Futures traders were unable to maintain upward momentum earlyyesterday after an initial push above the 40-day moving average toa high of $2.715. January futures fell back sharply in the morningand then traded sideways throughout the rest of the day to end down2.6 cents at $2.629. February lost 1.7 cents to settle at $2.609.The 12-month strip only lost eight-tenths of a cent.
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Guardian Sponsor Flummoxed by Peoples/Coastal
The announcement earlier this week by Peoples Energy and CoastalCorp.’s ANR Pipeline that they were teaming up to build a 130-milepipeline into the Wisconsin market has left at least one sponsor ofthe competing Guardian Pipeline project scratching his head.
Warm Weather Ushers January Contract to New Lows
For the second trading session in a row, natural gas futureswere hit with a wave of selling pressure Monday, as bears basked inthe glow of forecasts calling for continued above-normaltemperatures across much of the country. After showing earlypromise last week in trading up to $2.485, the January contract hassince slipped to new life-of-contract lows, closing at $2.224yesterday. Activity was with 69,325 contracts changing hands.
No Hibernation Yet for Nymex Bears
Nymex bears got their Thanksgiving feast a few days earlyyesterday when they were greeted with a hearty helping ofprice-negative fundamental and technical news. And even before theopening bell sounded that sentiment was evident in the price levelas over the counter deals traded at a dime below Friday’s close.After opening at $2.34, the December contract tumbled lower to newlife-of-contract-lows before settling at $2.197, down a whopping23.7 cents or 8% for the day. Heavy estimated volume of 120,326served to punctuate the price move.
No End in Sight Yet for Running of the Gas Bulls
Once again the bulls were on a rampage Tuesday, and sourcesexpected them to still be running today. Increases of about a dimeor more at all points dominated the cash market for the secondstraight day. Prices got support from a cold snap in thenortheastern U.S. and eastern Canada, hot weather from Californiathrough the Southwest into Texas and Louisiana and parts of theMidcontinent, and continued screen strength—both in natural gasand crude oil futures. Gas gained just over a dime, and crude rosejust over a dollar to finish above $22/bbl.
Pinnacle to Build 2,120 MW Palo Verde Gas Plant
Gas-fired megawatts were in play last week as the parent ofArizona Public Service and part-owner of the Palo Verde NuclearGenerating Station pledged to put a massive 2,120 MW naturalgas-fired plant beside its nuclear facility; Texas Utilities putsix gas-fired generating plants (3,116 MW) on the market; andCalpine Corp. announced a new 800 MW cogen plant in Baytown, TX,and completed the purchase of another 500 MW development project inCalifornia. (See separate story)
Winter Months Advance Leaves October Futures Out in Cold
Natural gas futures chopped sideways for the second straightsession yesterday as traders were torn between shoulder and wintermonth pricing. While the October contract was limited to a tighttrading range and a 0.2-cent advance to $2.632, the Novemberthrough March strip bounded 4.1 cents higher to $2.978. Estimatedvolume was robust with 110,911 contracts changing hands.
Breathitt: Six-Month Wait for Gas Initiatives Rule
Industry executives who were expecting FERC to act soon on majorpolicy initiatives addressing second generation Order 636 issueswill be sorely disappointed. Commissioner Linda Breathitt saidyesterday she didn’t expect to see any action on the notice ofproposed rulemaking (NOPR) and notice of inquiry (NOI) for possiblyanother six months.
Go Back to Drawing Board on OCS NOPR, FERC Told
Neither the interstate pipelines nor gas producers wereparticularly enamored of FERC’s latest attempt to create a morebalanced, lighter-handed system for regulating gas pipelines on theOuter Continental Shelf (OCS). They both agree the Commission fellshort of its goal in the July proposed rulemaking.
Go Back to Drawing Board on OCS NOPR, FERC Told
Neither the interstate pipelines nor gas producers wereparticularly enamored with FERC’s latest attempt to create a morebalanced, lighter-handed system for regulating gas pipelines on theOuter Continental Shelf (OCS). They both agree the Commission fellshort of its goal in the July proposed rulemaking.