Houston (Platts)--27Apr2009

Spot natural gas prices in the Upper Midwest fell in most areas Monday as
the May NYMEX gas contract followed equity markets down on fears of a
world-wide swine flu epidemic, and the possibility of major storms forecast
for the Midcontinent reaching as far as Illinois.

Prices between Nicor Gas' city-gates and other Chicago city-gate
points--Peoples Gas Light and Coke and Nipsco--remained far apart.

Nicor, however, dropped nearly 10 cents after it announced that all
delivery caps to its city-gates would be lifted on Tuesday. It averaged in the
mid-$3/MMBtu on IntercontinentalExchange. Peoples and Nipsco were more stable,
gaining around a cent and losing a couple of cents, respectively, to hit a
similar mid-point to Nicor.

Michigan city-gate prices dropped considerably more, with Michigan
Consolidated Gas losing almost 15 cents to land in the mid-$3.40s/MMBtu.
Consumers Energy, however, came off only half as much, coming in almost 10
cents above MichCon.

Cash in the production area dropped as well, with Northern Natural Gas'
demarcation point prices weathering the drops the best, losing less than 5
cents for a mid-point in the mid-$2.80s/MMBtu.

Ventura, Iowa, prices fell around 10 cents, with Northern Border
Pipeline-Ventura hovering around $3/MMBtu, and Northern Natural-Ventura more
than 10 cents under that. A tornado touched down in eastern Iowa over the
weekend and more may reach there from storms in the Mississippi valley,
according to forecasts.
--Joshua Starnes, joshua_starnes@platts.com