Peak

Union Gas is holding a binding open season for long-term peak storage space at its 150 Bcf Dawn storage hub in Ontario. Three-year storage services are being offered with terms beginning in April 2006.

Berlin, CT-based Yankee Gas broke ground Thursday on a new $108 million 1.2 Bcf LNG peak shaving facility at the company’s Eagle Street work center in Waterbury, CT’s south end. The plant, which recently received construction approval from the Connecticut Department of Utility Control, is expected to be in service for the 2007/2008 heating season.

Despite about 50 Bcf/d of LNG import capacity planned in North America, new projects continue to be announced at a rapid clip. ConocoPhillips said Wednesday that it has submitted an application to the U.S. Coast Guard for construction of the Beacon Port Clean Energy Terminal in the federal waters of the Gulf of Mexico about 56 miles south of Louisiana.

Natural gas prices weakened significantly in August as cooling demand levels and peak power demand stayed well below normal for the second month in a row, the Energy Information Administration (EIA) said in its Short-Term Energy Outlook for September. But it expects spot gas prices to bounce back once the winter heating season starts.

Natural gas prices weakened significantly in August as cooling demand levels and peak power demand stayed well below normal for the second month in a row, the Energy Information Administration (EIA) said in its Short-Term Energy Outlook for September. But it expects spot gas prices to bounce back once the winter heating season starts.

When natural gas prices retreated from a peak in May 2003 there were signs that “switching-capable” industrial customers were returning to natural gas, according to Raymond James’ latest “Stat of the Week.” And, along with falling gas prices, the rise in price of emissions credits likely will give industrial consumers even more incentive to switch to gas.

When natural gas prices retreated from a peak in May 2003 there were signs that “switching-capable” industrial customers were returning to natural gas, according to Raymond James’ latest “Stat of the Week.” And, along with falling gas prices, the rise in price of emissions credits likely will give industrial consumers even more incentive to switch to gas.

North American producers have reached their peak in unit deliverability for natural gas, and as production continues to decline, the United States will gradually slip into becoming import dependent, the CEO of Exxon Mobil Corp. warned last Tuesday. With a time frame of 15-20 years “the United States will get in gas in the same position as oil,” said Lee R. Raymond.

Wednesday’s cash market was basically a repeat of what happened on Tuesday with Northeast prices making further gains of more than 60 cents to highs well above $10 at most locations while the rest of the market was flat or slipped a little with the weakness in the futures market and forecasts of warmer temperatures next week.