Corrected: US natgas prices down on continued stock buildup

08 May 2008 23:18  [Source: ICIS news]

Correction: In the ICIS news story headlined "US natgas prices down on continued stock build-up" dated 8 May 2008, please read in the second paragraph …for the week ended 2 May… instead of …for the week ended 5 April…. A corrected story follows.

HOUSTON (ICIS news)--Front month natural gas futures prices on the NYMEX dropped 6.4 cents on Thursday to $11.263/m Btu amid a buildup in domestic stockpiles.

Domestic natural gas inventories were at 1,436 bcf for the week ended 2 May, according to data released by US Department of Energy (DoE) earlier in the day.

Despite the downward movement on pricing, supply concerns loomed and lower than average inventories could pressure prices up, industry sources said.

Supply has been disrupted by the shutdown of the offshore platform Independence Hub in the Gulf of Mexico.

The 1 bcf/day producing platform, operated by Enterprise Products Partners, halted production nearly a month ago after a leak was discovered in the pipeline used to transport natural gas from the Gulf of Mexico to the US.

Enterprise Products Partners said the platform was expected to be down from one to four weeks while repairs are completed.

According to the EIA, stockpiles of natural gas are down 16.5% from one year ago, and levels are down almost 1% from the five-year average.

However, others expected tapering prices as spring demand falls and domestic production gains on increased unconventional resources, such as shale gas.

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By: Steven McGinn
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