Rockies spot gas prices plunge to lowest levels in 15 years
Washington (Platts)--11Sep2007
Spot gas prices in the Rocky Mountain region shattered previous historic
lows Tuesday, with virtually all regional pricing points averaging around 25
cents/MMBtu because pipeline maintenance has stranded gas in the region.
Sources in the region agreed that ongoing maintenance on Northwest
Pipeline left a gas glut in the Rockies, exacerbating oversupply issues and
further weakening spot prices.
Northwest's work on its south end -- between the Pleasant View and La
Plata B compressor stations -- will continue through Thursday, reducing
capacity at both stations to zero.
The Williams affiliate also alerted shippers in a separate notice Tuesday
that overnominations through Pleasant View has prompted it to call a
deficiency period, which also is expected to continue through Thursday.
Additionally, the pipeline will start inspecting turbines at its
Winchester station, which is expected to cut another 4,000 Dt/d of supply
through Saturday.
Prices at Northwest Pipeline's south of Green River station fell about 25
cents from Monday to average just below 25 cents/MMBtu, but late deals at the
point rebounded to trade around 30 cents/MMBtu.
Northwest's Wyoming pool prices came in below 25 cents/MMBtu as well,
peeling away nearly 20 cents from Monday, but the point hit a low of just 10
cents/MMBtu.
Prices on Kern River Gas Transmission's Opal, Wyoming, point traded
similarly, falling about 30 cents from its previous level to average just
above 25 cents/MMBtu, after also hitting a low of 10 cents/MMBtu. |
