The rapid pace of gas injections into the nation’s storagefacilities this spring (9.4 Bcf/d, or 5.4 Bcf/d greater than overthe same period last year) and the current massive surplus ofstored gas (331 Bcf) compared to levels at the same time over thepast four years prompted Wefa Inc. to turn extremely bearish onspot prices. The additional storage this year is equal to 5% ofdemand for the remainder of the non-heating season, Wefa said inthe May edition of its Natural Gas Monthly.
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With regulatory changes and greater competition increasingpressure on gas utilities to stay competitive with their gaspurchases, the last thing they need is another warm winter toconfuse their gas purchasing and storage plans. NGC Corp. isoffering several new financial products utilities and largeendusers may find useful in reducing exposure to unpredictableweather and volatile market conditions.