Recently

Activity in the natural gas pit at NYMEX has beenuncharacteristically quiet recently with low volatility and sub-5cent trading ranges the rule rather than the exception. In fact,the only real excitement in the past couple of weeks came Mondaywhen the July contract bounced 3 cents in a late rally. But eventhat was quickly dismissed by many traders who considered itnothing more than a freak, expiration-day anomaly in an otherwisesubdued market. Enter the August contract, which wasted little timeyesterday in moving dramatically higher in a rush of speculativeand commercial buying. The newly crowned prompt month finished up7.6 cents for the session at $2.400.

In an effort grow its natural gas asset portfolio, Aquila Energy, UtiliCorp’s energy services subsidiary, recently formed a gas asset acquisition arm called Natural Gas Partners. The new entity was created to purchase storage facilities, pipelines and other properties as well as enter alliances, management deals and partnerships. The unit, which has not yet reached its full work force, is based in Kansas City, MO.

In an effort to diversify its energy services, Aquila Energy,Utilicorp’s energy services subsidiary, recently formed a gas assetacquisition arm called Natural Gas Partners. The new entity willpurchase storage facilities, pipelines and other properties as wellas enter alliances, management deals and partnerships. The unit,which has not yet reached its full work force, is based in KansasCity, MO.

Putting more emphasis its core business, Crystal Oil Co. changedits name recently to Crystal Gas Storage Inc. The company owns andoperates two natural gas storage facilities near Hattiesburg, MSand owns interests in other natural gas properties in Louisiana.

A strategic alliance between Sempra Energy Trading and recentlyformed MEG Marketing LLC of Georgia is targeting the Southeast witha stable of energy products and seeks to capitalize on MEG’s statusas a minority/woman-owned business.

Gov. Bill Owens recently signed Colorado’s gas deregulationbill, SB99-153, opening the door for voluntary unbundling by thestate’s gas utilities. The question now is how many utilities willwalk through the opening?

Sonat exercised an option recently to buy back 35% interest inSonat Power Marketing from Atlanta Gas Light (AGL). The price wasnot released. Sonat did say it will be at fair market valuedetermined by investment banks selected by Sonat and AGL. Sonatalready owns the other 65% of Sonat Power Marketing.

Many market prognosticators have realized recently that theirgas price projections are quite a bit too low for the rest of theyear because of declining gas wellhead deliverability, a reducedstorage surplus relative to last year and ever increasing gasdemand. The Energy Information Administration joined that crowdlast week, raising its wellhead price forecast for the fourthquarter 25 cents to $2.41/Mcf.

Many market prognosticators have realized recently that theirgas price projections are quite a bit too low for the rest of theyear because of declining gas wellhead deliverability, a reducedstorage surplus relative to last year and ever increasing gasdemand. The Energy Information Administration joined that crowdyesterday, concluding its wellhead price forecast for the fourthquarter was 25 cents too low. It raised it to $2.41/Mcf in its MayShort Term Energy Outlook.