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

To: quehubo who wrote (64186)	5/11/2006 10:27:30 PM
From: ChanceIs	Read Replies (1) \| Respond to of 206272

Southern Natural could limit storage injections as capacity nears Houston (Platts)--11May2006 Southern Natural Gas Company projects that it could reach maximum storage capacity at its storage fields before mid-summer. If recent injection trends continue, the company could implement restrictions across its storage facilities "to preserve firm obligations and interruptible quantities," a notice on the company's web site said Thursday. Southern Natural notified customers that storage transfers may be limited at the Bear Creek Storage field and nominations may not be accepted for interruptible storage service and park and loan injections. Southern Natural operates two storage fields in Muldoon, Mississippi, and Bear Creek, Louisiana, with a total working gas storage capacity of 60 Bcf. According to Southern Natural postings Wednesday and Thursday, however, current storage levels are at 42 Bcf--"70% full and 16.5 Bcf ahead of [2005] for a similar time during the month of May." "We've been talking about this happening for a long time," said Phil Flynn, an analyst with Alaron Trading Corp. "Essentially, it is the same thing as dumping gas on the market." A glut of gas could depress natural gas prices across the Gulf Coast, Flynn said. "Producers keep producing but where are they going to put it? It will be feast or famine this summer, and without an event to draw down storage levels there is no place to put [excess] gas." The US Energy Information Administration on Thursday reported a net 85-Bcf storage build for the week ending May 5, which raised nationwide inventories to 1.989 Tcf, well above the 1.501 Tcf of working gas in inventory in the same week a year ago. The 85-Bcf build came in above analyst expectations between 77 Bcf and 82 Bcf and exacerbates a growing national storage crisis following an extremely mild winter.