Forecasts

Due to forecasts of freezing weather moving into Florida Tuesday night and this morning, Florida Gas Transmission issued an Overage Alert Day notice Tuesday with 15% tolerance for negative daily imbalances.

Based on revised weather and demand forecasts received early Monday morning, Sonat issued an OFO Type 3 for eight market-area groups on its system, effective today until further notice. Penalties of $15/Dth apply to any shipper whose deliveries exceed 102% of their daily entitlement at any delivery point within the affected groups. Sonat also will be allocating/limiting IT in three other market-area groups starting today until further notice.

Despite forecasts of slower regional economic and population growth, the Northeast is expected to consume one-third more natural gas over the next 20 years just to fuel the string of power generation facilities that are planned for the region, an official with the Energy Information Administration (EIA) said last Thursday.

Despite forecasts of slower regional economic and population growth, the Northeast is expected to consume one-third more natural gas over the next 20 years just to fuel the string of power generation facilities that are being constructed in the region, an official with the Energy Information Administration (EIA) said Thursday.

Citing forecasts indicating that freezing temperatures would be moving into Florida Wednesday night and this morning, and noting that its overall linepack was lower, Florida Gas Transmission declared an Overage Alert Day notice Wednesday for its market area. The notice carried a 15% tolerance for negative daily imbalances.

Based on cold weather forecasts and projected demand, Sonat issued an OFO Type 3 for eight market-area groups, effective Tuesday until further notice. See the bulletin board for a list of affected delivery points.

Prior to Friday (the official first day of winter), the weekend market had looked like a toss-up, with forecasts of colder Christmas weather throughout the East and into the Southwest arrayed against the demand slump from extended business closures. Chalk one up for the bulls as the upcoming cold temperatures weighed a little more heavily on traders’ minds Friday, prompting them to send most points higher by small amounts.

Pressured by the release of another in a string of bearish weather forecasts and in sympathy with losses seen in the nearby crude oil pit, natural gas futures plumbed new three-week lows Monday, as traders continued to liquidate longs acquired during the month of October. The December contract never recovered from its 7-cent gap-lower open and finished with a 19.2-cent loss at $2.733.

Bankruptcy-preoccupied Pacific Gas and Electric Co., has praised California’s power-buying agency, the Department of Water Resources (DWR), for finally recognizing the prospect of lower natural gas prices as a primary reason for lowering by 20% its overall estimated revenue needs through next year.