Market

A revised auction process for firm capacity, described as moremarket responsive, on Kinder Morgan’s Natural Gas Pipeline Companyof America won approval from the Federal Energy RegulatoryCommission yesterday (RP97-431-009).

Despite trouble in the retail market in several states thisyear, gas customer choice appears to be making a little progress.The Michigan Public Service Commission has adopted terms andconditions to make gas choice programs for residential andcommercial customers a permanent fixture in the state.

The American Gas Association (AGA) has called on presidentialhopefuls Al Gore and George W. Bush to focus on developing a”balanced, long-term, market-based energy policy” that wouldprominently feature natural gas.

Regulators can be expected to add more controls on natural gasand power risk management, which will add a layer of complexity anddiscourage new hedging operations, according to two close observersof the industry.

Regulators can be expected to add more controls on natural gasand power risk management, which will add a layer of complexity anddiscourage new hedging operations, according to two close observersof the industry.

Even with much of its cold weather support disappearing, thecash market still found cause for moderate bullishness Wednesday.But that’s expected to pale in comparison to the fireworks thatsources were predicting for today after the screen exploded withgains of more than 35 cents in both the November and Decembercontracts following AGA’s below-expectations storage report.

The American Gas Association (AGA) has called on presidentialhopefuls Al Gore and George W. Bush to focus on developing a”balanced, long-term, market-based energy policy” that wouldprominently feature natural gas.

The cash market was a mix of ups and downs as far as priceaverages went Thursday, but sources agreed that the overall trendwas downward as trading proceeded through the morning. Flat quotesdominated again at many points, while sizeable gains and losseswere scattered.

The North American natural gas market’s success is in the handsof the independents, and some of the leaders — private companiesnot driven by the need for outside investment — will be names notwidely recognized.