July

Kinder Morgan Energy Partners LP (KMP) and Sempra Pipelines and Storage are holding a binding open season through July 14 to solicit interest in extending their proposed Rockies Express Pipeline (REX) East from its currently proposed terminus at the Clarington Hub in Monroe County, OH to Oakford, PA. The 100-mile extension, which would pass through Waynesburg, PA, would provide up to 1.8 Bcf/d.

Shrugging off the sluggishness of the last couple of sessions, July natural gas on Wednesday hit the ground running after gapping higher to open. The prompt-month contract put in a high of $6.660 before closing at $6.590, up 42.7 cents on the day. Attention now turns to Thursday’s fresh storage news.

Despite venturing as high as $6.340 in its first regular session as prompt month as a number of eastern metropolises began to heat up, July natural gas futures on Tuesday ended up recording a loss. The contract closed near its $6.100 low on the day at $6.123, down 3.1 cents from Friday.

Canada said Thursday that thanks to Hurricanes Katrina and Rita, the value of Canada’s exports and imports both hit record highs in September due to soaring outbound shipments of natural gas and inbound shipments of crude petroleum. Exports jumped 2.8% to a record C$39.8 billion, while imports rose a more moderate 1.4% to C$32.7 billion.

Management consultant R.W. Beck, which said in July that “high oil prices, hot summer weather and hurricanes” could send natural gas spot prices up rapidly this month, noted in a new report that those conditions “have come to fruition.” Beck’s 2005 calendar year price forecast remains unchanged, at $6.40/MMBtu, but its chief forecaster warned that continued adverse conditions, especially a hurricane threat during Bidweek, could cause prices to go as high as $12 in September.

While last week’s bearish storage report caught traders off guard, this week’s report of a 42 Bcf injection for the week ended July 22 was a little more in sync with expectations, especially considering last week’s oppressive heat and minor Gulf production shut-ins due to Hurricane Emily.

The New York Mercantile Exchange (Nymex) and ICAP plan to launch on July 18 an electronic market in same-day over-the-counter (OTC) options on prompt-month Nymex futures settlement prices for crude oil and natural gas.

Taking a divergent path from crude, July natural gas futures explored lower on Friday, reaching a low of $7.28 before settling at $7.36, down 11.3 cents from Thursday’s settle and 33 cents lower than the prior Friday’s close.

NiSource Inc. announced last week that effective July 1, current president Robert C. Skaggs Jr. will take over as CEO. Skaggs will succeed Gary L. Neale, who will retire in June but who will continue to serve as chairman.