Cooler weather forecasts sent the NYMEX September gas futures contract tumbling 17.5 cents Friday to settle at $2.77/MMBtu and weakened cash prices across the board.
MDA EarthSat Weather said it expects cooler-than-average conditions in the eastern half of the US in its six- to 10-day outlook.
"For each day through August there's one less day of summer demand and fuller storage," Gelber & Associates analyst Patrick Saunders said.
"We expect more downside for the September and October contracts once the weather normalizes," added Barclays Capital analysts.
In the cash market, New England prices retained their position as the biggest movers in North America as the Algonquin Gas Transmission city-gates and Tennessee Gas Pipeline zone 6 each fell more than 20 cents.
In Appalachia, Tennessee zone 4-300 leg also dropped more than 20 cents. The production point, as well as the New England city-gate prices, were lifted earlier in the week by Central New York Oil and Gas Company performing Tennessee Gas meter expansions at the Stagecoach Storage facility.
The work was expected to be completed Thursday but was delayed due to inclement weather, with an updated completion target of Friday evening. Nominations at the Tennessee Gas meter for Friday were cut 50% in anticipation of flow for the evening, the company said in a website posting.
A sinkhole in Assumption Parish, Louisiana, was still affecting gas operations there. About 231,000 Mcf/d was delivered off the Bridgeline pipeline Thursday, compared with a year-to-date average of 645,000 Mcf/d. That may have been due to the Bridgeline Holdings NS 1 gas storage cavern near Napoleonville, Louisiana, withdrawing volumes in response to the event, according to information from Platts unit Bentek Energy.
Florida Gas was injecting small volumes into the NS 1 cavern but stopped Wednesday when Bridgeline issued an operational flow order, according to Bentek.
Deliveries to the Sabine Hub on Bridgeline increased 160,000 Mcf/d, and deliveries to the Transco, Texas Eastern Transmission and Columbia Gulf Transmission pipelines also rose, according to the data.
For more information please visit Platts Website.