Holiday

The Senate before leaving for the Christmas holiday last Wednesday confirmed FERC Chairman Joseph Kelliher and Commissioner Jon Wellinghoff for second terms on the Federal Energy Regulatory Commission, putting an end to a nail-biting wait for Kelliher whose nomination had been pending in the Senate since May.

Still unable to enjoy some early holiday cheer, a second Oregon liquefied natural gas (LNG) project was left waiting Thursday, but with some positive expectations it will clear another local hurdle in its permitting processes before Christmas. The Jordan Cove Energy Project LP at Coos Bay hopes to wrap up a second key local permit by Wednesday, its project manager told NGI late Thursday.

Looking for some early holiday cheer, two Oregon liquefied natural gas (LNG) projects expect to clear local hurdles in their respective permitting processes this week. Both NorthernStar Natural Gas’s Bradwood Landing LNG project along the Columbia River and the Jordan Cove Energy Project LP at Coos Bay along the Pacific Coast hope to be able to concentrate on the FERC process next year.

Despite reduced volumes due to the Columbus Day holiday, November natural gas futures still recorded a significant move lower to start the week. The contract traded between $6.845 and $7.160 before closing out Monday’s regular session at $6.846, down 22.7 cents from Friday’s close.

While a significant portion of the industry was busy extending the Independence Day holiday, August natural gas futures on Thursday quietly worked downward yet again, recording a low of $6.560 before closing out the day at $6.618, down 13.6 cents from Tuesday’s close.

The Wyoming Bureau of Land Management (BLM) will offer 207,381 acres of federal land in an oral oil and gas lease auction on Aug. 7 at the Holiday Inn Convention Center in Cheyenne. The sale involves 179 parcels with more than 50% of the acreage located in Natrona, Washakie and Weston counties. Leases are for a primary term of 10 years and “will continue beyond the primary term as long as long as oil or gas is produced in paying quantities on or for the benefit of the lease.” The complete list of parcels is available on the Wyoming BLM website, http://www.blm.gov/wy/st/en/programs/energy/Oil_and_Gas/Leasing.html. Protests of the Aug. 7, oil and gas lease auction are due at the BLM Wyoming State Office by 4 p.m. on July 23. The BLM has tentatively scheduled its next lease auction for Oct 7.

Citing high linepack and forecasts of warm weather, MRT said a System Protection Warning (SPW) would be in effect for the holiday weekend gas days of Saturday through Monday. Under the SPW, MRT would not schedule any volumes that resulted in a daily long position for a shipper, and no makeup of short positions was being accepted.

Coming off the long holiday weekend, natural gas futures traders on Monday were just as directionless as they had been the previous week. May natural gas bounced within a 15-cent range on the day before settling at $7.546, down 6.1 cents on the day.

Following a holiday-shortened trading week in which several points ran contrary to overall market direction each day, all points were on the same price movement page Monday — moving higher, that is. Forecasts of cold weather featuring snow showers Tuesday in parts of the West and Midwest and in much of the Northeast were the primary driver of cash firmness, although a small futures gain Friday and the return of industrial load from its typical weekend absence also contributed a bit of support.