FERC has approved Ruby Pipeline’s requests to revise upward its initial rates for firm long-term transportation service to recover anticipated higher project costs, and to revise its initial in-kind fuel retention rate downward to reflect an expected decrease in projected fuel consumption when the pipeline starts up. The pipeline has sought approval from the Federal Energy Regulatory Commission (FERC) to begin service on Wednesday, but the agency has not responded (see Daily GPI, July 14).
Articles from Upward
June natural gas futures continued to flounder Monday as traders see no upward momentum and look for a test of key psychological support. At the close June futures had fallen 8.1 cents to $4.154 and July had retreated 8.1 cents as well to $4.216. June crude oil, however, rocketed higher by $5.37 to $102.55/bbl.
Chilly temperatures kept upward pressure on a vast majority of cash point averages on Tuesday except for a handful of Northeast points, which recorded drops of $2.20 to more than $5 as the coldest temperatures associated with Sunday’s blizzard began to subside.
While economists say the recession has ended and some economic indicators have begun to trend upward, continued weak demand led to another decline in natural gas marketing during the third quarter, with the total volume sold in North America tumbling 4% — nearly 5 Bcf/d — according to NGI’s 3Q2009 Top North American Gas Marketers Ranking. read more
With higher natural gas liquids (NGL) prices relative to natural gas, a continued surge in output from the gas shale plays and cryogenic gas processing technologies, new infrastructure continues to be in high demand for the U.S. liquids market, according to a report by Bentek Energy LLC.
Tuesday’s upward momentum carried over to Wednesday as most cash point averages for Thursday delivery climbed. Increases were predominant in every region except the East, which saw a few gains sprinkled in amongst no changes and declines.
Backed by the recent stretch of colder weather in a number of high-gas demand regions, traders continued to keep upward pressure on the natural gas futures market on Tuesday as the front-month contract made yet another new high — both outright and on a closing basis — for the bull move that began three months ago.