Withdrawal

Withdrawal capacity at the Aliso Canyon storage field of Southern California Gas has decreased by 750 MMcf/d through June 30 due to maintenance on the facility’s #2 dehydration unit.

Due to cold weather having moved into its market area and based on anticipated demand, Southern projected that storage withdrawal requirements would exceed its capability starting Monday, and thus it implemented an OFO Type 6 for short imbalances that day until further notice. The OFO was extended through at least Tuesday, and Southern said it was “highly likely” that it will remain in place for short imbalances through Friday.

Southern noted that it will lose 64% of its available injection/withdrawal capability during a shutdown test of the Muldon (MS) Storage Field that begins Tuesday and runs through the following Monday. Based on current supplies and anticipated demand, Southern expected injection requirements Tuesday to exceed capability by about 75,000 Dth/d.

After a 21.8-cent futures drop a day earlier that was largely based on a below-expectations storage withdrawal report, it was hardly surprising to see prices drop across the board Friday, even with colder temperatures returning to some areas during the weekend.

After a 21.8-cent futures drop a day earlier that was largely based on a below-expectations storage withdrawal report, it was hardly surprising to see prices drop across the board Friday, even with colder temperatures returning to some areas during the weekend.

Despite the rapid withdrawal of natural gas storage supplies due to a brutally cold December and early January, “stubbornly high” U.S. production, more liquefied natural gas imports and the return of coal as a competitor in the power sector “will likely work to contain the upside potential of prices in 2010,” according to a new research note from Barclays Capital analysts James Crandell, Biliana Pehlivanova and Michael Zenker.

Despite the rapid withdrawal of natural gas storage supplies due to a brutally cold December and early January, “stubbornly high” U.S. production, more liquefied natural gas imports and the return of coal as a competitor in the power sector “will likely work to contain the upside potential of prices in 2010,” according to a new research note from Barclays Capital analysts James Crandell, Biliana Pehlivanova and Michael Zenker.

Despite the rapid withdrawal of natural gas storage supplies due to a brutally cold December and early January, “stubbornly high” U.S. production, more liquefied natural gas imports and the return of coal as a competitor in the power sector “will likely work to contain the upside potential of prices in 2010,” according to a new research note from Barclays Capital analysts James Crandell, Biliana Pehlivanova and Michael Zenker.

Largely due to a prior-day futures spike following a much-larger-than-expected storage withdrawal report, but also because of very cold weather continuing to dominate North America forecasts, cash prices were up at all points Friday.