Demand

Responding to generally weak weather-related demand, healthy use of storage and the screen’s pre-New Year’s Eve drop of about a quarter, swing prices continued to decline Monday in the still-nascent new year. The common range of declines between about 20 cents and about 65 cents reflected larger drops than occurred last Thursday in most cases.

A decision by Dynegy Inc. to pull out of a tolling agreement last month will result in lower-than-expected earnings this year and could lead to a $391 million net loss in 2005, the company said Wednesday. Earnings in 2004 are expected to range between $2 million and $22 million (1-6 cents/share), well below an earlier forecast of $75-95 million (20-25 cents).

A decision by Dynegy Inc. to pull out of a tolling agreement last month will result in lower-than-expected earnings this year and could lead to a $391 million net loss in 2005, the company said Wednesday. Earnings in 2004 are expected to range between $2 million and $22 million (1-6 cents/share), well below an earlier forecast of $75-95 million (20-25 cents).

With December and the onset of the winter natural gas demand season, the more than doubled capacity at Southern California Gas’ key Southern California interconnection, Kramer Junction, is operational but so far it is far from being fully utilized, a utility spokesperson said Friday in response to a NGI inquiry.

With December and the onset of the winter natural gas demand season, the more than doubled capacity at Southern California Gas’ key Southern California interconnection, Kramer Junction, is operational but so far it is far from being fully utilized, a utility spokesperson said Friday in response to a NGI inquiry.

A new coalition is forming to establish a “Consumers Alliance for Affordable Natural Gas,” which will be pursuing both supply and demand side solutions to the problem of increasing natural gas prices, according to spokesman Rob Marvin with Ogilvy & Mather.

A new coalition is forming to establish a “Consumers Alliance for Affordable Natural Gas,” which will be pursuing both supply and demand side solutions to the problem of increasing natural gas prices, according to spokesman Rob Marvin with Ogilvy & Mather.

Stung by reduced demand, natural gas distributor Nicor Inc. reported an 18% decline in second quarter profit on Monday. The company also revealed that it has terminated four employees in connection with their involvement in “potentially fraudulent” conduct in its performance-based rate (PBR) gas supply program that may have violated Securities and Exchange Commission (SEC) rules.

Continuing gas demand growth in the Northeast along with the failure or delay of several previously proposed pipelines has left the region in serious need of new pipeline capacity. Transcontinental Gas Pipe Line said last week the timing may be right for another expansion of its mainline and its Leidy Line from the Leidy Hub in Pennsylvania to markets in New York and New Jersey.