Normally natural gas futures are influenced by a hodgepodge offactors: storage, technicals, support, resistance, supply anddemand. Of course last week was anything but normal as a hurricanewhich the market has not seen the likes of since Andrew, wasbearing down on the Gulf of Mexico leaving a wide swath ofdestruction in its wake. Now the question to be answered is whetherHurricane Georges (pronounced ZHORZH) will not only live in theminds of residents of Florida and the Carribean Islands, but alsoin the memories of natural gas traders. That was still a very murkyquestion as of Friday. One thing was becoming evident late lastweek: October’s expiration today will be anything but normal. But,despite the continued threat of storm, the October actually slipped0.2 cents to settle at $2.181 on Friday.
Supply
Articles from Supply
NICOR Taps GE for Microturbines
NICOR and GE Power Systems signed a memorandum of understanding,calling for GE to supply NICOR with GE-Elliott Energy Systems (EES)turbo alternators for sale to customers in the midwestern UnitedStates.
Calpine Expands California Power Plant, Gas Network
A new nonutility natural gas supply network and someenvironmental concessions to local agricultural interests are twonew twists to a major 500 MW merchant natural gas-fired power plantproposed for northern California in proximity to the SacramentoValley gas fields. As a result, the project sponsor, CalpineCorp., has agreed to invest an additional $20-$25 million in theestimated $300 million project to use a more environmentally benignair cooling system at the plant instead of the traditionalwater-based evaporative cooling approach.
Calpine Expands California Plant, Gas Network
A new nonutility natural gas supply network and someenvironmental concessions to local agricultural interests are twonew twists to a major 500 MW merchant natural gas-fired power plantproposed for northern California in proximity to the SacramentoValley gas fields. As a result, the project sponsor, CalpineCorp., has agreed to invest an additional $20-$25 million in theestimated $300 million project to use a more environmentally benignair cooling system at the plant instead of the traditionalwater-based evaporative cooling approach.
NGSA Sees 200 Bcf of Demand from NOx Standards
The Natural Gas Supply Association said it expects an additional200 Bcf/year of incremental gas demand growth by 2005 from theEnvironmental Protection Agency’s new more competitive standardsfor NOx emissions from new power generation boilers. EPAAdministrator Carol Browner signed the final rule, Utility BoilerNox New Source Performance Standards (NSPS), last week.
Nova Scotia Gets Tough on Offshore Royalties
There will be no free rides on Canada’s newest gas supplyfrontier, after Nova Scotia’s Liberal government established aroyalty regime that it admits puts it on the expensive side ofoffshore development areas by international standards.
Southern Inks Supply, Marketing Deal with 4 Sithe Plants
Southern Company Energy Marketing signed an agreement to providefour Sithe Energy power plants in New York with 55 MMcf/d of gasfor fuel and to market the 275 MW output. The 15-month arrangementis scheduled to begin this month.
Enron Price Based on Copper Wire Business
Enron Energy Services has signed General Cable Corp. to anenergy management and supply contract covering 22 U.S. facilitiesthat will tie the price level mainly to General Cable’s business.Pricing for the multi-year contract valued at $120 million will betied to the pounds of copper consumed, feet of cable produced andweather conditions experienced during the company’s productionprocess. The rationale is that if more cable is produced, moreenergy will be used and the unit price then would be lower.
Heat Finally Finds California, Gives Others a Break
Aside from a mostly weather-related boost to cash prices inCalifornia and a supply-related recovery in San Juan prices, Juneincremental trading finished its last trading session flat to downa couple of cents almost across the board. Moderating temperaturesin areas experiencing record setting readings over the weekend andreduced end-of-month activity resulted in the minor softness.
NGSA Gives Nod to EPA NOx Proposal
The Natural Gas Supply Association (NGSA) voiced its support forfuel- and generation-neutral nitrogen oxide requirements proposedby the Environmental Protection Agency (EPA).