Hiatus

Chiefly reflecting the previous Friday’s 11.5-cent rebound by October futures and the return of industrial load from its usual weekend hiatus, prices rose at a large majority of points Monday.

Following its August hiatus, FERC last Thursday approved three expansions — for Midcontinent Express Pipeline (MEP), Transcontinental Gas Pipe Line (Transco) and Mississippi Hub LLC. The proposed facilities would give shale gas producers and liquefied natural gas (LNG) importers greater access to natural gas markets along the East Coast and in the Northeast.

The resumption of California offshore drilling after a 40-year hiatus was rejected late last Friday as California’s legislature ended its latest annual budget drama, closing most of a $26 billion deficit and leaving the governor to make other cuts. Gov. Arnold Schwarzenegger will have to make up the added $100 million and $1.8 billion long term in added revenues projected for the state from the new drilling.

The return of industrial load from weekend hiatus did little to stem price losses Monday in most of the cash market. Moderating weather in much of the East and screen weakness extending into its third day Monday dragged a majority of points between a little less than a dime and a half dollar lower.

The return of industrial demand after a weekend hiatus and modest increases in western cooling load produced a mixed cash market Monday that was dominated by gains of 2-3 cents to a little more than a quarter. Along with several flat points, Monday’s minority losses ran as high as a little more than a quarter.

The statutory hiatus imposed on several offshore liquefied natural gas (LNG) import terminals by the U.S. Coast Guard/Maritime Administration earlier this year is not a big concern for ExxonMobil. Spokesman Bob Davis said the company would prefer to build an onshore facility anyway and certainly will not be building all three of its remaining LNG projects.

The statutory hiatus imposed on several offshore liquefied natural gas (LNG) import terminals by the U.S. Coast Guard/Maritime Administration earlier this year is not a big concern for ExxonMobil. Spokesman Bob Davis said the company would prefer to build an onshore facility anyway and certainly will not be building all three of its remaining LNG projects.

FERC closed out the last week in July before its August hiatus with the release late Friday of a draft environmental impact statement (DEIS) that would allow construction of the controversial 4.4 Bcf capacity Weaver’s Cove LNG receiving terminal near Fall River, MA, conditioned on certain environmental mitigation and safety requirements (CP04-36).

FERC closed out the last week in July before its August hiatus with the release late Friday of a draft environmental impact statement (DEIS) that would allow construction of the controversial 4.4 Bcf capacity Weaver’s Cove LNG receiving terminal near Fall River, MA, conditioned on certain environmental mitigation and safety requirements (CP04-36).