Natural gas wellhead prices will likely remain in the $5-6/Mcf range for the remainder of the year according to an updated report authored by the Michigan Public Service Commission (MPSC). The projection marks a more than 30% increase over the average price that prevailed throughout 2000 and 2001 of $3.87/Mcf.
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CPUC Establishes Proceeding to Prepare for El Paso Gas Settlement Payments
Seeking to stay ahead of eventual settlement developments in a state Superior Court in San Diego and at the Federal Energy Regulatory Commission, California’s state regulatory commission Thursday established a statewide regulatory proceeding to outline how to return in excess of $1 billion to private-sector natural gas and electric utility customers. The funds are what El Paso Natural Gas Corp. agreed to pay in a settlement resulting from various court and regulatory actions aimed at its alleged manipulation of wholesale gas prices at the California-Arizona border in 2000-2001.
CPUC Establishes Proceeding to Prepare for El Paso Gas Settlement Payments
Seeking to stay ahead of eventual settlement developments in a state Superior Court in San Diego and at the Federal Energy Regulatory Commission, California’s state regulatory commission Thursday established a statewide regulatory proceeding to outline how to return in excess of $1 billion to private-sector natural gas and electric utility customers. The funds are what El Paso Natural Gas Corp. agreed to pay in a settlement resulting from various court and regulatory actions aimed at its alleged manipulation of wholesale gas prices at the California-Arizona border in 2000-2001.
Northeast May Stay Firm; Softness Expected Elsewhere
Cash prices continued to be propelled upward Tuesday by an unseasonably late blast of winter weather in the northeastern quadrant of the U.S. that even sent a touch of mild morning chill far enough south to be felt by traders in Houston.
Forget Price Cycles, EEA Calls New High Prices a ‘Fundamental Shift’
As natural gas prices continue to stay north of $5.50, industry watchers are not sure whether the market is just reaching the peak of another cycle or whether these levels actually are sustainable over a longer term. Consultants at Arlington, VA-based Energy and Environmental Analysis, Inc. (EEA) believe there has been “fundamental shift in the gas market paradigm that is likely to be with us for the next two years or more.”
Forget Price Cycles, EEA Calls New High Prices a ‘Fundamental Shift’
As natural gas prices continue to stay north of $5.50, industry watchers are not sure whether the market is just reaching the peak of another cycle or whether these levels actually are sustainable over a longer term. Consultants at Arlington, VA-based Energy and Environmental Analysis, Inc. (EEA) believe there has been “fundamental shift in the gas market paradigm that is likely to be with us for the next two years or more.”
Transportation Notes
Due to the extent of work required at Muddy Gap Compressor Station (see Daily GPI, Dec. 27, 2002), throughput on the Wind River Lateral is expected to stay restricted to 225 MMcf/d through Monday (Jan. 6), returning to normal for Tuesday’s Cycle 1 nominations, CIG said. It had previously expected to complete the repairs Friday. The lateral extends from CIG’s Lost Cabin Compressor Station to the Rawlins Compressor Station.
PricewaterhouseCoopers: Energy Trading Is in Turmoil But Here to Stay
Energy companies need to embrace trading as a necessary core component of their energy operations and must develop a trading strategy that “encapsulates effective governance and active risk management” in order to survive, according to a new report by PricewaterhouseCoopers titled “Energy Trading – Re-establishing Sound Foundations.”
PricewaterhouseCoopers: Energy Trading Is in Turmoil But Here to Stay
The report warns that further difficulties could be on the horizon and many existing players may cease to have a viable independent future unless they adapt effectively to the changing market.
ACN Energy Comments on Atlanta Gas’ Stay of Termination Petition
Commenting on the temporary reprieve ACN Energy received last week that will allow it continue marketing natural gas in Georgia, the Farmington Hills, MI-based company said it was “pleased” that it was able to reach an agreement with Atlanta Gas Light Co. (AGLC) (see Daily GPI, Nov. 18).