Surrounds

As natural gas traders put 2007 firmly in their rear view mirrors, the focus now surrounds what exactly might be in store for prices in 2008. With traders widely agreeing that the days of $2-3/MMBtu are long gone, whether 2008 sees $5-6/MMBtu gas or $7-9/MMBtu gas will be largely influenced by the weather picture and whether increased liquefied natural gas (LNG) cargoes find their way to North America’s shores.

As natural gas traders put 2007 firmly in their rearview mirrors, the focus now surrounds what exactly might be in store for prices in 2008. With traders widely agreeing that the days of $2-3/MMBtu are long gone, whether 2008 sees $5-6/MMBtu gas or $7-9/MMBtu gas will be largely influenced by the weather picture and whether increased liquefied natural gas (LNG) cargoes find their way to North America’s shores.

As intervenors lined up for the forthcoming environmental review of the Mackenzie Gas Project, Canadian federal and territorial government leaders encouraged the industry by taking on roles as development enablers.

As intervenors lined up for the forthcoming environmental review of the Mackenzie Gas Project, Canadian federal and territorial government leaders encouraged the industry by taking on roles as development enablers.

Despite another blast of extremely cold air and an early price push to the upside, natural gas futures slipped lower Monday as traders reacted to updated weather forecasts confirming that at least a temporary warm-up is in store for much of the country. With that the February contract fell 12.8 cents to $5.396 — its lowest daily close since Jan. 14. At 89,844 estimated volume was light considering it was the third-to-last trading day before expiration-day.

Southern California Gas’ attempt to sell its smallest LosAngeles Basin underground natural gas storage facility has beenabruptly halted by state regulators while an investigation isconducted into how the nation’s largest gas utility has dealt withregulators and surrounding landowners in the Eastern LA suburb ofMontebello, CA, bordering the storage facility. It is now in thehands of the California Public Utilities Commission, which couldassess some large fines if SoCalGas is found to have violated staterules.

Southern California Gas’ attempt to sell its smallest LosAngeles Basin underground natural gas storage facility has beenabruptly halted by state regulators while an investigation isconducted into how the nation’s largest gas utility has dealt withregulators and surrounding landowners in the Eastern LA suburb ofMontebello, CA, bordering the storage facility. It is now in thehands of the California Public Utilities Commission, which couldassess some large fines if SoCalGas is found to have violated staterules.

Atlanta Gas Light Co. (AGL) will be the first to say that warmweather and fixed prices can cause trouble. In a situation that hascaught the eye of Georgia’s Public Service Commission (PSC), AGL’snew unregulated rates have enraged hundreds of customers who,because of warm weather, have not used much gas, but still receivedwinter-like gas bills. The public outcry caused the PSC to schedulea vote on Jan. 5 to determine whether a hearing should be held toexamine re-regulating the state’s gas industry. If the commissiondecides a hearing is necessary, it will be held Jan. 26 with adecision to come shortly thereafter.