Plenty of gas in storage and warmer temperatures on the way will make for happier days for natural gas consumers. Investors in the industry, however, might want to buckle their seatbelts and prepare for some unpleasantness as the market transitions through a light injection season on its way to another winter.
Warmer
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Transportation Notes
With warmer weather forecasted for central Florida and linepack getting lower, Florida Gas Transmission declared an Overage Alert Day for customers in its market area Tuesday. The tolerance for negative daily imbalances was set at 10%.
Petroleum Strength, Heat Replace Fizzled Arlene as Futures Support
Buoyed by warmer than normal temperatures as well as support from petroleum futures, July natural gas futures on Monday ignored the fizzled impact of Tropical Storm Arlene to climb higher once again, notching a high of $7.28 before settling at $7.26, up 32.8 cents on the session.
Piedmont’s Earnings Decline on Lower Utility Margin
A lower utility margin due to warmer weather and customer conservation because of high wholesale natural gas prices led to a 4% decline in Charlotte, NC-based Piedmont Natural Gas’ second quarter 2005 net income. Net income slipped to $39.6 million, or $0.52/share, from $41.3 million. or $0.54/share, posted for the same period in 2004.
Piedmont’s Earnings Decline on Lower Utility Margin
A lower utility margin due to warmer weather and customer conservation because of high wholesale natural gas prices led to a 4% decline in Charlotte, NC-based Piedmont Natural Gas’ second quarter 2005 net income. Net income slipped to $39.6 million, or $0.52/share, from $41.3 million. or $0.54/share, posted for the same period in 2004.
NGSA: Warm Temps, Flat Production, Higher Demand Should Raise Summer Prices
Greater upward pressure is expected on natural gas prices this summer due to projected warmer-than-normal weather in portions of the United States, a potentially active hurricane season, increased gas demand and flat production, the Natural Gas Supply Association (NGSA) said last Thursday. The association said the market impact of high gas storage levels will be far outmatched by the numerous other bullish factors influencing prices.
NGSA: Warm Temps, Flat Production, Higher Demand Should Raise Summer Prices
Greater upward pressure is expected on natural gas prices this summer due to projected warmer-than-normal weather in portions of the United States, a potentially active hurricane season, increased gas demand and flat production, the Natural Gas Supply Association (NGSA) said Thursday. The association said the market impact of high gas storage levels will be far outmatched by the numerous other bullish factors influencing prices.
Transportation Notes
Citing lower linepack and forecasts of warmer weather in its Florida market area, Florida Gas Transmission issued an Overage Alert Day notice Wednesday with 25% tolerance for negative daily imbalances.
Transportation Notes
Citing warmer weather forecasted for Florida and lower linepack, Florida Gas Transmission issued an Overage Alert Day notice for customers in its market area Friday. The notice had a 25% tolerance for negative daily imbalances.
Warm Weather, High Storage Hardly Budge EIA Gas Outlook
Despite the warmer weather in key consuming regions and the recent drop in wholesale prices, the Energy Information Administration is still projecting that consumers will pay substantially more this winter for their heating needs than they did last winter. In fact, expected increases in winter expenditures for natural gas-heated households were raised slightly to 10% compared to projections in last month’s outlook.