Astronomical gas prices could push another 3.5 Bcf/d of gasdemand out of the market next year, according to a research note byCambridge Energy Research Associates. While the high gas-usemarkets, such as fertilizer and methanol producers, already havecurtailed production significantly, CERA said it expects four moremajor demand responses: another wave of fuel switching to residualfuel oil by industrial boilers, a surge of investment to increasefuel switching capability, some potential switching to distillateoil and more industrial plant shutdowns.
Customers
Articles from Customers
CA Customers Turn to FERC for Relief from Delivery Costs
El Paso Merchant Energy, an affiliate of El Paso Natural Gas, isreaping “monopoly rents in excess of 7,000% higher than the justand reasonable rate approved by the Commission for its regulatedsibling,” Southern California Edison told the Federal EnergyRegulatory Commission last week.
CA Customers Seek Relief From FERC
El Paso Merchant Energy, an affiliate of El Paso Natural Gas, isreaping “monopoly rents in excess of 7,000% higher than the justand reasonable rate approved by the Commission for its regulatedsibling,” Southern California Edison told the Federal EnergyRegulatory Commission last week.
EIA Breaks Down the Winter Price Hike
The Energy Information Administration (EIA) released a handy newbrochure yesterday for residential customers who are wondering whytheir natural gas bills are expected to soar by 44% this wintercompared to last winter. Gas supply will be adequate to meet demandthis winter, according to EIA, but prices and gas usage are goingto increase substantially.
Arctic Gas Becomes a Necessity
Alberta spot sales have reached C$7/Mcf (US$4.83) and centralCanadian distributors are warning customers to expect an expensivewinter. Analysts see no end to the tight markets. But natural-gasproducers say they have found a way out — tap the Arctic.
Arctic Gas Becomes a Necessity
Alberta spot sales have reached C$7/Mcf (US$4.83) and centralCanadian distributors are warning customers to expect an expensivewinter. Analysts see no end to the tight markets. But natural-gasproducers say they have found a way out — tap the Arctic.
UtiliCorp Shopping for Generator Partner for Aquila Energy
Kansas City, MO’s Utilicorp United Inc. is shopping around, andhas already begun to narrow its options on which “high quality,low-cost fleet of generators” to pair with its wholesale merchantmoneymaker Aquila Energy, management announced last week. Apartnership deal is expected to be unveiled within a few months.
High Prices Put a Damper on Industrial Demand
Gas producers must be wringing their hands in glee as futuresprices top $4.45/MMBtu, but some of their customers clearly are alittle less than overjoyed. High gas prices are forcing somefertilizer producers to consider shutting down their plants andselling their feedstock on the open market just to make ends meet.
Transportation Notes
To curb growing linepack, NOVA changed its daily imbalancetolerance range to +2%/-18% at noon Tuesday.
Enron Scores With Two More Management Deals
Enron Energy Services continues its quest to shore up energymanagement agreements with as many customers as it can. On theheels of an announcement Tuesday that it had signed a 10-yearagreement with Prudential Insurance of America, the Enron Corp.subsidiary announced Wednesday that it had pocketed a $1 billion,10-year energy agreement with the U.S. facilities of QuebecorWorld, the world’s largest commercial printer. The agreementexpands Enron’s original $250 million five-year contract with WorldColor Press, signed in 1998. World Color Press was purchased byQuebecor Printing Inc. last August.