Midcontinent spot gas falls with the temperatures, demand

Houston (Platts)--31May2006

Spot natural gas prices in the Midcontinent slid between 15 cents and
25 cents Wednesday compared with Tuesday's averages following a dip in
regional temperatures to seasonal norms and resulting diminished demand.

After unseasonably warm weather, with high temperatures reaching the
mid-90s in the Oklahoma City area last week and into the Memorial Day weekend,
temperatures took a downturn Wednesday to settle within normal averages with
highs in the low 80s.

Cooler weather is expected to last until the end of week, according
to the US National Weather Service. A build in temperatures is expected
by Sunday, in which high temperatures are forecast to once again reach the
90s.

Natural Gas Pipeline Co. of America's Texok zone's premium to the
CenterPoint's East zone pricing point tightened from nearly 30 cents Tuesday
to less than a quarter Wednesday.

Texok lost nearly a quarter from Tuesday to average in the mid- to high
$5.60s/MMBtu and CenterPoint East lost about 20 cents to average in the low to
mid-$5.40s/MMBtu.

ANR Pipeline in Oklahoma fell flat to the Panhandle Eastern Pipe Line
pricing point Wednesday, eliminating its near-nickel premium from Tuesday. ANR
in Oklahoma and Panhandle both slid more than 20 cents to trade in the mid- to
high $5.10s/MMBtu. Natural's Midcontinent zone slid more than 15 cents from
Tuesday to average in the low to mid-$5.20s.

---Amy Sollers, amy_sollers@platts.com

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