Combination

Although two major Southwestern utilities caution that the talks are in the very early stages, a city-run combination natural gas and electricity utility in Mesa, AZ is driving full speed ahead in seeking to partner or trade customers with the two biggest suppliers in its area.

Canadian natural gas exports will shrink by 65% over the next 15 years, predicts Ottawa’s energy department. A combination of rising domestic demand and dwindling production will cut annual deliveries to the United States to 1.3 Tcf from the current level of 3.7 Tcf, says a new forecast by Natural Resources Canada.

Canadian natural gas exports will shrink by 65% over the next 15 years, predicts Ottawa’s energy department. A combination of rising domestic demand and dwindling production will cut annual deliveries to the United States to 1.3 Tcf from the current level of 3.7 Tcf, says a new forecast by Natural Resources Canada.

The goal of more stability in wholesale natural gas markets will require a combination of regulatory and market strategies that are not in place currently, according to a report issued last month by the American Public Power Association (APPA). More oversight of financial traders is among the recommended steps that are needed, the APPA report, “Long-Term Strategies Are Key in Achieving Stable Natural Gas Prices,” concluded.

A combination of high U.S. natural gas inventories and difficult year-over-year weather comparisons means that gas should continue to trade “at worse” than an 8:1 ratio with crude oil through Oct. 31, Raymond James analysts said in their latest “Stat of the Week.”

After gapping lower at the opening bell, the natural gas futures market clawed its way slowly higher throughout the trading session on a combination of technical short-covering and bargain hunting. April finished at $7.067, down 22.3 cents for the session but up more than 13 cents from its early-session low of $6.93.

The 15 largest utilities in the Pacific Northwest and the largest combination utility in the West reported significant energy conservation by their retail customers earlier this month. Northwest utility customers lowered their demand by 108 average MW last year, according to a survey by the Northwest Power and Conservation Council.

Citing “a combination of receipt underperformance and takes in excess of scheduled quantities,” El Paso said Wednesday its system “is being drafted at rates that are not sustainable.” It added that performance caps will be placed on receipt points that are not performing up to scheduled quantities and urged shippers to bring their supplies in balance with their takes. Shippers owing gas to El Paso can arrange to pay gas back, the pipeline said, but if the situation fails to improve, a declaration of Strained Operating Condition may be required.

Southern California Edison (SCE) has issued a request for information (RFI) on the willingness of natural gas suppliers to provide it with up to 250,000 MMBtu/d through a combination of long-term financial instruments and physical natural gas contracts to underpin new power generation load. The physical and financial deals would run from one to 10 years, with progressive start times from June 1, 2006 through Nov. 1, 2010.