Access trading kept traders on their toes late last week. Aftera more than 7-cent rally in last Wednesday’s computer-only tradingsession, the June contract doubled back Thursday evening, slippingmore than 5 cents lower before Friday’s open. And the selling wouldnot stop there as bears continued their push toward lower pricesthroughout the trading session Friday. June finished down 8.6 centsfor the day at $2.253.
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NGSA Fraud Probe Uncovers ‘Canadian’ Connection
An attorney for the Natural Gas Supply Association (NGSA)revealed Friday that the civil investigation into the allegedembezzlement activities of the group’s ousted president, NicholasJ. Bush, has spread to Canada.
Sempra Expanding Distribution in Non-Traditional Areas
Sempra Energy is banking on a belief in the traditionalregulated pipes and wires business, but with a couple new twists.The holding company for San Diego Gas & Electric and SouthernCalifornia Gas is literally breaking new ground in North America,while buying into established utilities as far south as theSouthern Cone of South America.
June Fizzles After Fast Start
After spiking as much as 7 cents higher in the Wednesday eveningAccess session, the new prompt month was the focus of muchconjecture and speculation. Would June continue higher, followingthe example set by May, or fall from its already lofty perch? Formany, it is still too early to tell, but if yesterday’s priceaction was any indication, June will have a difficult time matchingMay’s 50-cent price increase over the past month. After opening at$2.40, the June contract tumbled throughout the session to close at$2.339, a 0.2-cent decline from Wednesday’s close.
Pipeline Certificate Process Gets Face-Lift at FERC
Regulations pertaining to the construction of new pipelineprojects took the spotlight at FERC yesterday, with the Commissionapproving a final rule aimed at updating and streamlining thecertificate process for new projects, including a change in thetimetable for the filing of project-related environmental data.FERC also proposed an initiative that would give landowners greaterparticipation in the certification process.
Southern Union Increases Its Southwest Gas Offer
Disappointed by Southwest Gas’ board of directors’ decision toaccept Oneok’s $30/share merger offer over its own $32/share offer,Southern Union decided to up the ante late Tuesday by increasingits bid to $33.50/share. With the increase, Southern Union’s offernow exceeds Oneok’s by $108 million, Southern Union said.
Power Generation, Marketing Boost Dynegy Earnings
Dynegy had a whopper of a first quarter, posting a 66% increasein operating income from wholesale gas and power marketingoperations and a 20% jump to $22.3 million in net income from alloperations, excluding special items.
Industry Still Divided on Pipeline Rules
Based on comments filed by trade associations last week, thenatural gas industry is split straight down the middle on most ofthe major initiatives in the notice of proposed rulemaking (NOPR)and notice of inquiry (NOI) – with the regulated pipelines and LDCssupporting proposals that would lighten FERC’s grip on pipelinetransportation, and non-regulated producers, marketers andmunicipal distributors concerned the measures could wreak havoc.
Columbia, Dominion Battle for CNG
By the close of trading last Friday, Columbia Energy Group’s$6.7 billion unsolicited bid for Consolidated Natural Gas still hadthe edge on Dominion Resources’ all stock offer worth $5.9 billion,but Dominion’s stock price was gaining ground.
Gas Industry Itemizes Obstacles to a 30 Tcf Market
In a rare display of unanimity, pipelines and producers lastweek said the federal government’s ban on oil and gas production ona wide swath of public lands – both onshore and offshore – was thebiggest obstacle to supplying the 30 Tcf of gas needed to meet theClinton administration’s proposed global-warming targets.