Cold

Saying forecasts indicate that cold weather will continue in the state of Florida and its capacity is being heavily utilized, Florida Gas Transmission issued an Overage Alert Day notice Monday with 15% tolerance for negative daily imbalances.

Despite the fact that the market price of natural gas is rising in response to cold fall weather and the rapid depletion of gas in storage across the nation, Chicago-based Peoples Energy said the impact on its utility customers will be “modest” because of the company’s price protection strategy — which was implemented earlier this year — and its strong gas storage inventory.

Despite the fact that the market price of natural gas is rising in response to cold fall weather and the rapid depletion of gas in storage across the nation, Chicago-based Peoples Energy said the impact on its utility customers will be “modest” because of the company’s price protection strategy — which was implemented earlier this year — and its strong gas storage inventory.

Rebounding from Thursday’s price free-fall, natural gas futures turned higher Friday as traders bought back their shorts on the idea that governmental weather forecasts calling for mild temperatures through the remainder of the winter may be inaccurate.

El Paso remained in an Unauthorized Overpull Penalty situation Friday due to low linepack and forecasts of cold weather in its operating area. The pipeline reported being “under withdrawal” at its Washington Ranch storage facility. Shippers were urged to review the performance of suppliers to insure that receipts were sufficient to cover deliveries. El Paso said it lacked the flexibility to offer paybacks or allow overpulls during the UOP period, which was declared Thursday. It added that markets will not be kept whole and limits will be placed on scheduled volumes at underperforming interconnects to insure system integrity.

Citing a forecast of cold temperatures through the Thanksgiving weekend and into next week in Market Zone 3 (M-3), Texas Eastern said Tuesday that due to anticipated operating conditions and loads, it will restrict interruptible M-3 deliveries starting Wednesday until further notice. “The need for further restrictions will be evaluated as conditions unfold,” the pipeline said. Also effective with Wednesday’s gas day, no due-shipper gas will be allowed to be taken off the system.

November could be a cold month for gas consumers in the Northeast, according to Weather Services International’s latest seasonal forecast, but the outlook is mixed for the winter overall. WSI’s forecast calls for cooler than normal temperatures on average from November through January in the southern Plains (e.g., Dallas, Houston, Little Rock), the Southeast and the Mid Atlantic regions. Warmer than normal temperatures are expected on average over those three months in the Pacific Northwest, California, the northern Plains (e.g., Minneapolis and Chicago) and the Southwest.

The December natural gas futures contract was fast out of the chute on its first day as prompt month Wednesday, gapping higher at the opening bell and quickly etching a new high for the week at $4.44. However, scale-up commercial selling was seen throughout the surge and was effective at limiting the market’s upside. December shuffled quietly lower in the afternoon, closing with a 12.8-cent gain for the session at $4.389. Trading was relatively light, with only 69,400 contracts changing hands.

November could be a cold month for gas consumers in the Northeast, according to Weather Services International’s latest seasonal forecast, but the outlook is mixed for the winter overall. WSI’s forecast calls for cooler than normal temperatures on average from November through January in the southern Plains (e.g., Dallas, Houston, Little Rock), the Southeast and the Mid Atlantic regions. Warmer than normal temperatures are expected on average over those three months in the Pacific Northwest, California, the northern Plains (e.g., Minneapolis and Chicago) and the Southwest.