DEC 09 MARKET UPDATE

STORAGE REPORT
This week’s EIA storage report for the week ending November 27, 2009:
This week’s injection of: 2 Bcf
Leaving this week’s balance at: 3837 Bcf
This week’s balance last year: 3367 Bcf
This week’s balance, 5-yr average: 3350 Bcf

This week’s fill marks the fourth consecutive week of injections for the month of November, the first time a net injection occurred for each week in November since 2001.

THOUGHTS ON THE MARKET

Next year is likely to bring a near-repeat of 2009 gas pricing trends as the US balances a moderate decline in production with a continued abundance of storage gas and higher imports of LNG. Several analysts have lowered their gas price expectations for the next few months as few see any real chance of eliminating the gas glut anytime soon. Storage is holding comfortably above 3.8 Tcf.