Midwest

Physical natural gas slipped lower in Monday's trading for Tuesday deliveries as traders find themselves staring down the barrel of a near-term market environment that may feature a series of triple-digit additions to storage and elimination of the year-on-five-year storage deficit.

Physical natural gas slipped lower in Monday’s trading for Tuesday deliveries as traders find themselves staring down the barrel of a near-term market environment that may feature a series of triple-digit additions to storage and elimination of the year-on-five-year storage deficit.

Shippers stepped up for 3.25 Bcf/d of pipeline capacity from the Marcellus and Utica shales to markets in the Midwest, Great Lakes and Gulf Coast on Energy Transfer Partners LP’s (ETP) ET Rover project. The binding commitments are for 15- and 20-year fee-based contracts.

September natural gas is expected to open 3 cents higher Tuesday morning at $3.86 as traders factor in coal-switching and somewhat supportive near-term weather. Overnight oil markets eased lower.

July natural gas is expected to open unchanged Monday morning at $4.71, even though analysts suggest that prices may be poised to test the mid $4.80s. Overnight oil markets firmed.

April natural gas is set to open a penny higher Friday morning at $4.39 as traders mull a big-picture seasonal temperature outlook and factor in low inventory levels and an uncertain storage refill. Overnight oil markets were mixed.

FERC on Tuesday extended by one week the priority treatment of propane shipments to consumers in the Midwest and Northeast.

FERC invoked its emergency authority Friday under the Interstate Commerce Act to help alleviate “dangerously low” propane supplies to consumers in the Midwest and Northeast.

To avoid critical shortages by the end of February, propane gas shippers have asked FERC for an emergency order to allow, or if necessary direct, Enterprise TE Products Pipeline Co. LLC to temporarily provide priority treatment to propane shipments from Mont Belvieu, TX.