Demand

Although air conditioning load in the South will slacken Friday under a widespread set of thunderstorms and weather-related demand remains scarce elsewhere, cash prices made it a solid four-for-four days of bullish performance so far this week Thursday.

A modestly higher Gulf Coast point prevented a clean sweep of continuing price softness Thursday. A lack of weather-related demand, the additional loss of industrial load associated with a long holiday weekend and prior-day screen weakness combined to send prices lower at all other points.

Lukewarm heating season demand cut sales volumes, but peaking prices increased revenues during the first quarter of the current contract year on the international natural gas market. Canadian pipeline deliveries to the United States during the three months ended Jan. 31 fell 9% to 925.3 Bcf compared to the same period of 2004-05, according to trade records kept by the National Energy Board.

Lukewarm heating season demand cut Canadian gas export volumes but peaking prices increased revenues during the first quarter of the current contract year on the international natural gas market. Canadian pipeline deliveries to the United States during the three months ended Jan. 31 fell 9% to 925.3 Bcf compared to the same period of 2004-05, show trade records kept by the National Energy Board.

Spring and summer gas prices will have to remain in the $6/MMBtu area (Henry Hub) or lower to rebuild industrial demand, stimulate gas-fired power generation (whose main competitor is now coal rather than residual fuel oil) and deter liquefied natural gas (LNG) imports, said Credit Suisse analyst Carl Kirst in a research note on Wednesday.

On a 4-1 vote the Arizona Corporation Commission (ACC) last Tuesday approved nearly $21 million for six Arizona Public Service Co. (APS) non-residential demand-side management (DSM) programs mandated in the utility’s latest rate decision. Regulators said the funding includes financial incentives and assistance to customers in order to encourage energy-efficient building design and retrofit, covering industrial, commercial, small business, and school facilities.

Rolling blackouts are generally considered a scourge of hot summer days when electricity demand for air conditioning pushes generation and transmission beyond capacity. However, electric utilities that rely on gas-fired generators are vulnerable during the winter due to the potential for gas well freeze-offs. Xcel Energy and some of its Colorado customers found this out over the holiday weekend.

Rolling blackouts are generally considered a scourge of hot summer days when electricity demand for air conditioning pushes generation and transmission beyond capacity. However, electric utilities that rely on gas-fired generators are vulnerable during the winter due to the potential for gas well freeze-offs. Xcel Energy and some of its Colorado customers found this out over the holiday weekend.

Looking to better serve U.S. natural gas demand and open inroads for potential liquefied natural gas (LNG) sites across the border in Mexico, TransCanada Corp. said Thursday that its North Baja Pipeline LLC subsidiary has filed an application with FERC for a two-phase expansion of its existing natural gas pipeline in southern California and the construction of a new pipeline lateral in California’s Imperial Valley. The total cost of the projects is expected to be $291 million.