Innocent

In a letter to Quoddy Bay LNG LLC, the Department of State said it would continue to assert U.S. rights under international law and defend “innocent passage” of U.S.-bound liquefied natural gas (LNG) tankers through Head Harbour Passage, a dangerous stretch of Passamaquoddy Bay, which straddles the U.S.-Canadian border.

A source in Michigan may have anecdotally sized up the Friday market with an innocent comment: “It’s going to be a warm trick-or-treating night for us.” A warm Halloween in Michigan?!? That kind of unseasonable weather throughout much of the East and the southern reaches of the West went a long way toward explaining why weekend prices plunged across the board.

Acting on the mentality that Tropical Storm Barry was innocent until proven guilty (see Daily GPI, Aug. 3), natural gas futures tumbled lower Friday morning as traders re-initiated shorts that they had covered just 24 hours prior. As of noon (EDT), the September contract was 19.7 cents lower at $2.995. The market then proceeded sideways for most of the afternoon as sellers took a breather to monitor the storm. They were not finished however, and after gaining confidence the storm was not going to re-intensify Friday, sellers conspired for one last push lower. At the closing bell, the September contract was 22.1 cents lower at $2.971.

Claiming to be an innocent victim, TXU Energy Trading is seekinga stay of a decision ordering CNG Transmission to turn overpipeline capacity that was initially awarded to TXU toan existingpipeline shipper, who FERC found had properly exercised itsright-of-first-refusal (ROFR) for the capacity.