Technical

June natural gas futures eased, although a major contingent — funds and managed accounts — now appears to be aligned on the long side of the market and technical support remains intact. At the close June futures had fallen 2.3 cents to $4.670 and July was lower by 2.5 cents to $4.738. June crude oil cascaded lower giving up $2.47 to $111.05/bbl.

Chesapeake Energy Corp. on Thursday completed the sale of its Fayetteville Shale properties to a subsidiary of Australia’s BHP Billiton Ltd.

After satisfying final technical requirements, San Diego-based Sempra Energy on Tuesday obtained final FERC approval to begin re-exporting liquefied natural gas (LNG) supplies from its Cameron import terminal in Hackberry, LA. However, a Sempra LNG spokesperson would not say whether any cargoes were ready to be reshipped.

Chevron Corp. could make a bigger push into U.S. unconventional plays once the acquisition of shale operator Atlas Energy Inc. is completed, CEO John Watson said Friday.

The U.S. State Department signed a memorandum of understanding (MOU) with India’s Ministry of Petroleum and Natural Gas that will allow the two countries to share technical expertise on shale gas resources. Preliminary estimates by India’s Association of Petroleum Geologists indicate that India’s shale gas reserves may be larger than its proven conventional gas deposits. The MOU would help India assess its shale gas resources and help to train Indian personnel. As part of the agreement, the U.S. Geological Survey plans to study India’s shale gas resources. The United States also would help India prepare for its first shale gas auction, which is scheduled to be held by the end of 2011.

Natural gas futures continued its trek lower Monday as traders were forced to pull weather premium out of the market, and technical traders reset support parameters. At the close October futures fell 8.1 cents to $3.800 and November skidded 9.3 cents to $3.916. November crude oil rose 3 cents to $76.52/bbl although more deferred contracts fell.

September natural gas futures fell quickly in what appeared to be aggressive technical selling Monday. The selling was nearly instantaneous and looked like it was triggered by a breach of last week’s lows. At the close of the day September fell 10.0 cents to $4.228 and the October contract retreated 10.1 cents to $4.249. September crude oil fell 15 cents to $75.24/bbl.

The conversion of landfill methane gas to liquefied natural gas (LNG) for use in fueling trash trucks and other heavy equipment is similar in its technical processes and economics, according to a New Jersey-based executive getting ready to open a landfill-LNG plant later this year at a Northern California trash site. But Linde North America, a project partner with Houston-based Waste Management Corp., has no interest in global, baseload-size LNG projects, according to Byran Luftglass, Linde’s energy segment manager.

April natural gas futures rose as prices crossed an important technical threshold and traders anticipated additional buying. Petroleum and equity markets also advanced but traders were not convinced of a significant linkage with natural gas.