Natural Gas Week articles from June 2003

Natural Gas Week archives from June 2003

High gas price fix may lead to clean air rules relaxation.
June 2, 2003... Energy Secretary Spencer Abraham's recent call to find immediate solutions to high natural gas prices has at least one noted energy analyst speculating that the federal government could lift clean air rules to reduce natural gas demand. At...

Mild early June temps to delay expected summer volatility.
June 2, 2003... The price spikes that so many pundits anticipate for the gas market this summer are likely to be held off through early June due to widespread mild weather in forecasts for eastern US markets. Still, there is a pervasive sense that the gas...

E&P firms target tight sands for steady well production.
June 2, 2003... Faced with shrinking discoveries and steep decline rates in conventional gas fields, US producers are turning increasingly to "tight" gas from low-permeability reservoirs to maintain production. A $20 billion pipeline from Alaska and...

Bid-week. (Late News).
June 2, 2003... Due to timing, June bid-week prices will not appear in this week's Natural Gas Week. Full listing will appear in Jun. 9 issue. To ensure our readers best service possible, we will be emailing a copy of NGW's Daily Price Snapshot, with full...

FERC part deux. (Late News).
June 2, 2003... FERC announced last Thursday it will hold another technical conference. Jun. 24 at its Washington, D.C., headquarters to discus energy price discovery and indices. Commodity Futures Trading Commission and National Association of Regulatory...

Flying along. (Late News).
June 2, 2003... Chevron Texaco's Port Pelican deep-water application for its offshore Gulf of Mexico regasification platform is moving along on military timing. US Coast Guard and Maritime Administration said draft environmental impact statement (EIS) for 750...

Mexico looks into offshore LNG; Baja California likely location.
June 2, 2003... Mexican regulatory agency Comision Reguladora de Energia (CRE) is preparing new regulations covering offshore liquefied natural gas (LNG) regasification plants, which are almost certainly designed with Baja California in mind. The...

Gray boosts hurricane forecast.
June 2, 2003... Veteran hurricane day raised his forecast for the 2003 Atlantic basin hurricane season, now predicting 14 named storms from previous forecast of 12. ON the eve of the hurricane season, which began last weekend and runs through Nov. 30;...

El Paso girds for proxy fight between Kuehn, Wyatt factions.
June 2, 2003... The future of El Paso, the largest natural gas pipeline operator in the US, hinges on one color: white or blue. El Paso is involved in a fight with shareholders Selim Zilkha and Oscar Wyatt. Upset with El Paso's business strategy and the...

NGSA: upward pressure expected on gas prices this summer.
June 2, 2003... With a slow economy, tight supplies, flat production and demand, and the expectation of warmer-than-normal weather on the horizon, there will likely be upward pressure on natural gas prices this summer. That was the conclusion of the...

Major market prices.
June 2, 2003... MAJOR MARKET PRICES June 2, 2003 ($/MMBtu) This Weekly Bid Week Week Change for May Chicago City Gate 5.84 -0.22 5.19 New York City Gate 6.19 -0.19 ...

Large volume of properties flood Canadian M&A markets.
June 2, 2003... The coming months may prove to be active ones for upstream mergers and acquisitions (M&A) in Canada after companies put up for sale US$2 billion in assets in the first quarter, the largest quarterly value in the last three years, according to...

Spot prices on intrastate pipeline systems.
June 2, 2003... SPOT PRICES ON INTRASTATE PIPELINE SYSTEMS Delivered-to-Pipeline ($/MMBtu) June 2, 2003 This Weekly Bid Week Pipeline Week Change for May Louisiana Intrastates...

California LNG terminal may bring Russian supply to US.
June 2, 2003... The San Francisco area may have turned its nose up at the prospect of feeding California's growing appetite for gas by importing liquefied natural gas (LNG), but the City of Long Beach, near Los Angeles in Southern California, is all ears when...

2003 Gas price outlook.
June 2, 2003... 2003 GAS PRICE OUTLOOK June 2, 2003/Week 22 12-Month Strip Wellhead Delivered-to-Pipeline Nymex $6.09 $6.20 $6.066 NOTES: (1)Prices are in $/MMBtu and are for...

Falcon gas argues it rightly terminated tractebel contract.
June 2, 2003... Hill-Lake Gas Storage has shot back at energy giant Tractebel. In a May 27 filing with the Federal Energy Regulatory Commission (FERC), Hill-Lake, which is a subsidiary of Houston-based Falcon Gas Storage, argued it was legal to terminate a...

Composite spot wellhead price.
June 2, 2003... COMPOSITE SPOT WELLHEAD PRICE January 1991 to Present ($/MMBtu) Jan. Feb. March April May June July August Sept. Oct. 1991 1.57 1.30 1.26 1.23 1.20 1.11 1.07 1.19 1.43 1.59 1992 1.29 1.07 1.13...

PUCT: poor market structures lead to winter spikes in Texas.
June 2, 2003... Unexpectedly frigid temperatures that caused Texas power prices to skyrocket in late February shed light on limitations of the natural gas and power market structures, according to a report by the Market Oversight Division (MOD) of the Public...

Increase in operating costs raises E&Ps' profitability bar.
June 2, 2003... Leading North American independent producers now require average oil and gas prices of more than $24/boe or $4/Mcfe just to earn financial returns equal to their cost of capital as a combination of rising costs, smaller exploration prospects,...

Composite spot delivered-to-pipeline price.
June 2, 2003... COMPOSITE SPOT DELIVERED-TO-PIPELINE PRICE January 1991 to Present ($/MMBtu) Jan. Feb. March April May June July August Sept. Oct. 1991 1.66 1.41 1.33 1.31 1.27 1.19 1.15 1.27 1.52 1.68 1992...

Salt cavern storage.
June 2, 2003... SALT CAVERN STORAGE (Billion Cubic Feet) MMcfd MMcfd Bcf May 23 Facility State Max Max Capacity Bcf Injection...

Gas costs add twist to Texas retail choice. (Current).
June 2, 2003... Retail electric competition is heating up in Texas as the mercury rises this summer and strong prices for natural gas -- which fuels around 70% of the state's electricity -- may impact which contenders retain or gain new customers. ...

PPL to reduce plant's emmissions.
June 2, 2003... Allentown, Pennsylvania-based PPL Corp. said last week that it would significantly reduce sulfur dioxide ([SO.sub.2]) emissions from its Martins Creek, Pennsylvania, power plant when a voluntary agreements with the New Jersey and Pennsylvania...

NEB OKs New Brunswick-Maine line.
June 2, 2003... CALGARY -- Canada's National Energy Board (NEB) last Thursday approved an application by NB Power to construct and operate a 62-mile, 345-kV international power line from the existing transmission terminal at the Point Lepreau Generating...

Connecticut extends project ban.
June 2, 2003... HARTFORD, Connecticut -- The Connecticut State Senate last Wednesday voted to extend the state's moratorium on new permits for electric transmission projects underneath the Long Island Sound. The moratorium was set to expire to morrow but will...

Suncor plans Alberta wind farm.
June 2, 2003... CALGARY -- Suncor Energy, best known for its massive Fort McMurray oil sands operation, said last Monday it's teaming up with Corporacion Energia Hidroelectrica de Navarra (EHN), one of Europe's biggest wind-energy station operators based in...

Comparative fuel prices.
June 2, 2003... COMPARATIVE FUEL PRICES (Cash Market) June 2, 2003 EAST COAST Natural Gas Natural Gas New York Harbor: Texas New York Heating...

We energies to restart plants.
June 2, 2003... MARQUETTE, Michigan -- We Energies said it expects to put two of the nine units at its flooded Presque Isle power plant in Michigan's Upper Peninsula back in service between Jun. 13 and Jun. 17. The utility -- a unit of Wisconsin Energy -- has...

LIPA installs stand-by generators.
June 2, 2003... UNIONDALE, New York -- The Long Island Power Authority (LIPA) said last Thursday it will install 120 MW of temporary stand-by generation at two locations by Jul. 1. The move is part of an effort to ensure an adequate supply of electricity...

Natural gas futures and spot electricity trading.
June 2, 2003... NATURAL GAS FURTURES AND SPOT ELECTRICITY TRADING Trading Dates: May 27-May 30, 2003 New York Mercantile Exchange (NYMEX) (Henry Hub) Monday Tuesday Wednesday Thursday Last/Volume...

Cash market hub trading.
June 2, 2003... CASH MARKET HUB TRADING ($/MMBtu) Henry Hub, La. Jan. Feb. March April May June July 1995 1.48 1.54 1.52 1.59 1.64 1.65 1.44 1996 ...

Natural gas rig count.
June 2, 2003... NATURAL GAS RIG COUNT Jan. Feb. March April May June July August Sept. 2000 Total 774 763 773 805 844 878 942 987 1011 Gas 631 616 599 609 644 677 733 779 810 %...

Distrigas seeks FERC approval for LNG pipeline extension. (Regional Market Roundup).
June 2, 2003... Distrigas of Massachusetts last week asked the Federal Energy Regulatory Commission (FERC) for the go-ahead to construct a 300-foot pipeline within the boundaries of the Everett, Massachusetts, liquefied natural gas (LNG) receiving terminal....

Spot prices on interestate pipeline systems.
June 2, 2003... SPOT PRICES ON INTERSTATE PIPELINE SYSTEMS Delivered-to-Pipeline ($/MMBtu) June 2, 2003 This Weekly Bid Week Bid Week Pipeline Week Change for May for...

Syncrude to spend C$400 million to reduce SO2 emissions 60%. (Canadian Markets).
June 2, 2003... Syncrude Canada, the world's largest oil sands operation, recently unveiled a C$400 million (US$312.9 million) project that will reduce sulfur dioxide (SO2) emissions -- the product that causes acid rain -- by 60% at its Fort McMurray operation...

Canadian price report.
June 2, 2003... CANADIAN PRICE REPORT ($U.S. per MMBtu/$Can per Gigajoule) BRITISH COLUMBIA Huntington/ Kingsgate/ Total Sumas...

EKT stops reporting energy deals.
June 2, 2003... Entergy-Koch Trading (EKT) announced last Wednesday that it has stopped reporting its energy transactions to news organizations. Company spokesman Marc Palazzo cited the uncertainty surrounding regulatory oversight of price reporting as the...

Gas price trends.
June 2, 2003... GAS PRICE TRENDS ($/MMBtu) ROCKY NEW CALIFORNIA MTNS MEXICO South North June 2002...

EEA: boom in gas generation entering its twilight years.
June 2, 2003... After years of unprecedented growth in gas-fired capacity additions, the end is in sight for the boom in power plant construction. In its new monthly update, Arlington, Virginia-based Energy and Environmental Analysis (EEA) predicted 58 GW...

Greenspan on gas. (Late News).
June 9, 2003... Federal Reserve Chairman Alan Greenspan to testify on natural gas demand and supply issues before House Energy and Commerce Committee tomorrow. In testimony before Congressional Joint Economic Committee last month, he alluded to potential...

XTO grows. (Late News).
June 9, 2003... XTO Energy Friday agrees to acquire coal bed methane and natural gas producing properties located in San Juan Basin of New Mexico and Colorado from Denver-based Markwest Hydrocarbon for $60.5 million. XTO estimates proved reserves to be 50 Bcfe...

Guessing game. (Late News).
June 9, 2003... South Texas Project Nuclear Operating Co. officials told NRC last Thursday they have not determined cause of two small cracks discovered in two penetration tubes that go into reactor vessel at its Unit 1 facility. However, they said problem...

Alberta considering shutting in gas to protect oil sands flow.
June 9, 2003... The Alberta Energy and Utilities Board (EUB) said last week it is considering a plan to shut in about 900 gas wells that produce about 240 MMcf/d, or 90 Bcf/year, by Aug. 1 to maintain subsurface pressure needed to extract bitumen from the...

Record-high storage injection fails to quell gas bullishness.
June 9, 2003... Sentiment in natural gas trading is being tugged by two countervailing trends -- storage injections point to a substantially looser market owing to currently high prices, yet anxiety is widespread over the pricing impact of a hot summer or...

Gas prices cause widespread shut-downs of ammonia plants.
June 9, 2003... In late February, many ammonia and nitrogen industrial customers were forced to shut down operations as gas prices spiked in harsh winter conditions (NGW Mar. 3,p20). Three months later, fertilizer producers find themselves in the same...

Dissidents gain edge on board in looming El Paso proxy fight.
June 9, 2003... The fight for control of El Paso's board of directors and ultimately corporate management, strategy, and performance, tilted slightly in favor of the dissident group last week when Institutional Shareholders Service (ISS) endorsed the team lead...

NGW proposes changes to tables.
June 9, 2003... Natural Gas Week is considering several to its pricing tables in an effort to more accurately reflect current market activity and provide more clear, timely, and robust data. NGW is offering interested subscribers the opportunity to comment on...

FPL contract boosts Gulfstream, may set back LNG from Bahamas.
June 9, 2003... The underutilized Gulfstream Natural Gas system received an enormous boost when Florida Power & Light (FPL), the state's largest utility, recently agreed to subscribe to 350 MMcf/d of firm capacity for 23 years to carry domestic gas to two...

Major Market Prices.
June 9, 2003... MAJOR MARKET PRICES June 9, 2003 ($/MMBtu) This Weekly Bid Week Week Change for Jun. Chicago City Gate 6.20 +0.35 5.95 New York City Gate 6.58 +0.38 ...

Nova Scotians may finally tap offshore sable gas supplies.
June 9, 2003... Nova Scotians may be able to tap the huge gas reserves that lie off their coast at the Sable Offshore Energy Project by the end of the year. Gas from the project came ashore in 1999, but residents and businesses for the most part have not been...

FERC order on Calpine Gripe clears up collateral question.
June 9, 2003... Federal regulators last week handed down three rulings with strong implications for pipeline and shipper creditworthiness issues, particularly regarding the collateral levels that a shipper should maintain. While the orders aren't a formal...

Spot Prices on Intrastate Pipelines Systems.
June 9, 2003... SPOT PRICES ON INTRASTATE PIPELINES SYSTEMS Delivered-to-Pipeline ($/MMBtu) June 9, 2003 This Weekly Bid Week Pipeline Week Change for Jun. Louisiana...

Mirant bond Maneuver staves off imminent bankruptcy.
June 9, 2003... Outfitted with a last resort, fast-track plan for reorganization, Atlanta-based Mirant laid everything on the table last week for its bondholders and creditors in an effort to maintain solvency, a risky maneuver that hinges on creditors and...

2003 Gas Price Outlook.
June 9, 2003... 2003 GAS PRICE OUTLOOK June 9, 2003/Week 23 12-Month Strip Wellhead Delivered-to-Pipeline Nymtex $6.21 $6.33 $6.293 NOTES:(1)Prices are in $/MMBtu and are for...

EUB: Alberta gas supply ebbing while oil sands hit boom years.
June 9, 2003... After supporting US market growth since the late 1990s through expanded exports, the Canadian gas patch may have finally hit the wall. Natural gas production in Alberta, by far Canada's largest supply source, faces a steady decline over the...

City Gate Prices.
June 9, 2003... CITY GATE PRICES June 9, 2003 ($/MMBtu) Bid Week Bid Week City for June for May Austin, Texas Valero Transmission Co. 5.70 5.03 *...

Anadarko discovers more gas but cuts production guidance.
June 9, 2003... Anadarko announced a second gas discovery in the Eastern Gulf of Mexico but the company also lowered its production guidance for 2003 as a result of problems in the Gulf; Algeria, and Qatar. The Houston-based independent said it discovered...

Salt Cavern Storage.
June 9, 2003... SALT CAVERN STORAGE (Billion Cubic Feet) May30 MMcfd MMcfd Bcf Bcf Facility State Max Max ...

Deep-Shelf play won't halt Gulf gas slide. (E & P Update).
June 9, 2003... Deep-shelf gas presents an interesting niche opportunity for a select band of producers, but it will not halt the slide in overall gas production from the Gulf of Mexico, according to two of the most active participants in the deep-shelf gas...

Connecticut's power supply woes mount. (Current).
June 9, 2003... Ratepayers in Connecticut face a precarious summer for power reliability -- and likely higher electric bills -- due to anemic transmission capacity that may leave customers in the southwest quarter of the state short of supply when air...

Sunrise project aids California. (Current).
June 9, 2003... ChevronTexaco and Edison Mission Energy completed the phase two expansion of the Sunrise power project and repeated history by adding gas-fired generation to the power-hungry California market "just in time." The Sunrise plant, 35 miles...

Transmission sale in Jeopardy. (Current).
June 9, 2003... HOUSTON -- Dynegy said last week that the planned $240 million sale of its Illinois Power unit's power lines to independent transmission company Trans-Elect would probably miss a key deadline and could be in jeopardy. It appeared the sale...

Niagara Mohawk OK for summer. (Current).
June 9, 2003... SYRACUSE, New York -- Niagara Mohawk officials said last Wednesday they expect the summer supply of electricity in its upstate New York service area is be adequate to meet demand. "We expect to have a sufficient supply of electricity to...

Comparative fuel prices.
June 9, 2003... COMPARATIVE FUEL PRICES (Cash Market) June 9, 2003 EAST COAST New York Harbor: Natural Gas Natural Gas Texas New York Heating ...

FPL plant running at full speed. (Current).
June 9, 2003... OXFORD, Alabama -- FPL Energy said last week it began full operations at its new 668-MW Calhoun natural gas-fired power plant in northeastern Alabama. The plant has the capacity to power 500,000 homes in the area, according to FPL. The company...

TECO starts up two power plants. (Current).
June 9, 2003... TAMPA, Florida -- TECO Energy said last week two of its power stations began commercial operations in May, reducing the amount of credit the company needs to post to comply with obligations triggered when its credit rating was slashed to "junk"...

Maine PUC seeking proposals. (Current).
June 9, 2003... AUGUSTA, Maine -- The Maine Public Utilities Commission (PUC) said last Tuesday it is seeking proposals for standard offer service for medium and larger commercial and industrial customers of the state's two largest investor-owned electric...

Natural Gas Futures and Spot Electricity Trading.
June 9, 2003... NATURAL GAS FUTURES AND SPOT ELECTRICITY TRADING Trading Dates: Jun. 3-Jun. 6,2003 New York Mercantile Exchange (NYMEX) (Henry Hub) Monday Tuesday Wednesday Thursday Last/Volume...

Cash Market Hub Trading.
June 9, 2003... CASH MARKET HUB TRADING ($/MMBtu) Jan. Feb. March April May June July Henry Hub, La. 1995 1.48 1.54 1.52 1.59 1.64 1.65 1.44 1996 2.92...

Natural Gas RIG Count.
June 9, 2003... NATURAL GAS RIG COUNT Jan. Feb. March April May June 2000 Total 774 763 773 805 844 878 Gas 631 616 599 609 644 677...

FERC approves grassland project to serve Coalbed Methane wells. (Regional Market Roundup).
June 9, 2003... Williston Basin Interstate Pipeline, a unit of MDU Resources, last week got the final go-ahead from the Federal Energy Regulatory Commission (FERO) for the Grasslands Pipeline Project. The project will link Williston's system in the Powder...

Spot Prices on Interstate Pipeline Systems.
June 9, 2003... SPOT PRICES ON INTERSTATE PIPELINE SYSTEMS Delivered-to-Pipeline ($/MMBtu) June 9, 2003 This Weekly Bid Week Bid Week Pipeline Week Change for Jun. for...

New proposals unveiled in B.C. to promote all-season drilling. (Canadian Markets).
June 9, 2003... Premier Gordon Campbell's government unveiled its plan to boost British Columbia's oil and gas industry, which currently produces C$1 billion (US$740 million) in revenue for the province annually. The Liberal government's new oil and gas...

Canadian Price Report.
June 9, 2003... CANADIAN PRICE REPORT ($U.S. per MMBtu/$Can per Gigajoule) BRITISH COLUMBIA Huntingdon/ Kingsgate/ Total ...

New pipe proposed for Texas.
June 9, 2003... Drilling activity in North Central Texas has proved successful enough to require construction of a new pipeline, and it is a big one. Energy Transfer of Dallas is constructing 60 miles of new 30- and 36-inch pipe from the end of an existing...

Gas Price Trends.
June 9, 2003... GAS PRICE TRENDS ($/MMBtu) ROCKY NEW CALIFORNIA MINS MEXICO South North June 2002 Inter...

Midwest production declines to combine with power demands.
June 9, 2003... Bentek Energy, a Lakewood, Colorado-based energy consultant last week released its Mid-West US Natural Gas Outlook. The study reviews natural gas production, deliverability, and demand fundamentals from 1990 through 2001 for 15 midwestern...

Gas Price Report.
June 9, 2003... GAS PRICE REPORT ($/MMBtu--Spot) June 9, 2003 Interstate Interstate Wellhead Wellhead Bid ...

Price is right. (Late News).
June 16, 2003... Price is right. FERC late Friday released staff report on price indices formation. Criteria staff looking to implement includes near-term and long-term effectiveness of indices, cost considerations of reforming criteria, applicability of price...

LNG advances. (Late News).
June 16, 2003... LNG advances. Cheniere Energy closes deal to form partnership with BPU LNG called Corpus Christi LNG for construction of liquefied natural gas (LNG) receiving terminal at former Sherwin Alumina plant in Corpus Christi, Texas. BPU LNG is...

Average cash prices & futures strip. (Late News).
June 16, 2003... Mild weather across most of the US and the largest storage injection in nine years forced natural gas prices down last week. 2[GRAPH OMITTED]

Another record storage build sends US gas prices plummeting. (Late News).
June 16, 2003... The "crisis" in gas made headlines across major news outlets last week ironically at a time that the market is clearly self-correcting and many analysts have turned bearish on prices. Even with last week's record storage build the gas...

Greenspan: LNG is the solution for shortfall in US supply. (Late News).
June 16, 2003... Few people are lucky enough to see turning points in history, but Federal Reserve Chairman Alan Greenspan's testimony last week before the US Energy and Commerce Committee will go down as the moment that policymakers were forced to confront...

Fuel-switching impact in doubt as means to lower gas prices. (Late News).
June 16, 2003... Washington is rife with speculation that lawmakers and members of the Bush administration are considering easing environmental regulations for power plants in an attempt to persuade power companies to burn residual fuel (resid) instead of...