Firm Demand Helps Underpin Natural Gas Prices, Oil Trends Remain In Focus
Economic Calendar reports: Natural gas prices were confined to narrow ranges during the European session on Thursday with fluctuations around the $2.90 per mBtu level. The latest natural gas storage data recorded an increase of 61 Billion cubic feet (Bcf) compared with expectations of a build around 58 Bcf, although this was the lowest increase for 6 weeks. The data helped boost confidence that storage builds would be limited during the summer period. In the near term, there were still expectations of slightly higher than normal gas demand due to the influence of hot weather conditions in the South and South West.
Kemper plant could run solely on natural gas after Mississippi regulatory directive
Utility Drive reports: Mississippi regulators on Wednesday voted to direct Southern Co. to work up a settlement plan on the Kemper Integrated Gasification Combined Cycle plant would allow the plant to run solely on natural gas. The plant, originally budgeted at less than $3 billion, was designed to convert locally-mined coal into a synthetic gas. But construction delays and overruns have more than doubled the price to about $7 billion. The PSC voted 3-0 to direct its counsel to begin drafting an order on the plant for its July 6 meeting. The commissioners also said the order should include directives to prevent further rate increases.