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RTRS: UPDATE 1-U.S. natgas futures edge higher, heat backs more gains
 
* Front month well above recent 3-month spot chart low
* Nuclear power plant outages remain above normal
* Tropical depression to move over Bay of Campeche
* Coming up: EIA natgas storage data on Thursday


By Eileen Houlihan
NEW YORK, June 18 (Reuters) - U.S. natural gas futures edged
higher early on Tuesday, extending Monday's nearly 4 percent
gain, as forecasts for hotter weather across consuming regions,
above-normal nuclear plant outages and a stir in tropical
activity lent support.
The National Weather Service's six- to 10-day forecast
issued on Monday called for above-normal temperatures for most
of the country, with normal readings only along the Gulf Coast
and in Florida and Texas.
Private forecaster MDA Weather Services also called for
above-normal readings everywhere but the Southeast in its six-
to 10-day outlook issued on Tuesday.
The U.S. National Hurricane Center said Tropical Depression
Two was expected to move over the Bay of Campeche, home to key
Mexican oil operations, by late Wednesday.
Gas traders do not expect the system to disrupt much Gulf of
Mexico gas production but said it serves as a reminder that the
2013 hurricane season is in full swing.
As of 10:00 a.m. EDT (1400 GMT), front-month July natural
gas futures on the New York Mercantile Exchange were at
$3.919 per million British thermal units, up 4.4 cents, after
trading between $3.873 and $3.932.
The contract hit a three-month low of $3.71 last week, after
rising to a 21-month high of $4.444 on May 1.
In the cash market, gas for Wednesday delivery at the NYMEX
benchmark, Henry Hub in Louisiana, was heard up 11
cents at $3.89, with early deals firming to 2 cents over the
front-month contract, from deals done late Monday about even
with the front month.
Gas on the Transco pipeline at the New York citygate was heard early up 8 cents at $3.97.
In the news on Tuesday, Energy Transfer Partners
confirmed an explosion on the Florida Gas Transmission natural
gas pipeline system in Louisiana. The company said gas was being
rerouted to customers.
Earlier local media reports said the explosion knocked out
power to about 10,000 customers near the town of Enon, about 80
miles north of New Orleans.
Nuclear plant outages totaled 8,200 megawatts, or 8 percent
of U.S. capacity, down from 8,500 MW out on Monday and 9,100 MW
out a year ago, but up from a five-year average outage rate of
6,600 MW.
Last week's gas storage report from the U.S. Energy
Information Administration showed domestic gas inventories rose
the prior week by 95 billion cubic feet to 2.347 trillion cubic
feet.

Early injection estimates for Thursday's EIA report range
from 85 bcf to 95 bcf, versus a 63-bcf build in the same week
last year and a five-year average rise for that week of 80 bcf.
Source