Fueled by a steady flow of short covering, natural gas futureserupted higher late yesterday morning as traders looked pastbearish storage data and focused on constructive short-term weatherand technicals. After testing support in the $2.65-67 area around10 a.m. (CST), the April contract rallied throughout the rest ofthe session to finish up 7.6 cents at $2.786.
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Panda Vies for Florida Generation Play
Panda Energy Intl. Inc. paved the way for its entrance into theFlorida generation market yesterday by announcing that petitionsfor determination of need have been filed with the Florida PublicService Commission to build two 1,000 MW power plants. Both plantswill cost $300 million and are expected to begin commercialoperation in May of 2003.
Conoco’s Canadian Play Continues
Conoco Inc.’s Canadian midstream arm, Conoco Canada Limited,said last week it has acquired the bulk of Petro-Canada’s naturalgas liquids (NGL) business, including the fifth largest natural gasprocessing plant in North America, for an undisclosed sum. Closingon the purchase is scheduled to be completed in the second quarterof 2000.
Conoco’s Canadian Play Continues
Conoco Inc.’s Canadian midstream arm, Conoco Canada Limited,said yesterday it has acquired the bulk of Petro-Canada’s naturalgas liquids (NGL) business, including the fifth largest natural gasprocessing plant in North America, for an undisclosed sum. Closingon the purchase is scheduled to be completed in the second quarterof 2000.
Failure Above $2.60 Brings Bears Out to Play
It was in like a lion and out like a lamb for March’s debut asthe spot month Friday as traders took the contract higher at theopening bell only to deliver it lower throughout the rest of thesession. March finished down 1.7 cents at $2.532.
Futures Push Higher as Traders Play it Safe
After trading within a wide, 20-cent trading range Friday,natural gas futures were noticeably quiet yesterday as little inthe way of either fundamental or technical information was seen topropel prices in either direction.
TRC Commissioner Touts TX Gas
Texas stands to play a larger role in meeting the nation’sdemand for natural gas, according to one member of the TexasRailroad Commission. After reviewing a report by the NationalPetroleum Council titled “Meeting the Challenges of the Nation’sGrowing Natural Gas Demand,” TRC Commissioner Tony Garza said hesaw opportunities for the state.
Weather and Storage Play Havoc on Futures Prices
Still reeling from a “devastating” weather picture the naturalgas futures market gapped lower on the open yesterday and continuedlower as traders added to short positions. By slipping 7.3 cents to$2.451 the December contract came perilously close to breakingthrough the lowest level of any spot contract since summer lowswere put in. The January contract, meanwhile, fared even worse,dropping 8.5 cents to finish at $2.596.
More LNG Coming to U.S. in 2000
Liquefied Natural Gas (LNG) imports could play a larger role inserving U.S. gas demand next year if strong domestic gas prices andan abundance of LNG on the spot market remain. While LNG servesonly a fraction of U.S. demand, imports have been growing thisyear, most recently with two agreements announced last week.
Pinnacle to Build 2,120 MW Palo Verde Gas Plant
Gas-fired megawatts were in play last week as the parent ofArizona Public Service and part-owner of the Palo Verde NuclearGenerating Station pledged to put a massive 2,120 MW naturalgas-fired plant beside its nuclear facility; Texas Utilities putsix gas-fired generating plants (3,116 MW) on the market; andCalpine Corp. announced a new 800 MW cogen plant in Baytown, TX,and completed the purchase of another 500 MW development project inCalifornia. (See separate story)