Season

FERC Chairman Pat Wood said the Commission was keeping close tabs on natural gas prices as the winter heating season gets underway to determine whether any manipulation has been involved in the current price run-up.

With expectations that storage will be full at the end of the injection season, futures market participants have said for weeks that the only thing that could stem the market downtrend was a strong Gulf hurricane. As the Minerals Management Service tallied more than 4 Bcf/d of shut-ins Tuesday caused by Category 4 Hurricane Ivan, these prognosticators appear to be right on.

Continuing the trend this season of mimicking the crude oil futures market, the June natural gas futures contract followed its liquid big brother lower on Monday, closing down 11 cents at $6.184. The drop was in contrast to the start of last week, when June natural gas futures enjoyed a 36.9-cent breakout gain.

Energen CEO Mike Warren promised $1 billion in exploration and production (E&P) asset purchases over the next four years after high commodity prices helped the Alabama utility company cash in during the quarter ended March 31 on its recent E&P growth.

Energen CEO Mike Warren promised $1 billion in exploration and production (E&P) asset purchases over the next four years after high commodity prices helped the Alabama utility company cash in during the quarter ended March 31 on its recent E&P growth.

Transcontinental Gas Pipe Line (Transco) said it is holding an open season from Jan. 14 to Feb. 13 for firm transportation service from Zone 6 at Station 210 along the Trenton-Woodbury line. If sufficient market demand exists, the pipeline would file an application with FERC for another Trenton-Woodbury expansion project.

Transcontinental Gas Pipe Line (Transco) said it is holding an open season from Jan. 14 to Feb. 13 for firm transportation service from Zone 6 at Station 210 along the Trenton-Woodbury line. If sufficient market demand exists, the pipeline would file an application with FERC for another Trenton-Woodbury expansion project.

Buoyed by the coldest air thus far this season, the natural gas futures market turned higher Wednesday as weak shorts covered their positions. Cash prices, which were up nearly 75 cents at some locations, were also seen as a price supportive factor, traders agreed. The December contract received the biggest buying boost, up 17 cents at $4.897. At 59,166, estimated volume was very light considering the size of the price hike.

Fueled by the first real blast of warm air of the cooling season, natural gas futures prices rallied and retreated Monday as traders alleviated oversold conditions and then turned and took profits. Local traders were active in the price movement, adding liquidity and volatility to the gas pit at Nymex.