Colder

Due to anticipated colder temperatures and in order to maintain linepack, Tennessee said an OFO Action Alert will become effective Sunday “for all LMS-PA Balancing Parties (including SA contracts acting as balancing parties), LMS-MA and LMS-PL Balancing Parties with meters located in Zones 4, 5 and 6.” Affected shippers are limited to an imbalance tolerance of 2% or 500 Dth, whichever is greater.

Northern Natural Gas cited forecasts of colder temperatures in saying a System Overrun Limitation will take effect Wednesday in all market-area zones (ABC, D and E/F).

Due to colder market-area temperatures and in order to maintain its linepack, Tennessee is issuing a Critical Day 1 OFO, effective Thursday until further notice, “for all LMS-PA Balancing Parties (including SA contracts acting as balancing parties), LMS-MA, and LMS-PL Balancing Parties with meters located in Zones 1, L, 2, 3, 4, 5 and 6.” The tolerance for negative daily imbalances will be 2% of scheduled quantities or 500 Dth, whichever is greater.

Forecasts of a Midwest plunge into frigid conditions again after a brief warming trend, along with colder temperatures forecast for the eastern South, kept the cash price rally that had begun Monday going at a large majority of points. Monday’s gain of 10.1 cents by February futures also contributed to the overall firmness of the physical market.

The 2009 natural gas price outlook is “still very ugly” and given the current over supply, even a colder-than-normal winter is unlikely to prevent a gas price collapse in 2009, Raymond James & Associates Inc. said last week.

The 2009 natural gas price outlook is “still very ugly” and given the current over supply, even a colder-than-normal winter is unlikely to prevent a gas price collapse in 2009, Raymond James & Associates Inc. said Monday.

Natural gas prices of $10/MMBtu or higher in the last half of 2008 appear justified, given the colder-than-normal weather last winter, a hotter-than-normal early summer and significantly weaker imports of liquefied natural gas (LNG) and Canadian gas, an energy analyst said last week.

Natural gas prices of $10/MMBtu or higher in the last half of 2008 appear justified, given the colder-than-normal weather last winter, a hotter-than-normal early summer and significantly weaker imports of liquefied natural gas (LNG) and Canadian gas, an energy analyst said Monday.

Nearly all of the cash market was on the rise Tuesday, pushed primarily by the previous day’s 15.2-cent screen gain and secondarily by colder weather returning to the Rockies. The overall firmness defied moderate temperatures in many areas, but likely derived some support from storage purchases as the refill season gets under way with a significant Gulf of Mexico supply constraint in the form of the Independence Hub outage (see Daily GPI, April 14; April 10).