Raise

Additional natural gas demand nationwide from new power generation capacity could equal up to 4 Bcf/d, according to a new report from Energy Security Analysis Inc. (ESAI). Using long-term operating assumptions, the analysts have concluded that maximum natural gas demand from new power units may actually exceed last year’s gas use at power plants in Florida and nearly equal it in the Southwest — setting up the potential for significant gas consumption this summer.

Record warmth and much below average storage withdrawals this winter have prompted Natural Gas Pipeline Company of America to file a request with FERC to increase the capacity of its Cook Mills storage field by 1.2 Bcf to 6.4 Bcf. The increase would be accomplished by raising the pressure of the field, which is located in Coles and Douglas counties, IL. No new facilities are planned, and NGPL said it does not intend to increase the deliverability of the field.

Columbia Gas told storage customers Friday that it will raise the Maximum Monthly Withdrawal Quantity (MMWQ) for February from 30% to 40% of the Storage Contract Quantity (SCQ).

What had seemed earlier to be a rather innocuous tropical wave, doing little more than providing lots of rain for the Florida peninsula, emerged as Tropical Storm Barry around midday Thursday and suddenly posed a very real threat to Gulf of Mexico production. Although most prices continued to soften Thursday, sources look for Barry to generate a rally in today’s trading for the weekend. The screen pointed the way upward for cash with a dime-plus gain Thursday.

Independents Noble Affiliates and Kerr McGee Corp. have sharplyincreased their capital investment budgets this year. Kerr-McGee isbudgeting a record $1.24 billion for capital expenditures in 2001,a 60% increase from the company’s 2000 capital expenditures, andNoble’s spending is being increased 40%, with 60% of the $700million being used for developmental projects.

Southern California Gas Co. said it is launching an informationcampaign this week to raise awareness of high natural gas prices.The campaign will include ads in major local newspapers and onradio stations, inserts in gas bills and direct mailings to alertcustomers to higher gas prices, explain the reasons for theincreases and outline their options to take greater control oftheir gas bills. SoCalGas is projecting that a monthly natural gaswinter bill for a typical residential customer will increase about$20, to $70 from $50. The company noted that unusually high demandthis summer has resulted in lower-than-expected gas storage levelsnationwide. This summer’s peak usage of natural gas on SoCal’ssystem for the first time exceeded the previous winter’s peak.SoCalGas is the nation’s largest gas distribution utility serving18 million consumers through 5 million meters. The company’sservice territory encompasses 23,000 square miles throughoutcentral and Southern California.

With gas futures prices soaring to a new record past $5, now isnot a bad time to raise price forecasts and expectations for thecoming winter and next year. Prudential Securities did just thatlast week by upping its predictions on spot wellhead prices to$4.10 for the second half of the year, $3.55 for all of 2000 and$3.65 for 2001.

With gas futures prices soaring past $5, now is not a bad timeto raise price forecasts and expectations for the coming winter andnext year. Prudential Securities did just that yesterday, uppingits predictions on spot wellhead prices to $4.10 for the secondhalf of the year, $3.55 for all of 2000 and $3.65 for 2001.

Although a recent rate case settlement allowed PG&E to raiseits distribution rates, the hike will not translate into higherbills for customers. The utility said its revised gas tarifffiling, which the California Public Utilities Commission yesterday,will actually reduce overall residential gas rates by 3.1%.