Cash prices overall fell an average 15 cents Friday, but if the weather and constraint driven mega-downmoves by eastern and northeast points are included, the average overall decline would have been $1.83. Weather forecasts called for a warming trend by Monday and constraints on a major pipeline were lifted.
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Raymond James: Marcellus Gas Shale ‘King’ by 2015
Based on production data verifiable to date, the Marcellus Shale will become the “King of the Gas Shales” by 2015 at the latest, U.S. energy analysts with Raymond James & Associates Inc. said in a new report.
Physical Quotes Offset By Futures Weakness
Physical natural gas prices Friday were mostly flat, although a few Northeast points showed constraint-related gains. Prices at most points eased, and without the gains posted on Northeast pipes, the overall market was down on average by about 2 cents. Texas points were mixed and the West Coast was generally weaker. Futures fared much worse. At the close of trading August was down 16.9 cents to $2.776 and September was off 16.4 cents to $2.786. August crude oil imploded $2.77 to $84.45/bbl.
Transportation Notes
Effective with Evening Cycle nominations (Cycle 2) for Wednesday’s gas day, Ruby Pipeline increased operationally available capacity for the Ruby West Constraint to 1,460 MMcf/d, which is the system’s total design capacity.
Transportation Notes
Northwest said nominated northbound volumes through Kemmerer Compressor Station and the Plymouth South constraint point continue to substantially exceed design capacity, impacting the pipeline’s operational integrity. As a result, effective Wednesday until further notice Northwest is declaring OFOs at both points If scheduled quantities for Wednesday’s gas day exceed the design capacity of 655,000 Dth/d at Kemmerer or 536,300 Dth/d at Plymouth South, Northwest will provide shippers with their contract-specific, realignment or must-flow OFO obligations by 4 p.m. MST.
Analyst: Expiring Leases Offer Eagle Ford Second Chance
Companies that missed out on the first round of leasing in the Eagle Ford Shale in South Texas that began in 2008 will have another chance as some of those leases will be expiring in the coming months, an industry analyst said recently.
Transportation Notes
CIG canceled Wednesday the force majeure that it had declared Feb. 25 at Kim Compressor Station near the Picketwire Constraint point (PWC) in southern Colorado following an unforeseen mechanical outage of one compressor unit. Capacity at PWC was restored to 414 MMcf/d from 355 MMcf/d, CIG said.
Transportation Notes
Because primary firm nominations through the Plymouth North Constraint Point for the Timely cycle of Thursday’s gas day were below the available capacity of 453,000 Dth/d, Northwest discontinued the Declared Deficiency Period for the point Thursday and said it would allow new nomination requests in the Evening and Intraday cycles up to 500,000 Dth/d. If primary firm nomination requests for Friday exceed 453,000 Dth/d, Northwest said, it will declare a new Deficiency Period for the remainder of the work, which it expects to complete that day. It plans to schedule up to Plymouth North’s design capacity of 553,000 Dth/d for Saturday.
Transportation Notes
Northwest completed an anomaly investigation south of Muddy Creek Compressor Station and lifted the associated Declared Deficiency Period. The Muddy Creek South Constraint Point was reset to its north-flow design capacity of 513,000 Dth/d Friday. Due to a unit inspection at Caldwell Compressor Station, where Primary firm nomination requests exceeded the available capacity of 412,000 Dth/d, Northwest notified shippers of a Declared Deficiency Period at Caldwell for Friday’s gas day only.
Transportation Notes
Due to maintenance at Banner Compressor Station, Columbia Gulf will reduce total capacity at the Delhi (LA) Constraint Point to 1,983,000 Dth/d effective Friday until further notice.