Projecting

After projecting earlier that linepack on its California Gas Transmission system might exceed maximum target levels going into the weekend, Pacific Gas and Electric (PG&E) issued a systemwide Stage 2 high-inventory OFO for Saturday. Penalties of $1/Dth were set for exceeding a relatively lenient (at least for PG&E) tolerance of 20% on positive daily imbalances.

Projecting that linepack on its California Gas Transmission system would fall below minimum target levels Wednesday and Thursday, Pacific Gas & Electric issued a customer-specific low-inventory OFO for Wednesday.

Projecting that linepack on its California Gas Transmission system would be slipping slightly below minimum target levels from Wednesday through Friday, Pacific Gas & Electric issued a customer-specific low-inventory OFO for Thursday.

January natural gas futures posted gains as near-term weather prompted buying, but traders were cautious about projecting the weather-driven gains further, and suggested that prices would have to reach higher thresholds to prompt additional gains. January futures rose 15.7 cents to $5.645 and February added 15.6 cents to $5.675. January crude oil dropped $1.77 to $44.51/bbl.

Pacific Gas & Electric did not extend a systemwide high-inventory OFO on its California Gas Transmission system beyond Saturday.

The start-up date for the western portion of the Rockies Express Pipeline, known as REX-West, has become a moving target. Sponsors are now projecting that service on the bulk of REX-West will begin on or about Jan. 12.

The start-up date for the western portion of the Rockies Express Pipeline, known as REX-West, has become a moving target. Sponsors are now projecting that service on the bulk of REX-West will begin on or about Jan. 12.

Projecting continued stability and downward movement in wholesale prices, Bellevue, WA-based Puget Sound Energy (PSE) proposed a 13% drop in its retail natural gas utility rates Thursday in a filing with the Washington Utilities and Transportation Commission. PSE wants to make the rate cut effective Oct. 1. In a separate filing the utility also asked to lower a low-income surcharge.

The Energy Information Administration’s (EIA) Short-Term Energy Outlook for July pretty much mirrors its June outlook, with the agency projecting an annual increase of 4.3% in natural gas consumption and nearly flat production. It expects average spot prices in the third quarter to be slightly more moderate than those in the second quarter due in part to an anticipated return of near-normal weather.