Markets

Physical natgas traders typically try to get their deals done ahead of the Energy Information Administration’s (EIA) Thursday storage report, but given that the average physical market gain was only a penny off the rise of the September and October contracts, you would think that the two markets snuck a peak at each other from time to time.

September natural gas is expected to open 2 cents higher Wednesday morning at $2.78 as weather forecasts over key market areas once again ratcheted warmer. Overnight oil markets fell.

The proposed merger between Richmond, VA-based Dominion Resources Inc. and Salt Lake City, UT-based Questar Corp. came one step closer to completion Tuesday when Utah’s Public Service Commission signed off on the deal, the companies announced.

As part of its discussions with a group of noteholders to reach a restructuring agreement outside of court, Stone Energy Corp. disclosed in a regulatory filing this week that it is in negotiations to sell its Appalachian Basin assets.

Marathon Petroleum Corp. (MPC) announced Wednesday that John Mollenkopf, COO for MarkWest operations following the merger between MPC’s midstream limited partnership, MPLX LP, and MarkWest Energy Partners LP, has decided to retire after a 33-year career in the energy industry (see Shale Daily,July 13, 2015;May 13, 2015). “John’s impact on MarkWest will be recognized long after he retires, particularly in the influential leadership role he played in growing the company’s operations and facilities, which have provided best-in-class service to our customers for over a decade,” MPC CEO Gary Heminger said in a statement. Gregory Floerke, the current chief commercial officer (CCO) for MarkWest Assets, will assume Mollenkopf’s post and report to MPLX President Donald Templin (see Shale Daily,April 9, 2014). Randy Nickerson, who currently serves as MPC’s executive vice president for corporate strategy, will be appointed CCO for MarkWest Assets and also report to Templin. Nickerson will continue in his role to develop overall strategy around midstream assets as they relate to MarkWest, MPLX and MPC. Both Floerke and Nickerson will maintain offices in Denver. The changes will take effect on Oct. 1.

Natural gas for delivery Thursday worked higher in Wednesday’s trading as forecast power demand and prices turned higher in New England and the Mid-Atlantic. Gains were widespread, with most points adding over a nickel and the Northeast and Midwest showing particular strength.

CME Group Inc. has suspended one of its futures traders for at least 60 days after an investigation found he attempted to manipulate the gold and natural gas futures markets through “spoofing” and is suspected of money laundering in Cyprus.

Physical natural gas for Wednesday moved little in trading Tuesday, with some producing basins reporting no movement at all and most points moving within a few pennies of unchanged.

September natural gas is set to open 3 cents higher Tuesday morning at $2.71 as weather forecasts again turned warmer and the tropical Atlantic added another storm. Overnight oil markets fell.