Spot prices in Rockies gain up to 15 cents

Thursday, October 13, 2011

Spot natural gas pries in the Rockies region picked up 10-15 cents Wednesday at most points despite mild weather. Points in the Southwest posted more modest gains, jumping 5 to 10 cents.

Above-average highs in the 70s were forecasted for the week in Denver and Salt Lake City. At Kern River Gas Transmission's Opal, Wyoming, point, the spot prices rose about 10 cents to average near $3.30/MMBtu on IntercontinentalExchange while Wednesday volumes remained fairly steady to Tuesday's levels as about 625,000 Mcf changed hands. Meanwhile, Cheyenne Hub prices climbed similarly to average about 1 cent below Opal. Prices at Northwest Pipeline-Wyoming climbed about 12 cents to average near $3.25/MMBtu on ICE.

Questar Pipeline's Clay Basin storage field is expected to return to normal service Thursday after being shut for testing for a week, according to a notice on the company's website. According to Bentek Energy, Rockies cash basis could gain some strength from storage injections Thursday. Clay Basin's injection deliverability will be 225,000 Mcf/d, while withdrawals will be limited to 700,000 Mcf/d, said Bentek, a unit of Platts. At the US-Canada border, prices rose more than 10 cents at Kingsgate to average near $3.30/MMBtu on ICE. Meanwhile, prices at Stanfield, Oregon, climbed about 15 cents to average nearly 5 cents above Kingsgate.

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