Onset

As red maple leaves and frosty mornings herald the onset of heating season in Quebec, distributor Gaz Metro Inc. (GMI) is asking for cancellation of a pipeline safety directive that could make fall extra chilly for French Canadian natural gas consumers.

As red maple leaves and frosty mornings herald the onset of heating season in Quebec, distributor Gaz Metro Inc. (GMI) is asking for cancellation of a pipeline safety directive that could make fall extra chilly for French Canadian natural gas consumers.

Because of the lingering supply disruptions in the Gulf of Mexico and the late onset of colder-than-normal winter weather, Raymond James analysts this week hiked their 1Q2006 price estimate to $12.50/Mcf from $8.25, and their 2Q2006 forecast to $9.75 from $9. However, Houston-based Gerdes Group is forecasting a year-over-year moderation, with 2006 1Q prices averaging $8.26/MMBtu.

With December and the onset of the winter natural gas demand season, the more than doubled capacity at Southern California Gas’ key Southern California interconnection, Kramer Junction, is operational but so far it is far from being fully utilized, a utility spokesperson said Friday in response to a NGI inquiry.

With December and the onset of the winter natural gas demand season, the more than doubled capacity at Southern California Gas’ key Southern California interconnection, Kramer Junction, is operational but so far it is far from being fully utilized, a utility spokesperson said Friday in response to a NGI inquiry.

The onset of competition in Canadian natural gas transportation may have made the field riskier for TransCanada PipeLines, but not by enough to persuade the nation’s principal regulator, the National Energy Board (NEB), that the change justifies rich compensation. The NEB handed down a long-awaited verdict on effects of industry upheavals since the late 1990s, concluding that the pipeline deserves a 2% raise in rates rather than the 12% increase it had requested.

With the onset of warming weather and rolling blackouts, California officials and energy industry stakeholders are trying to find more common ground, but the much-needed legislative and financial solutions failed to materialize last week. The governor, generators and legislators are expected to get together this week to seek a way to salvage proposed solutions, and state regulators will decide how to spread already-approved electricity retail rate increases.