Pause

Soaring construction costs are forcing producers to once again “pause” discussions with the Canadian government over the long-proposed Mackenzie Gas Project (MGP), an Imperial Oil Co. executive said Wednesday.

The recent storage- and weather-driven downturn in natural gas prices has given investors pause, but producers remain undaunted, according to Raymond James & Associates Inc.

The recent storage- and weather-driven downturn in natural gas prices has given investors pause, but producers remain undaunted, according to Raymond James & Associates Inc.

Nobody got faked out by the semi-pause Thursday in last week’s headlong price tumble. As NGI sources had predicted, softening resumed Friday with a vengeance. Except for flat to only moderately lower numbers in the Rockies, prices tended to slump between about 40 cents and nearly $1.80. Most losses were in the range of 50-80 cents.

As if the spiraling decline in natural gas spot prices was not enough to give producers pause, natural gas and oil field operating costs are now on the rise, according to Ziff Energy Group’s 2001 study of 200 oil and gas fields in Western Canada.

As if the spiraling decline in natural gas spot prices was not enough to give producers pause, natural gas and oil field operating costs are now on the rise, according to Ziff Energy Group’s 2001 study of 200 oil and gas fields in Western Canada.

Fueled by forecasts calling for cooler temperatures throughoutmuch of the country later this week, natural gas futures probedhigher in two distinct buying surges yesterday. The first push cameshortly after Monday’s lower open, when traders bid the Januarycontract to $2.50. However, those gains were erased almost entirelyby early afternoon, intra-day profit taking. But the bulls were notfinished, and after digging in their heels at $2.47, weresuccessful in pushing prices through $2.50 late in the session. TheJanuary contract finished up 6.3 at $2.509.

Too little, too late was the apt expression for the futuresmarket yesterday, which continued lower despite what someconsidered to be the most constructive fundamentals yet thiswinter. And so the April contract took a page out of the Marchcontract’s playbook, slipping 3.8 cents to $1.659 amid a tight,6-cent trading range. Estimated volume was high for the usuallyquiet day-after expiration with 65,714 contracts changing hands.

After a pause for consideration by one potential taker,TransCanada PipeLines, Canada’s second-biggest pool of natural gassupplies is again looking for new owners. Pan-Alberta Gas’president, Ross Weaver, confirmed, “we are still for sale.”