Switch

Deteriorating production, cold snaps, a switch in drilling targets to oil and strong Alberta industrial demand are cutting down the Canadian natural gas surplus overhanging the North American market.

Following state regulators’ request to switch from monthly adjustments, Xcel Energy’s Colorado utility said Thursday it is starting to adjust its retail rates on a quarterly basis to reflect changes in the wholesale cost of natural gas beginning with the fourth quarter. As a result, the utility is projecting that its monthly gas bills during the last quarter will be 7-9% lower than they were in the fourth quarter of 2008.

The natural gas industry was not quite ready to switch over to the storage injection season as proved by the Energy Information Administration’s (EIA) Thursday morning report that 29 Bcf was removed from underground stocks for the week ended March 28. Despite the withdrawal, natural gas futures traders — sticking to the recent trend of flip-flopping gains and losses (see Daily GPI, April 3) — watched the May contract finish Thursday at $9.417, down 41.5 cents from Wednesday’s close.

With its Alaska business forever tied to the possibility that natural gas supplies could be curtailed, Agrium Inc. plans to switch its Nikiski nitrogen plant in Kenai, AK, from gas to coal. A final decision on coal plant construction is scheduled for 2008, and if it moves forward, the revamped plant would be operational in late 2011, company officials said.

Most northern Illinois consumers who switched natural gas suppliers are paying on average about $172 more over the life of the offer in utility costs, according to an analysis by the nonprofit state utility watchdog Citizens Utility Board (CUB).

Most northern Illinois consumers who switched natural gas suppliers are paying on average about $172 more over the life of the offer in utility costs, according to an analysis by the nonprofit state utility watchdog Citizens Utility Board (CUB).

Most northern Illinois consumers who switched natural gas suppliers are paying on average about $172 more over the life of the offer in utility costs, according to an analysis by the nonprofit state utility watchdog Citizens Utility Board (CUB).

FERC on Wednesday gave Equitrans LP the green light to switch the function of certain jurisdictional natural gas transmission/storage facilities in Pennsylvania and West Virginia to non-jurisdictional gathering.

FERC on Wednesday gave Equitrans LP the green light to switch the function of certain jurisdictional natural gas transmission/storage facilities in Pennsylvania and West Virginia to non-jurisdictional gathering.