Mississippi

Assuming a $3.50/Mcf price, demand for natural gas will grow 2.3% in 2003, with total supply declining 1%, according to Mississippi-based natural gas analyst Stephen Smith’s December energy outlook. Overall, the U.S. gas supply and demand picture looks positive in 2003, he said.

SG Resources Mississippi LLC (SGRM) has executed a pipeline interconnect agreement with Destin Pipeline Co. LLC as part of SGRM’s planned direct interconnection for the Southern Pines Energy Center, a new high deliverability salt cavern gas storage facility to be located in Greene County, MS.

Assuming a $3.50/Mcf price, demand for natural gas will grow 2.3% in 2003, with total supply declining 1%, according to Mississippi-based natural gas analyst Stephen Smith’s December energy outlook. Overall, the U.S. gas supply and demand picture looks positive in 2003, he said.

Bedminster, NJ-based NUI Corp. said last week that it will launch a non-binding open season for expressions of interest in up to 7 Bcf of firm gas storage to be developed in the Richton Salt Dome storage facility in Perry County, MS. The open season will run through 5 p.m. EDT on July 3.

SGR Holdings LLC. said Monday that its wholly-owned subsidiary — SG Resources Mississippi LLC. (SGRM) — will be conducting an open season for firm storage services from Feb. 4 through March 4 for the first 12 Bcf of storage capacity at its new Southern Pines Energy Center, located in Greene County, MS. SGRM has completed definitive engineering and the acquisition of land and pipeline rights-of-way required for the development of the new salt cavern natural gas storage facility, clearing the way for construction to begin during the third quarter of 2002.

Despite revised weather forecasts calling for a warm-up east of the Mississippi, natural gas futures shuffled higher Monday as traders continued to hedge for the possibility of a technical short-covering rally. The buying was concentrated in the morning hours and by 12:20 p.m. EST the February contract had already reached its peak for the day. However, only light selling was seen throughout the afternoon and as a result, the February contract managed to hold onto some of its morning advances. It finished at $2.25, up 4.6 for the session, but 7.5 cents off its high trade.

Gulfstream Natural Gas System, LLC broke ground Thursday on its $1.6 billion, 753-mile pipeline under the Gulf of Mexico from Mississippi and Alabama to Florida. The target for completion is June, 2002.

Mississippi River Transmission (MRT) is considering constructionof a new pipeline lateral from Horseshoe Lake, in Madison County,IL, to a connection with Natural Gas Pipeline Company of America inClinton County, IL. The new line would be designed to provide firmtransportation capacity of 230,000 Dth/d.

FERC yesterday gave Petal Gas Storage the go-ahead to expand anexisting interconnect between its storage facilities in Mississippiand affiliate Tennessee Gas Pipeline, despite strong objectionsfrom shippers that the company was displaying affiliate preference.It also granted Petal’s request to continue market-based pricingfor existing and expanded storage services.