Peaks

Looking to help handle the normal peaks and valleys in natural gas demand in the South, Dallas-based Atmos Energy Corp. subsidiary Atmos Pipeline and Storage LLC has submitted a pre-filing request with FERC to construct and operate a 15 Bcf salt-cavern gas storage project in Franklin Parish, LA.

Looking to help handle the normal peaks and valleys in natural gas demand in the South, Dallas-based Atmos Energy Corp. subsidiary Atmos Pipeline and Storage LLC has submitted a pre-filing request with the Federal Energy Regulatory Commission to construct and operate a 15 Bcf salt-cavern gas storage project in Franklin Parish, LA.

While most of the cash market was higher by double-digit amounts Friday due to colder weather returning to the Midwest and South, Northeast citygates reversed price direction again and plunged by several dollars each, despite already being in the midst of an intense cold spell that was expected to continue through Monday.

Raymond James bumped down its natural gas price forecasts for the third and fourth quarter, and also dropped its gas price forecast for 2004 to $5.50 from $6.00/Mcf after analysts reviewed recent trends in U.S. fuel switching thresholds. Linking oil and gas pricing for the past several years, analysts said they now have enough data to more accurately predict how high prices have to go before “meaningful” fuel switching-related demand destruction begins to occur.

Raymond James bumped down its natural gas price forecasts for the third and fourth quarter, and also dropped its gas price forecast for 2004 to $5.50 from $6.00/Mcf after analysts reviewed recent trends in U.S. fuel switching thresholds. Linking oil and gas pricing for the past several years, analysts said they now have enough data to more accurately predict how high prices have to go before “meaningful” fuel switching-related demand destruction begins to occur.

Los Angeles County Economic Development Corp. (LAEDC), a nonprofit economic development group, indicated in its latest weekly economic outlook for the region and state that energy this summer could be a worrisome component of the state’s sagging economy. It particularly targeted the potential ill-effects of high natural gas prices, which could be felt more severely in the East than the West, the forecast noted.

One of California’s most diligent economic analysis/forecasts published by the Los Angeles County Economic Development Corp. (LAEDC), a nonprofit economic development group with increasing statewide reach, indicated in its latest weekly economic outlook for the region and state that energy this summer could be a worrisome component of the state’s sagging economy. It particularly targeted the potential ill-effects of high natural gas prices, which could be felt more severely in the East than the West, the forecast noted. “The current cool weather will not last forever,” wrote economist George Huang in LAEDC’s forecast for the week of June 9-15. “When the mercury goes up, electricity grid operators get nervous.” He credited last year’s relatively cooler summer in California for preventing blackouts, adding “we may not be so lucky this summer.”

Price spikes during summer and winter demand peaks over the last several years in the New York City metropolitan area have not gone unnoticed, and a succession of pipeline projects with heavy duty sponsors are marching forward to fill in the gap. The first two totaling 175 MMcf/d of capacity are slated to go into service in November.

Price spikes during summer and winter demand peaks over the last several years in the New York City metropolitan area have not gone unnoticed, and a succession of pipeline projects with heavy duty sponsors are marching forward to fill in the gap. The first two totaling 175 MMcf/d of capacity are slated to go into service in November.