US producer group predicts another summer of tight gas supplies

Washington (Platts)--8Jun2004

Projected warmer-than-normal weather, a strengthening economy and flat
production are likely to keep US natural gas prices high "as we enter yet
another summer of tight natural gas markets," according to an analysis
released Tuesday by the Natural Gas Supply Assn. 

"Last year, the National Petroleum Council warned that without significant
change to the tight balance between supply and demand, wholesale natural gas
customers would continue to see weather-related volatility -- and that is
precisely what's coming to pass," said NGSA Chairman Joseph Blount. "Overall
market costs are also likely to trend upward throughout this cooling season,
peaking during the hottest days of the year." Blount said gas producers "are
responding to increased demand, but we are working harder and harder just to
keep production levels constant . . . . Unfortunately, though, there is little
short-term relief ahead for customers." NGSA did not make specific gas price
projections.

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