Incremental

FERC was dealing out pipeline certificates like cards at a Black Jack table last Wednesday at its regular agenda meeting. Recipients included the Georgia Strait Crossing pipeline, Northwest Pipeline for a mainline expansion, Southern Natural for its South System II expansion, South Carolina Pipeline for a new line to the Elba Island LNG terminal, Millennium Pipeline (see separate story), two projects designed to serve Long Island (see separate story), and to Northern Natural Gas for compression expansion in Nebraska. Kinder Morgan Texas also won a presidential permit for a border crossing project.

The late-September incremental market was geographically mixed Wednesday. Eastern points tended to range from flat to down about a dime, while except for similarly softer Permian/Waha quotes, the West was flat to nearly a dime higher.

FERC has given a final environmental nod to Florida Gas Transmission (FGT) for an incremental expansion of its existing 1.7 Bcf/d natural gas transportation system to 2.1 Bcf/d.

FERC has given a final environmental nod to Florida Gas Transmission (FGT) for an incremental expansion of its existing 1.7 Bcf/d natural gas transportation system to 2.1 Bcf/d.

Williams and ONEOK reported yesterday that they have reached atwo-year agreement in which Williams will provide incremental firmtransportation service of 56,200 Dth/d to the Oklahoma Natural Gas(ONG) division of ONEOK.

The incremental cash market pulled off a double play asexpected: following up the screen’s storage report-based spikeWednesday afternoon with across-the-board double-digit gains of itsown Thursday morning. It was almost like watching a replay from aweek earlier.

Incremental prices for the last day of March, finding little tono support from any direction, did the natural thing: they fell byanywhere from about a nickel to more than a dime. April bidweeknumbers also slid a bit further.

For the most part, late-December incremental prices continued todrift lower by small amounts Tuesday in quiet activity as tradersincreasing focused their attention on January business. Evenbidweek was still dragging, complained a Midcontinent producer;”there’s lot of talking, but few actual deals.”

Cash prices finished the week on a positive note as continuedincremental heating demand and a strong futures market bolsteredprices Friday. Trading was very active from the outset, a Gulftrader told Daily GPI. “There were some undeniable factors pointingto higher cash prices. Overnight gains in Access trading set thetone, then the over the counter market verified the strength,” heexplained. So it came as no surprise when the first cash offerswere a nickel or more above Thursday’s averages. But the marketcould not sustain the price rally and after buyers had filled theirrequirements at around 9:45 CST, seller realized their lowestprices of the day in late morning dealings.