Market

The majors are focusing more of their spending attention on the domestic natural gas market, gobbling up gas-rich acquisitions, which has lowered their finding and development costs. Meanwhile, the independents’ spending is limited only by the lack of “drill ready” projects and experienced geoscience personnel, according to the latest exploration and production study by Salomon Smith Barney’s analysts Robert Morris and Michael Schmitz.

Northern Natural Gas declared a System Underrun Limitation, effective Sunday and Monday, for all market area zones.

Citing significant market area demand, Florida Gas Transmission advised shippers Friday to be watchful over the weekend for a potential Overage Alert Day notice.

Although it didn’t seem likely as recently as the middle of last week, the market may be on the verge of a much-anticipated turnaround from its long slide. Except for Rockies/San Juan and California border-SoCalGas declines, Monday’s trading saw flat to moderately higher prices at most other points, and much higher ones at PG&E-related points struggling out of the abyss into which they had plunged following Friday’s stringent OFO.

BC Gas is holding an open season to test market interest in its proposed new Inland Pacific Connector Pipeline, a 153-mile pipeline extending from the Southern Crossing pipeline to the regional marketing hub in Huntingdon, BC (see Daily GPI, April 4).

Due to mild weather in its market area and high linepack, Florida Gas Transmission issued an Underage Alert Day notice Tuesday with 10% tolerance for positive daily imbalances.

BC Gas is holding an open season to test market interest in its proposed new Inland Pacific Connector Pipeline, a 153-mile pipeline extending from the Southern Crossing pipeline to the regional marketing hub in Huntingdon, BC (see Daily GPI, April 4).

Citing mild market area weather and high linepack, Florida Gas Transmission declared an Underage Alert Day Tuesday with 10% tolerance for positive daily imbalances. FGT also said it will be performing unplanned maintenance today and Thursday at an off-system interconnect with Tennessee at Carnes, MS. Interconnect volumes are limited to 30 MMcf/d during the work.

Union Gas Ltd. is taking bids through 1 p.m. ET Thursday on between 1 and 2 Bcf of Peak Storage service at its Dawn market hub. Capacity awards will be made within half an hour later, and injections may begin Friday. Winter 2001-02 withdrawals will be on an interruptible basis. Call Mike Morrison at (519) 436-5352 for more information.