Segments

As of today Sonat is extending application of an OFO Type 3 thattook effect Tuesday for four segments (see Daily GPI, Nov. 30) to the Birmingham Group and SouthMain Zone 3.

Sonat issued an OFO Type 3, effective today until furthernotice, for four segments: Atlanta Group, South Main Zone 3, Eastof Wrens Group and Savannah Line.

A 30 Tcf market is “widely anticipated and economicallypossible” by 2010, but it will not be achieved easily as allsegments of the natural gas industry will face considerablefinancial and infrastructure challenges to help supply and servethat demand, said a study issued by the INGAA Foundation Inc. onMonday.

The futures market continued lower on Friday capping off anextremely bearish week, which saw selling from all segments of themarket-trade, funds and locals. However, beleaguered bulls tooksome solace in a minor victory Friday afternoon when scaled downtrade buying lifted the December contract off its $2.125 low. Asmall but encouraging bounce ensued to recoup a portion of theweek’s losses. The December contract settled at $2.163 Friday, down5 cents for the day and 29.6 cents for the week.

FERC Chairman James Hoecker earlier this week gave theoft-disputing segments of the energy industry, especially naturalgas, an ultimatum: either play nice and come to agreement with theCommission on the series of major proposed rulemakings now facingthem, or the agency will pull the plug on comprehensive reviews inthe future.

Futures came under heavy follow-through selling pressure fromall segments of the market Friday, adding to a 14-cent lossregistered Thursday. Sources pointed to a weak cash market, whichwas joined by fresh bearish technicals late last week, as reasonsfor the decline. The November contract gapped lower Friday andtrended mostly lower throughout the session to settle at $2.191, a6.3 cent decline.