The debate over how to stabilize natural gas prices “needs to be elevated, not isolated,” because concern about higher prices is coming not only from industrial customers but also commercial and residential consumers and eventually could grow into a groundswell of discontent, the chairman of the Process Gas Consumers Group said Thursday.
Isolated
Articles from Isolated
Industrial Exec Warns of Groundswell of Discontent for High Gas Prices
The debate over how to stabilize natural gas prices “needs to be elevated, not isolated,” because concern about higher prices is coming not only from industrial customers but also commercial and residential consumers and eventually could grow into a groundswell of discontent, the chairman of the Process Gas Consumers Group said Thursday.
Transportation Notes
Tennessee said Wednesday it had isolated the 509A-400 lateral from its 509A-300 line (the Southwest Leg of the Blue Water System offshore Louisiana) and had begun to load the 509A-300 line. Flows were allowed to resume at 14 meters that had been shut in Tuesday after Tennessee discovered a leak in the area (see Daily GPI, March 9). Only the East Cameron 254B meter must remain shut in until leak repairs are finished. Tennessee estimated Wednesday morning that it could take up to 24 hours before the 509A-300 line reaches normal pressure again; producers on the line will experience low pressures until then.
Prices Fall Further; Shut-In Tally Nearly Unchanged
A few isolated flat points were in the mix, but the overall cash market fell again Monday between a nickel and about a quarter as weather-based load remained elusive for natural gas, and Gulf of Mexico shut-ins, while still at a high level, had already lost their price-boosting effects since the middle of last week.
Transportation Notes
A leak near Ship Shoal 145B has been isolated and no impact to production was expected, Tennessee said Wednesday.
Spreading Heat Helps Generate Mild Price Advances
Other than isolated softness at a couple of Rockies points and the Southern California border, the cash market ranged from flat to about a dime higher Wednesday. Although a majority of gains were quite small at a nickel or less, price movement was starting to be based more on hot-weather fundamentals and less on the screen’s previous-day performance.
Price Descent Nearly Stops, But Very Bearish Friday Seen
This week’s erosion of prices (not counting isolated pockets of firmness, mostly in the West) slowed to a crawl Thursday as further declines were limited to about 30 cents or less, and quite a few points (again, mostly in the West) registered moderate gains of up to about a quarter.
Only Northern California Points Avoid Return of Softness
Except for isolated upticks in the Northern California market and only mild softness at Pacific Northwest points, prices for last-of-May flow fell by about 15 cents or more Wednesday. A negative screen during the morning provided no support for cash traders, and weather fundamentals are still too mild to create substantial air conditioning load, sources said.
Transportation Notes
Sea Robin reported completing an investigation of a leak in its “J” leg segment (see Daily GPI, May 16). The “J” leg is being returned to service after the leak was isolated on the lateral serving Eugene Island Block 305 (receipt location 94027), Sea Robin said. It resumed taking nominations for Thursday’s gas day at all affected points except for location 94027.
Transportation Notes
As part of repair operations on its 100 Line #1 leak (see DailyGPI, Feb. 3), Tennessee has isolated andremoved from service sections of Lines #1 and #2. They are expected toremain out of service until Tuesday. Lines #3 and #4 remain inservice. The work is causing Tennessee to restrict through SecondaryServices meters (including the Zone 0 pool meter) upstream of Station40 (Natchitoches, LA).