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.
weather
Articles from weather
Bears Firmly in Control of Swing, Bidweek Markets
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.
Prospects of Halting Price Dive Appear Slim to None
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.
Lehman Raises Gas Price Forecast for 2001, 2002
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.
Lehman Raises Gas Price Forecast for 2001, 2002
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.
Bearish Weather Trump Bullish Storage in Gas Pit
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.
KeySpan Turns Gas Off for 650 IT Customers
Cold weather and strong demand in the Northeast forced KeySpanEnergy shut-off supplies to 650 interruptible commercial customerson Long Island on Christmas eve.
Transportation Notes
Citing forecasts of “an extended period of steady, cold weatherthroughout the pipeline system,” Texas Eastern said it is imposingseveral restrictions this morning to preserve linepack and systemreliability. Until further notice no forward-haul mainline IT-1volumes will be delivered to the market area; no due-shipperimbalances are available; TABS-1 shippers are required to be inbalance daily; and all non-interstate Operational BalancingAgreements upstream of the Berne (OH) Compressor Station have beensuspended. Affiliate Algonquin is restricting the taking of anydue-shipper imbalances. Both pipes said they will consider thepotential for secondary restrictions going into the holiday weekendas conditions warrant.
Only West Coast Misses Out on Price Rebounds
A revised National Weather Service forecast, expanding theprediction of below normal temperatures for the Christmas weekendto the entire United States except for the sparsely populated UpperPlains, kept most prices from softening Friday, as some hadanticipated. Except for the still-most-expensive West Coast market,all other points realized gains from about a dime (San Juan Basin)to a little more than 50 cents (Northern Natural Gas market area).
Transportation Notes
Williams said it expected its OFO (see Daily GPI, Dec. 12) to expire at the beginning oftoday’s gas day “based upon the latest weather forecast that we havereceived.” However, as of late Wednesday afternoon no cancellationnotice had been posted.