Exchange

March natural gas futures fell in uninspired trading Tuesday on the New York Mercantile Exchange. Significant changes to the 11- to 15-day weather forecast prompted selling as weather models abruptly shifted to a warmer outlook at key eastern points. Cold Canadian air was predicted to exit much of the central U.S. during that period.

BP plc disclosed in a quarterly filing with the Securities and Exchange Commission (SEC) that the Federal Energy Regulatory Commission (FERC) and the Commodity Futures Trading Commission (CFTC) are investigating “several BP entities regarding trading in the next-day natural gas market at the Houston Ship Channel during October and November 2008.”

March natural gas futures inched higher in uninspired trading Friday on the New York Mercantile Exchange. Short-term traders see the market still vulnerable to continued price erosion, but those with a longer-term perspective see now-average supply levels keeping any further market deterioration in check.

EQT Corp. grew its proved natural gas reserves by 28% in 2010, ending the year with 5,220 Bcfe. The growth came due to drilling in the Marcellus Shale, continuing improvement in the estimated ultimate recovery of Marcellus wells, as well as an increase in the projected number of wells to be drilled in the Marcellus over the next five years, EQT said.

Onshore unconventional natural gas producer Penn Virginia Corp. said Friday it will concentrate its exploration activities in oily and liquids-rich plays in 2011 and will spend 40% less than it did this year because of a “weak natural gas price environment and outlook.”

Natural Gas Exchange Inc. (NGX) has agreed to provide the Alberta Department of Energy with an Alberta gas price index, referred to as the Alberta Market Price (AMP). The AMP is a volume-weighted average of cleared transacted prices for all gas delivered in a calendar month at the NGX Alberta market center on the TransCanada Corp. Alberta System, NGX said. The department will use the AMP to calculate its gas reference price, forming the basis of the royalty obligations for Alberta energy producers. The launch of the new pricing regime is planned for January.

The staff of the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC) will hold a public roundtable on Friday (Dec. 10) to discuss issues related to capital and margin requirements for swap dealers, security-based swap dealers, major swap participants and major security-based swap participants.

The Commodity Futures Trading Commission (CFTC) Wednesday narrowly voted out a much-anticipated joint proposal with the Securities and Exchange Commission (SEC) defining “swap dealers” and “major swap participants.”

Privately held Kinder Morgan Inc. has announced plans to rejoin the New York Stock Exchange with the launch of an initial public offering (IPO) for up to $1.5 billion. Parent company Kinder Morgan Holdco LLC said all of the stock for the IPO would be sold by existing investors including Chairman Richard Kinder and his wife, who together hold a stake of about 31% in the company. Other sellers include Goldman, Sachs & Co., Highstar Capital LP, The Carlyle Group and Riverstone Holdings LLC. The company plans to list under its former symbol “KMI.” Timing of the IPO was not disclosed. In 2007 Kinder Morgan went private in an estimated $15 billion buyout (see NGI, June 4, 2007). Kinder Morgan owns the general partner and about 11% of the limited partner interests in Kinder Morgan Energy Partners, one of the largest publicly traded U.S. pipeline master limited partnerships, which has an enterprise value of more than $30 billion.