Load

Enterprise Products Partners LP cited robust growth in Eagle Ford Shale liquids-rich gas production in South Texas as the rationale behind its plans to add yet more fractionation capacity at the Mont Belvieu, TX, natural gas liquids (NGL) complex.

Prior-day futures strength, in which the July contract rose a stout 14.8 cents, was able to offset some forecast declines of cooling load in a couple of key market areas in keeping most points flat to slightly higher Wednesday.

Nearly all of the cash market continued to rise Tuesday, but its recent overall bullishness may be coming to an end as weather-based load diminishes and prior-trading day futures guidance grows a bit more negative.

The cash market regained the price ground lost on the previous day and more Wednesday as a decline of heating load in the South proved to be less than expected and the lower Northeast saw a substantial reversal of prior warming trends. Spot gas also had fairly strong support from Tuesday’s May futures rise of 12.4 cents.

Southern lows predicted to drop to the 50 area east of the Mississippi River were contributing a small amount of heating load to the much bigger demand in Canada and from the U.S. Northeast through the Midwest into the Upper Plains. The entire cash market continued to move higher Thursday except for a flat Agua Dulce, but significantly smaller increases than the day before signaled that the week’s bullishness might be running out of steam.

Prices continued to fall modestly at a majority of points Friday, but despite the extra decline of industrial load over a holiday weekend, a number of locations mostly in the Northeast were flat to a little more than 90 cents higher because of a revival of colder temperatures during the weekend and through much of the week. Subfreezing lows predicted to begin Saturday in the Northeast caused regional citygates to record the largest upticks.

Next-day forecasts still relatively moderate, but traders see heating load increases nearby.

The bullish effect of a smidgen of extra cooling load and a rare boost from prior-day futures proved to have short effect in raising cash prices. After gains at virtually all points on Monday, flat to slightly higher numbers remained in a moderate majority Tuesday but were being infiltrated by several small losses.

Temperatures mild to cool virtually everywhere, but heating load remains fairly scarce.