Forecasts

The Energy Information Administration (EIA) again raised itswholesale and retail gas price projections for the winter andconfirmed that gas storage levels at the end of December were lowerby 10% than the previous record low set in 1976.

Citing forecasts of moderating Midcontinent temperatures,Williams said it will lift a systemwide OFO this morning. The OFOwas issued Dec. 16 (see Daily GPI, Dec. 19).

Citing forecasts of “an extended period of steady, cold weatherthroughout the pipeline system,” Texas Eastern said it is imposingseveral restrictions this morning to preserve linepack and systemreliability. Until further notice no forward-haul mainline IT-1volumes will be delivered to the market area; no due-shipperimbalances are available; TABS-1 shippers are required to be inbalance daily; and all non-interstate Operational BalancingAgreements upstream of the Berne (OH) Compressor Station have beensuspended. Affiliate Algonquin is restricting the taking of anydue-shipper imbalances. Both pipes said they will consider thepotential for secondary restrictions going into the holiday weekendas conditions warrant.

Due to forecasts of colder than normal temperatures in theKansas City metropolitan area, Williams implemented an OFOSaturday. The OFO was to remain in effect though Monday’s gas dayor until further notice.

Citing colder than normal forecasts for the Kansas Citymetropolitan area, Williams implemented an OFO Monday, effectiveuntil further notice. Among other conditions, the OFO suspends allinterruptible storage and park-and-loan service loan activity “asrequired,” and imbalance gas due customers is not available.

Fueled by moderating weather forecasts and following Monday’s21-cent decline, natural gas futures tumbled lower in a classicexpiration-day long liquidation Tuesday, as traders rolled theirprompt month positions into back months. After a back-breakingsell-off in the last five minutes of trading Monday, the Decembercontract gapped lower at the open and tumbled 35.2 cents to itsfinal resting place at $6.016 yesterday.

Based on recent and near-term acquisitions, Alberta EnergyCompany Ltd., (AEC) has upped cash flow projections for itsmidstream business for 2000 from the original estimate of C$145million to over C$165 million. The company also expects itsmidstream’s forecasted cash flow for the year 2001 to be C$230million, double its performance in 1999.

Based on recent and near-term acquisitions, Alberta EnergyCompany Ltd., (AEC) has upped cash flow projections for itsmidstream business for 2000 from the original estimate of C$145million to over C$165 million.

After etching out a wide, half-dollar trading range last week,natural gas futures settled down appreciably Tuesday, as tradersremained largely on the sidelines ahead of the release of freshweather and storage news. Low estimated volume of just 46,818 was atestament to the quiet session.