Markets

A looming FERC decision on a proposed tariff revision for Algonquin Gas Transmission LLC’s system could reshape winter natural gas and electric pricing in New England and determine the fate of the Access Northeast expansion project.

Modest weakness at eastern points was not enough Wednesday to thwart an otherwise strong physical natural gas market. Next-day gas was firm at all locations outside the Northeast, with most points adding anywhere from a nickel to a dime. The NGI National Spot Gas Average rose 4 cents to $2.70 with gains in California, the Rockies, and the Gulf offsetting Marcellus weakness.

The expiring July natural gas futures contract is expected to open 10 cents higher Tuesday morning at $2.82 as weather forecasts shift to a re-emergence of warmer than normal patterns across much of the country. Overnight oil markets rebounded.

Next-day gas bounded higher Tuesday, led for the most part by an enthusiastic screen that had to factor in the expiration of the July contract as well as longer-dated temperature forecasts showing above-normal temperatures.

July natural gas is expected to open 2 cents higher Monday morning at $2.68 as traders continue to see a consolidation pattern and discount near-term weather reports showing slightly milder conditions. Overnight oil and equity markets fell. Dow Jones futures dropped 123 points to 17,124.

Intense heat and a below-average storage injection lifted natural gas forwards for a fourth straight week, according to NGI’s Forward Look.

California regulators on Thursday approved nearly $950 million in increased rates to support Pacific Gas and Electric Co.’s (PG&E) natural gas storage and transmission pipeline operations.

Despite a judge’s ruling that could ultimately nix the deal, The Williams Companies Inc. said more than two-thirds of its shareholders voted for the proposed merger with Energy Transfer Equity LP (ETE), according to preliminary results.

Through the first three months of 2016, natural gas consumption in the power sector increased year/year, while residential and commercial consumption was down, according to the Energy Information Administration’s (EIA) latest Monthly Energy Review(MER).