Suspicions

Official trade data is starting to confirm unofficial suspicions among Canadians that American imports of liquefied natural gas (LNG) are becoming a competitive force on the North American market.

Official trade data is starting to confirm unofficial suspicions among Canadians that American imports of liquefied natural gas (LNG) are becoming a competitive force on the North American market.

Yielding to moderating weather forecasts, a 16-cent near-month drop the day before and suspicions that the upcoming storage report (to be released around noon EDT Wednesday due to the holiday) could reveal another small injection, the cash market fell in most cases Tuesday. Only a few western points that were between flat and about a nickel higher averted a clean sweep of softness.

Future shippers on the new Chicago-to-Dawn Vector Pipeline hadtheir fears confirmed last Tuesday when pipeline officialsannounced that the start-up date for the project, which wasscheduled for Nov. 1 to coincide with the start-up of thelong-awaited Alliance Pipeline, would be delayed a month until Dec.1.

Future shippers on the new Chicago-to-Dawn Vector Pipeline hadtheir fears confirmed Tuesday when pipeline officials announcedthat the start-up date for the project, which was scheduled forNov. 1 to coincide with the start-up of the long-awaited AlliancePipeline, would be delayed until Dec. 1.

Wednesday’s suspicions that a weeklong run-up in cash prices,which hesitated only on Monday before starting to climb again, wascoming to an end proved well founded Thursday. A sharply droppingscreen, the continued lack of any significant storm threat toproduction and mild weather in the major market areas of theMidwest and Northeast combined to pull down eastern quotes byamounts on either side of a dime. Declines tended to be smaller inthe West, ranging from flat at a few Rockies points to as much as 8cents in the Northern California market.