Daily GPI

Shortly after canceling an Overage Alert Day notice (see Daily GPI,Feb.1), Florida Gas Transmissionreported experiencing enough market-area demand to reinstate thenotice Tuesday east of Station 13 in northern Florida. As with theearlier one, the OFO carries a 6% tolerance for negative imbalances.

A futures screen that was almost a dime higher during morningcash trading and continued cold temperatures were enough to allowprices to put even more distance between themselves and indexesTuesday. Meanwhile, transport-constrained Northeast citygates wereback for a repeat performance of their skyrocket act from lateJanuary.

First-of-month swing prices were down from the weekend buthandily above February indexes Monday. As further proof that theaftermarket was getting off to a strong beginning, a marketerreported seeing Henry Hub swing swaps trading at $2.67 while thescreen was at $2.61. “That premium of 6 cents was very strong,” hesaid.

Responding to private weather forecasts early yesterday callingfor continued cold weather in the Northeast, market buyers showedtheir muscles at the starting gate and followed through with strongruns in both futures and cash. February cash prices at the HenryHub were approaching dime increases while March futures soared 13cents to $2.662, a smidgen off its high for the day of $2.675. TheApril contract was up 10.4 cents to $2.605, just under its high of$2.610, and May drove 7.7 cents higher to $2.575.

After three years of attempts to generate profitability from itsTexas gathering and liquids businesses, PG&E National EnergyGroup finally threw in the towel yesterday and announced the saleof these assets to El Paso Energy Field Services for $840 millionin stock and debt.

They might both be majors, but Chevron U.S.A. Production Co. andShell Exploration & Production Co. still think it’s wise to notgo it alone in the deep waters of the Gulf of Mexico. The companieshave agreed to share drilling rigs and jointly drill twoexploratory wells there this year.

Maritimes & Northeast Pipeline, L.L.C. announced anagreement yesterday with Bangor Gas Co. to transport up to 85,000Dth/d from the Maritimes facilities to Bangor Gas’ proposeddistribution facilities in Veazie, ME, and Bucksport, ME.

Through a new tolling deal Southern Company Energy Marketingwill have the exclusive right to supply fuel to and receive powerfrom United American Energy Corp.’s 82 MW gas-fired power plant inLowell, MA. Southern will market and trade electricity from theplant in the New England Power Pool. Terms of the deal were notreleased.

Conectiv Energy Supply, Inc. has purchased the assets of thePennsylvania office of Black Hills Energy Resources, a gasmarketing operation that was a subsidiary of Black Hills Corp. Thepurchase brings Conectiv an office located in Allentown, PA, thatserves more than 300 gas customers in the tri-state area. Thecustomers primarily are industrial and commercial consumers in theUGI, PECO, Penn Fuel, and Columbia of Pennsylvania service areas.