Indicate

Depending on who you ask, KN Energy’s (KN) choice gas program inNebraska was either a raving success or a seriously flawedoperation. Results indicate 100,000 people participated in thetwo-year program, which concluded last month. While KN was pleasedwith the turn-out, other involved parties have joined together in alawsuit accusing the Colorado-based company of breaking antitrustlaws and creating a monopoly by setting up unfair market advantagesfor itself and its affiliate, KN Gas Services.

Canadian price spikes last week following a supply/demandforecast released by Nova Corp. indicate the market north of theborder could be in for a wild ride this winter. While marketobservers have long expected supply to fall short of new exportcapacity, marketers acted as if surprised when Nova forecast 13.8Bcf/d of throughput this winter, 700 MMcf/d more than winter1997/98 but far short of the 1.1 Bcf/d increase in export capacityplanned by Northern Border (700 MMcf/d) and TransCanada (417MMcf/d).

The cash market made more small gains Wednesday, but downturnsin late trading at many points led sources to believe this week’sprice rally has ended, at least for the time being. Prices ran up3-4 cents at the outset but then came off hard at the tail end inresponse to the screen, said a Gulf Coast trader. As long asfutures stayed up, though, cash stayed right there with them, headded.