High temperatures in nearly every section of the U.S. except the Midwest and Upper Plains, along with strong energy futures, generated a run-up in gas prices at all points Monday.

Transco’s transport-constrained Zone 6-New York City pool led the market surge with a increase of more than half a dollar to average more than $4 with a peak at $5.00 on the IntercontinentalExchange online platform.

Upticks elsewhere were more modest, ranging from about a nickel to 35 cents, with most of them in the teens. Midwest citygates tended to see most of the smallest gains; not coincidentally, a cold front made that market one of the few where below normal thermometer readings were experienced.

As one Northeast source had predicted Friday, there was quite a bit of intraday business being done Monday. A utility buyer in the region reported selling more than 50 MMcf/d of intraday gas at a “nice premium” over next-day numbers. He also said he’d done a lot of Monday-only deals on Friday, “so it was obvious that people could see this coming.” The Northeast’s heat wave is expected to last at least until the weekend, so there’s unlikely to be any break in high prices before Friday at the earliest, the buyer said.

Power prices for Tuesday delivery in the Northeast soared along with the heat and gas prices, with one source reporting New York City-area electricity peaking at a little more than $100/MWh.

Florida Gas Transmission shippers got a break from an Overage Alert Day notice over the weekend (see Transportation Notes), but the notice was back in place Monday, noted a marketer who quoted Florida citygates up about 20 cents to the mid $3.50s.

A western trader said San Juan Basin’s rise of about a quarter was largely due to heavy east-of-California demand, where triple-digit temperatures were widespread. He observed that the PG&E citygate was trading at a slight premium to next-month gas.

A Calgary-based aggregator said next-day intra-Alberta prices were up about a dime to the mid C$2.80s despite unseasonably cool temperatures in the province, with same-day gas going for a little more than a nickel less. As it often does, the intra-Alberta market moved higher along with the screen, she said. The futures strength also pushed up September prices, she added, quoting a Monday intra-Alberta deal for next month in the mid C$3.20s, which was up from the high C$3.00s Friday.

The Sumas and Westcoast Station 2 markets have adjusted pretty well to the loss of supply during the McMahon Plant’s annual turnaround, which is scheduled to continue until early next week, said a marketer quoting the two points in the low $2.10s and throughout the C$3.00s respectively. It helps that Authorized Overrun Service on Alliance Pipeline is currently zero, he said, so some British Columbia production that otherwise would have headed to Chicago via Alliance instead is available at Station 2 and Sumas.

Clay Basin storage is filling up fast, said a concerned Rockies trader. There is about 300 MMcf/d being injected, he went on, estimating that in about 36 more days “Clay will be packed tight. Lord knows what we will do when that is full.” He doesn’t think the Elk Basin facility will get full because withdrawal constraints “mean you might not be able to get your gas back out.”

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