Adding to gains achieved during Monday’s impressive rebound,natural gas futures erupted higher yesterday as traders bid theJuly contract to a new all-time high for a prompt month at Nymex.After gapping higher to open at $4.65, July checked back and forth,before eventually closing at $4.686, up 12.6 cents for the session.
Monday
Articles from Monday
SoCalGas Promotes Gas-Fired Micro-Turbines
On the heels of last week’s power outages in the northern partsof the state, Southern California Gas Monday stepped up its push ofnatural gas-fired micro-turbines for small and medium-sizebusinesses as an alternative to grid-dependent electrical supplies.
Moderate Dips Likely to Grow Greater After Screen Dive
Cash prices were already headed downward Monday in the greatmajority of cases, but that’s nothing like the beating they’reexpected to take today after futures went into a free-fall, losingmore than 40 cents in the July contract.
Industry Briefs
Houston’s Torch Energy Advisors Inc. announced Monday that itformed a wholly owned subsidiary, Torch Energy TM Inc. (TETM).Natural gas marketing, along with refined products, derivativesmarketing and specialty product transactions will now be handled byTETM. Torch and its subsidiaries provide extensive outsourcingservices, including financial and accounting services, oil and gasoperations, hydrocarbon marketing and property acquisitions anddivestitures. Contact Blake Beyer at (713) 756-1881 forinformation.
U.S., Mexican Firms Propose New Connection
Sempra Energy, PG&E Corp. and Proxima Gas SA de CV announcedMonday a three-way effort to build and operate a $230 million,212-mile natural gas pipeline to serve the rapidly growing energyloads in the southern end of California and the northern tip ofBaja along the U.S.-Mexico border. The principal target market isnew and existing electric generating plants and “otherenergy-intensive industries” in northern Baja, the sponsors said.
Enron Tests Mettle in Bid for Metals Trader
Energy powerhouse Enron decided to test its mettle once againMonday, offering British metals trader MG Plc $4.46 per share cashoffer in its bid to enter a new marketplace. The bid values MG at$445 million (300 million pounds sterling).
Futures: Selling Stems Early Follow-Through Buying
Bolstered by follow-through buying on the heels of Monday’s14.5-cent rally, natural gas prices pressed higher early yesterdayonly to tumble back to near unchanged. At the closing bell, Junefutures were up a scant 1.3 cents at $3.183.
Transportation Notes
Koch Gateway began scheduled maintenance Monday on its SouthHenderson Line (FPL 3) in East Texas. The work, which is expectedto last 10 days, is causing shut-ins at 14 points, butaffectedshippers are being kept whole on the delivery side.
Transportation Notes
Reporting that linepack was heavy on its south end, Northwestsaid Monday no on-system balancing and limited off-system balancingis being allowed in that segment.
SoCalGas Files Final Settlement Proposal to CPUC
Once again up against a regulator-imposed deadline, SouthernCalifornia Gas on Monday is expected to file its latest attempt ata final, all-parties settlement in California’s never-endingnatural gas industry restructuring, which has been dragging on formore than two years.