weather

Warm weather and continued strong demand from gas-fired generators filling in for downed nukes and coal units took most of the blame for cash price increases of 5 to 10 cents at most locations and stronger Northeast and Midwest basis on Tuesday. Sable Offshore Energy Project supply remained constrained due to ongoing repairs on a compressor at the Goldboro Plant in Nova Scotia, which held back about 23% (up to 105 MMcf/d) of Maritimes & Northeast volumes.

Citing forecasts of continued warm weather in Florida and heavy use of its capacity, Florida Gas Transmission issued an Overage Alert Day notice Friday for customers in its market area. The tolerance for negative daily imbalances was 20%.

Most of the cash market was softer as expected Thursday, but forecasts of warm to hot weather in much of the U.S. outside the West Coast over the Fourth of July weekend and late run-ups following release of the storage report allowed a few scattered points to record flat to mildly higher numbers. The losses tended to range from just under a nickel to about 35 cents, with a majority at 15 cents or less.

Citing forecasts of continued warm weather in Florida and heavy use of its capacity, Florida Gas Transmission issued an Overage Alert Day notice Tuesday for its market area. The notice carries a 20% tolerance for negative daily imbalances.

Noting forecasts of continued warm weather in Florida and that its capacity is being heavily utilized, Florida Gas Transmission issued an Overage Alert Day notice Tuesday for its market area. The tolerance for negative daily imbalances was 10%.

Because of inclement weather hampering maintenance near ANR’s Alden Compressor Station in Kansas, the end date has been extended through April 17. The work, which is reducing Southwest Mainline capacity by 53 MMcf/d (leaving 634 MMcf/d available), previously had been scheduled to end Wednesday (see Daily GPI, March 25). Based on current nominations, the reduction may result in curtailment of IT and Firm Secondary nominations, ANR said.

Citing “colder than normal weather conditions and current pipeline operations,” Panhandle Eastern posted an operational alert Monday restricting flow at delivery points east of Tuscola, IL. For shippers under Rate Schedules EFT and EIT, flows will be limited during any hour of the gas day to one-sixteenth of the total daily gas nominated at the delivery point. For Rate Schedule FT customers, no more than one-twenty-fourth of the daily total can be delivered during any hour of the gas day.

Swing prices continued to erode moderately Wednesday as a mild short-term weather outlook and expectations of a reduction in the storage deficit weighed on the market. A largely static natural gas screen had little influence, although crude oil and heating oil futures were realizing gains.

Weather normalized gas demand this winter has exceeded gas supply by about 750 MMcf/d on average, according to a Monthly Energy Outlook by Stephen Smith Energy Associates. This gas shortage means that gas prices will have to remain at “demand destruction” levels ($4-$7 at the Henry Hub) this summer in order for storage to be refilled to an adequate level by next fall, the consulting firm said.