Almost certainly in response to the imminence of Tropical Storm (potentially Hurricane) Katrina bringing cooling rains to the southern half of its Florida market area, Florida Gas Transmission ended Thursday an Overage Alert Day notice that had been initiated Aug. 10 and had tolerances for negative daily imbalances varying between 5% and 25% during its two-week run.
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MMS Tallies Final Production Losses from Arlene
In its final report on Tropical Storm Arlene, the Minerals Management Service (MMS) Tuesday said there remained one platform that was still evacuated in the Gulf of Mexico (GOM), along with 59 MMcf/d of shut-in natural gas and 5,696 bbl/d of crude oil. Only four producers reported losses to the MMS.
Shut-in GOM Production Nearly Restored
Tropical Storm Arlene did little more than lightly pinch oil and natural gas output in the Gulf of Mexico (GOM) over the weekend, and most of the shut-in production has been restored, with minimal damage to platforms and rigs, according to offshore operators.
Market-Area Quotes Fall; Other Points Mostly Up
Although winter storm conditions were due to persist through Wednesday in the Northeast and Midwest, they had exhausted much of their price-boosting ability in the key northern market areas Tuesday. Production-area numbers continued to rise by modest amounts in most cases, but quotes were mostly flat to as much as 30 cents lower in the Northeast, Midwest and California.
Transportation Notes
Due to a storm-related power failure Monday afternoon at the Opal Plant, operator Williams Field Services said it planned to make Cycle 4 nominations cuts of 200-250 MMcf “from a current delivery nomination of 1,014,275 Mcf.” However, a WFS spokesman said the power outage lasted only about three hours and that Gas Control had reported a sendout of close to 1 Bcf that day, so apparently any curtailments were minor. No constraints were in effect Tuesday for Opal nominations of about 900 MMcf/d, he said.
Transportation Notes
Citing “the forecast potential for Tropical Storm Claudette to enter the Gulf of Mexico this weekend,” Texas Eastern said Wednesday the previously posted shutdown of its Main Pass System’s Line 40-B (see Daily GPI, July 9) has been postponed until July 16; it previously had been set to begin this Sunday. The duration and course of Claudette will dictate whether the schedule gets shifted again, the pipeline said.
MoPSC to Continue to Monitor Aquila’s Financial Condition
The financial storm enveloping Aquila Corp. — cuts in its credit rating to below investment grade, forced asset sales, restructuring of its operations and widespread federal investigations into its trading — will have “possible negative impacts” on the company’s regulated natural gas distribution facilities and power utilities in Missouri, but an immediate rate hike doesn’t appear to be in the cards for customers, according to a Missouri Public Service Commission staff report.
MoPSC to Continue to Monitor Aquila’s Financial Condition
The financial storm that enveloped Aquila Corp. this year — cuts in its credit rating to below investment grade, forced asset sales, restructuring of its operations and widespread federal investigations into its trading — will have “possible negative impacts” on the company’s regulated natural gas distribution facilities and power utilities in Missouri, but an immediate rate hike doesn’t appear to be in the cards for customers, according to a Missouri Public Service Commission staff report.
Despite Wintry Weather, Futures Buckle Under Weight of Overbought Conditions
Following a Christmas Day storm that dropped as much as three feet of snow across parts of central New York and despite higher crude oil prices, natural gas futures funneled lower Thursday as traders alleviated overbought conditions and pressured the market to its lowest level in more than two weeks. With that the January contract completed its penultimate trading day at $4.962, down 18.4 cents for the session. January will expire Friday at 2:30 p.m. EST.
With an Eye on Storage and Weather, Last Minute Buyers Lift Futures Tuesday
In sympathy with higher crude prices, and as another winter storm approached the Northeast, natural gas futures turned modestly higher in light pre-holiday trading Tuesday. Book squaring was the main feature in the abbreviated session. January closed 3 cents higher at $5.146.