Contracts

CenterPoint Energy Field Services Inc. Monday announced new contracts with a Shell subsidiary and Encana Corp. that will grow its rapidly expanding Haynesville Shale gathering and treating network to 1.5 Bcf/d capacity and possibly eventually to 2.8 Bcf/d.

January natural gas futures made another stout gain Tuesday as traders bought contracts in anticipation of continued cold weather.

Referring to colder market-area temperatures and its need to maintain linepack, Tennessee is issuing an OFO Action Alert, effective Thursday, for all LMS-PA (including SA contracts acting as balancing parties), LMS-MA and LMS-PL Balancing Parties with meters located in Zones 1, L and 2. Affected parties are required to limit daily negative imbalances to 2% of scheduled quantities or 500 Dth, whichever is greater. Penalties will be 21.98 cents/Dth “for that portion of physical quantities related to underdeliveries by receipt point operators and overtakes by delivery point operators [that] exceed this tolerance,” the pipeline said.

National Fuel Gas Co. subsidiary National Fuel Gas Supply Corp. (NFGS) is launching an open season to provide shippers with access to long-term contracts for firm storage capacity of up to 8.5 Bcf at locations in New York and Pennsylvania.

Spot month natural gas futures settled unchanged, but more deferred contracts retreated in active trading Tuesday on the New York Mercantile Exchange. Traders cited an interest by funds and managed accounts toward the sell side of the market, and in the longer term analysts suggested that if there were no major production-disrupting hurricanes this season, prices could fall more than another dollar.

Regents of The University of Texas System last Thursday authorized system officials to pursue contracts to sell future oil and natural gas production from 2.1 million acres managed by the system in West Texas. Such deals would give the system access to up-front cash in exchange for future production sold at a fixed price.

Regents of The University of Texas System Thursday authorized system officials to pursue contracts to sell future oil and natural gas production from 2.1 million acres managed by the system in West Texas. Such deals would give the system access to up-front cash in exchange for future production sold at a fixed price.

Sen. Joseph Lieberman (I-CT) on Friday introduced legislation that would set position limits on all food- and energy-related contracts held by financial speculators, including over-the-counter (OTC) holdings and futures positions on foreign exchanges.

Sen. Joseph Lieberman (I-CT) Friday introduced legislation that would set position limits on all food- and energy-related contracts held by financial speculators, including over-the-counter (OTC) holdings and futures positions on foreign exchanges.