Keeps

The fundamental of having snow and/or frigid temperaturescontinuing to pervade most markets was still around, but cashtraders must have been looking at hints that at least a moderatethaw might begin in several areas today. They again sent priceslower by about a dollar or more Wednesday in most cases.

San Jose, CA-based Calpine Corp. announced Monday it has boughtthe rights to build, own and operate a $510 million, 850 MW naturalgas-fired electric generating plant along the Ohio River inHamilton Township, Lawrence County, OH. The plant, called theLawrence Energy Center, is targeted for starting operations in2004.

Prices crept mildly higher in most cases Tuesday, continuing tofeed on an early preview of winter in much of the East. A greatmajority of points ranged from flat to about a nickel higher.Exceptions included downturns for Northwest-domestic, SouthernCalifornia border and a few Northeast citygates, along with aPG&E citygate gain of about 15 cents.

Cash prices continued to leap higher Tuesday even though futurestraders decided it was time for major retrenchment. Gains were indouble digits at almost all points, but tended to range from littlemore than a dime on Rockies pipes and in El Paso’s Permian and SanJuan Basin pools to around 50 cents or more in capacity-constrainedCalifornia.

CMS Marketing, Services and Trading (CMS-MST) continued itsliquefied natural gas (LNG) buying binge last week, announcing 10more deliveries from Qatar to the CMS Trunkline LNG facility inLake Charles, LA. The deals bring the number of announced LNGcargoes headed to the Trunkline facility over the next two years to26.

CMS Marketing, Services and Trading (CMS-MST) continued itsliquefied natural gas (LNG) buying binge yesterday by announcing 10more deliveries from Qatar to the CMS Trunkline LNG facility inLake Charles, LA. The deals bring the number of announced LNGcargoes headed to the Trunkline facility over the next two years to26.

Thanks to impending colder weather in the major northern marketareas along with some extra boost from a rising screen, overallcash prices ranged from flat to about a nickel higher Thursday,with increases of 3-6 cents tending to occur most frequently.

Following a three-day, 25-cent price spike, the natural gasmarket cooled its heels Thursday as traders took profits amidtechnically overbought conditions and ahead of the weekend. After alate morning push failed to surpass Wednesday’s $2.78 high, sellerscame out of the woodwork to deliver the March contract a dime lowerto $2.659.

Allegheny Energy’s delivery business, Allegheny Power, plans to buy Mountaineer Gas Co. (MGC), a wholly owned subsidiary of Energy Corp. of America (ECA), for $323 million, including assumption of $100 million in debt. The deal would give Allegheny its second gas distribution system, assuming the previously announced plan to acquire UtiliCorp’s West Virginia Power division goes through.