FERC alleges Total manipulated gas prices

OREANDA-NEWS. September 23, 2015. Total Gas & Power North America allegedly manipulated natural gas prices in the southwest US between June 2009 and June 2012, according to the Federal Energy Regulatory Commission (FERC).

In a filing yesterday, FERC said its Office of Enforcement has preliminarily determined that Total's trading desk in the western US and two supervisors in that office implemented a scheme that "involved making largely uneconomic trades for physical natural gas during bidweek designed to move indexed market prices in a way that benefited the company's related positions." FERC also alleges that the traders implemented "the bidweek scheme" on at least 38 occasions.

FERC alleges that the two supervisors, Therese Nguyen and Aaron Hall, each implemented the plan and supervised and directed other traders in the "scheme."

Total did not immediately respond to a request for comment.

The allegations are the latest in an agency crackdown on manipulation in gas and power markets. In August, a FERC administrative law judge ruled that BP manipulated Texas natural gas markets in 2008 by selling large volumes on the spot market to profit from related financial positions. BP strongly disagreed with the decision and said it would appeal the ruling.