Peak

With the Florida forecast calling for peak temperatures in the mid 90s, Florida Gas Transmission issued an Overage Alert Day for customers in its market area Monday.

Earlier in July as power demand and prices began to peak, Tucson, AZ-based UniSource Energy Services (UES) forewarned its natural gas customers in the northern part of Arizona about the likelihood of higher gas utility bills this winter. Per-therm gas costs could rise to $1.32 in November, drop back and then rise again to about $1.37/th in March of next year, UES announced.

Southern Union Co.’s Trunkline LNG terminal in Lake Charles, LA, has completed its Phase II expansion project, increasing its peak sendout capacity to 2.1 Bcf/d from 1.5 Bcf/d through the addition of additional pumps, vaporizers and unloading capabilities at the facility’s second dock as well as a second 23-mile, 36-inch diameter pipeline to Trunkline’s existing mainline between Kaplan, LA, and Longville, LA. Average sendout capacity was increased to 1.8 Bcf/d from 1.2 Bcf/d.

Southern Union Co.’s Trunkline LNG terminal in Lake Charles, LA, has completed its Phase II expansion project, increasing its peak sendout capacity to 2.1 Bcf/d from 1.5 Bcf/d through the addition of additional pumps, vaporizers and unloading capabilities at the facility’s second dock as well as a second 23-mile, 36-inch diameter pipeline to Trunkline’s existing mainline between Kaplan, LA, and Longville, LA. Average sendout capacity was increased to 1.8 Bcf/d from 1.2 Bcf/d.

Peoples Energy’s oil and gas production subsidiary, Peoples Energy Production, added about 59 Bcfe of proved gas reserves in the heart of the Cotton Valley/Travis Peak (Hosston) gas trend in East Texas, North Louisiana and Mississippi for $139 million. The company also announced that it has received proposals and is in negotiations to sell its power generation assets (800 MW) and exit that business.

The $8 price drop in near-month natural gas futures since the $15.780 price peak in mid-December is attracting some demand back into the market. Fertilizer manufacturers Terra Industries and Agrium Inc. said last week that falling gas prices and other factors have enabled them to resume production of ammonia and upgraded products at three of their idled facilities.

The near $7.50 price drop in near-month natural gas futures since the $15.780 price peak in mid-December is attracting demand back into the market. Fertilizer manufacturer Terra Industries said Wednesday that falling gas prices and other factors have enabled it to resume production of ammonia and upgraded products at its Woodward, OK, facility.

With bearish fundamentals finally in the driver’s seat of the gas market once again, futures prices have plummeted to about $9.50 from a peak of $15.78 on Dec. 13, 2005, and analysts are dropping their forecasts for 2006. Arlington, VA-based Energy and Environmental Analysis Inc. (EEA) now predicts Henry Hub prices will be back to $6.45 by April and eventually will hit $5.50 by October when all the shut-in Gulf gas production has returned.

The Massachusetts State Auditor on Thursday reported lax oversight by the Department of Telecommunications and Energy (DTE) of the state’s 20 peak shaving and satellite liquefied natural gas (LNG) storage facilities. The facilities, which are a various locations around the state, hold about 9.5 Bcf of natural gas and can deliver a total of 1 Bcf/d.