Reactions

Local tussles continued into the new year with the ongoing comments and reactions to a draft environmental review of NorthernStar Natural Gas’s proposed Bradwood Landing liquefied natural gas (LNG) terminal along the Columbia River in Oregon. Local county and FERC officials traded comments over the holiday period focusing on some third parties that are part of the debate, and FERC said late in December it was concerned about a potential conflict of interest by an environmental contractor that is working on both Bradwood and a related interstate gas pipeline project.

Local tussles continued into the new year with the ongoing comments and reactions to a draft environmental review of NorthernStar Natural Gas’s proposed Bradwood Landing liquefied natural gas (LNG) terminal along the Columbia River in Oregon (see Daily GPI, Dec. 27, 2007). Local county and FERC officials traded comments over the holiday period focusing on some third parties that are part of the debate.

Buoyed by sustained strength in exports as well as snap reactions to cold fronts on commodity markets, Canadian forecasters have raised their expectations for 2003 natural gas prices.

Restraining themselves on what challenges, if any, will be made to the federal wholesale power price mitigation ordered Monday, both friends and foes of price caps expressed skepticism Tuesday about the prospects for the new wholesale price limits in the western states.

Ever-timid in their reactions to the increasing number ofemergency requests from utilities of late,ÿCaliforniaÿregulatorsmodestly extended a new securitization contract approach tomaintaining Pacific Gas & Electric’s future fuel supplies. TheCPUC action allows PG&E to continue offering suppliers theoption of a lien in retail customer bills that covers the full costof wholesale gas prices. Its 30 to 40 suppliers can sign on for upto 180 days (from the previous 90-day limit). PG&E hadrequested the securitization deals be extended up to 365 days.

Surprise, even shock, are common reactions to what occurs on the New York Mercantile Exchange on expiration day of a spot month gas futures contract, but yesterday many natural gas traders must have come close to suicidal trauma. Not because of price volatility, however. At about 1:50 p.m. EST, someone at the Teleport Communications Group, the telephone carrier that serves the trading floors of the New York Mercantile Exchange, pulled the plug. All commodity trading, including of course gas futures, screeched to a halt, creating a hair-raising state of panic.