Overlooked

Shaking off last Friday’s softness, natural gas cash points across the country overlooked early spring temperatures to record gains across the board, but behind the scenes most of the talk was centered on what, if any, repercussions might the U.S. gas market see down the road from the unfolding tragedy in Japan.

Tumbling oil prices and the 60% gas storage surplus compared to the five-year average continued to pressure gas futures prices lower Monday as traders overlooked current snowy weather, below normal temperatures and forecasts of an active hurricane season.

Transwestern Pipeline told FERC earlier this month that it overlooked facts and the chronology of events prior to the Enron Corp. bankruptcy in pressing Transwestern and Northern Natural to explain the use of $1 billion in loans to support their failing parent company, Enron. Transwestern secured $550 million from Citicorp North America Inc. and JP Morgan Chase Bank that it then gave to its parent company in the weeks prior to Enron’s Chapter 11 filing.

Although a lot has been made of California’s gas pipeline and supply constraints, Southern California Gas Co.’s anti-bypass tariff, which has been discouraging the development of new pipelines — particularly Questar’s Southern Trails project — still has not received much political scrutiny.

Although a lot has been made of California’s gas pipeline and supply constraints, Southern California Gas Co.’s anti-bypass tariff, which has been discouraging the development of new pipelines — particularly Questar’s Southern Trails project — still has not received much political scrutiny.

In the battle between marketers and LDCs to restructure the gasindustry, commercial customers are being overlooked, according toKathleen Magruder, vice president of rates and tariffs for EnronEnergy Services (EES). “I had a regulator. say to me, ‘Well, ‘I’venever heard a commercial customer say they really want somechoice.’ So the next meeting I brought in 15 commercial customers.He was real unhappy.