Offset

Buying for storage injections finally proved unable to offset the retreat of weather-related load Wednesday, and the result was falling cash prices across the board.

As a producer predicted, Monday’s screen plunge of 61.8 cents was able to more than offset this week’s surge of colder weather and induce falling cash prices at all points Tuesday. High comfort levels with storage inventories contributed to the bearishness.

Natural Gas Pipeline Company of America (NGPL) has petitioned FERC to grant a partial waiver of the secondary point rights in its tariff to help offset the impact on pipeline shippers of planned capacity reductions that will occur on a segment of its Gulf Coast Line due to maintenance, testing and other activities during the first half of 2006.

FERC staff warned the Commission Thursday not to expect lost Gulf production to be offset somehow this winter by imports or gas from storage. Although storage levels have continued to rise in November putting the country in a better position to manage cold weather, storage alone cannot make up for 3.7 Bcf/d of shut-in production, much of it likely to remain shut in until next spring, said Stephen Harvey, deputy director of the Office of Market Oversight and Investigations.

Record energy prices offset the negative impact from Hurricanes Katrina and Rita, sending Kinder Morgan Inc. (KMI) 3Q profit up 12% from a year ago. Third quarter net income slightly surpassed analysts’ expectations, to stand at $124.8 million ($1.01/share), compared with $111.9 million (90 cents) for the same period of 2004. Master limited partnership Kinder Morgan Partners LP (KMP) earnings were up 18% for the quarter, contributing $144.2 million, compared with $122.1 million a year ago.

Higher sales in the second quarter failed to offset a loss in the natural gas liquids (NGL) marketing business and higher energy costs, Enterprise Products Partners LP said Monday. The Houston-based company, which Wall Street had forecast would earn 22 cents/unit, instead reported quarterly net income was flat: $33.1 million (11 cents/unit), compared with net income of $33.1 million (14 cents) in 2Q2003.

Brought on by lower earnings in its natural gas transmission segment, partially offset by higher earnings from the power business, TransCanada Corp. on Friday posted 2Q2003 net income of C$202 million or C$0.42 per share, compared to C$205 million or C$0.43 per share for the second quarter 2002. The quarter was almost like deja vu from 1Q2003, when the power segment’s contribution bailed out the company (see Daily GPI, April 28).

Brought on by lower earnings in its natural gas transmission segment, partially offset by higher earnings from the power business, TransCanada Corp. on Friday posted 2Q2003 net income of C$202 million or C$0.42 per share, compared to C$205 million or C$0.43 per share for the second quarter 2002. The quarter was almost like deja vu from 1Q2003, when the power segment’s contribution bailed out the company (see NGI, April 28).

NiSource Inc. last week said cold weather and an asset sale offset the negative effects of a rate review settlement, accounting rule change and higher pension expense during the first quarter, resulting in a 5% hike in net income for the period from a year ago.