For the third straight day, unseasonable weather teamed with afalling futures screen to land a knockout blow on price bulls’chins, as only a few cash points escaped losses of more than adime. A huge swath of high 60- to mid 70-degree temperatures acrossthe Rockies, Gulf Coast, Midcontinent and Northeast eradicated anywinter demand yesterday and caused traders to long for the golfcourse instead of the office. Adding fuel to the fire, forecastsare calling for similar weather for the rest of the week.
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Viking Seeks Incremental Pricing of Capacity
In keeping with FERC’s recent policy statement on capacitypricing, Viking Gas Transmission has become the first pipeline toseek authority to charge higher incremental rates for previouslylower-priced capacity that becomes available on its system.
Industry Briefs
Southern Union Co. received final approval from the FederalEnergy Regulatory Commission for its merger with PennsylvaniaEnterprises Inc. The FERC approved transfer of control of powermarketing licenses held by Pacific Enterprises. The merger,announced June7, is expected to close Thursday.
Market Holds as Bulls Try to Regroup
Natural gas futures were hit with another wave of selling earlyFriday as traders added to losses incurred during Thursday’s25-cent price slide. However after notching its lowest price inthree weeks at $2.87, the December contract worked its way higherto settle at $2.961, a 0.4-cent loss for the day.
Conoco Extends Supply Deal With DuPont
Continuing an arrangement first forged in 1981, Conoco announced a definitive agreement last week to manage DuPont’s gas supply needs. DuPont is one of the largest U.S. industrial gas consumers and Conoco’s largest supply customer. Neither the financial terms nor energy volumes were disclosed.
Northeast Gains, West Drops Stand Out in Flat Market
The cash market closed out last week on a somewhat balancednote, with new upticks of a nickel or more in the Northeast arrayedagainst drops between a nickel and a dime at western points. Inbetween there was a vast sea of mostly flatness.
Conoco Extends Supply Deal With DuPont
Conoco continued an arrangement first forged in 1981 by announcing a definitive agreement yesterday to manage DuPont’s gas supply needs. DuPont is one of the largest U.S. industrial gas consumers and Conoco’s largest supply customer. Neither the financial terms nor energy volumes were disclosed.
Transportation Notes
Effective with Nov. 1 nominations, ANR will consolidate itsWillow Run (Receipt) and Willow Run (Delivery) locations into onebi-directional nominatable point. The combined location will benamed Willow Run (MichCon) and use the existing Data Reference No.42078. It is the only location that will be needed for eitherreceipts or deliveries, and will be available for Park and Lendactivity.
Transportation Notes
Over the weekend Pacific Gas & Electric issued ahigh-inventory OFO with 10% tolerance on positive daily imbalancesfor Sunday but did not continue the OFO Monday.
Transportation Notes
Koch Gateway re-instituted a force majeure Thursday inconnection with the Compressor #1 station at its Bistineau (LA)storage facility. The pipeline had declared a force majeure Tuesdaywhen it took the station down for unscheduled repairs, cutting byhalf the facility’s normal injection capacity of 500 MMcf/d. Itannounced Wednesday the repairs had been completed and that fullinjection capacity was being restored for Thursday’s gas day.However, problems developed during the station’s startup. KochGateway said Thursday it was honoring that day’s Bistineaunominations but not accepting intraday nominations. Injectioncapability is back to 250 MMcf/d until further notice.