Washington (Platts)--1May2009 US spot monthly gas prices for May declined by an average of 18 cents, or 5.63% to $3.02/MMBtu from the previous month's $3.20/MMBtu, Inside FERC's Gas Market Report said Friday. A number of pricing points plunged to multi-year lows, following the declining May NYMEX gas futures contract, which ended at the lowest prompt-month contract expiry since the September 2002 contract's close. Amid an abundance of gas in storage, ailing industrial demand because of the nation's recession and the shift into the low-demand shoulder season, the May contract rolled off the board at $3.321/MMBtu, down 31 cents compared with the April contract's final close of $3.631/MMBtu. Pricing points in the Northeast settled in $3/MMBtu territory for the first time since IFGMR's September 2002 survey. For May, Transcontinental Gas Pipe Line zone 6-New York averaged $3.82/MMBtu, off 34 cents, or 8.17%, from the prior month. Texas Eastern Transmission zone M-3 also hit a multi-year low to average $3.71/MMBtu for May, down 31 cents, or 7.71%, from April. The Henry Hub index for May came in at $3.33/MMBtu, down 32 cents from the month before and less than 1 cent above the final NYMEX close. In Texas, Houston Ship Channel declined by 46 cents, or 12.6%, to $3.19/MMBtu. In the upper Midwest, Chicago city-gates averaged at its lowest monthly level since August 2002, declining 40 cents, or 11.36%, from the month before to $3.12/MMBtu. The decline was not as steep at Michigan price points, with the Michigan Consolidated Gas and Consumers Energy city-gates, each shedding just over 30 cents to average $3.56/MMBtu and $3.52/MMBtu, respectively. Midcontinent points, meanwhile, closed for May within several cents of the prior month. Some, such as Panhandle Eastern Pipe Line, gained modest ground from their April averages; Panhandle averaged $2.58/MMBtu for May, up 6 cents, or 2.38%, from the prior month. Rocky Mountain price points followed similar trends as the Midcontinent, gaining or losing just a few cents on average compared with April. Northwest Pipeline in the Rocky Mountains averaged $2.30/MMBtu, down 3 cents for May, while Cheyenne Hub rose 1 cent to $2.41/MMBtu. In California, where Bentek Energy analysts are predicting storage could fill as early as July, Southern California Gas declined by 37 cents, or 11.88%, to a $2.87/MMBtu index, and the Pacific Gas and Electric city-gate skidded a whopping 77 cents, or 19.3%, to $3.22/MMBtu for May. Volumes for IFGMR's May bidweek survey declined to 19,915 million MMBtu/d from April bidweek volumes of 22,757 million MMBtu/d. Transactions used in the survey decreased to 3,542 from 3,935 in April. --Jessica Marron, jessica_marron@platts.com
Washington (Platts)--1May2009
US spot monthly gas prices for May declined by an average of 18 cents, or 5.63% to $3.02/MMBtu from the previous month's $3.20/MMBtu, Inside FERC's Gas Market Report said Friday. A number of pricing points plunged to multi-year lows, following the declining May NYMEX gas futures contract, which ended at the lowest prompt-month contract expiry since the September 2002 contract's close. Amid an abundance of gas in storage, ailing industrial demand because of the nation's recession and the shift into the low-demand shoulder season, the May contract rolled off the board at $3.321/MMBtu, down 31 cents compared with the April contract's final close of $3.631/MMBtu. Pricing points in the Northeast settled in $3/MMBtu territory for the first time since IFGMR's September 2002 survey. For May, Transcontinental Gas Pipe Line zone 6-New York averaged $3.82/MMBtu, off 34 cents, or 8.17%, from the prior month. Texas Eastern Transmission zone M-3 also hit a multi-year low to average $3.71/MMBtu for May, down 31 cents, or 7.71%, from April. The Henry Hub index for May came in at $3.33/MMBtu, down 32 cents from the month before and less than 1 cent above the final NYMEX close. In Texas, Houston Ship Channel declined by 46 cents, or 12.6%, to $3.19/MMBtu. In the upper Midwest, Chicago city-gates averaged at its lowest monthly level since August 2002, declining 40 cents, or 11.36%, from the month before to $3.12/MMBtu. The decline was not as steep at Michigan price points, with the Michigan Consolidated Gas and Consumers Energy city-gates, each shedding just over 30 cents to average $3.56/MMBtu and $3.52/MMBtu, respectively. Midcontinent points, meanwhile, closed for May within several cents of the prior month. Some, such as Panhandle Eastern Pipe Line, gained modest ground from their April averages; Panhandle averaged $2.58/MMBtu for May, up 6 cents, or 2.38%, from the prior month. Rocky Mountain price points followed similar trends as the Midcontinent, gaining or losing just a few cents on average compared with April. Northwest Pipeline in the Rocky Mountains averaged $2.30/MMBtu, down 3 cents for May, while Cheyenne Hub rose 1 cent to $2.41/MMBtu. In California, where Bentek Energy analysts are predicting storage could fill as early as July, Southern California Gas declined by 37 cents, or 11.88%, to a $2.87/MMBtu index, and the Pacific Gas and Electric city-gate skidded a whopping 77 cents, or 19.3%, to $3.22/MMBtu for May. Volumes for IFGMR's May bidweek survey declined to 19,915 million MMBtu/d from April bidweek volumes of 22,757 million MMBtu/d. Transactions used in the survey decreased to 3,542 from 3,935 in April. --Jessica Marron, jessica_marron@platts.com
Cordially,J. C. Harperwww.jcharper.net