Seasonal

While discounting current highs as seasonal and political, the Canadian natural gas sector sees the North American market shaping up as strong enough to stimulate a fresh and sustained run at expanding supplies.

If the analysis of a top industry observer is correct, prices still have some room left to move higher but little time to do so. As the end of the year approaches, traders should be prepared to recognize that the high prices for the season may be in, he said.

If the analysis of a top industry observer is correct, prices still have some room left to move higher, but as the end of the year approaches traders should be prepared to recognize that the high prices for the season may be in.

KeySpan Corp.’s gas distribution side posted a slightly larger seasonal loss in the third quarter compared to last year and a drop in exploration and production (E&P) earnings from its 67% ownership in Houston Exploration Co. The Brooklyn, NY-based company’s electric operations, meanwhile, were the star performer, leading to third-quarter consolidated earnings from operations, after subtracting for preferred stock dividends, of $3.6 million, or three cents a share.

KeySpan Corp.’s gas distribution side posted a slightly larger seasonal loss in the third quarter compared to last year and a drop in exploration and production (E&P) earnings from its 67% ownership in Houston Exploration Co. The Brooklyn, NY-based company’s electric operations, meanwhile, were the star performer, leading to third-quarter consolidated earnings from operations, after subtracting for preferred stock dividends, of $3.6 million, or three cents a share.

Despite a bullish seasonal weather forecast released by WSI Corp. on Monday, natural gas futures emerged on the downside from their three days in neutral as the November contract slipped 3.6 cents from Friday’s close to notch a $2.208 settle. One trader said November gas futures likely felt sympathy with crude futures, which after rising 69 cents on Friday, experienced a 15-cent decline Monday to finish at $23.28/bbl on the New York Mercantile Exchange.

Kern River Gas Transmission Co., a unit of Williams, is holding a binding open season for seasonal and year-round firm backhaul transportation service from a new interconnect with Questar Pipeline’s ML No. 104 near Elberta, UT, to markets along the Wasatch Front upstream of the interconnect.

Great Lakes Gas Transmission is holding an open season for a seasonal gas exchange between May 1, 2001 and March 31, 2002. Great Lakes proposes an agreement with a single party for the pipeline to receive about 1.7 Bcf into its system during the 2001 summer months and deliver an equivalent amount of gas back to that party during the 2001/2002 winter months. The open season ends April 23. Call Martin Wilde at (248) 205-7590 for more information.

Citing “seasonal efficiency adjustments,” NOVA said it woulddecrease its target linepack by about 177 MMcf in gradualincrements by May 29.