A revised auction process for firm capacity, described as moremarket responsive, on Kinder Morgan’s Natural Gas Pipeline Companyof America won approval from the Federal Energy RegulatoryCommission last week (RP97-431-009).
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NGPL’s New FT Auction Approved
A revised auction process for firm capacity, described as moremarket responsive, on Kinder Morgan’s Natural Gas Pipeline Companyof America won approval from the Federal Energy RegulatoryCommission yesterday (RP97-431-009).
November Quotes Dive With Screen; Swing Fall Mild
With the futures screen “crashing and burning,” as a producerdescribed it, November bidweek numbers also took a tumble Thursday.However, because much of the futures plunge occurred after swingtrading for today’s flow had been completed, incremental pricesgenerally were down only a nickel or so.
Sempra-KN Merger is Dead as KN Earnings Plunge
In what one observer described as one of the first “blunders”among energy mergers, Sempra Energy and KN Energy last weekmutually agreed to call off their $6 billion marriage, which wasfirst announced in February.
Sempra-KNE Merger is Dead
In what one observer described as one of the first “blunders”among energy mergers, Sempra Energy and KN Energy said yesterdaythey have mutually agreed to call off their $6 billion marriage,which was first announced in February. The two companies said thatas they were studying the integration process they discovered thecombined company “would not be able to realize the businessobjectives they originally anticipated.”
Prices Mostly Move Lower in Subdued Activity
In what a few sources described as some of the quietest tradingthey had seen in quite a while, cash quotes fell anywhere from 2cents to a dime or so at Eastern points Monday. In contrast,numbers were generally flat to slightly higher for the Rockies,Southwest basins, California and intra-Alberta.
Foundering Futures Close Out July Trading
The futures market concluded what one trader described as a”tumultuous trading week” by slipping for the fifth straight day,leaving futures at their lowest level since March 1997. There was alittle something for everyone in the market last week: speculativeselling, a bullish storage report, and even a little hurricanehype. The only thing missing from trading last week was a dayregistering a gain. That left even the most bullish of tradersscratching their horns wondering when the market will reverse itsdowntrend. The September contract closed at $1.844 on Friday, down6.2 cents. Friday’s With that, the market concluded the month ofJuly. A month that saw major declines in both cash and futuresmarkets eroding the September contract nearly 30 percent of itsJuly 1 value.
Sources: Cash Will Emulate Screen Plunge Today
Nearly all points were “flat to up a smidge” Tuesday, as onemarketer described it. But the consensus among sources was thatprices will be coming down hard today, based on the Nymex screen’sbig downturn Tuesday. In fact, the cash reversal had alreadystarted in Tuesday’s late trading as some pipes dropped as much asa nickel from their heights.
Correction:
The following is a clarification of a story titled “NGC’sCapacity Posting,” which ran in Daily GPI, April 22: Thecalculations and conclusions described in the story were totallythose of Michael J. Harris of the Reed Consulting Group ascontained in a FERC filing made by the producers protesting the NGCcapacity contracts on El Paso. The Prebon Energy brokerage housemade no predictions. A footnote to the filing says Prebon, whichhas offices in Jersey City, NJ, and Houston, supplied futurequotes at a specific time – 11:30 a.m. on March 30 – of the SanJuan Basin-California border basis differential. The quoted remarksregarding the expected San Juan-SoCal basis differential for thefuture and the attractiveness of the NGC capacity to other shipperswere those of Harris and the Reed Consulting group. Further Prebonsays it did not give basis information to Mr. Harris or the ReedConsulting Group but that the basis information attributed toPrebon was supplied by one of the parties to the filing. NGIregrets the error.
NGC’s Capacity Posting Described as ‘Hollow’ Gesture
Natural Gas Clearinghouse’s (NGC) decision earlier this month topost 40% of its San Juan-to-California capacity on El Paso NaturalGas for release appeared “at first blush” to be a “magnanimousgesture” on the marketer’s part, but it was far from that, said anenergy consultant.