Territory

Natural gas futures bears were stymied for a second straight day Wednesday as April natural gas failed to dredge new territory. After putting in a low of $4.680, the prompt-month contract finished the regular session at $4.757, up 4.9 cents from Tuesday’s close.

As weather in its service territory gets much colder than it was during the last half of November, Northern Natural Gas plans to lift a systemwide System Underrun Limitation (SUL) at the end of Tuesday’s gas day (9 a.m. CST Wednesday). The SUL had been implemented Nov. 10 (see Daily GPI, Nov. 10).

With a nod to the recession, NiSource Inc. business segment NiSource Gas Transmission & Storage (NGT&S) said it plans to cut 370-380 positions across its 16-state operating territory during the course of 2009. The operating segment, which houses Columbia Gas Transmission LLC, Columbia Gulf Transmission Co. and Crossroads Pipeline and holds partnership interests in Central Kentucky Transmission Co., Hardy Storage Co. and Millennium Pipeline LLC, said the structural changes are “designed to enhance operational efficiency, support growth initiatives and maintain safe, reliable service to customers.” The changes include: (1) focusing company resources on core business functions, consolidating and improving efficiency; and (2); implementing technology and process improvements across the organization. “Employee teams from across our organization have been evaluating all aspects of our existing business structure and work processes over the past few months,” said NGT&S President Christopher Helms. Of the job cuts, Helms said eligible employees will be offered a severance package and outplacement assistance, while certain employee groups will be eligible for voluntary severance. Combined, the NGT&S companies operate about 15,000 miles of interstate gas pipeline and 37 underground gas storage fields, delivering more than 1 Tcf of gas per year.

With a nod to the recession, NiSource Inc. business segment NiSource Gas Transmission & Storage (NGT&S) said Friday it plans to cut 370-380 positions across its 16-state operating territory during the course of 2009.

Aware that the company’s share price was treading near single-digit territory and on the hook for some admittedly poor business decisions, Chesapeake Energy Corp. CEO Aubrey McClendon came out swinging last week, telling energy analysts and investors that the company has “plenty of liquidity” and will weather the economic storm by neutralizing capital expenditures (capex) over the next two years. Even with flat spending, the Oklahoma City-based natural gas driller still expects to achieve 5-10% production growth in 2009 and 10-15% gains in 2010.

Vectren Energy Delivery of Ohio will be phasing itself out of the gas commodity supply business in its western Ohio service territory. The utility, regulators and the state’s consumer advocate all expect the net result to be a cost savings for gas consumers.

A producer was accurate for the most part in predicting a modest rally in the cash market Thursday as a result of the huge recovery from negative territory by May futures the day before (see Daily GPI, April 3). Most points did see gains, with a majority of them in single digits. However, quite a few quotes at scattered locations were flat to down as much as about 20 cents.

The New York State Public Service Commission (PSC) on Wednesday authorized Consolidated Edison Co. (Con Edison) to expand a natural gas efficiency program in its service territory to prepare for the 2007-2008 winter heating season.

The extended cold during the first two months of this year drove up gas demand 17% in Philadelphia-based PECO’s service territory in southeastern Pennsylvania, the utility company said Friday. PECO said it has seen almost 400 more heating degree-days so far this winter as compared to last winter.