Thursday, drawing an “AA-” rating for its city finance authority, which marketed two series of revenue bonds to support the deal. Up to 90% of the muni’s long-term supply needs will be satisfied under this deal, the city said. Chris Garner, general manager of the Long Beach Utility Department, received authorization from the city council in August to proceed with the pre-pay deal (see Daily GPI, Aug. 27). With more than 400,000 residents about 25 miles southeast of Los Angeles, the port city has an annual natural gas load of 12 Bcf. Supplies in the pre-pay deal could come from wherever Merrill Lynch can get them and guarantee they can get into the Southern California Gas Co. transmission system, to which Long Beach’s distribution system is connected, Garner said.

Bringing the streak to six consecutive lower closes and a loss of nearly a dollar, July natural gas futures on Monday dipped below $7 to close at $6.940, down 19 cents from Friday’s close. With expiration around the corner on Wednesday, the prompt month has shed 97.8 cents since its June 15 close at $7.918.