Less than three months after entering service, Southeast Supply Header LLC (SESH) is conducting a nonbinding open season for a proposed expansion along its existing 274-mile route.
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Frosty Chill Pushes Virtually All Cash Points Higher
Dismissing the dominant weakness in natural gas futures late last week in favor of a prevalent chill entering the eastern half of the United States this week, natural gas cash points on Monday were higher across the board, with more than a few dollar-plus gains seen in the Northeast, Midcontinent, Rockies and West.
Dolly, Strong Crude and Sizzling Heat Fail to Support NatGas
Despite rebounding crude values, Tropical Storm Dolly entering the Gulf of Mexico and real heat flooding the Northeastern United States, front-month natural gas futures traded in a tight range on Monday before closing at $10.510, down 6 cents from Friday’s close.
NiSource Gas Transmission Holds Open Season on New Penn Pipe
Looking to capitalize off of the Millennium Pipeline entering service later this year, NiSource Gas Transmission & Storage (NGT&S) last week launched an open season for the potential construction of the New Penn Pipeline system and associated firm transportation, which would offer customers increased access to Northeast and Mid-Atlantic markets.
NiSource Gas Transmission Holds Open Season on New Penn Pipe
Looking to capitalize off of the Millennium Pipeline entering service later this year, NiSource Gas Transmission & Storage (NGT&S) on Thursday launched an open season for the potential construction of the New Penn Pipeline system and associated firm transportation, which would offer customers increased access to Northeast and Mid-Atlantic markets.
Devon Hedges 40% of 2008 Gas Output
Because natural gas storage was near a record level early this year and on concerns that the United States could be entering a recession, Devon Energy Corp. entered into natural gas and oil hedges for this year that cover 40% of its total forecasted production on an oil-equivalent basis. CEO J. Larry Nichols said last week the storage situation may have eased, but with two months remaining in the winter season, he said Devon remains concerned about gas price volatility.
Devon Hedges 40% of 2008 Gas Output
Because natural gas storage was near a record level early this year and on concerns that the United States could be entering a recession, Devon Energy Corp. entered into natural gas and oil hedges for this year that cover 40% of its total forecasted production on an oil-equivalent basis. CEO J. Larry Nichols said Wednesday the storage situation may have eased, but with two months remaining in the winter season, he said Devon remains concerned about gas price volatility.
Transportation Notes
Columbia Gas said Tuesday that until further notice there is zero nonfirm receipt capacity for gas entering lines BM-39 in Martin County, KY; BM-19 in Lawrence County, KY, and Wayne County, WV; and PM-117 in Martin County, KY, and any pipelines feeding into these lines. This is for the purpose of making capacity available for firm services, Columbia said. See the bulletin board for a list of affected meters.
Futures Still Range-Bound as Industry Prepares for Nonholiday
Entering the Thanksgiving semi-shortened holiday week, December natural gas futures wasted no time on Monday exploring the lower end of the recent $7.500 to $8.500 trading range. The prompt-month contract recorded a low of $7.785 before closing out the session at $7.787, down 21.4 cents on the day.
That ’70s Decline Curve: Gas Producers Reprising Oil’s Stagnant Days
Entering 2008, U.S. gas prices could rebound to a 7:1 or even 6:1 ratio with crude oil, depending on the weather, according to analysts at Raymond James & Associates Inc. So $70 oil could mean $10 gas or better. For this bullishness on prices, thank Raymond James’ pessimism about the exploration and production (E&P) industry’s ability to grow production.