Unprecedented

Northwest reported that since mid-January it has been receiving”unprecedented levels” of liquid hydrocarbons from QuestarPipeline’s Clay Basin storage facility, “culminating in a criticalhigh of 21,000 gallons on Feb. 5.” Northwest has collected thecondensate at its Green River (WY) Compressor Station, but thefilter-separator system there was designed to collect only minimalamounts. Since last Monday, Northwest said, it has physicallytaken approximately 100,000 Dth/d from Clay Basin and was making upthe shortfall by withdrawing gas from Jackson Prairie. Northwestassured shippers it is working with Questar to keep Clay Basinnominations whole, but cautioned that at some point it may berequired “by prudent operations” to refuse gas nominated from ClayBasin.Northwest will provide 24 hours’ notice in such an event,but said Friday there would be no refusals over the weekend.Shippers can help ease the situation by voluntarily reducing ClayBasin nominations to whatever extent possible, Northwest said.

The severe winter cold snap last week triggered unprecedentedprice spikes at spot points in the Pacific Northwest and NorthernCalifornia. PG&ampE Citygate prices hit $6.18/MMBtu on Monday andwere near $5 on Tuesday. Prices jumped to $11.05/MMBtu at Sumas onthe previous Friday for weekend flow, and on Monday and Tuesdaystayed north of $6.

The May Nymex contract soared to unprecedented heights onTuesday, thanks to an 11.3 cent surge that left the contract at$2.522. May posted a high of $2.53, which is a source said is thetop of a long term technical trading formation. The fact that Maysettled so close to that high price is a bullish sign, he said, andfor that reason, he believes May has a good shot at moving to itsnext resistance level of $2.58 when trading resumes today.