Still

While an agreement is still under discussion and nothing hasbeen finalized, a Coral Energy official confirmed Friday thatparent company Royal Dutch/Shell and U.S. construction giantBechtel Enterprises will fold InterGen, InterGen North America andcertain assets of Coral Energy into one business.

While an agreement is still under discussion and nothing hasbeen finalized, a Coral Energy official confirmed Friday thatparent company Royal Dutch/Shell and U.S. construction giantBechtel Enterprises will fold InterGen, InterGen North America andcertain assets of Coral Energy into one business.

June prices were still on the rise for a California buyerTuesday, but a producer said he was seeing slightly lower Chicagocitygates.

Florida Gas Transmission still has an Overage Alert Day notice ineffect today until further notice but loosened the tolerance forpositive daily imbalances from its initial 2% (see Daily GPI, May 25) to 15%.

California regulators approved a settlement last week dealingwith Pacific Gas and Electric’s imbalance procedures andoperational flow orders (OFO). The California Public UtilitiesCommission (CPUC) however, did not act on the much tougher issuesincluded in the proposed interim and comprehensive settlementsfiled earlier this year by Southern California Gas.

Still a little hung over from Wednesday’s 24-cent bull-party,natural gas traders elected to cool their heels yesterday, leavingthe market to quietly check to either side of unchanged. The Junecontract finished at $3.71, up 2.1 cents on the day.

California regulators yesterday approved a settlement dealingwith Pacific Gas and Electric Co.’s imbalance procedures andoperational flow orders (OFO). Regulators, however, did not act onthe much tougher issues included in the proposed interim andcomprehensive settlements filed earlier this year by SouthernCalifornia Gas (SoCalGas).

Still flush from Wednesday’s bullish storage report, traders bidup natural gas prices in the pit at Nymex yesterday to notch thefourth advance in as many days. Including yesterday’s 3.5-centgain, the June contract has rallied 34 cents from Friday’s $3.01low. After notching a $3.385 high, the prompt month closed at$3.352.

The GRI’s latest report indicates producers won’t run out ofwork anytime soon in the Western Canadian Sedimentary Basin (WCSB),which is estimated to have 166 Tcf in new pool potential and a 31.4Tcf reserve appreciation potential. Because of these positiveestimates, the GRI said the region could surpass 8 Tcf ofproduction by 2015.