Giving

Giving a nod to robust production growth from U.S. unconventional gas plays and depressed commodity prices, a new report out of Fairbanks, AK, raises doubts about the prospects of a long-haul pipeline to tap Alaskan North Slope gas for delivery to Lower 48 markets.

It appeared that the overall cash market was stronger Wednesday due to losses at most points a day earlier giving way to a mix of mostly small movement up or down, with gains decidedly outnumbering losses. However, spikes at Northeast citygates Tuesday had shifted into reverse, with multi-dollar plunges at all of the Northeast delivery points Wednesday.

Less than a week after the award of a license giving his company the concession to construct an Alaska North Slope gas pipeline to the Lower 48, the chief executive of TransCanada Corp. has called attention to potential cost hikes with remarks suggesting that the company might seek increased federal loan guarantees for the project.

Less than a week after the award of a license giving his company the concession to construct an Alaska North Slope gas pipeline to the Lower 48, the chief executive of TransCanada Corp. has called attention to potential cost hikes with remarks suggesting that the company might seek increased federal loan guarantees for the project.

In an attempt to mollify the courts, Dominion Cove Point LP and Washington Gas Light (WGL), FERC Tuesday split the baby in a much-anticipated order, giving Dominion Cove Point the go-ahead to resume expansion of its liquefied natural gas (LNG) import terminal on Maryland’s eastern shore, while at the same time barring the delivery of any additional LNG volumes to WGL to shield it from further system leaks.

September natural gas futures rose as traders cited geopolitically derived strength in crude oil and hints of tropical development by a leading forecaster as giving the market a late-week lift. September natural gas rose 27 cents to $9.389 and the October contract tacked on 27 cents as well to finish at $9.494. September crude oil rose $1.02 to $125.10/bbl after trading as high as $128.50.

After sinking below $11 and giving bears some glimmer of hope, June natural gas futures on Tuesday rebounded to record a high of $11.477 before closing out the regular session at $11.365, up 41.1 cents from Monday’s finish.

As they often are, Northeast citygates were conspicuous in an otherwise close to flat market Tuesday by giving back much of the large gains they had realized a day earlier. Most points saw little change as the Northeast and Midwest are due to see modest warm-ups Wednesday while the South begins turning colder.

FERC has approved a certificate giving Sonora Pipeline LLC, a subsidiary of Tidelands Oil & Gas Corp., the go-ahead for its proposed pipeline at the U.S.-Mexican border.