Indicator

The chances of an Oregon liquefied natural gas (LNG) facility being constructed remain about 50-50, with the crucial indicator coming early next year, said Portland, OR-based Northwest Natural Gas Co. CEO Gregg Kantor

BP Energy Co.’s ability to market natural gas in the western United States has improved with the completion of its acquisition of Salt Lake City-based marketer Wasatch Energy LLC. The acquisition was announced in December (see NGI, Dec. 25, 2006). The deal, for an undisclosed amount, gives BP Energy all of Wasatch’s natural gas business and assets, including commercial and industrial sales contracts and producer services contracts. Wasatch’s 42 employees also were offered the opportunity to transfer to BP Energy. Wasatch has a portfolio of 350,000 MMBtu/d of gas purchase, transportation and sales activity across 10 western states that serve about 500 commercial and industrial customers and 100 producers. Its sales offices are located in New Mexico, Colorado, Washington, and California.

The Texas PetroIndex, an indicator of the economic vitality of the state’s oil and natural gas exploration and production industry, inched higher in September to a record 219.1, up 15% from the 190.4 reported in September 2005. The growth marks the state’s 49th consecutive month of improvement, but the Texas Alliance of Energy Producers (TAEP) noted the month-to-month increase of one tenth of 1% was the smallest in its sustained growth period.

If U.S. temperatures during the first quarter of this year are any indicator, many regions of the country could be in for a long and hot summer. According to the National Oceanic and Atmospheric Administration (NOAA), the average temperature for the contiguous United States for March (based on preliminary data) was warmer than average.

A recent endorsement of Millennium Pipeline by the New York Public Service Commission (NYPSC) is another indicator of growing momentum for new energy infrastructure to benefit upstate and downstate regions of New York, as well as other Northeast markets, according to pipeline President Dick Leehr. Millennium is still awaiting FERC approval of its amended project application.

The Energy Information Administration (EIA) has changed the revision policy for its weekly natural gas storage report (WNGSR), the most widely watched indicator of supply and demand in the natural gas marketplace. The agency has decided to allow unscheduled revisions on any federal workday between 2 p.m. and 2:10 p.m. ET only if the impact of the reported change is greater than 10 Bcf in any region or nationally.

The Energy Information Administration (EIA) has changed the revision policy for its weekly natural gas storage report (WNGSR), the most widely watched indicator of supply and demand in the natural gas marketplace. The agency has decided to allow unscheduled revisions on any federal workday between 2 p.m. and 2:10 p.m. ET only if the impact of the reported change is greater than 10 Bcf in any region or nationally.

As NGI sources had predicted, late declines in Monday’s swing trading were a strong indicator that the cold weather-induced price spikes that began the week had little staying power. Sure enough, quotes Tuesday ranged from flat to down about a quarter in deals covering through the end of the month.