Upcoming

Gas market bulls should be wary of an upcoming trap, according to Energy Security Analysis Inc. (ESAI). Despite the 23-cent jump to $3.305 by the near-month gas futures contract on the New York Mercantile Exchange Monday, the Boston-based consulting firm is predicting prices will tumble back to between $2.25-$2.50 in the near term as storage holders begin to sell off inventories to take advantage of higher forward prices.

President Bush’s focus on security in the upcoming State of the Union message will include “the security that comes from being energy-independent and having reliable supplies of American-made fuel, White House spokesman Ari Fleischer said in a news briefing Thursday. “Among the domestic policy issues that the president will focus on throughout 2002 are the creation of jobs for the American people, helping the economy to grow out of the recession and recover, energy independence and the development of a comprehensive energy plan. I remind you that it again is another exciting bipartisan opportunity for the country. It passed — the president’s energy plan passed the House with a rather sizeable bipartisan vote; the President hopes the Senate will take action.” There has been no decision as to exactly what day the president’s address to Congress will be given this year, a spokesman said. It usually occurs around Jan. 20.

Although more than eight in 10 Virginians say they are very or somewhat interested in the state’s upcoming competitive market for natural gas and electricity services, a similar number say they need more information before making a decision on whether to select a new provider of energy services, according to a recently released survey.

Although more than eight in 10 Virginians say they are very or somewhat interested in the state’s upcoming competitive market for natural gas and electricity services, a similar number say they need more information before making a decision on whether to select a new provider of energy services, according to a recently released survey.

Some state officials already are dubbing the upcoming heatingseason as California’s “winter of discontent” as continued highwholesale natural gas prices are driving up consumer bills andstate regulators look at options for unbundling Southern CaliforniaGas Co.’s transmission and storage system.

Northern Natural Gas has two firm capacity open seasonsupcoming. One, scheduled July 26-27, is for 20,000 MMBtu/d tocertain delivery points in Zone ABC. The space will be awarded infour separate 10,000 MMBtu/d packages: one each for the months ofAugust, September and October 2000 and a fourth for the entirethree-month period. The other open season, set for July 31-Aug. 3,is for 15,000 MMBtu/d to certain delivery points in Zone EF for theOctober 2000 through April 2001 period. This volume is subject tocertain constraints. See the HotTap bulletin board or call FrankSemin at (952) 887-1785 for more information.

NOVA will be reducing its system linepack target this week from395 e6m3 (about 13.956 Bcf) to 390 e6m3 (13.781 Bcf) in preparationfor upcoming summer operations. The reductions will be made in evenincrements today through Friday. The change is due to increasingambient and ground temperatures, NOVA said. It included in thedetermination of linepack an adjustment to account for changes inthe system’s average heating value. NOVA will not be sellinglinepack to reach its desired target.

San Juan Basin prices could average close to $3.20/year by 2005,and other western points could see similar increases because of themajor supply shift that is expected to occur once the Allianceproject comes on line next year, Larry Larsen, a vice president atWilliams Gas Pipeline-West, said in a panel discussion this week atZiff Energy Group’s North American Gas Strategies conference inCalgary.

San Juan Basin prices could average close to $3.20/year by 2005,and other western points could see similar increases because of themajor supply shift that is expected to occur once the Allianceproject comes on line next year, Larry Larsen, a vice president atWilliams Gas Pipeline-West, said in a panel discussion this week atZiff Energy Group’s “North American Gas Strategies” conference inCalgary.