Dives

Triple-digit price dives on Dominion and in the Northeast Wednesday were arrayed against an overall mixed market in which few points strayed more than a nickel up or down from flat.

Big declines in Northeast and San Juan/Rockies numbers stood out Friday amid a general market that was flat to slightly lower. Fairly benign weather helped explain the softness in parts of the West, while the Northeast was consolidating from recently sky-high price levels.

Most of the market was moderately firmer Thursday, ranging flat to about 15 cents higher. A majority of gains were small at a nickel or less. But the Northeast apparently was anticipating a cool front moving into its northern half Friday, because area citygates dropped by sizeable amounts, topped out by a dollar-plus plunge at Transco Zone 6-New York City, which put on a volatility show during the day between $3.50 and $9.00.

Cool fall weather and rapid breakdown of the storm formerlyknown as Hurricane Gordon were enough to take the wind out of thecash market’s sails yesterday as prices plummeted across the board.

What a difference a day can make in trader psychology. The newsof extra El Paso capacity and lack of a PG&E OFO causedCalifornia prices to plummet around a dollar or more in both theswing and bidweek markets Wednesday, while other quotes for thelast day of August were flat to mildly softer in the East andsurprisingly stronger in the Rockies.

Nearly all of Thursday’s cash market experienced the steep pricedeclines that had been anticipated after the screen reactedbearishly to AGA’s Wednesday afternoon storage report.

Having the merry month of May start today gave Friday’s tradingfor the weekend something of a split personality, but except for afew western points there was no need for a psychiatrist. There waslittle appreciable difference between prices for Saturday/Sundayand Monday-only in most cases, sources said.

Fresh off its purchase of Sonat Inc., El Paso Energy Corp.re-entered the consolidation game by announcing plans to merge withCoastal Corp. in a $16 billion deal. The potential union wouldcreate a pipeline empire capable of serving almost all of the majormarkets in the country. The companies expect the transaction,accounted for as a pooling of interests, to be completed by thefourth quarter of this year.

Fresh off its purchase of Sonat Inc., El Paso Energy Corp.re-entered the consolidation game by merging with Coastal Corp. ina $16 billion deal announced Tuesday. The potential union wouldcreate a pipeline empire capable of serving almost all of the majormarkets in the country. The companies expect the transaction,accounted for as a pooling of interest, to be completed by thefourth quarter of this year.