Energy Law

EIA Report - Product Prices and Pipeline News

The Energy Information Agency reported as follows in its September 13, 2007, report:

Since Wednesday, September 5, natural gas spot prices increased as tropical storms threatened to disrupt supplies and pipeline explosions in Mexico stirred concerns of supply security.  Crude oil recorded yet another record high, increasing over $4 per barrel to nearly $80.

Predictions for LNG markets continue to be mixed.  LNG Week in Review quotes an analysis that predicts that, as warm weather has abated across the United States, LNG import volumes have declined and predicts that gas prices will favor European destinations for LNG until next spring.  Platts LNG Daily quotes another that global LNG supplies will grow by 25% in 2008, spurring a 40% increase of LNG imports to the United States.  Platts also quotes other predictions, however, that emphasizes start-up delays and lag time before U.S. projects meet full output capacity.

The EIA also reports that:

• Storage overview.  Several pipeline companies have issued restriction notices to interruptible storage service (ISS) customers.
• Northwest Pipeline Corporation asked shippers to keep their nominations at or below 440,000 Dth at the Meacham compressor station.

Southern Natural Gas Company announced that the 20-inch Gate 6 Toca Loop line in Louisiana is out of service, and the company anticipates that it will return to service at the end of October. Furthermore, the 20-inch Main Pass Franklinton line, also located in Louisiana, was expected to return to service by September 18.  As a result of the outage on the Franklinton line, the Bayou Gentilly and Delacroix points in Louisiana also will remain out of service for the same duration.

Full post as published by The Energy Law Blog on September 13, 2007 (boomark / email).