Thomas

Some Boston officials, including Mayor Thomas Menino, are hoping a new plan for an LNG terminal offshore Gloucester, MA, will mean fewer LNG cargo ships traveling through Boston Harbor to the existing Distrigas terminal, but growing gas demand in the region probably would support both LNG terminals.

Lehman Brothers analyst Thomas Driscoll expects the Department of Energy’s natural gas storage report on Wednesday to show a withdrawal during the week of Christmas of 122 Bcf — down from 123 Bcf in the same period last year and well off the five-year average of 161 Bcf. If the estimate is correct, Driscoll noted that gas inventory levels would stand at 2,577 Bcf, 160 Bcf higher than last year and 36 Bcf higher than the five-year average.

Southern Union President Thomas F. Karam believes he got a steal with the purchase of Panhandle Energy from CMS Energy. In an interview with NGI last week, Karam said the new pipelines, storage fields and the nation’s biggest liquefied natural gas (LNG) import terminal will provide Southern Union with a 35-50% increase in earnings this year and a substantial increase in cash flow.

Thomas F. Karam, president of Southern Union, said the downgrade of the company’s corporate credit rating from BBB+ to BBB by Standard & Poor’s was expected, and the action was accompanied by some other positive findings. For example, S&P removed Southern Union’s rating outlook from “CreditWatch” and assigned the company a stable rating.

Lehman Brothers analyst Thomas Driscoll is looking for exploration and production company shares, particularly the “gassier” ones, to have a solid year in 2003 because of an expected market “squeeze,” which he predicts could be similar to one in 2000 when storage injections were “woefully inadequate” and gas shortage fears caused prices to skyrocket to $10 by December.

Lehman Brothers analyst Thomas Driscoll is looking for exploration and production company shares, particularly the “gassier” ones, to have a solid year in 2003 because of an expected market “squeeze,” which he predicts could be similar to one in 2000 when storage injections were “woefully inadequate” and gas shortage fears caused prices to skyrocket to $10 by December.

Dominion Resources CFO Thomas Chewning expects natural gas prices to average between $3.10 and $3.60 over the next several years. Once the storage surplus is reduced, said Chewning, a tight supply-demand scenario will develop. “[Prices] will be above that sometimes and below that sometimes, but on average, that’s where we think it’s going be,” he told analysts at Lehman Brothers 2002 CEO Energy/Power Conference in New York City last Wednesday.

Dominion Resources CFO Thomas Chewning expects natural gas prices to average between $3.10 and $3.60 over the next several years. Once the storage surplus is reduced, said Chewning, a tight supply-demand scenario will develop. “[Prices] will be above that sometimes and below that sometimes, but on average, that’s where we think it’s going be,” he told analysts at Lehman Brothers 2002 CEO Energy/Power Conference in New York City Wednesday.

Lehman Brothers analyst Thomas Driscoll said that U.S. gas production was down about 0.2% in the second quarter from first quarter levels based on results from 44 large production companies. The decline was much smaller than the 2.9% sequential drop in the first quarter from 4Q2001. Driscoll said the results have led him to maintain his projection that full-year gas production will be down 4.5 to 5.25% compared to 2001 (production rose 0.7% in 2001, but fell 2% and 1.3% in 1999 and 2000, respectively).