Due to mild weather in its market area and high linepack, Florida Gas Transmission issued an Underage Alert Day notice Tuesday with 10% tolerance for positive daily imbalances.
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Citing mild market area weather and high linepack, Florida Gas Transmission declared an Underage Alert Day Tuesday with 10% tolerance for positive daily imbalances. FGT also said it will be performing unplanned maintenance today and Thursday at an off-system interconnect with Tennessee at Carnes, MS. Interconnect volumes are limited to 30 MMcf/d during the work.
Monday’s cold weather-induced price rally proved to be short-lived, and few if any traders expect it to be revived anytime soon. Most eastern points fell between a nickel and 15 cents Tuesday, while declines tended to be larger in the Rockies/San Juan and California markets. Due to its frigid New England service area, Algonquin quotes essentially were flat.
While the East looked around and, seeing nearly all appreciable weather load fading fast, decided to sit tight or retreat a bit price-wise Wednesday, most western points were soaring in a frenzy of buying. California and Rockies pipes saw spikes that often hit triple digits. Only flatness in the Pacific Northwest and at a couple of Permian Basin points, along with a downturn for intra-Alberta numbers, belied the overall western strength.
Sonat said it anticipates storage injections will exceed thedaily capacity of its storage fields this week. The weatherforecast is for a continued warming trend through Friday, andinstead of receipt nominations going down they actually went up forthe gas day of Wednesday, the company said. If Southern does notsee a reduction in receipt nominations for Thursday’s gas day it ishighly likely that it will have to implement an OFO.
An expiration-day nosedive by the February futures contract,chilly but unremarkable weather for this time of year (despitesnowfall and icing in some northern market areas), and the prospectof more small storage withdrawal reports in coming weeks kept bearsin command of the cash market Monday.
The rout was on Tuesday in the cash market. Buffeted by a fairlybenign weather outlook, both near-term and for the transitionperiod into February, and a plunging screen, prices fell betweenabout 50 cents and a dollar at almost every point. Malin’s declineof about 15 cents spotlighted it as relatively firmer than the restof a very weak market.
Due to cold weather and falling U.S. production, it is likelythat the oil and gas industry will not be able to refill naturalgas storage for the winter of 2001-2002, according to a LehmanBrothers exploration and production update released last week. Thelow storage levels will likely force gas prices higher for aprolonged period of time, the report stated.
Due to cold weather and falling U.S. production, it is likelythat the oil & gas industry will not be able to refill naturalgas storage for the winter of 2001-2002, according to a LehmanBrothers exploration and production update released yesterday. Thelow storage levels will likely force gas prices higher for aprolonged period of time, the report stated.
Feeding off losses achieved during the largest single day dropin Nymex history Tuesday, natural gas prices continued loweryesterday as bear traders looked past supportive storage numbers tofocus on a warming trend expected later this week. The Februarycontract was dealt the most severe blow, tumbling 17.5 cents to$8.189. Losses were far less pronounced in the out-months asevidenced by the 12-month strip, which only slipped 5.1 cents to5.716.