Triple

Forecasts of rising heat levels across much of the East, combined with existing triple-digit high temperatures in the Southwest and parts of the Upper Plains plus good prior-trading day futures support, led to price spikes at all points Monday except for a few in the Rockies that were flat to nearly 20 cents lower. Most Northeast citygates saw dollar-plus increases, although regional highs in the 90s won’t be coming along until around midweek or later.

Natural gas-directed Petrohawk Energy Corp. made it a triple play last week, announcing it is selling its extensive Gulf Coast division, increasing its stake in the Fayetteville Shale and in North Louisiana, and forming a master limited partnership (MLP) to initially hold some of its mature domestic assets.

Natural gas-directed Petrohawk Energy Corp. made it a triple play Monday, announcing it is selling its extensive Gulf Coast division, increasing its stake in the Fayetteville Shale and in North Louisiana, and forming a master limited partnership (MLP) to initially hold some of its mature domestic assets.

Dominion agreed to sell its offshore natural gas and oil exploration and production (E&P) operations to a subsidiary of Italy’s Eni SpA for $4.76 billion. The operations, which will nearly triple Eni’s output in the Gulf of Mexico (GOM), include 967 Bcfe of proved gas and oil reserves on the shelf and in deepwater with average daily output of 503 MMcfe/d.

Forecasts of freezing highs Friday failed to keep Northeast citygates from measuring their declines in triple digits as they led across the board price softening Thursday. With spring-like conditions already established in the South and nonmountainous sections of the West, and a still-chilly Midwest continuing a warming trend, light heating load was the chief instigator of Thursday’s drops.

Triple-digit spikes at Northeast and Chicago citygates topped price increases at most points Friday. The show of strength even reached into the production area as Northern Natural-Ventura and Tennessee’s 500 Leg got in on the act with advances exceeding $2 and $1, respectively. The market reacted to predictions that the coldest weather so far in the heating season will be firmly entrenched in most areas by the beginning of this week.

Completing a triple-play of sorts, the Idaho Public Utilities Commission Tuesday decided three separate issues for Spokane, WA-based Avista Utilities — a retail natural gas rate net decrease, a retail electric rate net increase, and a 20-year purchased power agreement for up to 11.99 MW as a qualifying facility (QF) project, but at rates less than the published QF tariff. The utility will pay $58.50/MWh, rather than the PUC’s $61.60/MWh rate for most QF contracts. Avista wanted to pay $49/MWh.

The Commodity Futures Trading Commission (CFTC) filed charges against the American Energy Exchange (Amenx) and York Commodities for allegedly defrauding customers out of $1.39 million by falsely claiming to run an online energy exchange for futures and options contracts. The CFTC said no such exchange exists, the addresses and phone numbers of the purported operators are false and the companies that are listed as members of Amenx have “never heard of Amenx.”

Not including triple-digit spikes in the Rockies where a major transportation constraint was ending, the rest of the market was mixed Tuesday but with a decided bias to the downside. Prices felt negative pressure from very little cooling demand remaining but not much heating load to replace it; a 4-cent screen drop the day before; and reviving concerns that a dearth of storage injection capacity could lead to production shut-ins, according to some analysts.