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Natural Gas

What is Liquefied Natural Gas and How is it Changing the Energy Market?

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Liquefied natural gas (LNG) is natural gas that has been converted from a gaseous state to a liquid state through the condensation process. Traditionally, natural gas has been a commodity limited to the interconnecting network of pipelines in a geographical location. However, through technological advancements in gas processing and global shipping, the flow of natural gas can now cross world oceans traveling tens of thousands of miles from its source to a final demand market.…
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Winter Heating Demand Update

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Gas in underground storage stands at 2,527 Bcf as of Friday, Feb 8th or -9.7% below year ago levels, but 16% above the five year average. This winter is reflecting higher heating demand than last year but less than the 10 year average. If winter heating demand continues to fall behind year ago levels to the point that weekly withdrawals are not sufficient to draw down storage to levels that are near 2,000 Bcf by the end of March, cash gas prices may need to decline to incent gas generators to operate in order to make room for gas this spring and summer.…
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Large Natural Gas Customers in Kentucky Can Now Shop for Competitive Prices

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A recent ruling by the Kentucky Public Service Commission (KPSC) could create important opportunities for business and commercial natural gas customers in Louisville Gas and Electric (LG&E) territory.

State regulators approved a settlement which includes a reduction in the threshold amount of natural gas commercial customers must consume in order to be eligible to shop for the best available price from a competitive marketer.  The new threshold, pursuant to a new service class, is 15,000 Mcf annually. The existing service class has a threshold of 50,000 Mcf annually.…
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The Regional Green House Gas Initiative Lowers Emissions Cap

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The nine member states of the Regional Green House Gas Initiative (RGGI) have voted for a new reduced cap on carbon dioxide emissions.  The RGGI states include all six of the New England states as well as Maryland, New York and Delaware.  The RGGI is the nation’s first power plant emissions reduction and trading program. It requires power plants that generate more than 25 MWs to purchase an allowance for each ton of carbon they emit.  The proceeds from the carbon allowances are used by the states to invest in energy efficiency programs and renewable energy projects as well as fund low income aid programs.…
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Natural Gas Demand to Get Smaller Boost from Coal Retirements in 2013

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A report recently released from Barclays analysts suggests that natural gas demand in 2013 will not get as big of a demand boost from coal plant retirements as it did in 2012. About 9,000 MW of coal-fired plants were retired in 2012 due to environmental factors and the economics of competing against gas-fired generation with low natural gas prices. In 2013, Barclays expects that there will only be about 3,000 MW of retirements.…
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Northeast Gas Market Experiences Price Spikes Due to Pipeline Constraints

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So far in 2013, New England has experienced the highest average natural gas and electricity prices in the country. The recent cold blast across the Northeast states has resulted in extreme price increases in key New England gas and power markets. Regional New York gas prices set new multi-year highs with next day cash clearing above $30/mmBtu, while NYMEX February contract remains near $3.50/mmBtu. Algonquin Citygate prices, outside of Boston, rose more than $10 yesterday to average $31.20/mmBtu. A secondary impact of rising fuel prices, but no less important, is the corresponding increase in Northeast index power prices. The index price for Mass Hub Day Ahead Peak power cleared at $226/MWh on Wednesday, while Zone J in NYISO cleared $224/MWh.…
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