September

ChevronTexaco Corp. estimates in a fourth quarter interim report that last September’s Hurricane Ivan resulted in a net loss in production of 10%, including an 11% decline in U.S. natural gas output and a 9% loss in natural gas liquids, compared with 3Q2004 numbers. The Gulf of Mexico storm resulted in net loss of 79,000 boe/d over 3Q numbers.

The Federal Energy Regulatory Commission on Tuesday approved an imbalance cash-out report of Midwestern Gas Transmission Co. for the period of September 2003 through August 2004.

In response to the California Public Utilities Commission’s natural gas supply rulemaking last September, Sempra Energy’s two utilities asked the CPUC to approve a merger of the gas transmission charges for pipeline transportation on the utilities’ in-state backbone transmission systems. Integrating the now separate charges by the combined utilities would result in lower charges to retail gas transportation customers, the utilities contend.

The big price run-ups for the last two days of September that had dazzled (and befuddled in many cases) cash traders failed to survive the month-to-month transition, for the most part. In Thursday’s highly volatile trading for the initial October aftermarket, a few scattered points ranged from flat to slightly higher or lower, while Henry Hub and Texas Eastern M-2 were conspicuous with their gains of nearly 15 cents and 20 cents respectively.

It was a wild ride Wednesday in swing trading for the last day of September. All points spiked by amounts ranging from about 30 cents to nearly a dollar, with a heavy majority up 60 cents or more, in a market driven largely by a screen that soared nearly half a dollar Tuesday and was up by almost 90 cents at one point Wednesday morning before retreating in sympathy with falling oil futures.

Two days after ending an Overage Alert Day notice that had been in effect for most of September, Florida Gas Transmission declared a new OAD Friday with 5% tolerance for negative daily imbalances. However, the pipeline added that volatility in market demand is again expected if forecasts of Hurricane Jeanne hitting Florida prove to be accurate. It asked that customers arrange to manage their gas supplies in the event of a large swing in gas demand and to be aware that either an Overage or Underage Alert Day was possible in upcoming gas days.

Continuing to scratch new lows as it approaches expiry, the September natural gas futures contract in overnight Access trading and the regular session Tuesday carved out lows of $5.25 and $5.26, respectively, the lowest the contract has traded since Feb. 25, when it notched $5.22.

Declining availability of hydroelectric generation in the West and the larger than normal discount for natural gas compared to Gulf Coast distillate fuel, propane and NGLs will contribute to the narrowing of the storage surplus in the weeks before the Nov. 1 start of the winter season, according to analyst Stephen Smith. Nevertheless, Smith is predicting storage stocks on that date (sans hurricane interruptions) will total about 3,200 Bcf, above the 3,030 Bcf average for Nov. 1 over the last 10 years.

Former Enron Corp. Chairman Kenneth Lay, who had requested a mid-September trial date was turned down last week, however, the Houston judge presiding over the case will likely decide by early October whether the former Enron chief will be tried with his alleged co-conspirators, ex-CEO Jeffrey Skilling and former chief accountant Richard Causey.