Ground

Cash prices either remained flat or rebounded a cent or two atmost delivery points across the board on Friday, mainly as resultof recent forecasts of above normal temperatures throughout thecountry, and the fact that the relatively low prices made for anattractive storage play opportunity. In addition to minor losses inthe Northeastern markets, Western and Rockies points, whichdemonstrated the most strength during the past week, alsoregistered declines of between 1-4 cents.

The cash market lost some ground Tuesday, again defying sources’pre-holiday expectations of a rebound from last Thursday’s pricerout. Except for PG&E citygates and intra-Alberta-each upalmost a nickel into the high $2.20s and low C$2.00srespectively-and small gains at a couple of other scattered points,quotes registered as flat to down 5-7 cents.

Despite Tuesday’s overall price losses, the rising trend astrading progressed carried over into Wednesday and resulted inmoderate to strong rebounds. Increases mostly were in the range of5-10 cents and tended to cancel out the Tuesday declines.

Marking the start of construction related to projects thatultimately will increase pipeline capacity into New England by morethan 20%, Portland Natural Gas Transmission System (PNGTS) andMaritimes & Northeast Pipeline began a crossing of thePiscataqua River between Newington, NH, and Eliot, ME. The crossingis the first stage in the construction of the PNGTS/Maritimes JointFacilities Project, which represents the southernmost portion ofeach pipeline.