Title: Hidden Risks: Microbasis in the Short-term Gas Markets 	
URL(s):	

http://www.cera.com/eprofile?u=35&m=2826;


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STRUCTURAL RISK AND LACK OF LIQUIDITY GROW IN INFLUENCE IN REGIONAL GAS 
MARKETS. 

The dramatic increase of participants in the daily market for natural gas over 
the past several years has brought with it the demand for pricing indices that 
are increasingly regional and selective in nature. These published indices 
provide a valuable service to the market, but the high level of confidence that 
the general trading community has bestowed upon them may be misplaced.

*  Current economic conditions are masking hidden volatility potential, 
especially at local index points that have unrealized demand potential.

*  Large, volatile demand in the form of new gas-fired generation utilizes the 
existing pipeline system in ways that were never envisioned in the original 
system design.
 
*  Control of pipeline infrastructure has moved from the relatively benign 
local distribution companies to economically driven traders and asset managers.
 
*  As demand grows, physical flexibility in the system and the number of buyers 
and sellers decrease on the margin.

**end**

Follow above URL for complete report (14 printed pages).




E-mail Category: Private Report                                    
CERA Knowledge Area(s): North American Gas


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