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Heading into the winter tof 2010-2011 he natural gas market is in “good shape,” with production at “levels not seen in more than 35 years,” according to a FERC analyst — and with moderate prices and storage already 90% full.

Heading into the winter the natural gas market is in “good shape,” with production at “levels not seen in more than 35 years,” according to a FERC analyst — and with moderate prices and storage already 90% full.

The premium built into the natural gas futures market heading into the weekend was quickly dispatched of Monday as the two tropical systems that could endanger Gulf of Mexico production turned into nonevents. The retreat was enhanced after the prompt-month contract broke above $5 for the first time in nearly a month and a half, but failed to hold.

The National Hurricane Center (NHC) slightly upgraded chances of a tropical wave heading toward the Gulf of Mexico becoming the season’s first named tropical storm, and peak temperature forecasts in the 80s and 90s remained in place for most regions. But even with the additional supportive input of the previous day’s 4.8-cent rebound by July futures, cash prices were a little softer at a small majority of locations Thursday.

Over the next few years much of the gas industry is expected to be heading for the hills of Appalachia with projects to process and pipe natural gas from the Marcellus Shale. Analysts at Tudor, Pickering, Holt & Co. Securities Inc. (TPH) think that from 2009 to 2013 more than $10 billion will be spent on gas infrastructure in the region.

Over the next few years much of the gas industry is expected to be heading for the hills of Appalachia with projects to process and pipe natural gas from the Marcellus Shale. Analysts at Tudor, Pickering, Holt & Co. Securities Inc. (TPH) think that from 2009 to 2013 more than $10 billion will be spent on gas infrastructure in the region.

FERC staff said late last week that the natural gas price landscape heading into winter is looking more favorable for consumers than it has for a number of years due to full storage, plentiful supply and new gas transmission infrastructure. However, the staff, in its “Winter 2009/2010 Energy Market Assessment,” informed the Commission that winter temperatures — as always — remain the “wild card.”

FERC staff said Thursday that the natural gas price landscape heading into winter is looking more favorable for consumers than it has for a number of years due to full storage, plentiful supply and new gas transmission infrastructure. However, the staff, in its “Winter 2009/2010 Energy Market Assessment,” informed the Commission that winter temperatures — as always — remain the “wild card.”

Heading into the Labor Day weekend with a full tank of gasoline might give holiday-makers a reason to smile, but natural gas bulls staring at the end of summer with storage caverns brimming more than usual have little to cheer.