Projected

While another shutdown of Central Gulf production is possible by the weekend given the projected path of Tropical Storm Wilma, producers made relatively substantial gains restoring supply over this past weekend. The Minerals Management Service (MMS) said that 149 MMcf/d of shut-in offshore production was restored since Friday, and consulting firm Bentek Energy said scheduled gas flows Monday on regional pipelines indicate onshore and offshore production rose about 414 MMcf/d.

Citing its current and projected storage inventory, ANR notified storage customers under its DDS and MBS rate schedules that effective last Tuesday, it must limit their account activity to zero net injections through Oct. 31, the end of the traditional injection season. ANR said it will continue to allow DDS/MBS injections “provided that an equal or greater amount of gas is withdrawn” prior to Nov. 1. “Please be advised that daily operating conditions and firm service confirmations will determine the daily level of interruptible storage activity allowed.”

Fueled by heat concerns and an upward revision in projected Atlantic hurricane activity, September natural gas futures kept their upward momentum Tuesday as the contract continued to take out old continuation highs.

With Hurricane Emily’s projected path shifting a little south to the northeastern Gulf Coast of Mexico, the futures market breathed a sigh of relief on Monday, bringing fixed cash prices down as well. Basis, however, widened at many market points due to the continued oppressive heat and humidity across most of the country that kept power generators active.

Republican Sens. Mel Martinez of Florida and Elizabeth Dole of North Carolina have called on the Congressional Budget Office (CBO) to review the projected cost of carrying out an inventory of oil and natural gas resources in the federal Outer Continental Shelf (OCS).

With a projected path eerily similar to last season’s devastating Hurricane Ivan, Tropical Storm Arlene on Thursday, although still far weaker than Ivan with only 40 mph winds, already was prompting producers to exit the eastern and central Gulf of Mexico in rapid fashion.

ENSTAR Natural Gas Co., which delivers natural gas to about 327,000 customers in Alaska, may consider importing liquefied natural gas (LNG) to deal with projected shortages in the southeastern part of the state, the president said earlier this week.

The region encompassing the Northeast Power Coordinating Council (NPCC) is projected to have adequate power supplies this summer, although portions of New England and New York could experience a very limited number of time periods when use of interruptible power contracts, voltage reductions and/or reductions in reserve requirements could be required, NPCC said on Thursday.

Citing projected cold weather later this week and anticipated load requirements, Dominion said a System Wide Alert will take effect Thursday. All customers should monitor hourly deliveries from Dominion and act to minimize hourly variances in those deliveries in an effort to avoid further action by the pipeline, it said.