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Gold/Mining/Energy : Big Dog's Boom Boom Room -- Ignore unavailable to you. Want to Upgrade?

To: Archie Meeties who wrote (3969)	9/5/2001 10:21:08 AM
From: jim_p	Read Replies (2) \| Respond to of 206328

CALGARY, Alberta, Sept 4 (Reuters) Spot natural gas prices crumbled across much of Canada, with weak demand and abundant supplies pounding the key Alberta market down to its lowest level in nearly three years. Gas at the important AECO storage hub in Alberta plummeted about C$1.10 and was quoted at C$1.60-C$1.65 per gigajoule. It was the lowest daily average at the hub since early December 1998. Reduced demand following the Labor Day long weekend and additional supply weighed heavily on the major provincial trading center. "There was way too much gas and no where to put it," said one trader in explaining the plunge, which saw session lows hover just above C$1.10 per gigajoule. He said the situation was exacerbated by the return of gas production curtailed last week because of a fire last week at a natural gas liquids processing plant in Fort Saskatchewan, Alberta. Sources estimated the accident temporarily shut in between 300 and 400 million cubic feet per day. Traders also reported lower prices at other Canadian export points, with most players linking the weakness to mild U.S. weather, a lackluster economy and expectations of another week of large storage injections. "It's tough to find a buyer," commented one source. "There is no demand and all the production is up. We have no room to put the gas right now because injection facilities are running at maximum." Gas at Huntingdon/Sumas on the British Columbia-Washington state border fell 30 cents to $1.60-1.65 per million British thermal units (mmBtu). Deliveries at Niagara in southern Ontario dropped 1 cent to average $2.28-2.33 per mmBtu. The October contract at Henry Hub, the NYMEX delivery point in Louisiana, slipped 2 cents to $2.355 per mmBtu. Traders told Reuters that firm physical prices limited paper losses. Environment Canada predicted temperatures in Toronto would climb up to 9 degrees F above normal later this week, reaching into the low-80s F Thursday and Friday. The federal forecaster said the weather in southern Alberta would peak at 73 degrees F Thursday before sliding to around 65 degrees F Friday and Saturday. AECO forwards: 09/04/01 Previous bal month C$2.40-2.45 NA Oct C$2.75-2.80 C$2.97-3.02 1 Year (Nov-Oct) C$3.80-3.85 C$3.90-3.95 ($1=$1.55 Canadian) Short KWK? Tic toc tic toc. Jim