Markets

Natural gas-focused San Diego-based Sempra Energy made a late bid that allowed it to pluck off bankruptcy-bound Energy Future Holdings Corp. (EFH), the indirect owner of 80% of Texas-based Oncor Electric Delivery Co., for $9.45 billion in cash, topping one by Warren Buffett’s Berkshire Hathaway conglomerate.

Marketers in Mexico sold natural gas at an average of price $4.10/MMBtu in July, the first month since the country implemented its capacity reservation regime.

“Don’t count your chickens before they hatch” was the lesson learned last week as natural gas forwards markets fizzled out after the previous week’s rally — falling an average 5 cents for September — as weather forecasts that had called for more hot weather to end August and start September cooled significantly.

Physical natural gas for Tuesday delivery was driven higher by forecasts of heat and humidity in large eastern markets, and other market points were quick to follow. Strength in the Northeast, Midcontinent, Appalachia and California was more than enough to counter soft pricing in East Texas, and the NGI National Spot Gas Average rose 5 cents to $2.79.

Marketers in Mexico sold natural gas at an average of price $4.10/MMBtu in July, the first month since the country implemented its capacity reservation regime.

September natural gas is expected to open 2 cents lower Friday morning at $2.91 as traders see the weather outlook becoming less supportive and speculative traders line up on the short side of the market. Overnight oil markets rose.

Houston-based Calpine Corp., which operates natural gas-fired generation plants around the nation, is being acquired by a consortium of investors led by Energy Capital Partners (ECP) for $5.6 billion.

“Don’t count your chickens before they hatch” was the lesson learned this week as natural gas forwards markets fizzled out after last week’s rally — falling an average 5 cents for September — as weather forecasts that had called for more hot weather to end August and start September cooled significantly.

At first glance it may have looked like weekend and Monday physical natural gas was held to minimal changes, but don’t tell that to traders trying to do deals on Northeast pipes. Most points, however, did trade within a penny or two of unchanged, and the NGI National Spot Gas Average was down 7 cents to $2.74.