Underground

Traders were mostly unfazed Thursday morning as the Energy Information Administration (EIA) reported that 96 Bcf was injected into underground storage for the week ended May 4, which was right in line with industry estimates. As a result, June natural gas traded in another tight range on the day before settling at $7.726, up less than a penny on the day.

The Energy Information Administration’s (EIA) Thursday morning report that 23 Bcf was injected into underground storage for the week ended April 6 received little fanfare from traders as May natural gas futures traded a slim 9-cent range before settling at $7.924, up 6.9 cents on the day. Instead, attention was paid to the winter 2008 contracts, some of which have recently cracked the $10 price level.

While the report that 22 Bcf was withdrawn from storage for the week ended March 23 came in a little larger than most industry estimates, the number was still below historical withdrawals for the week, which allowed bears the opportunity to cut some of the last week’s natural gas futures gains. May natural gas closed 6.3 cents lower Thursday at $7.609.

Traders on Thursday shrugged off the news that 115 Bcf was removed from underground storage last week as the number — while large for this time of year — was already factored into the market. As a result, April natural gas futures dropped below $7 once again to settle at $6.959, down 12.4 cents from Wednesday’s close.

After receiving a temporary boost when the Energy Information Administration (EIA) reported that 71 Bcf was removed from underground natural gas storage last week, January natural gas futures sunk lower, recording a new low for the move of $6.600 before rebounding to settle at $6.800, up 3.1 cents on the day.

Coming in within the high-end of the industry’s expectations, the Energy Information Administration (EIA) reported Thursday morning that 73 Bcf was injected into underground storage for the week ended Sept. 29, which brings working gas levels to a robust 3,327 Bcf. Despite the healthy-sized storage injection, November natural gas futures pushed higher on the day — settling at $6.298, up 30.3 cents.

The natural gas industry was stunned last Thursday when the Energy Information Administration (EIA) reported that a whopping 108 Bcf had been injected into underground natural gas storage for the week ended Sept. 8.

Sempra Energy’s Southern California Gas Co. utility, operator of several major underground natural gas storage fields, now has a cost- and revenue-sharing process in place so it can explore for and produce supplies located adjacent to its storage fields in Southern California, following unanimous action Thursday by the California Public Utilities Commission. SoCalGas reached a settlement last July with a number of major stakeholders, including consumer groups, large customers and large producers, that was the basis for the regulatory action.

Sempra Energy’s Southern California Gas Co. utility, operator of several major underground natural gas storage fields, now has a cost- and revenue-sharing process in place so it can explore for and produce supplies located adjacent to its storage fields in Southern California, following unanimous action last Thursday by the California Public Utilities Commission. SoCalGas reached a settlement last July with a number of major stakeholders, including consumer groups, large customers and large producers, that was the basis for the regulatory action.