Mojave Pipeline reversed an earlier bulletin board posting (see Daily GPI, June 16), emphasizing that itwould “not” shut in part of its West Lateral Thursday and cause theshut-ins of “17Z”-labeled interconnects with Chevron, Mobil, Shell andTexaco. However, Mojave said, a maintenance shut-in of the Oxy 17Zinterconnect was to proceed as scheduled Thursday and today.
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Transportation Notes
The schedule for an outage of KN Energy’s Pony Express Line, whichbegan Tuesday (see Daily GPI, April 26),has been revised to last through May 27, according to the Williamsbulletin board. Williams is not allowing nominations at the KN-Glavininterconnect (Franklin County, KS) during the outage.
Transportation Notes
Completion of the Unit #7 outage at NOVA’s Princess B CompressorStation, expected last week to be expedited to April 23 (see DailyGPI, April 14), has been extended to April 26.
Unocal Buying Large Stake in Northrock
Unocal Corp. subsidiary Unocal Canada Resources is buying a 46%stake in Calgary-based Northrock Resources Ltd. for C$265 million(US$175 million). The company has average daily gross production of160 MMcf/d of gas and 11,000 b/d of crude oil and gas liquids andholds net proved reserves of 35 million bbl of oil and liquids and363 Bcf of gas. Northrock also has valued its exploration assets(land and seismic) at C$132 million (US$88 million).
Unocal Buying Large Stake in Northrock
Unocal Corp. subsidiary Unocal Canada Resources is buying a 46%stake in Calgary-based Northrock Resources Ltd. for C$265 million(US$175 million). The company has average daily gross production of160 MMcf/d of gas and 11,000 b/d of crude oil and gas liquids andholds net proved reserves of 35 million bbl of oil and liquids and363 Bcf of gas. Northrock also has valued its exploration assets(land and seismic) at C$132 million (US$88 million).
If at First You Do Not Succeed, Try Again In Access Trading
For the second day in a row the futures market openeddramatically higher en route to posting a $2.08 daily high in thefirst hour of trading. And similar to Wednesday’s topsy-turvysession, no new buying was seen to help lift the May contract overresistance in the $2.07-09 area, which paved the way forprofit-taking activity yesterday afternoon. However in contrast tothe day prior, Thursday’s trading saw a late rally, which buoyedthe market into settlement and put a positive spin on the day’sevents. The May contract finished up 4.5 cents to $2.069.
Storage, Forecasts, Screen Combine for Cash Softness
The Midwest snowstorm that gave such a lift to the first dailyprices of 1999 was being repeated to a lesser degree over theweekend and Monday, but this time there were no gains of 20 centsor more as a result. Instead, most of the cash market was flat todown as much as a dime Monday. Still-massive storage inventories,along with forecasts of warming weather in the North and a fallingscreen, were cited as reasons for the softness. Several sources described trading action as subdued.
No Expiration Day Heroics for Beleaguered Bulls
Natural gas futures at the New York Mercantile Exchange haveconsistently featured choppy trading, high daily volatility, andprice erosion for the last several months. And expiration dayTuesday was no different as traders tested both sides of a largetrading range before depositing the January contract 2.3 centslower to its final resting place at $1.765. And in doing so, theJanuary contract tumbled over a half dollar during its reign as theprompt month.
Futures Settle Nearly Unchanged After Early Plunge
January futures gapped lower on the daily charts for the secondday in a row Tuesday by opening 11 cents less than Monday’s low.But in contrast to Monday’s downward price movement, yesterdayfeatured an upward price trend for the session. At the closingbell, the prompt month had climbed its way back up to $1.958-only1.8 cents off Monday’s settle.
Correction:
A story that ran in NGI’s Daily Gas Price Index Oct. 14 falselyreported that a state court had ordered the break-up of ProLianceEnergy. It also contained several other inaccuracies. The decisionby the Indiana appellate court merely reversed an order by theIndiana Utility Regulatory Commission (IURC) in which supplycontracts between ProLiance and affiliates Indiana Gas and CitizensGas Light & Coke were approved. The court ruled thatcontractual provisions relating to the use of published gas priceindexes required a different approval process. ProLiance “disagreeswith the court’s interpretation of the state statute and believesthat the IURC had full authority to approve the contracts under thestatutes cited in the IURC’s opinion.” The company intends toappeal the decision. The decision also does not require refunds tocustomers.