storage

Look for some some natural gas to be shut in for want of a place to go before the end of this storage injection season, but longer term all the signs for gas are bullish, according to Devon Energy President John Richels.

Despite weaker gas prices this summer because of the gas storage surplus, Raymond James’ mid-2006 exploration and production (E&P) capital expenditure survey last week indicated North American producers’ total spending in 2006, which includes exploration and development (E&D), acquisitions and stock buybacks, will increase 10-15%.

Look for some some natural gas to be shut in for want of a place to go before the end of this storage injection season, but longer term all the signs for gas are bullish, according to Devon Energy President John Richels.

Northern Natural Gas said late Friday night it has discovered a leak on a supply line to the Redfield Storage facility. This decreased injection capabilities, Northern said, but at this time it does not anticipate any limits on firm injection service.

Rockies Express Pipeline LLC, a partnership of Kinder Morgan Energy Partners, Sempra Pipelines & Storage and ConocoPhillips, has received the FERC go-ahead to begin construction on the second segment of Phase I of the Entrega Pipeline Project, which has been integrated into the mammoth 1,663-mile Rockies Express project and will comprise the western end of the system.

Rockies Express Pipeline LLC, a partnership of Kinder Morgan Energy Partners, Sempra Pipelines & Storage and ConocoPhillips, was given the FERC go-ahead Friday to begin construction on the second segment of Phase I of the Entrega Pipeline Project, which has been integrated into the mammoth 1,663-mile Rockies Express project and will comprise the western end of the system.

ConocoPhillips exercised an option to acquire a 25% stake in the Rockies Express Pipeline Project, Kinder Morgan Energy Partners LP (KMP) and Sempra Pipelines & Storage said Friday. The oil major, whose Lower 48 natural gas output increased substantially with its acquisition of Burlington Resources (see Daily GPI, April 3), said it will move gas production on the pipeline in addition to owning a stake.

Kinder Morgan Energy Partners LP (KMP) and Sempra Pipelines and Storage are holding a binding open season through July 14 to solicit interest in extending their proposed Rockies Express Pipeline (REX) East from its currently proposed terminus at the Clarington Hub in Monroe County, OH to Oakford, PA. The 100-mile extension, which would pass through Waynesburg, PA, would provide up to 1.8 Bcf/d.

With all eyes on the significant storage surplus, summer temperatures for the nation and the potential for hurricanes in the Atlantic, the natural gas futures market is at a crossroads, as evidenced by the prompt month’s recent directionally challenged trading pattern. After gapping lower at the open Monday, July natural gas reached both the day’s high of $6.600 and its low of $6.410 in morning trading and spent the rest of the session bouncing between the two before settling at $6.463, down 16 cents on the day.