Smaller

Southern Union Co. on Monday reported a smaller net loss for the fourth quarter compared to the year-earlier period due to the successful integration of Panhandle Energy, which it acquired for $1.8 billion in mid-2003.

An offshore project is shrinking, but Arctic plans are growing as Canadian natural gas producers work out the kinks in their next generation of large-scale supply projects.

After initially moving higher on the news that a smaller-than-expected 34 Bcf was added to storage last week, the natural gas futures market tumbled lower Thursday on the realization that refills will continue for at least another week.

Cash prices kept falling Thursday, but by smaller amounts than the day before. Snow in northern Michigan; frost advisories in parts of the Midwest, Northeast and even the upper South; and record-setting lows reaching the teens in some cases failed to avert softness.

Aftermarket premiums over first-of-month indexes got much smaller Wednesday when incremental numbers fell anywhere from a dime to about 30 cents. Most drops were between 15 cents and a quarter, with those in the Rockies tending to be smallest.

A much smaller energy merchant sector now operates in a “hybrid” state with ambiguous rules and may remain only a minor part of the energy industry well into the future, a panel of energy risk management analysts said Thursday.

A much smaller energy merchant sector now is operating in a “hybrid” state with ambiguous rules and could remain only a minor part of the energy industry well into the future, one industry veteran said Thursday.

The energy merchant business may be a much smaller universe today, but Mirant has no plans to pull out of the sector, CEO Marce Fuller said Friday.

Other than a smaller than expected storage withdrawal report for a change, Friday’s cash market held no surprises. As sources had expected the day before, a screen decline of nearly 20 cents on Thursday, the normal demand drop of a weekend (especially coming between two major holidays) and forecasts of upcoming milder weather led to most points falling 15-35 cents or so. Transco Zone 6-NYC was conspicuous with a plunge of more than 60 cents.