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Gulf Coast spot gas prices mixed on strength in Florida markets
Platts
Houston
Petroleumworld.com 01 30 06
Most spot natural gas prices along the US Gulf Coast fell Friday with
some pricing points giving back as much as 25 cents or so from Thursday's
midpoints, while some Florida points gained ground.Florida Gas Transmission called an overage alert at 15% tolerance in
effect from Friday morning until Saturday morning because of lower linepack on
the system, according to a web site posting by the pipeline. The pipeline,
however, said previously scheduled interruptible transportation service will
not be interrupted on Friday's gas day.Traders said Florida Gas' overage alert brought on by expectations of
colder weather across the state this weekend and early next week gave the
market enough strength to push prices slightly above their previous
averages.Florida Gas zone 3 prices tacked on nearly a dime as the point averaged
in the low to mid-$7.40s/MMBtu, but traded between the low $7.20s/MMBtu early
in the day and the low $7.50s/MMBtu later on. Meanwhile, the Florida
city-gates traded around 15 cents or so over Thursday, in the low
$7.80s/MMBtu.In the rest of the region, markets followed the February NYMEX gas
futures contract lower. But a bounce in overnight trading in the futures
contract as well as incremental demand brought on by sustained cold weather
helped buffer the impact of Thursday's losses."Things started off too low, but there's still demand," one trader said,
as prices hit their lows out of the gate and trekked steadily upward
throughout the morning.Henry Hub started the day in the low $6.80s/MMBtu, but was trading near
the $7.20/MMBtu mark later in the day. The Hub ultimately averaged in the
mid-$6.90s/MMBtu, nearly 25 cents below Thursday's level.Prices at Tennessee Gas Pipeline's 500 leg and Transcontinental Gas Pipe
Line's zone 3 fell by 20 cents or so to average around $7.00s/MMBtu and
mid-$7.00s/MMBtu, respectively.In Texas, Natural Gas Pipeline Co. of America's South Texas zone prices
remained relatively unchanged from Thursday to average in the low
$6.80s/MMBtu.--Amy Sollers, amy_sollers@platts.com
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Platts 29 01 07
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