enery prices

Just days after withdrawing its appeal of a federal court decision that tossed a controversial final rule aimed at limiting speculative trading in the swaps markets, the Commodity Futures Trading Commission (CFTC) on Tuesday voted to propose new rules in place of the discarded position limits rule.

Transcontinental Gas Pipe Line (Transco) has asked FERC to initiate a pre-filing review of the expansion of its system in Alabama to provide approximately 1.13 Bcf/d of natural gas to meet growing power generation demand in Florida.

Physical natural gas traded Tuesday for Wednesday delivery fell 4 cents on average as higher prices in the Midwest, Northern Plains and Rockies, along with steady California prices were unable to offset $1-plus declines along the Eastern Seaboard. Futures prices staged a modest rebound as noon weather updates called for a healthy dose of cold temperatures by mid-month. At the close December was higher by 2.1 cents to $3.466 and January had gained 2.7 cents to $3.551. December crude oil dropped $1.25 to $93.37/bbl.

Capacity to move growing production of condensate and natural gasoline out of the Marcellus/Utica Shale region to diluent markets in Canada is being offered by Unity Pipeline Co. LLC, which is proposing a system of new pipeline, as well as pipeline to be converted from natural gas service.

The price being paid Monday for Tuesday physical natural gas delivery on average lost 2 cents as major hubs were mixed, but firm pricing on the West Coast and Eastern Seaboard was not able to offset weakness at Gulf and interior locations. At the close of futures trading, December had fallen 6.8 cents to $3.445 and January skidded 6.7 cents tp $3.524. December crude oil added a penny to $94.62/bbl.

December natural gas is expected to open 3 cents lower Friday morning at $3.55 as traders are unable to identify any fundamental weather patterns able to offset ever-increasing production. Overnight oil markets slipped.

In a private notice sent to CME Group clearing members on Friday, the trading exchange said it made a revision on Oct. 30 to the November 2013 natural gas futures contract expiration that occurred on Oct. 29.

Total U.S. natural gas production was nearly flat in August compared to the previous month, but in the Other States category, which includes shale-heavy Pennsylvania, Ohio and West Virginia, output reached 27.02 Bcf/d, a 2.4% increase from 26.38 Bcf/d in July and a whopping 17.1% increase from 23.08 Bcf/d in August 2012, according to the Energy Information Administration’s (EIA) Monthly Natural Gas Gross Production Report.

A former chairman of the House Energy and Commerce Committee said he is concerned about the federal government’s delay in issuing regulations to implement the Pipeline Safety, Regulatory Certainty and Jobs Creation Act, which President Obama signed into law in January 2012 (see Daily GPI,Jan. 4, 2012).