Stall

With little in the way of technical or fundamental news, naturalgas futures were held to an extremely-tight, 4-cent range in quiettrade yesterday. By finishing at $2.949, the May contract was just0.1 cents below its opening price and 2.2 cents lower for the day.Estimated volume was thin, with only 31,720 contracts changinghands.

Having pulled out of a stall caused by depressed commodityprices, Mitchell Energy & Development Corp. is flying rightagain with 12% return on equity in exploration and production, 15to 20% in gathering and 55 to 60% in natural gas liquids (NGLs),according to one analyst. For Chairman, CEO and gas and oilindustry veteran George P. Mitchell, 80, now might be the time tobail out.

Having a U.S. congressman line up against a proposed expansionisn’t the worst thing that could happen to a natural gas pipeline,but it ranks right up there with the dreaded FERC investigation orthe unexpected financial audit. That’s the fate that has befallenTranscontinental Gas Pipe Line’s MarketLink project.

Unable to complete final agreements with many of its U.S.markets, Maritimes &amp Northeast Pipeline is expected to file anamended certificate application for Phase II of its pipelineproject with FERC this month that will defer construction of nearlyall of its previously planned pipeline laterals in the U.S. It alsois expected to show an increase in rates because of newcalculations of construction costs.