Natural gas futures looked poised to continue to trend lowerlast Friday amid abundant physical supply and having justreestablished the downtrend that began on April 8th. However,weather forecasts calling for the warmest temperatures of thesummer and solid “bargain buying” in the cash market was enough tolift August 3.3 cents to settle at $2.165.
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Pipes, Producers Square Off in OCS Inquiry
The on-going inquiry into how to regulate pipelines operating onthe Outer Continental Shelf (OCS) took center stage at FERC lastweek, with interstate pipelines and natural gas producersresponding with proposals that are miles apart.
Vollman Appointed New NEB Chairman
Under new leadership appointed last week, Canada’s NationalEnergy Board is vowing to become more user-friendly and easier tounderstand at the same time as it grows busier. Ken Vollman, a53-year-old engineer raised on a Saskatchewan farm and formed bygritty work in western oilfields, was candid about challengesfacing the agency when he was appointed its new chairman July 15 byNatural Resources Minister Ralph Goodale.
Dynegy, CA ISO Battle Over Price Caps
The Federal Energy Regulatory Commission issued an order lateFriday authorizing the California ISO on an interim basis to”reject bids in excess of whatever price levels it believes areappropriate for Regulation, Spinning Reserve, Non-Spinning Reserveand Replacement Reserve. The price levels could be based on costs,market or any factor the ISO determines will attract sufficientbids into the markets.”
FERC Raises Number of Intra-Day Noms to Three
In a move FERC said will “create a more integrated and efficientinterstate pipeline grid,” the Commission adopted standards thisweek that will expand from one to three the number of intra-daynomination opportunities for shippers on all interstate pipelines.The intra-day nomination schedule was proposed by the Gas IndustryStandard’s Board in March, by FERC in a notice of proposedrulemaking in April and this week was made part of the Commission’sregulations with required pipeline implementation by Nov. 2.
Tetco’s Lebanon Lateral Expansion Wins FERC Nod
Texas Eastern’s 300 MMcf/d Lebanon Lateral expansion wasapproved by FERC this week with a few conditions, including placingthe pipeline at risk for the cost of unused capacity on the line.The project would add 17,070 hp of compression to the 114-mileline, which stretches from an interconnection with PanhandleEastern near Gas City, IN, to interconnections with Tetco, CNGTransmission and Columbia gas at Lebanon, OH. Total capacity of thesystem following the expansion would be about 660 MMcf/d. Threeshippers, including Dayton Power and Light, Duke Energy and PublicService Electric and Gas signed up for 28% of the proposedcapacity.
Breathitt Dissents in Texas Gas Case
The FERC majority has approved a settlement that not only givescustomers on Texas Gas Transmission lower rates and refunds, butalso clears the way for NorAm Gas Transmission, a non-shipper andpipeline competitor, to have an evidentiary hearing on a number ofrate-related issues contained in the agreement. Commissioner LindaBreathitt dissented in part, saying the ruling set a dangerousprecedent for other rate settlement cases.
El Paso Pooling Scheduled for Technical Conference Again
If you thought a new pooling system on El Paso Natural Gas wouldbe approved in time for summer vacation, it looks like you may haveto sweat it out for another season. After months of hair pullingscrutiny and debate, FERC has decided to reject El Paso’s March 16filing for scheduling gas pooling transactions on its system andconvene yet another technical conference on the complex matter.
Hearing Scheduled on Richardson Nomination
The Senate Committee on Energy and Natural Resources hasscheduled a hearing for July 22 to take up the nomination of BillRichardson, current U.S. ambassador to the United Nations, to behead of the Department of Energy.
High Utility Demand Now, But Watch Out for Fall
Anyone who’s been outside just about anywhere in the countryknows summer came on early this year and came on strong. Electricutilities that usually don’t hit their demand peaks until July orAugust hit their high marks last month. And the heat likely won’tbe retreating in August.