Upper

Southern California Gas declared a high-inventory OFO for Saturday, setting a 10% tolerance for positive daily imbalances.

Due to Florida forecasts of high temperatures in the upper 80s and low 90s, Florida Gas Transmission issued an Overage Alert Day for market-area customers Thursday, setting the tolerance for negative daily imbalances at 20%.

In spite of forecasts of frigid New Year’s Eve weather from the Northeast through the Midwest and into the Upper Plains, with even the South due to experience some sub-freezing lows, prices dropped at a large majority of points Tuesday. The overall softness even defied significant prior-day screen support from Monday’s 31-cent spike by expiring January futures.

The frigid conditions predicted to be occupying the Midwest, Northeast and to some extent the South Friday finally got the upper hand over prior-day futures weakness and produced gains at most points Thursday. Except for large increases at Northeast citygates, most of the cash market advance was rather timid.

Due to unplanned maintenance on the 20-inch diameter Peace River Mainline, NOVA said it was taking all meter stations in the Upper Peace River Mainline Area to zero at noon MST last Friday until further notice. The work is expected to be completed by Dec. 8.

Indigo-Energy Inc., a junior explorer that focuses on prospects located in the Upper Devonian sand formations of Kentucky, Pennsylvania and West Virginia, plans to spend $686.4 million to develop about 135,000 acres in the Illinois Basin, an emerging natural gas play that straddles portions of southern Illinois, southwestern Indiana and western Kentucky. The Illinois Basin covers about 60,000 square miles. Indigo, based in Henderson, NV, obtained the funds through a loan agreement with BJ Petro Inc., a Nevada corporation. Indigo also won mineral rights in Greene County, PA, and in Monongalia County, WV.

Citing Florida forecasts of high temperatures in the mid to upper 90s, Florida Gas Transmission issued an Overage Alert Day Monday with a 25% tolerance for negative daily imbalances.

Citing low linepack and forecasts of high Florida temperatures in the mid to upper 80s for the next few days, Florida Gas Transmission (FGT) issued an Overage Alert Day for market-area customers Thursday. The tolerance for negative daily imbalances was set at 25%. FGT said it would not interrupt previously scheduled market-area ITS-1 service for Thursday’s gas day below the elapsed prorated scheduled quantity.

Prices continued to fall at most points Wednesday in spite of Thursday lows continuing to reach single digits or around zero in upper New England and much of the Midwest. Ongoing substitution of storage use for spot gas purchases, major prior-day screen weakness and looking ahead to weekend warming trends were the chief reasons for the cash market to keep softening in the face of what appears to be substantial fundamental weather demand.