Test

Duke Energy’s Texas Eastern Transmission (Tetco) pipeline announced Monday that it will conduct an open season to test shipper interest in an expansion project that would transport natural gas from prolific supply basins in North America to energy-hungry markets in the Northeast and Mid-Atlantic regions.

The Michigan market may provide the first serious test of the presumption that prices will drop big-time when storage injection capacity starts running out. Bentek Energy’s analysis of flows at 14 natural gas hubs (http://intelligencepress.com/features/bentek/) shows that Michigan Consolidated Gas citygate volumes continue to shrink drastically.

After gaining 12.9 cents on Tuesday, June natural gas futures gave virtually all of it back on Wednesday as the prompt month eased its way closer to a test of the important $6 support level. On the day, the June contract settled at $6.129, down 12.3 cents from Tuesday

Looking to test interest in a storage expansion at its Midland, KY storage field, Boardwalk Pipeline Partners LP said Tuesday that its subsidiary, Texas Gas Transmission LLC., will hold a non-binding open season for firm storage service (FSS) and no-notice service (NNS).

Colorado Interstate Gas said it is holding a binding open season to test market interest in another Raton Basin pipeline expansion. Last year, the company placed a $61 million Raton expansion into service, adding 104,600 Dth/d of new firm transportation capacity through about 102 miles of various diameter pipeline and 1,770 horsepower of new compression. The 2005 expansion increased CIG’s capacity in the area to more than 380,000 Dth/d, providing five producers — Pioneer Natural Resources, El Paso Energy Raton LLC, Red River Ranch Holding LLC, Apple Tree Holdings LLC and XTO Energy — greater access to Midcontinent and Midwest markets. CIG is seeking new commitments to expand its Raton system and pipeline east of the Campo area through pipeline looping, extensions and additional compression. The proposed receipt points are along CIG’s Picketwire or Cuchara Laterals with delivery points east of Campo Junction into Midcontinent pipelines in southwestern Kansas and the Oklahoma panhandle. For details call Tom Dobson (719) 520-4606 or Craig Coombs (719) 520-4387.

Kinder Morgan Energy Partners and Sempra Pipelines & Storage launched two separate binding open seasons Wednesday to test market interest in an expansion and extension of EnCana’s Entrega Gas Pipeline system, which Kinder Morgan and Sempra plan to buy as part of their $3 billion Rockies Express Project, planned to carry gas from the terminus of Entrega in northern Colorado more than 1,300 miles to the Clarington Hub in eastern Ohio.

As moderating temperature forecasts remained unconfirmed, January natural gas futures took the chance to test their surroundings. After putting in a $13.380 low in morning trade, the prompt month rebounded in the afternoon, jumping more than 40 cents in the final hour of trading to close at $14.043, up 42 cents from Friday’s close.

Denver, CO-based Aspen Exploration Corp. announced Monday its seventh consecutive successful flow test on a recently drilled gas well in the Sacramento Valley gas province of northern California. The Kalfsbeek #1-13 well located in the Buckeye Gas Field, Colusa County, CA, was drilled to a depth of 8,800 feet and encountered gas pay in several intervals in the Forbes formation.

Transcontinental Gas Pipe Line (Transco) said Monday it is holding an open season to test market interest in the Sentinel Expansion Project, which would provide additional firm transportation capacity for gas entering the system from the Pleasant Valley receipt point, the Leidy Hub or any other receipt points downstream of those locations. The open season ends Dec. 2.