Natural

CMS Energy moved a step closer to its liquefied natural gas(LNG) goals yesterday, as its energy marketing arm, CMS Marketing,Services and Trading, (CMS-MST) purchased three LNG shipments fromRas Laffin LNG Co. Limited (Rasgas) in Qatar. The three cargoes,carrying a combined 8.1 Bcf, will be delivered in November andDecember of this year and in February of 2000 to CMS’ LNG complexin Lake Charles, LA, then fed into CMS Trunkline’s interstatepipeline system. The overall cost for the shipments was notreleased.

The possibility of a market-based solution to California’snatural gas industry restructuring stayed alive yesterday when moretime was allowed by state regulators for about 75 parties to hammerout a settlement. Without a deadline extension from the CPUC, hopesof a market-based solution to the state’s future gas unbundlingwould have been abandoned in favor of another round of regulatoryhearings. The settlement process now has until Oct. 27 to come upwith a broad-based agreement. The previous deadline was Sept. 6.

Development is accelerating on Canada’s newest natural gasfrontier, as a third production project steps forward to tapdiscoveries in the southern Northwest Territories.

A second merchant underground natural gas storage field inCalifornia proposed for a depleted gas field 20 miles south ofSacramento is awaiting a draft environmental report from stateregulators in September to stay on its current timetable forstart-up next Spring.

A second merchant underground natural gas storage field inCalifornia proposed for a depleted gas field 20 miles south ofSacramento is awaiting a draft environmental report from stateregulators in September to stay on its current timetable forstart-up next Spring.

Just as Tropical Storm Bret was being downgraded to a drenchingrain event for South Texas the natural gas futures market wasundergoing a downgrading of its own yesterday, as traders tookprofits in a mid-morning sell-off. However, by mid-afternoon theNational Hurricane Center had anointed the latest two tropicaldepressions-Dennis and Emily-into tropical storms and that wasenough to convince those sellers to become buyers. That was almostenough to recoup the earlier price decline, leaving the Septembercontract to finish the session with only a half-cent loss to$3.059.

For the third morning in a row natural gas futures gapped higherat the open before continuing upward as traders covered shortpositions in anticipation of Tropical Storm Bret becoming the firsthurricane in the 1999 Atlantic season. But after notching a $3.015high shortly after noon, the September contract was hit with a waveof profit-taking that delivered the spot month back down to settleat $2.938. Estimated volume was healthy, with 99,927 contractschanging hands.

The Natural Gas Supply Association (NGSA) wasted little time inpicking successors to fill positions that were left vacant by thesudden departures of two staff members.

Mexico last Monday lifted its 4% tariff on natural gas importedfrom the United States, the Energy Ministry announced. This clearsthe way for expanded gas sales by U.S. companies into thefast-growing markets in northern Mexico.