Friday, March 22, 2019

Welcome to GasNewsOnline.com!  While we search over fifty interstate natural gas pipeline companies for their critical postings, other news is happening this week.  At GasNewsOnline.com, we’ll update you on the publicly-released news from energy companies and will give you the latest National Weather Service temperature forecast, too.  

********************

From the US Energy Information Administration, working natural gas in storage decreased by 47 Bcf for the week ending Friday, March 15.  Natural gas stocks remaining in storage are now nearly 33% below the five-year historical range.

********************

Penn Virginia Corporation announced Thursday that it has mutually agreed with Denbury Resources Inc. to terminate their previously announced merger agreement.

“After careful consideration, the Penn Virginia board of directors decided that it is in the best interests of the Company and our shareholders to mutually agree to terminate our merger agreement with Denbury,” said John A. Brooks, President and Chief Executive Officer of Penn Virginia. “Given the caliber and dedication of our team, the high quality of our assets and the strength of our balance sheet, we believe we are well positioned to continue to execute our previously announced two rig development plan, which is expected to be fully funded from cash flow.  We remain focused on developing our assets and maximizing value for our shareholders as a standalone company.”

As a result, the special meeting of Penn Virginia’s shareholders, which was to be held on April 17, 2019, will not take place.  Under the terms of the merger agreement and the termination agreement, neither Penn Virginia nor Denbury will be responsible for any payments to the other party as a result of the termination of the merger agreement.

********************

Earlier this week, Williams announced a series of transactions that will establish a new platform for the optimization of its midstream operations in the western Marcellus and Utica basins through a long-term partnership with the Canada Pension Plan Investment Board.   

The $3.8 billion joint venture will include Williams’ 100 percent owned Ohio Valley Midstream system (“OVM”) and 100 percent of Utica East Ohio Midstream system (“UEO”).  The Canada Pension Plan Investment Board will invest $1.34 billion for a 35 percent ownership stake in the joint venture. Williams will retain 65 percent ownership, will operate the combined business, and will consolidate the financial results of the joint venture in Williams’ financial statements.

Concurrent with signing the agreement, Williams acquired the remaining 38 percent ownership stake in Utica East Ohio Midstream from Momentum Midstream and will take over operatorship.  UEO is involved primarily in the processing and fractionation of natural gas and natural gas liquids in the Utica Shale play in eastern Ohio.

********************

As winter transitions into spring, let’s review the latest postings from the interstate natural gas pipeline systems entering the weekend:

Algonquin Gas Transmission:

In order to maintain the operational integrity of the system, Algonquin Gas Transmission, LLC (AGT) is issuing an Operational Flow Order (OFO) pursuant to Section 26 of the General Terms and Conditions of AGT’s FERC Gas Tariff, effective immediately, to all parties, with the exception of those Operational Balancing Agreements required by FERC regulations, on the AGT system.

This OFO does not affect the ability of AGT to receive or deliver quantities of gas for scheduled nominations to any customer or pipeline.

During the effectiveness of this OFO, all parties must be balanced such that actual deliveries of gas out of the system must be equal to or less than scheduled deliveries. The penalty shall apply to each dekatherm of actual delivery quantities as indicated below:

Effective Immediately – Gas Day March 24: The penalty shall apply to each dekatherm of actual delivery quantities exceeds the greater of 6,000 Dth or 106% of scheduled delivery quantities.

Gas Day March 25 and until further notice: The penalty shall apply to each dekatherm of actual delivery quantities exceeds the greater of 4,000 Dth or 104% of scheduled delivery quantities.

In each situation indicated above, the penalty will be equal to three times the daily Platts Gas Daily “Daily Price Survey” posting for the High Common price for “Algonquin, city-gates” for the day on which such violation occurred as indicated in AGT’s General Terms and Conditions Section 26.8. In addition, AGT will not permit retroactive nominations to avoid an OFO penalty.

AGT may be required to issue an hourly OFO pursuant to General Terms and Conditions Section 26.7(d) to impose further restrictions in order to maintain the operational integrity of the system.

ANR Pipeline:

ANR will begin planned pipeline maintenance near the St. John Compressor Station along its Michigan Leg South located in the Northern Area (Zone 7). The total St. John Eastbound, LOC #226633, capacity will be reduced by the following:

500-MMcf/d (leaving 767-MMcf/d available) 4/29 – 5/3

Based on current nominations, it is anticipated that this posting will result in the capacity allocation reduction of IT, Firm Secondary and possibly a portion of Firm Primary volumes. Since ANR anticipates that this restriction may impact its ability to deliver all nominated Firm Primary services, ANR will apply the Reservation Charge Crediting Mechanism of Section 6.36.4 as necessary. This posting will be updated as more information becomes available.

Columbia Gas Transmission:

In response to customer questions regarding its Leach XPress (LXP) and Mountaineer XPress (MXP) projects, Columbia Gas Transmission, LLC (TCO) has developed a schematic highlighting active project points and internal constraints for customers to reference.

https://navigates.cpg.com/infopost/webmethods/DownloadFile.aspx?Mode=V&S3FN=LXP_MXP+Project+Schematic.pdf&S3K=%2Ftco%2Fpermanentpostingsandfaqs%2FLXP_MXP+Project+Schematic.pdf

Although this schematic may serve as a useful tool for customers, TCO strongly recommends the continued utilization of the Internal Constraint Rights screen within Navigates when evaluating a specific contract’s rights for an input nomination.   

Columbia Gulf Transmission:

Columbia Gulf Transmission (CGT) would like to notify customers of an upcoming change in location numbers effective April 1, 2019, impacting the Gulf South – Delhi interconnect.

Currently, Gulf South Delhi nominations are entered at a single bi-directional location for receipts and deliveries. Currently shown as: GULF SOUTH DELHI – 4204

Starting April 1, 2019, all nominations for this location will move to two newly created location numbers:

Receipts from Gulf South Delhi:  Loc Prop 4204R
Deliveries to Gulf South Delhi:     Loc Prop 4204D

Loc Prop 4204 will become inactive on April 1, 2019. All receipts and deliveries for Gulf South Delhi should be nominated at the new 4204R and 4204D locations for Timely Cycle Gas Day April 1,2019. Any nominations at Loc Prop 4204 will be reduced to 0.

Dominion Energy Transmission:

As of Monday, April 1, 2019, Dominion Energy Transmission, Inc. will return to one (1) Operational Impact Area (OIA).

Also from Dominion:

Based on storage withdrawals during the 2018-2019 Winter Period, storage inventory levels are at near historic lows. As a result of the current inventory levels, DETI can handle only limited withdrawals from its storage pools until inventory levels increase.

To protect its storage pools and to minimize withdrawals, DETI will not require its GSS customers to meet their Minimum Turnover Obligations pursuant to Section 8.7 of Rate Schedule GSS for the period November 1, 2018 through April 15, 2019. As a result, no charges set forth in GT&C Section 35.3D will be assessed if the minimum turn obligation is not met during this period. Further, DETI requests that GSS customers voluntarily minimize withdrawals with the start of the injection season on April 1.

This voluntary action may allow the avoidance of the issuance of storage OFOs if inventory levels decline further. Customers are advised that DETI may be required to issue OFOs that limit storage withdrawals in April and possibly, require the use of all firm transportation capacity prior to the use of storage withdrawals.

Gulf South Pipeline:

Carthage Junction Compressor Station Maintenance:  Begins April 9, 2019 – Ends April 10, 2019

Area 8 to 16 Expansion Scheduling Group – Capacity could be impacted by as much as 150,000 dth/d for the duration of the maintenance for all services other than primary firm.

MidContinent Express Pipeline (MEP):

MEP will be performing a cleaning pig run on the entire portion of its pipeline system in Zone 2, segments 200 and 210, from Madison Parish, Louisiana to Choctaw County, Alabama.  This work will require MEP to restrict throughput capacity in Zone 2 of its system. 

As such, effective for gas day Wednesday, April 10, 2019, and continuing through gas day Thursday, April 11, 2019, MEP will schedule Primary Firm and Secondary-in-path Firm transports to no less than 71% of contract MDQ into Segment 200, assuming all such contracts are nominated at full applicable contract MDQ through the constrained segment.  Actual nomination levels, changes in pipeline conditions, and assistance MEP is seeking from connecting pipelines downstream of the outage could result in an increase to the percentage scheduled.

AOR/ITS and Secondary out-of-path Firm transports will not be available during this outage. Additionally, all park and loanservices under Rate Schedule PALS will not be available anywhere on the system.

Natural Gas Pipeline Company of America (NGPL):

As part of its required ongoing pipeline integrity Management Program, on gas day Tuesday, March 26, 2019, and continuing through gas day Thursday, April 11, 2019, Natural will perform an ILI tool run on the Gulf Coast #2 mainline between Compressor Station 300 located in Victoria County, Texas and Compressor Station 341 located in Nueces County, Texas (Segments 22 and 20 of Natural’s South Texas Zone).  This tool run will require Natural to schedule Primary Firm and Secondary in-path Firm transports, only, southbound into Segment 22 for the duration of this tool run.  AOR/ITS and Secondary out-of-path Firm transports will not be available.

On gas day Tuesday, March 26, 2019, and continuing through gas day Monday, April 1, 2019, Natural will be performing station maintenance at Compressor Station 303, located in Angelina County, Texas (Segment 26 of Natural’s Texok Zone). This work will require Natural to schedule Primary Firm and Secondary in-path Firm transports, only, southbound through Compressor Station 302 located in Montgomery County, Texas for the duration of this maintenance project.  AOR/ITS and Secondary out-of-path Firm transports will not be available during this work.  Additionally, Primary Firm and Secondary in-path Firm transports may also be at risk of not being fully scheduled.

Northwest Pipeline:

Effective immediately and until further notice, Northwest is increasing the available deliverability into the Jackson Prairie storage facility from 442,000 Dths to 550,000 Dths.

Northwest is able to support the increase above design capacity due to prevailing pressures and facility conditions, which it expects will continue into the summer.

Tennessee Gas Pipeline:

Pursuant to Article XII of the General Terms and Conditions of Tennessee’s FERC Gas Tariff, Tennessee posted a notice of an emergent repair issue on the 300-1 Line between STA 219 and MLV 301 located in Mercer County, PA effective for the Gas Day of Friday, March 15, 2019 (Notice Identifier 370784), due to an anomaly identified from results received from Tennessee’s ongoing integrity program.  Work continues on this section of the pipe. 

Anticipated return to service is projected to be April 7, 2019.  Tennessee continues to estimate the current impact to be up to 65,000 Dths. Based upon current and recent nominations, restrictions through a pro rata portion of Secondary Out of the Path nominations pathed through STA 307(Segment 307 BH) continue to be at risk. 

Texas Eastern Transmission:

Below is a link to Texas Eastern Transmission’s planned outage information for 2019: https://infopost.spectraenergy.com/GotoLINK/GetLINKdocument.asp?Pipe=10076&Environment=Production&DocumentType=Notice&FileName=TETLP+2019+Planned+Outage+Presentation.pdf&DocumentId=8aa1649f695385180169597ca33600ca

Texas Gas Transmission:

North Louisiana System Maintenance:

Start Date: March 25, 2019 – End Date: April 7, 2019

Texas Gas will be performing direct assessments on the North Louisiana Lateral. Capacity will be limited to 325,000 MMBtu for the Carthage East-West (CEW) segment.

********************

The National Weather Service temperature forecast for the last week of March shows a warming trend through the midsection of the United States.  Cooler-than-seasonal conditions will return to the Great Plains, the West Coast and much of the Southeast through March 31. 

That’s all for this edition of GasNewsOnline.com! Enjoy a weekend of watching the college basketball games, and we hope to see you again on Monday!

Monday, March 18, 2019

Welcome to GasNewsOnline.com! The recent late season surge of cold weather seems to be fading this week, and many of the natural gas pipeline companies are now starting to post notices of upcoming spring maintenance projects. 

As we shift into the spring gas storage season, let’s check out some of the latest industry news and the long-range temperature forecasts, too.

********************

American Midstream Partners, LP today announced that it has entered into a definitive agreement and plan of merger (“Merger Agreement”) with an affiliate (the “Purchaser”) of ArcLight Energy Partners Fund V, L.P. (“ArcLight”). The Purchaser will acquire, for cash, in a merger transaction, all outstanding common units of the Partnership not already held by affiliates of ArcLight, at a price of $5.25 per common unit.

The merger is expected to close in the second quarter of 2019.  The Partnership does not expect to make any cash distributions on its common units or preferred units prior to the closing of the merger.

The conflicts committee of the board of directors of the Partnership’s general partner, after consultation with its independent legal and financial advisors, unanimously approved the Merger Agreement and determined it to be in the best interests of the Partnership and its unitholders unaffiliated with ArcLight. Subsequently, the board of directors of the Partnership’s general partner approved the Merger Agreement and determined it to be fair and reasonable and in the best interests of the Partnership.

The closing of the merger is subject to satisfaction of customary conditions, including receipt by the Partnership of a consent and waiver from the Partnership’s lenders. Under the partnership agreement, the merger is required to be approved by a majority of the outstanding common units and preferred units, voting as a class, and each class of preferred units. Affiliates of ArcLight own approximately 51% of such voting power and prior to the execution of the Merger Agreement, affiliates of ArcLight delivered to the Partnership a written consent approving the Merger. As such, the merger has been approved by the limited partners of the Partnership, and the Partnership will not hold a meeting of its unitholders to approve the merger. 

Upon closing of the merger, the Partnership will be a wholly owned subsidiary of the Purchaser and its common units will cease to be publicly traded.

********************

From the US Energy Information Administration’s “Natural Gas Weekly Update” publication last week:

Natural gas spot prices fell at most locations the past reporting week (Wednesday, March 6 to Wednesday, March 13). Henry Hub spot prices fell from $2.94/MMBtu on March 6 to about $2.85/MMBtu today.

The price of the 12-month strip averaging April 2019 through March 2020 futures contracts is now just shy of the $3.00 mark at $2.996/MMBtu.

Net withdrawals from working gas totaled 204 Bcf for the week ending March 8. Working natural gas stocks are 1,186 Bcf, which is 23% lower than the year-ago level and 32% lower than the five-year (2014–18) average for this week.

The natural gas plant liquids composite price at Mont Belvieu, Texas, rose by 8¢/MMBtu, averaging $6.70/MMBtu for the week ending March 13. The price of natural gasoline, ethane, propane, and butane rose by 2%, 1%, 1%, and 1%, respectively. The price of isobutane remained flat week over week.

According to Baker Hughes, for the week ending Tuesday, March 5, the natural gas rig count decreased by 2 to 193. The number of oil-directed rigs fell by 9 to 834. The total rig count decreased by 11 and now stands at 1,027.

********************

Now, let’s take a look at the interstate natural gas pipeline grid:

ANR Pipeline:

Janesville NNG Capacity Reduction

New: ANR will begin planned pipeline maintenance in Wisconsin in the Northern Area (Zone 7). For the period of March 26 – 28, ANR will not be scheduling nominations at the JANESVILLE/NNG (LOC #28808).

Based on current nominations, it is anticipated that this posting will result in the capacity allocation reduction of IT and Firm Secondary volumes. This posting will be updated as more information becomes available.

Columbia Gas Transmission:

MARK YOUR CALENDAR! TransCanada will be revealing the new Navigates Nominations application and providing customer training on Thursday, March 21, 2019 at 1:30 PM CT.  

The new Navigates Nomination application contains numerous customer requested improvements, making it easier to do business using computers, tablets or mobile devices. The training will provide an in-depth look at the Nomination Matrix, Pool Balances, and Gas Flow Summary screens, and a snapshot of what customers can expect as additional functionality is added to the new Navigates application. 

The dial-in details are provided below: 

Participant dial-in: (888) 455-0683

Participant passcode: 2730221 

A copy of the presentation will be posted prior to the call under the Presentations section of Columbia’s Informational Postings for your reference.

El Paso Natural Gas:

Force Majeure – Lordsburg Station – Unit 1C & Florida Station – 1C

El Paso Natural Gas Company, L.L.C. (EPNG) has experienced equipment failures associated with its Lordsburg Compressor Station and Florida Compressor Station, and as such Lordsburg Unit 1C and Florida Unit 1C are currently unavailable. Accordingly, the operational capacity through the L2000 constraint of 584,700 dekatherms (Dth) per day will be reduced by 200,000 Dth per day yielding operational capacity of 384,700 Dth per day effective Gas Day Tuesday, March 19, 2019, Timely Cycle (Cycle 1). 

This reduction in operational capacity will remain in effect until further notice. EPNG will provide updates as more information becomes available.

This incident constitutes an event of force majeure under EPNG’s FERC Gas, General Terms and Conditions, Section 11.3.  For scheduling questions, please call your scheduling representative at (800) 238-3764.

Gulf South Pipeline:

Maintenance Pig Run #2 – Effective March 26 – Ends March 27, 2019

Kiln to Mobile Scheduling Group

Capacity could be impacted by up to 25,000 dth/d for the duration of the maintenance. Based on current nominations and operational conditions Gulf South does not anticipate any customer impact.

Mobile Bay Delivery Scheduling Group

Capacity could be Impacted by up to 150,000 dth/d for the duration of the maintenance.

Moss Point System Scheduling Group

Capacity could be impacted by up to 100,000 dth/d for the duration of the maintenance.

Southeast Supply Header (SESH):

Pursuant to Section 15 of the General Terms and Conditions of Southeast Supply Header, LLC’s (“SESH”) FERC Gas Tariff (“Tariff”), SESH notifies its shippers of the scheduled outages described below. During these outage periods, the quantity of available capacity on the SESH system will be limited as set forth below.

Gwinville Compressor Station Outage: April 6 – 10, 2019:
Beginning on Gas Day April 6, 2019 and continuing through Gas Day April 10, 2019, SESH’s capacity will be limited to approximately (i) 710,000 Dth /d through the Delhi Compressor Station, (ii) 887,000 Dth /d through the Gwinville Compressor Station and (iii) 885,000 Dth/d through the Lucedale Compressor Station.

If nomination flow patterns change significantly during this outage, SESH will post revised capacities to reflect these changes.

Lucedale to Gulfstream Pipeline Outage: April 6 – 9, 2019:
Beginning on Gas Day April 6, 2019 and continuing through Gas Day April 9, 2019, SESH will be conducting an outage on a portion of its 36″ Line 100 between Lucedale Compressor Station and EOL. During this outage the following meters will be unavailable for flow:

83011 – GULF STREAM – CODEN (DEL – 83111)
83101 – TRANSCO – CODEN
83103 – THEODORE PLANT – MOBILE GAS SERVICES
83111 – GULFSTREAM – CODEN (REC – 83011)
83113 – PLANT DANIEL, MISSISSIPPI POWER COMPANY

During these outages SESH will work with upstream and downstream interconnects to minimize shipper impact.

Southern Natural Gas:

On Tuesday March 19, 2019 Southern will post the March/April/May and other 2019 Maintenance projects.

On Wednesday, March 20, at 1:30 PM (Central Time), the company will host a call that should last approximately one hour.  Southern will conduct a conference call/WebEx meeting and review the posted information. 

WebEx meeting number:  991 986 350 – Password:  SNG

Audio:  713-420-6338 (MEET) – Access code:  36338

********************

From the National Weather Service, the six-to-ten day temperature forecast shows a much appreciated warm-up for the midsection of the United States through March 28.  The only area expecting average March temperatures will be along parts of the Desert Southwest and California as spring gets underway elsewhere.

Thanks for joining us at GasNewsOnline.com! We check all of the publicly sourced natural gas pipeline and energy news for you and bring you the weather outlook for the coming week. 

Please tell a friend in the natural gas scheduling and transportation business about us! Subscribe to our FREE companion audio podcasts via Apple Podcasts, too.

Thursday, March 14, 2019

Happy “Pi” Day!

After returning from a brief vacation touring portions of Oklahoma and Texas, it’s time to get back to work here at GasNewsOnline.com! Due to time constraints, there will be no audio podcast of today’s edition.

With a final cold blast and heavy winds buffeting parts of the country this week, the weekend looks to be quite busy on the interstate natural gas pipeline grid. Let’s check out the latest critical postings:

Algonquin Gas Transmission:

In order to maintain the operational integrity of the system, Algonquin Gas Transmission, LLC (AGT) is issuing an Operational Flow Order (OFO) pursuant to Section 26 of the General Terms and Conditions of AGT’s FERC Gas Tariff, effective 9:00 AM CCT March 14, 2019, to all parties, with the exception of those Operational Balancing Agreements required by FERC regulations, on the AGT system.

This OFO does not affect the ability of AGT to receive or deliver quantities of gas for scheduled nominations to any customer or pipeline.

***During the effectiveness of this OFO, all parties must be balanced such that actual deliveries of gas out of the system must be equal to or less than scheduled deliveries. The penalty shall apply to each dekatherm of actual delivery quantities as indicated below:

Gas Day March 14 – 15: The penalty shall apply to each dekatherm of actual delivery quantities exceeds the greater of 6,000 Dth or 106% of scheduled delivery quantities.

Gas Day March 16 and until further notice: The penalty shall apply to each dekatherm of actual delivery quantities exceeds the greater of 4,000 Dth or 104% of scheduled delivery quantities.

In each situation indicated above, the penalty will be equal to three times the daily Platts Gas Daily “Daily Price Survey” posting for the High Common price for “Algonquin, city-gates” for the day on which such violation occurred as indicated in AGT’s General Terms and Conditions Section 26.8. In addition, AGT will not permit retroactive nominations to avoid an OFO penalty.

AGT may be required to issue an hourly OFO pursuant to General Terms and Conditions Section 26.7(d) to impose further restrictions in order to maintain the operational integrity of the system.

As previously posted AGT, requests that customers/point operators on AGT be aware of the impact non-ratable hourly takes from the system may have in causing delivery pressures reaching lower than desired levels. As a reminder, AGT’s system is not designed to sustain delivery pressures above contract levels while making non-ratable/accelerated deliveries above scheduled quantities for more than 6 consecutive hours, to be followed by flows below scheduled quantity for the balance of any 24 hour period.

Furthermore, if customers/point operators don’t manage hourly takes from the system, 1) delivery pressures will be impacted and /or 2) AGT may be required to impose further restrictions or courses of action in order to maintain the operational integrity of the system.

Colorado Interstate Gas (CIG):

In anticipation of colder weather, Colorado Interstate Gas Company, L.L.C., CIG will take the following actions impacting its No-Notice Storage and Transportation Service (NNT) beginning Gas Day March 13, 2019, and continuing until further notice.  Therefore, when necessary to minimize imbalances and protect system integrity, underperformance caps may be placed on nonperforming receipt points effective the next available nomination cycle until further notice.

In addition, CIG is limiting requests for NNT authorized withdrawal overruns to 100,000 Dth. 

Columbia Gas Transmission and Columbia Gulf Transmission:

Columbia Gas Transmission, LLC will be commencing service for the remaining contracted 330 MDth/d of its Mountaineer XPress (MXP) project capacity effective Gas Day Friday, March 15, 2019.   Nominations will be accepted beginning for the Timely Cycle for Gas Day Friday, March 15, 2019.  Please monitor the Daily Capacity Posting effective for Friday, March 15, 2019 for capacity changes related to MXP. 

Columbia Gulf Transmission, LLC will be commencing service for the remaining contracted 330 MDth/d of its Gulf XPress (GXP) project capacity effective Gas Day Friday, March 15, 2019.   Nominations will be accepted beginning for the Timely Cycle for Gas Day Friday, March 15, 2019. 

East Tennessee Natural Gas:

Due to impending colder weather, in order to maintain the operational integrity of the system, ETNG is issuing a Balancing Alert Operational Flow Order (OFO) pursuant to Section 14.7 of the General Terms and Conditions of ETNG’s FERC Gas Tariff effective 9:00 AM CCT, March 16, 2019 for all meters east of the Boyds Creek Compressor Station.

This OFO does not affect the ability of ETNG to receive or deliver quantities of gas for scheduled nominations to any customer, storage field, or pipeline.

During the effectiveness of this OFO, balancing parties under Rate Schedules LMSMA and LMSPA must be balanced such that actual deliveries of gas out of the system must be equal to or less than scheduled deliveries out of the system and actual receipts of gas into the system must be equal to or greater than scheduled receipts into the system. Additionally, balancing parties with meters west of Boyds Creek will not be allowed to utilize undertakes at meters located west of Boyds Creek to offset overtakes at meters located east of Boyds Creek.

The penalty provisions under Section 47.5(b) of the General Terms and Conditions of ETNG’s FERC Gas Tariff shall apply for failure to conform for each dekatherm of actual receipt quantities that are less than scheduled receipt quantities and for each dekatherm of actual delivery quantities that are greater than scheduled delivery quantities, in each case with a tolerance of 2% of scheduled quantities or 500 dekatherms (whichever is greater).

In addition, ETNG will not permit retroactive nominations to avoid an OFO penalty.

Natural Gas Pipeline Company of America (NGPL):

As part of its required ongoing pipeline integrity Management Program, on gas day Tuesday, March 26, 2019, and continuing through gas day Thursday, April 11, 2019, Natural will perform an ILI Smart Tool run on the Gulf Coast #2 mainline between Compressor Station 300 located in Victoria County, Texas and Compressor Station 341 located in Nueces County, Texas (Segments 22 and 20 of Natural’s South Texas Zone).  This tool run will require Natural to schedule Secondary in-path and Primary only southbound into Segment 22 (South Texas Zone) for the duration of this tool run.  AOR/ITS and Secondary out-of-path Firm transports will not be available. 

Also from NGPL:

On gas day Tuesday, March 26, 2019, and continuing through gas day Monday, April 1, 2019, Natural will be performing station maintenance at Compressor Station 303, located in Angelina County, Texas (Segment 26 of Natural’s Texok Zone).  This work will require Natural to schedule Secondary in-path and Primary only southbound through Compressor Station 302 located in Montgomery County, Texas, (Segment 26 of Natural’s Texok Zone) for the duration of this maintenance project.  AOR/ITS and Secondary out-of-path Firm transports will not be available during this work.  Primary Firm and Secondary in-path Firm transports may also be at risk of not being fully scheduled.

Northwest Pipeline:

Northwest will hold the annual maintenance conference call on Wednesday, March 20, 2019, from 3:00 PM to 4:00 PM MDT. The call-in number is 385-355-3006 and the conference id is 34150489.

The 2019 maintenance schedule has been posted on Northwest’s portal at http://www.northwest.williams.com. The information on the schedule represents Northwest’s best estimates given the information currently available.

Please note that the estimated capacity reductions and project durations are dependent on many variables and are subject to change. Northwest will update the schedule as the projects progress and new information becomes

available. 

Tennessee Gas Pipeline:

Pursuant to Article XII of the General Terms and Conditions of Tennessee’s FERC Gas Tariff, Tennessee is posting notice of an emergent repair issue on the 300-1 Line between STA 219 and MLV 301 located in Mercer County, PA effective for the Gas Day of Friday, March 15, 2019.  Due to results from Tennessee’s ongoing integrity program, Tennessee has identified an anomaly that necessitates pressure reduction on this section of the pipe.  Tennessee is estimating the current impact to be up to 65,000 Dths. Based upon current and recent nominations, restrictions through a pro rata portion of Secondary Out of the Path nominations pathed through STA 307(Segment 307 BH) may be required. 

Texas Eastern Transmission:

As previously posted, Texas Eastern (TE) has limited operational flexibility to manage imbalances. As result, effective immediately, TE requires all delivery point operators in Market Area Zones M1-24, M2-24 and M3 to keep actual daily takes out of the system equal to or less than scheduled quantities regardless of their cumulative imbalance position unless otherwise coordinated with your operations account representative. All receipt point operators in Market Area Zones M1-24, M2-24 and M3 are required to keep actual daily receipts into the system equal to or greater than scheduled quantities regardless of their cumulative imbalance position unless otherwise coordinated with your operations account representative.

Additionally, TE requires all shippers and point operators in Access Area Zones STX, ETX, WLA and ELA and Market Area Zones M1-30 and M2-30 to carefully review demand for gas and schedule gas consistent with daily needs and to tender and receive gas consistent with confirmed nominations regardless of their cumulative imbalance position unless otherwise coordinated with your operations account representative.

Correspondingly, the previously posted imbalance notice is no longer in effect.

Texas Gas Transmission:

Texas Gas will be performing direct assessments on the North Louisiana Lateral beginning March 25 through April 7, 2019.  Capacity will be limited to 325,000 MMBtu for the Carthage East-West (CEW) segment.

Please contact your customer service representative if you have any questions.

Transcontinental Gas Pipe Line Company:

Subject:Operational Flow Order – Imbalance

Transco recently provided notice of limited flexibility to manage imbalances and recommended shippers maintain a concurrent balance of receipts and deliveries. In order to ensure system integrity, maintain safe operations, manage imbalances, and handle within-the-day volatility, Transco is issuing an Imbalance Operational Flow Order (OFO).

Effective:  Friday, March 15, 2019 until further notice

OFO Areas:  Zones 4, 5, and 6

Delivery Tolerance %:  10% Due to Shipper and 10% Due From Shipper

********************

After a blustery week in many portions of the United States, the National Weather Service six-to-ten day temperature forecast through March 24 shows a warming trend for the upper Midwest and the Northeast. Portions of the South, though, may still be a little cooler than normal for late March.

Thanks for checking in to GasNewsOnline.com! Please come back late Monday for a complete update and podcast to start your work week.

It’s the right price. FREE!

Monday, March 11, 2019

Welcome to an abbreviated version of GasNewsOnline.com for Monday, March 11, 2019.  Before heading out for a few days of spring break, we have a few updates to start your work week.

********************

From the US Energy Information Administration’s “Natural Gas Weekly Update”…

Natural gas spot prices rose at most locations this report week (ending Wednesday, March 6). Henry Hub spot prices rose from $2.85 per million British thermal units (MMBtu) a week ago to $2.94/MMBtu on Wednesday.

At the New York Mercantile Exchange (NYMEX), the price of the April 2019 contract ended the week at about $2.86/MMBtu.  The price of the 12-month strip averaging April 2019 through March 2020 futures contracts has recently climbed to about $2.98/MMBtu.

In the weekly natural gas storage report, net withdrawals from working gas totaled 149 billion cubic feet (Bcf) for the week ending March 1. Working natural gas stocks are 1,390 Bcf, which is 25% lower than the five-year (2014–18) average for the same week.

The natural gas plant liquids composite price at Mont Belvieu, Texas, fell by 19¢/MMBtu, averaging $6.59/MMBtu for the week ending March 6. The price of ethane, propane, butane, and isobutane fell by 2%, 4%, 5%, and 5%, respectively. The price of natural gasoline remained flat week over week.

According to Baker Hughes, for the week ending Tuesday, February 26, the natural gas rig count increased by 1 to 195. The number of oil-directed rigs fell by 10 to 843. The total rig count decreased by 9, and it now stands at 1,038.

********************

The National Weather Service 8-to-14 day temperature outlook into the third week of March continues to call for colder than average weather for much of the midsection of the United States.  In particular, Texas and the lower Mississippi River regions may see significantly below normal conditions.  Only the West Coast is expected to see warmer than seasonal temperatures over the period.   

We’ll return from vacation and post an update by this Friday and provide a detailed update about next weekend’s conditions along the interstate gas pipeline grid.  Have a great week!

Thursday, March 7, 2019

It’s that time of year again!  The annual change to Daylight Savings Time begins this Sunday, March 10, 2019.  Please remember to set your clocks forward by one hour beginning Sunday morning.

Welcome to this Thursday edition of GasNewsOnline.com.  We’ll give you a few news stories from the energy business, a look at the gas pipeline companies’ critical notices, and take a look ahead at the temperature forecast from the National Weather Service.  It is all for FREE from GasNewsOnline.com.

********************

The US Energy Information Administration reports that working gas in storage decreased by 149 Bcf for the week ending Friday, March 1.  Natural gas stocks in storage were 464 Bcf (or 25%) below the five-year average of 1.85 Tcf for the same week.

The NYMEX April natural gas futures price was holding steady at about $2.84/MMBtu at the Henry Hub in Louisiana on Thursday.  The 12-month NYMEX price strip for natural gas from April, 2019 through March, 2020 has now climbed to around $2.98/MMBtu. 

********************

On Tuesday, the Electric Reliability Council of Texas (also known as “ERCOT”) predicted a record electric use this summer in Texas along with an increased chance of energy outage alerts.

“Prior to each season, we consider a range of potential risks to determine whether there will be sufficient capacity to meet the expected peak load forecast,” said ERCOT President and CEO Bill Magness. “In all of the scenarios studied, we identified a potential need to call an energy alert at various times this summer.”

When ERCOT declares an alert, it can then take advantage of additional resources that are only available during scarcity conditions. These resources include demand response products, resources that are normally set aside to provide operating reserves (including contracted load reduction from some industrial facilities), additional generation or imports from neighboring regions and voluntary calls for conservation by consumers.

ERCOT’s current planning reserve margin is a historically low 7.4% while electric demand in the ERCOT region continues to grow. Between 2016 and March 2019, ERCOT set 16 new monthly peak demand records and new all-time system-wide peak demand records in 2016 and 2018.

Total resource capacity for the upcoming summer is expected to be 78,154 MW. The preliminary summer SARA report includes a 74,853 MW summer peak load forecast based on normal summer peak weather conditions for 2003-2017.

********************

Georgia Power today announced, in collaboration with Georgia Tech, it will build a new 1.4 MW microgrid in Tech Square at Spring and 5th streets in Atlanta. Microgrids are self-contained power systems co-located with the facilities they serve that include generation resources, storage systems and energy management systems.

The Tech Square Microgrid, which was approved by the Georgia Public Service Commission and will begin operating this fall, will be used to evaluate how a microgrid can effectively integrate into and operate as part of the overall electrical grid. Additionally, it will serve as a living laboratory for Georgia Tech professors and students who will use the asset to gather data on controllers, cybersecurity devices and energy economics.

The microgrid will provide Georgia Power with insight on how smart energy management systems, such as the one being installed at the CODA data center that is currently under construction, can interact with the grid to achieve optimal utilization of energy. In addition, it will also provide teaching and learning opportunities for Georgia Tech professors and students.

“Georgia Tech and Georgia Power have partnered together on a number of important initiatives over the years, and we are very excited about our latest collaborative effort, the new microgrid in Tech Square,” said Georgia Tech President G. P. “Bud” Peterson. “In addition to actually delivering power, it will also serve as a ‘research microgrid,’ allowing Georgia Power, Southern Company, Georgia Tech and other partners to study the microgrid performance and conduct controlled experiments to develop and test new and innovative energy solutions for the future.”

The installation will include fuel cells, battery storage, diesel generators and a natural gas generator, but it is adaptive to new and additional distributed energy resources. It is designed to also accommodate microturbines, solar panels and electric vehicle chargers in the future. All components will be placed on a platform and obscured from view with seven-foot-high fencing and gate access along Williams Street in Atlanta.

********************

Many of the interstate natural gas pipeline companies are ending their recent critical operational notices as some of the coldest weather takes a breather. Here are a few of the latest postings:

ANR Pipeline:

Attn: All ANR Pipeline Storage Customers

Reminder – Effective until further notice, ANRPL will continue to only schedule Firm Withdrawal activity from Rate Schedule FSS. As a result, ANRPL will restrict all daily Interruptible Storage Withdrawal activity from Rate Schedules DDS & MBS along with Overrun Withdrawals from Rate Schedule FSS to zero. Overrun Withdrawals are those nominated quantities which are above the Current Maximum Daily Withdrawal Quantity (MDWQ) in effect.

For customers nominating withdrawals from their FSS accounts, please keep your nominated volumes at or below your Current MDWQ. FSS Current MDWQ levels can be viewed in GEMS under the Volumes menu under Contract Storage Balances and also the Storage Ratchet Summary.

Per Part 6.18.12 of the ANRPL Tariff, General Terms and Conditions, Infield Storage Transfer Requests will be restricted if the request results in an increase to ANRPL’s service obligations, such as, but not limited to, requests from either Rate Schedule DDS or MBS to Rate Schedule FSS. All Infield Storage Transfer Requests will be considered on an individual basis.



Dominion Energy Transmission:

Due to current and anticipated system conditions, customers are reminded to monitor contractual storage entitlements and take the necessary steps to manage deliveries within those firm entitlements. Transportation customers are also advised to equalize receipts and deliveries so as to minimize imbalances on DETI’s system. Capability for over-withdrawals, short-term loans, and park payback activity are expected to be very limited or possibly not available. They may be subject to allocation or potential penalties if warranted by an OFO, in accordance with the terms of DETI’s tariff.

Natural Gas Pipeline Company of America (NGPL):

SEGMENT 22 SOUTHBOUND – STA 300 VICTORIA – AT OPERATING CAPACITY 

Effective for gas day Thursday, March 7, 2019, and continuing until further notice, Natural is at operating capacity for southbound flow through Compressor Station 300 located in Victoria County, Texas (Natural’s South Texas Zone).  AOR/ITS and Secondary out-of-path Firm transports are at risk of not being fully scheduled.  For scheduling purposes, the South Texas Pool (LOC 25079) is located north of Compressor Station 300.

Northwest Pipeline:

Effective Gas Days Friday and Saturday, March 8-9, the Overrun Entitlement for Receiving Party locations north of the Plymouth South constraint point, including the Wenatchee and Spokane Laterals, will be revised from a Stage III (13%) Overrun Entitlement to a Stage II (8%) Entitlement.  Northwest needs to make this change to prepare for maintenance impacts associated with Enbridge’s pig runs.

Beginning Sunday, March 10, Northwest is lifting the Overrun Entitlement for its entire system.

Southern Natural Gas:

Fairburn Force Majeure – Update #4

As posted in Critical Notice 703087, SNG experienced an unscheduled station outage at the Fairburn Compressor Station.  Southern and the manufacturer have determined that Unit #2 can remain in-service while a permanent repair is completed.  SNG will now continue to be able to schedule approximately 210 Mdth/d from the TRNSCO/SNG FAIRBURN TO SNG FAYETTE – PIN 50069 until further notice.  

As a result of Unit #1 still being out of service, a reduction in IT and Out of Path service may be necessary depending on demand until the Fairburn Compressor Station is back to full operating capacity.

We will continue to work diligently to return the station to full service as soon as possible.

This unscheduled outage constitutes an event of Force Majeure under Section 8.3 of the General Terms and Conditions of SNG’s FERC Gas Tariff until further notice.

Texas Eastern Transmission:

Texas Eastern (TE) is providing the following update on its progress to return partial service to the 30 inch pipeline system following the incident that occurred on Line 10 on Monday, January 21, 2019 in Noble County, OH between its Berne and Athens compressor stations. The progress report is as follows:

Eastbound capacity through TE’s Uniontown compressor station remains at approximately 4,500,000 Dth/d and southbound capacity through Berne remains at approximately 1,600,000 Dth/d.

At this time, TE is currently evaluating the integrity of Line 15 immediately south of Berne as well as Line 10 between Athens and Uniontown. Depending on the results of the integrity investigations, TE anticipates the earliest Line 15 immediately south of the Berne compressor station could be placed back in service is approximately 2-3 weeks.

Furthermore, as previously mentioned, TE has determined that further investigations on Line 10 between its Athens and Uniontown compressor stations are required. TE is continuing these investigations along Line 10 and will post any changes to capacity resulting from these investigations. Due to the proximity of Line 10 to Line 15 and/or Line 25 in various locations along this section, additional isolations of Line 15 or Line 25 may be required to safely investigate Line 10. At this time there has not been any need for additional isolations. If additional isolations are required, it is anticipated to impact south bound capacity through the Berne compressor station and TE will post that information as soon as it is known.

Finally, there are various factors that could potentially change the projected return to full service date, such as but not limited to: weather conditions and any unforeseen existing pipeline conditions that could lengthen the work schedule. Based on progress made to date, TE projects that eastbound capacity through Uniontown could be restored to full capacity in approximately 4-6 weeks and southbound capacity through Berne could return to full capacity in approximately 6-8 weeks.

WBI Energy Transmission (Williston Basin Interstate)

WBI Energy Transmission, Inc. is holding an Open Season for the sale of firm natural gas transportation capacity for the expansion of deliveries to Northern Border Pipeline Company in northwestern North Dakota. The 2020 North Badlands Expansion Project will increase capacity for receipts of natural gas from new or existing receipt points on Line Section 27 for delivery to the NBPL-Spring Creek (D) location. The design of the 2020 North Badlands Expansion Project includes new pipeline, regulation and measurement facilities. The targeted in-service date is February 2020.

The Open Season will commence on March 7, 2019, and conclude at 4:00 PM Central Time on March 14, 2019. Interested parties must complete an Open Season Bid Sheet. Information on the Open Season and the Bid Sheet can be found under Other/Reference/2020 North Badlands Expansion Open Season on WBI Transmission’s Website at transmission.wbienergy.com.

********************

The National Weather Service six-to-ten day temperature forecast is really making Punxatawney Phil’s prediction of an early spring look pretty bad.  Significantly colder than average mid-March temperatures are being forecast for the West Coast, the Rockies, and most areas west of the Mississippi River.  By contrast, the Eastern US may see slightly warmer-than-seasonal temperatures for a few days through March 17. 

That’s a wrap for this Thursday, March 7, 2019 edition of GasNewsOnline.com.  We’ll return next week to provide an update on natural gas pipeline conditions and the latest energy news. 

Remember that our companion audio podcast is available to you via Apple Podcasts.  Subscribe today – it’s FREE

Edition 44 – Monday, March 4, 2019

Welcome to this busy Monday edition of GasNewsOnline.com.  With cold weather gripping much of the United States, we will cover the latest critical postings from the interstate gas pipeline grid along with a few news stories from the energy business, and, of course, take a look ahead at the temperature forecast from the National Weather Service.  It is all FREE from GasNewsOnline.com.

********************

Cheniere Energy, Inc. and Bechtel Oil, Gas and Chemicals, Inc. announced today that Substantial Completion of Train 1 of the Corpus Christi liquefaction project was achieved on Thursday, February 28, 2019. Commissioning is complete and Bechtel has turned over care, custody, and control of Train 1 to Cheniere.

“Train 1 at Corpus Christi has achieved Substantial Completion, becoming the first liquefaction train placed into operation at a greenfield liquefaction facility in the lower 48 states,” said Jack Fusco, President and CEO of Cheniere. “This momentous achievement was made possible by Cheniere’s professionals and our EPC partner, Bechtel, who worked diligently together to ensure a seamless transition from construction to operations. I’d like to thank the Cheniere team and Bechtel for their world class execution, which has enabled us to continue our impeccable record of bringing trains online safely, ahead of schedule, and within budget.”

“The entire Bechtel team is very proud of our contribution to Cheniere’s success on the U.S. Gulf Coast, as we hand over custody of this historic first Texas LNG train,” said Brendan Bechtel, Chairman and Chief Executive Officer of Bechtel. “It was three years ago that we were able to support Cheniere’s entry into the LNG export market with Train 1 at the Sabine Pass Liquefaction project. With five trains now completed and operating well ahead of schedule, we are excited to continue working alongside Cheniere to deliver their next wave of trains with the reliability of outcome that Cheniere and Bechtel have become known for delivering. This program is a great example of how a one-team approach can bring world-class results, and I want to congratulate Jack and the Cheniere team for fostering this environment of collaboration and mutual success.”

Under sale and purchase agreements (“SPAs”) with Endesa S.A. and PT Pertamina (Persero), the date of first commercial delivery is expected to occur in June 2019, upon which the term of each of these SPAs commences. Additionally, bridging volumes are expected to begin in June 2019 under an SPA with Iberdrola, S.A.

********************

Last Friday, Cheniere announced that Midship Pipeline Company, LLC has issued Notice to Proceed to Strike, LLC, M.G. Dyess, Inc., TRC Pipeline Services, LLC, and Cenergy, LLC to construct the Midship natural gas pipeline and related compression and interconnect facilities (the “Midship Project”). The Midship Project received final Notice to Proceed from the Federal Energy Regulatory Commission in February 2019 and is expected to be placed in service by the end of 2019. Midship Pipeline is indirectly and jointly owned by Cheniere and EIG.

To complete financing of the Midship Project, Midship Pipeline entered into senior secured credit facilities with total commitments of up to approximately $680 million. The credit facilities consist of an approximate $615 million construction loan facility and a $65 million revolving credit facility. Proceeds from these credit facilities will be used to fund a portion of the costs of developing, constructing, and placing into service the Midship Project, to fund working capital requirements, and for related general corporate purposes.

The Midship Project is being developed to create pipeline capacity of up to 1,440,000 Dekatherms per day of firm transportation to connect production from the emerging STACK and SCOOP resource plays in the Anadarko Basin in Oklahoma to growing Gulf Coast and Southeast markets. The Midship Project is expected to consist of approximately 200 miles of 36 inch diameter new mainline pipeline, several laterals, compressor stations and interconnects that will provide receipts from STACK and SCOOP processing plants and provide deliveries to Bennington, Oklahoma, as well as access to downstream markets including the TexOk hub near Atlanta, Texas, and the Perryville Hub near Tallulah, Louisiana. Midship Pipeline has secured commitments from subsidiaries and/or affiliates of Cheniere, Devon Energy Corporation, Marathon Oil Corporation, and Gulfport Energy Corporation.

********************

Also on Friday, TransCanada Corporation announced the Federal Energy Regulatory Commission (FERC) had approved the full in-service of its Mountaineer XPress (MXP) project, allowing the company to increase the flow of gas on MXP and begin operating its Gulf XPress (GXP) project. The projects are a vital link between Appalachian natural gas supplies and growing markets in the U.S. and beyond.

“Mountaineer XPress and Gulf XPress are extremely important to TransCanada as they provide much-needed takeaway capacity for our customers, while also growing our extensive footprint in the Appalachian Basin,” said TransCanada President and Chief Executive Officer Russ Girling. “Both projects will also deliver attractive long-term returns and stable cash flow for our shareholders.”
                                                         
Designed to deliver clean, affordable, domestically produced natural gas, MXP is comprised of 170 miles of 36-inch-diameter pipeline, three new compressor stations, and modifications to three existing compressor stations – representing an investment of approximately US$3.2 billion. The pipeline is capable of transporting 2.7 billion cubic feet of natural gas per day to the TCO Pool and Leach markets on the Columbia Gas Transmission System. MXP is underpinned by long-term contracts with customers.

Partial in-service of the approximately US $600-million GXP project includes placing into service four new compressor stations located in Kentucky, Tennessee and Mississippi. Together, these facilities will provide additional capacity of 530,000 million cubic feet of natural gas per day on the Columbia Gulf Transmission System, which equates to approximately 60 percent of the project’s total capacity. GXP is also underpinned by long-term contracts with customers and is expected to be placed into full service in the coming weeks.

********************

With cold weather gripping the majority of the nation on Monday, several interstate gas pipelines posted operational notices on their electronic bulletin board systems to start the new week:

ANR Pipeline:

ANR is performing planned maintenance at its LaGrange Compressor Station on its Tie-Line located in Indiana in the Northern Fuel Segment (Zone 7). ANR will reduce the LaGrange Westbound location (LOC #314515) capacity by the following:

175-MMcf/d (leaving 525-MMcf/d available) 3/12 – 3/15

Based on current nominations, it is anticipated that this posting will result in the capacity allocation reduction of IT and Firm Secondary volumes. This posting will be updated as more information becomes available.

El Paso Natural Gas:

Pipeline Conditions – Permian Basin Weather Concerns 

The Permian supply basin is experiencing significant underperformance issues related to the winter weather that moved in overnight. Actual receipts into the system are approximately 545 MM below scheduled quantities for Gas Day March 4 (79% of schedule). A combination of freeze-offs and power outages coupled with road closures are impacting the ability of receipt point operators to restore supply to the system.  The Permian Basin overnight lows tomorrow morning are forecast again to be significantly below the seasonal average and additional supply underperformance is anticipated. 

Delivery point operators are encouraged to review their scheduled supplies to ensure that they are aligned with their flowing quantities.  Supply operators are encouraged to maintain their deliveries into the EPNG system at their scheduled rates.  Underperformance caps will be placed on underperforming supplies and if necessary EPNG will declare an SOC for DRAFT condition. 

Imbalance payback off the system, such as Make-Up Delivery (MD) transactions, may be limited or denied due to operational concerns related to maintaining adequate linepack. 

Washington Ranch is fully operational.

Gulf South Pipeline:

Index 300 Maintenance Pig Run:  March 20 – March 21, 2019 and again beginning March 27 – March 28, 2019

Capacity could be impacted by up to 25,000 dth/d for the duration of the maintenance. Based on current nominations and operational conditions Gulf South does not anticipate any customer impact.

Mobile Bay Delivery Scheduling Group – Capacity could be impacted by up to 150,000 dth/d for the duration of the maintenance.

Moss Point System Scheduling Group – Capacity could be impacted up to100,000 dth/d for the duration of the maintenance.

Northern Border Pipeline:

Effective immediately, Northern Border Pipeline is issuing an OFO watch.

Northern Border is concerned about the operational integrity of its system as a result of extremely cold weather. The OFO watch is in effect through gas day March 8th, in order to allow for the Northern Border pipeline system to regain its operational integrity. Northern Border has limited flexibility to manage imbalances and strongly encourages all shippers manage their system requirements to ensure the matching of receipts and deliveries daily. Absent voluntary imbalance management by shippers to ensure daily balancing, Northern Border may be required to take further action, including the immediate issuance of an imbalance Operational Flow Order.

If further action is required, it may be necessary for that action to become effective immediately, with no additional prior notice available.

Northern Natural Gas:

A System Overrun Limitation (SOL) has been called for all Market Area zones (ABC, D and EF) with 0% System Management Service (SMS) available for Gas Day Tuesday and Wednesday, March 5 and 6, 2019, due to lower than normal forecasted system weighted temperatures.

Northwest Pipeline:

Effective for gas day Wednesday, March 6, 2019 and until further notice, Northwest is revising its current Overrun Entitlement as follows:

Receiving Party locations north of the Plymouth South constraint point, including the Spokane and Wenatchee laterals, will be revised from a Stage I (3%) Overrun Entitlement to a Stage III (13%) Overrun Entitlement.    

For Receiving Party locations between the Kemmerer compressor and the Plymouth South constraint the Stage II (8%) Overrun Entitlement will be lifted.

Even though the Entitlements are being changed or lifted, Northwest is not allowing balancing off the system. Customers can avoid future Entitlements by procuring sufficient supply for their market needs.

Panhandle Eastern Pipe Line:

On Sunday, March 3, Panhandle Eastern Pipe Line experienced a rupture downstream of the Centralia Compressor Station. This outage will require a section of the 400 Line to be shut-in for repairs, reducing mainline capacity.

Effective immediately, until further notice, Panhandle will be limiting nominations through Haven to 1,125,000 MMBtu/day, with gas scheduled in accordance with Section 8.8 (c) of Panhandle’s FERC Gas Tariff. This outage will be considered a Force Majeure event pursuant to Section 20 of Panhandle’s FERC Gas Tariff. 

Shippers are encouraged to bring in physical flowing gas from their Primary receipt point, or physical market area receipt meters downstream of this outage in order to avoid the constraint, and potential scheduling reductions of their nominated activity.  

The cold weather restrictions outlined in Critical Notice ID 8196 will remain in effect. Panhandle will be requiring all Enhanced Firm Transportation (EFT) shippers to limit their physical deliveries (takes) to a one-sixteenth hourly rate of the nominated volume. 

Updates on the impact to shipper nominations will be posted as they become available.

Southern Natural Gas:

Based on the weather forecast predicting colder temperatures as well as the corresponding increase in projected demand on Southern’s north and south systems, we are notifying all Shippers that the existing Type 3 Level 1 OFO is being upgraded to a Type 3 Level 2 OFO and is also being expanded to include all of the following groups listed below effective the start of the gas day, Tuesday, March 5, 2019 until further notice.
OFO Type 3 Level 2: Daily Demand Exceeds Capacity

TARIFF SECTION 41.2
EFFECTIVE DATE: March 5, 2019
EFFECTIVE TIME of OFO: 9:00 AM (CCT)

PENALTY: $15.00 + Highest Regional Daily Price* per Dth for quantities taken in excess of the tolerance

TOLERANCE:  Greater of 102% of the Daily Entitlement or 200 dth

Southern Star Central Pipeline:

System Advisory Notice:

Southern Star Central Gas Pipeline is issuing a Storage notice to protect the integrity of SSCGP’s storage facilities. A number of storage customers have inventory levels at or below five percent (5%). This issuance requires all TSS, STS, and FSS customers to have inventories at or above zero (0 %) and asks TSS and STS customers to also ensure they have at least one (1) day of inventory available. Failure to voluntarily comply could result in the issuance of an Operational Flow Order (OFO).

Tennessee Gas Pipeline:

EMERGENT REPAIR AT STATION 323A – SEGMENT 324 – EFFECTIVE 3-05-19 

Pursuant to Article XII of the General Terms and Conditions of Tennessee’s FERC Gas Tariff, Tennessee is posting notice of an emergent repair issue impacting a unit at Station 323A in Pike County, PA. Tennessee has personnel on site and repairs are underway. Tennessee is estimating the current impact to be up to 200,000 Dths at Segment 324 (FH). Based on current nominations, Secondary Out of the Path nominations and Secondary In Path nominations pathed through Segment 324 (FH) are at risk as early as Timely Cycle for the Gas Day of Tuesday, March 5, 2019.

Also on Tennessee Gas…

Due to a forecast of colder weather and higher demand moving across most of the system, effective for the Gas Day of Monday, March 4, 2019, and until further notice, Tennessee Gas Pipeline, L.L.C.  (“Tennessee”) is implementing an  OFO Daily Critical Day 1 for all of Zones 2, 3, 4, 5 and 6 for all Balancing Parties (including LMS-PA, SA contracts acting as balancing parties, LMS-MA, and LMS-PL balancing parties).  This action is pursuant to Article X, Section 4 of the General Terms and Conditions of Tennessee’s FERC Gas Tariff.  

All delivery point operators in all of Zones 2, 3, 4, 5 and 6 are required to keep actual daily takes out of the system equal to or less than scheduled quantities regardless of their cumulative imbalance position.  All receipt point operators in all of Zones 2, 3, 4, 5 and 6 are required to keep actual daily receipts into the system equal to or greater than scheduled quantities regardless of their cumulative imbalance position.  In addition, it is essential that delivery point operators schedule gas at meters commensurate with takes within the affected areas.  All LMS-PA, SA contracts acting as balancing parties, LMS-MA and LMS-PL Balancing Parties are required to maintain an actual daily flow rate not exceeding 2% of scheduled quantities or 500 dths, whichever is greater for under-deliveries into the system and over-takes from the system. Customers will be assessed a rate of $5.00 plus the applicable Regional Daily Spot Price per dekatherm for that portion of physical quantities related to under-deliveries by receipt point operators and over-takes by delivery point operators which exceed this tolerance. 

THIS DAILY OFO CRITICAL DAY 1 WILL REMAIN IN EFFECT UNTIL FURTHER NOTICE. TENNESSEE WILL INFORM CUSTOMERS BY EBB WHEN THIS OFO WILL BE LIFTED.

Texas Eastern Transmission:

Due to impending colder weather, in order to maintain the operational integrity of the system, TE is issuing an Operational Flow Order (OFO) pursuant to Section 4.3 of the General Terms and Conditions of TE’s FERC Gas Tariff effective 9:00AM CCT Tuesday, March 5, 2019 to all parties, with the exception of those governed by a FERC gas tariff, in Texas Eastern’s Market Area Zone M2-30.

This OFO does not affect the ability of TE to receive or deliver quantities of gas for scheduled nominations to any customer or pipeline.

During the effectiveness of this OFO, all parties must be balanced such that actual deliveries of gas out of the system must be equal to or less than scheduled deliveries out of the system. The penalty shall apply to each dekatherm of actual delivery quantities that exceeds the greater of 2,000 Dth or 102% of scheduled delivery quantities.

During the effectiveness of this OFO, all parties must be balanced such that actual receipts of gas into the system must be equal to or greater than scheduled receipts into the system. The penalty shall apply to each dekatherm of actual receipt quantities that are less than scheduled quantities minus 2,000 Dth or 98% of scheduled receipt quantities.

The penalty will be equal to three times the daily Platts Gas Daily “Daily Price Survey” posting for the High Common price for the geographical region, as defined in Section 8.5(a) of the General Terms and Conditions of TE’s FERC Gas Tariff for the day on which such violation occurred. In addition, TE will not permit retroactive nominations to avoid an OFO penalty.

TE may be required to issue an hourly OFO pursuant to General Terms and Conditions Section 4.3(H) to impose further restrictions in order to maintain the operational integrity of the system.

Texas Gas Transmission:

Below normal temperatures have moved into the Texas Gas service area for the first part of this week. While it is fully expected that all primary firm service obligations will be met, the following services/activities are subject to scheduling reductions until further notice:

Imbalance Payback from Transportation Service Provider

Park Withdrawal

Loan

ISS Withdrawal

FSS Overrun Withdrawal

Interruptible and out-of-path Firm Transportation

Additionally, Texas Gas is requesting all shippers take deliveries within their contractual hourly rights so that receipts and Deliveries match their associated scheduled quantities. 

If shippers do not voluntarily comply with these provisions, Texas Gas may be forced to issue an Operational Flow Order, which could result in penalties for shippers.

Transcontinental Gas Pipe Line Company:

Subject:Operational Flow Order – Imbalance

Transco recently provided notice of limited flexibility to manage imbalances and recommended shippers maintain a concurrent balance of receipts and deliveries. In order to ensure system integrity, maintain safe operations, manage imbalances, and handle within-the-day volatility, Transco is issuing an Imbalance Operational Flow Order (OFO).

Effective:    Tuesday, March 5, 2019 and until further notice

OFO Areas:  Zone 6

Tolerance %:  5% for gas Due from Shippers

********************

The National Weather Service six-to-ten day forecast into March 14 is showing that Texas and most areas east of the Mississippi River will show a warming trend while temperatures remain below normal over the Upper Midwest, the Rockies, and the West Coast regions. 

That’s all for this chilly Monday edition of GasNewsOnline.com.  Please come back on Thursday for an update on the interstate gas pipeline conditions expected for the weekend. 

Please let your friends in the natural gas scheduling and transportation business know about us!  Also, our companion audio podcast is available via Apple Podcasts.  Subscribe today – it’s FREE

Edition 43 – Thursday, February 28, 2019

Welcome to this Thursday edition of GasNewsOnline.com.  We’ll bring you a few publicly-released news stories from the energy business, take a look at the latest interstate natural gas pipeline companies’ critical notices, and check next week’s temperature forecast from the National Weather Service.  It is all for FREE from GasNewsOnline.com.

********************

From the US Energy Information Administration, working gas in storage for the week ending Friday, February 22 decreased by 166 Bcf from the previous week.  The storage draw was slightly lower than the 171 Bcf estimate made by industry analysts. 

Natural gas volumes in storage are now 424 Bcf (or 21.6%) below the five-year average for the same week. 

In related news, the NYMEX natural gas futures price for April, 2019 was up a penny at about $2.81/MMBtu on Thursday. 

********************

On Tuesday, Dominion Energy provided the following statement:

“The U.S. Court of Appeals for the Fourth Circuit denied the Atlantic Coast Pipeline’s (ACP) request for an en banc rehearing related to the Court’s invalidation of the project’s U.S. Forest Service Appalachian Trail crossing authorization.  ACP’s en banc petition was supported by the Department of Justice on behalf of the U.S. Forest Service, as well as several prominent industry, labor, and business groups.

“Dominion Energy expects an appeal to be filed to the Supreme Court of the United States in the next 90 days.  The company is also pursuing legislative and administrative options as previously discussed on Dominion Energy’s Feb. 1, 2019 earnings call.  We are confident that the U.S. Departments of Interior and Agriculture have the authority to resolve the Appalachian Trail crossing issue administratively in a manner that satisfies the Court’s stated objection and in a time frame consistent with a restart of at least partial construction during the third quarter.  We will continue to work to resolve the outstanding biological opinion issue as well as any impediments to the project’s crossing of the Appalachian Trail, and believe, as a result, that at least partial construction will recommence in the third quarter of 2019.

“The project cost and timing guidance provided on the company’s Feb. 1 earnings call fully contemplated the possibility of an unsuccessful en banc request.  Therefore, yesterday’s Fourth Circuit decision does not alter our operating EPS guidance as provided to the investment community on that call.  Dominion Energy remains confident in the full completion of the Atlantic Coast Pipeline along the entire 600-mile route.”

The 600-mile underground Atlantic Coast Pipeline will originate in West Virginia, travel through Virginia with a lateral extending to Chesapeake, VA, and then continue south into eastern North Carolina, ending in Robeson County. Two additional, shorter laterals will connect to two Dominion Energy electric generating facilities in Brunswick and Greensville Counties.

Dominion Energy is a 48% owner of the Atlantic Coast Pipeline.

********************

Western Gas Equity Partners, LP (“WGP”) and Western Gas Partners, LP (“WES”) today announced the completion of their previously announced merger of a wholly owned subsidiary of WGP with and into WES, with WES continuing as the surviving entity and a subsidiary of WGP (the “Merger”). At the effective time of the Merger, each WES common unit (other than certain WES common units held by affiliates of WGP) converted into the right to receive 1.525 WGP common units. Based on the WES units outstanding, WGP issued approximately 234 million WGP common units to WES unitholders in connection with the Merger.

Immediately following the Merger, WGP changed its name to “Western Midstream Partners, LP“, and its common units will begin trading on the New York Stock Exchange (“NYSE”) under the ticker symbol “WES” when the market opens today. In addition, Western Gas Partners, LP has changed its name to “Western Midstream Operating, LP”, and its common units will no longer trade on the NYSE.

“With the closing of these transformational transactions, Western Midstream has a simple, clean capital structure and offers its customers a uniquely scalable and integrated, multi-commodity solution,” said Robin Fielder, Western Midstream’s Chief Executive Officer. “As a result of our organic growth opportunities and the accretive acquisition of midstream assets completed today, our portfolio is projected to deliver more than 50% Adjusted EBITDA growth year-over-year and generate healthy distribution per unit growth and coverage through 2021 without the need for equity financing.”

Effective upon the closing of the Merger, Messrs. Steven Arnold, Milton Carroll and James Crane, each of whom previously served as an independent director on the Board of Directors of Western Gas Partners, LP’s general partner, joined the Board of Directors of Western Midstream Partners, LP’s general partner.

********************

CenterPoint Energy Services (CES) has been ranked as the number one major Natural Gas Marketer in Mastio & Company’s recent Natural Gas Marketer Customer Value/Loyalty Benchmarking Study.

“We are honored to receive this recognition,” said Joe Vortherms, CenterPoint Energy’s Competitive Energy Businesses lead. “Our number one ranking is a testament to our employees and their commitment to providing safe and dependable services to our customers.”

CES is a leading provider of a wide range of competitive energy services to meet the unique needs of customers across the United States. CES delivers reliable natural gas and energy services to natural gas utilities, large industrials and municipalities, as well as to other large-volume market segments.

In its 22nd edition report, Mastio analyzed customers’ responses to determine their perceptions about the best supplier based on the company’s prices and the benefits it offers. CES ranked highest in several categories, including reliability of natural gas supply, speed of contract negotiations and the sales team’s knowledge.

The 2018 findings were based on interviews with more than 500 natural gas customers. The analysis also included approximately 2,400 responses to five open-ended questions regarding suppliers. The data was gathered through telephone interviews with key decision makers from August through November 2018.

********************

On Wednesday, the Board of Directors of Summit Midstream GP, LLC (the “Board”) has named Executive Vice President and Chief Operations Officer, Leonard Mallett, as President and Chief Executive Officer on an interim basis, effective immediately.

By mutual agreement with the Board, Steve Newby has stepped down as a director, President, and Chief Executive Officer of Summit Midstream Partners, LLC (“Summit Investments”) and Summit Midstream GP, LLC (collectively with Summit Investments, “Summit”). Mr. Mallett will maintain his COO responsibilities during this interim period. The Board has engaged an executive recruiting firm to assist it in conducting the search for a permanent CEO.

SMLP is undertaking a series of strategic actions (together referred to as the “Transaction”) to place SMLP in a stronger financial position with increased flexibility to fund accretive growth projects and settle the Deferred Purchase Price Obligation (“DPPO”) by 2020.  Among other things, the Transaction is expected to result in SMLP retaining approximately $85 million of incremental cash flow annually, which will improve its overall credit profile, reduce its cost of capital, and create a more competitive MLP, while significantly reducing its reliance on the public equity capital markets.

The Transaction consists of the following actions:

  • Sale of Tioga Midstream, a non-core gathering system in North Dakota, to affiliates of Hess Infrastructure Partners LP for $90.0 million, subject to customary closing adjustments;
  • Prepayment of $100.0 million of the DPPO and an agreement to fix the remaining obligation due in 2020 at $303.5 million;
  • Elimination of SMLP’s economic General Partner interest and incentive distribution rights (“IDRs”) in exchange for 8.75 million SMLP common units issued to a wholly owned subsidiary of Summit Investments; and
  • Establishment of a new distribution policy through the reduction of SMLP’s distribution per common unit to $0.2875 per quarter, beginning with the distribution to be paid in respect of the first quarter of 2019.

Mr. Mallett, interim President and Chief Executive Officer commented, “The Transaction announced today will drive improved operational and financial results with greater emphasis on our core focus areas, including the Utica, Williston, DJ and Permian. We are streamlining our business with a non-core asset sale, a strategy that we intend to dedicate even more focus and attention to evaluating in the near-term.  We are also positioning our balance sheet to fund attractive growth projects in 2019 as well as the DPPO by 2020, and further aligning the General Partner and the Limited Partners with the elimination of the IDRs.  We believe these actions bring notable benefits to SMLP’s credit profile, distribution coverage and cost of capital, which we believe will enhance long-term unitholder value.”

********************

March is roaring in like a lion as many interstate pipeline companies have posted critical notices related to cold weather for the next few days:

ANR Pipeline:

Attention All ANR Shippers and Storage Customers

Storage – Effective immediately for gas day Thursday 2/27/2019 and until further notice, per Part 6.18.12 of the ANRPL Tariff, General Terms and Conditions, Infield Storage Transfer Requests will be restricted if the request results in an increase to ANRPL’s service obligations, such as, but not limited to, requests from either Rate Schedule DDS or MBS to Rate Schedule FSS. All Infield Storage Transfer Requests will be considered on an individual basis.

Also, effective gas day Saturday 3/2/2019, Timely cycle and continuing thru gas day Wednesday 3/6/2019, in order to preserve system integrity and to ensure ANR is able to meet scheduled delivery commitments to all locations in ML7; ANR is, in accordance with the General Terms and Conditions, declaring an “Extreme Condition” as that term is defined in ANR’s FERC Gas Tariff §6.1, lowering the Swing Percentage from 10% to 5 %.

ANR is requesting, in accordance with §6.6.4 of its FERC Gas Tariff, that all receipt and delivery services, excluding ETS and FTS-3 services, to be at a uniform hourly flow rate over a twenty-four (24) hour period. ETS and FTS-3 shippers are required to be at their contractually agreed upon hourly rate.

Requests for operational flexibility with regard to variable hourly flow rates will be denied. All shippers must adhere to the flow rates applicable to the rate schedule of their nominated contract. Nominations on FTS-3 and ETS contracts to Secondary delivery gates must flow at an even-hourly rate

Requests for ITS-3 service will not be scheduled on ANR’s contiguous system in ML7,. Additionally, requests for Interruptible and Overrun delivery service on Rate Schedules ITS and IWS through Bridgman Westbound, Loc ID 226625, Sandwich Northbound, Loc Id 359925 and Crystal Falls-Fortune LK Loc Id 11661, WILL NOT be scheduled.

ANR is also reminding all MBS shippers that volumes not within operating tolerances and not at a uniform hourly flow rate of 1/24th of scheduled nominations will not be permitted.

In addition, ANR is not allowing any “Unauthorized Overrun” under Rate Schedules FTS-1, FTS-2, FTS-3, FTS-4, FTS-4L, STS and ETS. Please refer to ANR’s FERC Gas Tariff under each rate schedule for further detail.

As a reminder, per ANR’s FERC Gas Tariff §6.6.3, “Shipper will not have the right to receive quantities of Gas that it has not simultaneously nominated and delivered to Transporter at Receipt Point(s).”

ANR reserves the right to revoke any conditionally approved operational flexibility.

To clarify, ANR is NOT declaring an Operational Flow Order (OFO) at this time.

Colorado Interstate Gas (CIG):

With significantly colder temperatures and moisture being forecast beginning Saturday, March 2, 2019, CIG is anticipating an increase in demand on its system which will limit its ability to manage imbalances associated with supply shortfalls. Therefore, when necessary to minimize imbalances and protect system integrity, underperformance caps may be placed on nonperforming receipt points effective until further notice. In addition the following actions will be taken:

NNT overrun withdrawal requests will be allocated to 100,000 dth; Payback OFF the system will not be accepted; Payback ONTO the system will be approved; Absent other capacity concerns, interruptible services may be at risk. 

Columbia Gas Transmission:

Columbia Gas Transmission, LLC will be commencing service for an additional 750 MDth/d of its Mountaineer XPress (MXP) project capacity effective Gas Day Friday, March 1, 2019.   Nominations will be accepted beginning for the Timely Cycle for Gas Day Friday, March 1, 2019.  Please monitor the Daily Capacity Posting effective for Friday, March 1, 2019 for capacity changes related to MXP. 

Columbia Gulf Transmission:

Columbia Gulf Transmission, LLC began service for 530 MDth/d of its Gulf XPress (GXP) project capacity effective Wednesday, February 27, 2019.   Nominations are now being accepted.   

East Tennessee Natural Gas:

Due to impending colder weather, in order to maintain the operational integrity of the system, ETNG is issuing a Balancing Alert Operational Flow Order (OFO) pursuant to Section 14.7 of the General Terms and Conditions of ETNG’s FERC Gas Tariff effective 9:00 AM CCT, February 28, 2019 for all meters east of the Boyds Creek Compressor Station.

This OFO does not affect the ability of ETNG to receive or deliver quantities of gas for scheduled nominations to any customer, storage field, or pipeline.

During the effectiveness of this OFO, balancing parties under Rate Schedules LMSMA and LMSPA must be balanced such that actual deliveries of gas out of the system must be equal to or less than scheduled deliveries out of the system and actual receipts of gas into the system must be equal to or greater than scheduled receipts into the system. Additionally, balancing parties with meters west of Boyds Creek will not be allowed to utilize undertakes at meters located west of Boyds Creek to offset overtakes at meters located east of Boyds Creek.

The penalty provisions under Section 47.5(b) of the General Terms and Conditions of ETNG’s FERC Gas Tariff shall apply for failure to conform for each dekatherm of actual receipt quantities that are less than scheduled receipt quantities and for each dekatherm of actual delivery quantities that are greater than scheduled delivery quantities, in each case with a tolerance of 2% of scheduled quantities or 500 dekatherms (whichever is greater).

In addition, ETNG will not permit retroactive nominations to avoid an OFO penalty.

Gulf South Pipeline:

Tallulah (LA) Compressor Station Maintenance:  Start date:  February 27, 2019   End Date:  March 9, 2019

Expansion Receipts Upstream Tallulah Scheduling Group.

Capacity could be impacted by up to 100,000 dth/d for the duration of the maintenance.

Mississippi River Transmission (MRT):

Due to the potential for maximum utilization of northbound firm Main Line capacity causing a potential supply deficiency in the Market Zone, MRT is issuing a System Protection Warning (SPW) effective 9:00 a.m. Thursday, February 28, 2019 and continuing until further notice.

 During this time:

 1)           MRT may not schedule any IT or AOR volumes for delivery north of Glendale.

 2)           Firm volumes may be limited to their primary direction of flow on the system north of Glendale.

 3)           MRT may not schedule volumes that result in a daily short position in either the Market or Field Zones.

 4)           The use of imbalance positions may not be scheduled.

 5)           Pool transfers will not be permitted from MRT s Field Zone to its Market Zone.

6)           Customers with primary delivery points north of the Glendale Compressor station and a receipt point that utilizes South to North transportation, will be required to nominate and source all, or a portion of, their total nomination at primary receipt points and/or at available Market Zone supply locations, not to exceed applicable maximum receipt point quantities in order to support their primary deliveries.

7)           Shippers whose firm transportation contracts have Texas Gas Boardwalk (Boardwalk) and/or EGT Olyphant (Olyphant) and/or Noark listed as primary receipt points, must schedule the full amount of their primary receipt point quantity each of those points or, if the primary receipt point is Boardwalk and/or Olyphant, at an alternative Main Line receipt point that is north of their primary receipt point (Olyphant and/or Noark) if they desire to fully utilize their contract MDQ. Shippers may elect to forego nominating their full primary receipt point quantity at any/all of these points, however, such shipper’s maximum scheduled and confirmed contract quantity shall be limited to their contract MDQ less any primary receipt point quantity at Boardwalk and/or Olyphant and/or Noark that is not scheduled and confirmed.

 8)           Instantaneous flow rates for shippers delivering to meters located in MRT s Market Zone cannot exceed 110% of their daily entitlements.

Shippers whose deliveries are affected by any of the Seven (8) conditions above are encouraged to source supply at their primary receipt points, MRT’s East Line, MoGas, or reduce applicable delivery volumes.

Failure to comply with this SPW may result in Customers being issued an individual OFO.  Nominations will be confirmed and scheduled in accordance with MRT s Tariff.

Northern Natural Gas:

A System Overrun Limitation (SOL) has been called for all Market Area zones (ABC, D and EF) with 50% System Management Service (SMS) available for Gas Day Friday, March 1, 2019, due to lower than normal forecasted system weighted temperatures.

Northwest Pipeline:

Due to the declining deliverability at Jackson Prairie described in Notice # 19-042, and the anticipated reduction of available gas supply at Sumas beginning Wednesday, February 27 as a result of Enbridge work, Shipper compliance with Realignment and Must-Flow OFOs will be critical to avoid issuance of a Supply Shortage OFO.

If there is insufficient gas supply physically available to comply with Must-Flow OFOs, Northwest will issue a Supply Shortage OFO. Non-compliance with a Must-Flow OFO will result in penalties, unless Northwest accepts an affidavit, executed by an officer of Shipper, declaring that gas was physically unavailable for OFO compliance. Northwest will not accept such an affidavit if is aware of the physical availability of supply.

Panhandle Eastern Pipe Line:

Weather Alert – Based on current cold weather forecasts, Panhandle is preparing for increased pipeline utilization and reduced operational flexibility. Effective Gas Day Saturday, March 2, 2019, until further notice, Panhandle is requesting all delivery point operators to minimize over-takes and all receipt point operators to minimize their under-deliveries into the system. 

Intraday scheduling reductions may be implemented to ensure that nominations match actual flowing quantities. Shippers are encouraged to submit their nominations for the Timely cycle. Evening and Intraday nominations are subject to scheduling reductions based on nomination levels and physical capacity. 

The following nominations are subject to scheduling reductions based on nomination levels and physical capacity:  Interruptible and Secondary Outside-the-Path.

Similarly, all storage customers are requested to stay at or below their Maximum Daily Withdrawal Quantity (MDWQ). Storage customers should adjust flowing volumes to remain at or below these limits. 

To ensure system integrity, Power Plant Operators must have nominated supply.  Panhandle may limit Auto-Unpark nominations on the pipeline for the duration of the extreme weather. These limits will be evaluated on a daily basis.

Rover Pipeline:

Weather Alert – Based on current cold weather forecasts, Rover is preparing for reduced operational flexibility. Effective Gas Day March 2, 2019, until further notice, Rover is requesting all delivery point operators to minimize over-takes and all receipt point operators to minimize their under-deliveries into the system. Intraday scheduling reductions will be implemented to ensure that nominations match actual flowing quantities.

Rover may limit Auto-Unpark nominations on the pipeline for the duration of the extreme weather. These limits will be evaluated on a daily basis.

Southern Star Central Gas Pipeline:

Due to severe weather conditions forecasted, Southern Star is issuing a Winter Weather Warning effective Friday, March 01, 2019. The following actions will be taken to preserve system integrity:

Firm Storage withdrawals will be limited to MDWQ (AOS will not be allowed)

Customers with TSS and STS contracts should ensure that their flowing gas to storage gas withdrawal relationship is per their contractual agreements

Storage customers should ensure that their storage balances are at the appropriate levels for the duration of this notice

ISS withdrawals and PLS withdrawals will be unavailable

Incremental Loans will not be available

Imbalance makeup for gas due others (SSC off-system) will not be available

Receipt and delivery point operators should ensure that flowing volumes match confirmed scheduled quantities.

Intraday scheduling reductions will be implemented to ensure that nominations match actual flowing quantities.

Operational flexibility will not be available during this time.

Southern Star will issue underperformance notices to each point operator not delivering the scheduled quantities they had confirmed. Southern Star will unilaterally reduce scheduled quantities per the tariff to match actual flow if the delivering operator does not remedy the underperformance in accordance with the notice.

If customers do not adhere to the request, or if actual weather or operating conditions require it, Southern Star could issue a system wide, point or shipper specific OFO on short notice.

These conditions are expected to remain in effect through Wednesday, March 06, 2019.

Trunkline Gas Company:

Weather Alert – Based on current cold weather forecasts, Trunkline is preparing for increased pipeline utilization and reduced operational flexibility. Effective Gas Day Saturday, March 2, 2019, until further notice, Panhandle is requesting all delivery point operators to minimize over-takes and all receipt point operators to minimize their under-deliveries into the system. 

Intraday scheduling reductions may be implemented to ensure that nominations match actual flowing quantities. Shippers are encouraged to submit their nominations for the Timely cycle. Evening and Intraday nominations are subject to scheduling reductions based on nomination levels and physical capacity. 

The following nominations are subject to scheduling reductions based on nomination levels and physical capacity:  Interruptible and Secondary Outside-the-Path.

Similarly, all storage customers are requested to stay at or below their Maximum Daily Withdrawal Quantity (MDWQ). Storage customers should adjust flowing volumes to remain at or below these limits. 

To ensure system integrity, Power Plant Operators must have nominated supply.  Trunkline may limit Auto-Unpark nominations on the pipeline for the duration of the extreme weather. These limits will be evaluated on a daily basis.

********************

From the National Weather Service, the six-to-ten day temperature forecast calls for more cold weather for all areas of the lower 48 states except for the desert Southwest and south Texas through March 10.  Brr!!!

That concludes this busy Thursday edition of GasNewsOnline.com.  We’ll return on Monday to give you an update on pipeline conditions to start the new work week. 

Please let your friends in the natural gas scheduling and transportation business know about us!  Also, our companion audio podcast is available via Apple Podcasts.  Subscribe today – it’s FREE

Edition 42 – Monday, February 25, 2019

Welcome to GasNewsOnline.com!  This is where we bring you the latest publicly-sourced news and information about the natural gas business twice every week – all for FREE

Though Punxatawny Phil said we should only have a few more weeks of winter, another blast of cold weather will usher in the month of March for most of the country.  We’ll check the temperature forecast coming up at the end of this report.

********************

From the US Energy Information Administration’s “Natural Gas Weekly Update”:

Net withdrawals from working gas totaled 177 billion cubic feet (Bcf) for the week ending February 15. Working natural gas stocks are 1.705 Tcf, which is nearly 18% lower than the five-year (2014–18) average for this week.

The natural gas plant liquids composite price at Mont Belvieu, Texas, rose by 38¢/MMBtu, averaging $6.75/MMBtu for the week ending February 20. The price of ethane fell by 3%. The price of natural gasoline, propane, butane, and isobutane rose by 8%, 9%, 9%, and 13%, respectively.

According to Baker Hughes, for the week ending Tuesday, February 12, the natural gas rig count decreased by 1 to 194. The number of oil-directed rigs rose by 3 to 857. The total rig count now stands at 1,051.

At the New York Mercantile Exchange (NYMEX), the price of the March 2019 contract increased about 12 cents today on Monday to reach $2.84/MMBtu. The price of the 12-month strip averaging March 2019 through February 2020 futures contracts has climbed to reach about $2.94/MMBtu .

********************

Venture Global LNG, Inc. announced Friday that the Federal Energy Regulatory Commission (FERC) has issued the Order Granting Authorizations under Sections 3 and 7 of the Natural Gas Act for the company’s Venture Global Calcasieu Pass LNG export facility and associated TransCameron Pipeline in Cameron Parish, Louisiana.

“With our FERC order in hand and our project contracted with binding 20-year sale and purchase agreements (SPAs) with Shell, BP, Edison S.p.A., Galp, Repsol and PGNiG, we plan to immediately commence construction activities in Louisiana in close coordination with FERC and other agencies,” Co-CEOs Bob Pender and Mike Sabel jointly stated. “This milestone is the culmination of years of effort, and we are proud of the excellent work done by our regulatory, environmental, legal and engineering teams. We are excited to begin construction of our Calcasieu Pass project and deliver low-cost LNG to our global customers in 2022.”

The 10 MTPA nameplate Calcasieu Pass facility will employ a comprehensive process solution from GE Oil & Gas, LLC, part of Baker Hughes, a GE company (BHGE) that utilizes mid-scale, modular, factory-fabricated liquefaction trains. Venture Global has executed an integrated turnkey EPC contract with Kiewit to design, engineer, construct, commission, test and guarantee the Calcasieu Pass facility.

The company is also developing the 20 MTPA nameplate Plaquemines LNG export facility and associated Gator Express Pipeline in Plaquemines Parish, Louisiana. The Plaquemines LNG facility received its draft Environmental Impact Statement on November 13, 2018 and expects to receive its final Environmental Impact Statement on May 3, 2019, according to the Notice of Schedule for Environmental Review issued by FERC on August 31, 2018. FERC has established a 90-day Federal Authorization Decision Deadline of August 1, 2019. Plaquemines LNG has executed a binding 20-year SPA with PGNiG.

********************

A late February surge of cold weather will dominate the northern states to begin this week. Let’s review the latest critical notices from the natural gas pipeline companies’ electronic bulletin board systems:

ANR Pipeline:

Attention All ANR Shippers,

Effective gas day Monday 2/25/2019, Intraday 1 cycle and continuing thru gas day Wednesday 2/27/2019, in order to preserve system integrity and to ensure ANR is able to meet scheduled delivery commitments to all locations in ML7; ANR is, in accordance with the General Terms and Conditions, declaring an “Extreme Condition” as that term is defined in ANR’s FERC Gas Tariff §6.1, lowering the Swing Percentage from 10% to 5 %.

ANR is requesting, in accordance with §6.6.4 of its FERC Gas Tariff, that all receipt and delivery services, excluding ETS and FTS-3 services, to be at a uniform hourly flow rate over a twenty-four (24) hour period. ETS and FTS-3 shippers are required to be at their contractually agreed upon hourly rate.

Requests for operational flexibility with regard to variable hourly flow rates will be denied. All shippers must adhere to the flow rates applicable to the rate schedule of their nominated contract. Nominations on FTS-3 and ETS contracts to Secondary delivery gates must flow at an even-hourly rate

Requests for ITS-3 service will not be scheduled on ANR’s contiguous system in ML7,. Additionally, requests for Interruptible and Overrun delivery service on Rate Schedules ITS and IWS through Bridgman Westbound, Loc ID 226625, Sandwich Northbound, Loc Id 359925 and Crystal Falls-Fortune LK Loc Id 11661, WILL NOT be scheduled.

ANR is also reminding all MBS shippers that volumes not within operating tolerances and not at a uniform hourly flow rate of 1/24th of scheduled nominations will not be permitted.

In addition, ANR is not allowing any “Unauthorized Overrun” under Rate Schedules FTS-1, FTS-2, FTS-3, FTS-4, FTS-4L, STS and ETS. Please refer to ANR’s FERC Gas Tariff under each rate schedule for further detail.

As a reminder, per ANR’s FERC Gas Tariff §6.6.3, “Shipper will not have the right to receive quantities of Gas that it has not simultaneously nominated and delivered to Transporter at Receipt Point(s).”

ANR reserves the right to revoke any conditionally approved operational flexibility.

To clarify, ANR is NOT declaring an Operational Flow Order (OFO) at this time.


Columbia Gas Transmission:

As an update to the Critical Days currently in effect in Operating Areas 1, 4, and 10, shippers are advised that due to forecasted colder temperatures, storage levels, and increased market demands beginning Wednesday, February 27, 2019, Columbia Gas Transmission, LLC (TCO) may issue Transport Critical Days for deliveries to all Operating Areas and Storage Critical Days for withdrawals (MDWQ overruns) for all Operating Areas.  TCO will post the Critical Day notices, if warranted, on Tuesday, February 26, 2019.    

Also, TCO may have limited ability to handle non-ratable takes in the impacted Market Areas during this period.  Please monitor the Daily Capacity Posting for details. 

TRANSPORT CRITICAL DAY:  If a Transport Critical Day is called for Wednesday, February 27, 2019 until further notice, the following daily Transport Critical Day penalty will apply:

Applicable Penalty:  TFE – If Shipper’s takes on any Day exceed the greater of 103 percent or 1,000 Dths more than its Total Firm Entitlement (TFE), Shipper shall be assessed and pay a penalty based on the higher of: (i) a price per Dth equal to three times the midpoint of the range of prices reported for “Columbia Gas, Appalachia” as published in Platts Gas Daily price survey for all such quantities in excess of its TFE, or (ii) a price per Dth equal to 150 percent of the highest midpoint posting for either: Mich Con City-gate, Transco, Zone 6 Non-N.Y., or Texas Eastern, M-2 Receipts as published in Platts Gas Daily price survey for all such quantities in excess of its TFE.  Section 19.1(ii) penalties will only be assessed on days in which the daily spot price of gas exceeds three times the midpoint of the range of prices reported for “Columbia Gas, Appalachia. 

NOTE:  Takes in excess of Total Firm Entitlements (“TFE”) are penalized on Critical Days based on takes exceeding the aggregate daily amount of gas that TCO is obligated to deliver to a shipper under the shipper’s applicable rate schedule.  Each applicable rate schedule outlines this delivery obligation and, consequently, a shipper’s TFE. 

STORAGE CRITICAL DAY:  If a Storage Critical Day is called for Wednesday, February 27, 2019 until further notice, all firm storage services will be fully available.  Interruptible storage withdrawals (SIT and ISS), excess FSS withdrawals, and PAL loans and unparks will not be available if delivered in the impacted operating areas.  

 Applicable Penalties:

– FSS MDWQ- Withdrawn quantities in excess of 103% of the applicable contract MDWQ will be assessed a penalty based on a price per Dth equal to three times the midpoint rate for “Columbia Gas, Appalachia,” posted in Gas Daily.  

– FSS MMWQ – Monthly Withdrawal Quantities that exceed 30% (February Limit) of SCQ will be assessed a penalty of $5.00 per Dth.  

– FSS SCQ – If withdrawals from storage result in the FSS contract having a negative SCQ balance, a penalty of $5 per Dth will be assessed.

Dominion Gas Transmission:

Due to current weather forecasts, effective with the start of gas day (10:00AM ECT) Tuesday, February 26, 2019,there will be no interruptible or secondary firm capacity available at systems north of Sabinsville Junction in Pennsylvania and Stateline facilities in the northern portion of the DETI operating area, including, but not limited to, the following delivery points until further notice:

Corning Natural Gas 21000; New York State Electric & Gas 20700; Arlington Storage (Seneca) 20720; Rochester Gas and Electric 20600; Allegany Generation 23632; Niagara Mohawk 20500 and 20550; Fillmore Gas 23600; National Fuel Gas Distribution 20900; Steuben Storage 90005; Alliance/Lower Leroy 30005; Woodhull 23700; Indeck Silver Springs 30001; Tioga UGI Storage 90002; Tioga R-Gate 90008; Cornell 30170; Bethlehem Energy Center 30200; Iroquois Canajoharie 41101; Empire Lysander 40801.

In addition, deliveries off DETI at the following locations will be limited to primary only:

Tennessee-Brookview 40103; Tennessee-North Sheldon 40115; Tennessee-Morrisville 40114; Tennessee-Marilla 40113; Tennessee-Sabinsville 40120.

Please note that “Unauthorized Overrun Charges – Daily” rate of $10.00/dth will apply to deliveries made in excess of FT and FTNN entitlements while these restrictions are in place.

Florida Gas Transmission:

MARCH 2019 — FGT SUPPLY AREA MAINTENANCE IN ZONE 3

FGT will continue pipeline maintenance near FGT Compressor Station 10 in southern Mississippi. This maintenance is expected to continue through the end of gas day March 31, 2019.  During this maintenance FGT will schedule up to 1,150,000 MMBtu/day through Station 10. During normal operations FGT schedules up to 1,300,000 MMBtu/day through Station 10.

FGT will perform pipeline maintenance near FGT Compressor Station 11 in southern Alabama. This maintenance is scheduled to begin March 1, 2019 and to continue through the end of gas day March 31, 2019.  During this maintenance FGT will schedule up to 3,050,000 MMBtu/day through Station 11. During normal operations FGT schedules up to 3,250,000 MMBtu/day through Station 11.

Natural Gas Pipeline Company of America (NGPL):

Natural has experienced a suspected leak on its Amarillo Mainline #3 in Hutchinson County, Texas in Natural’s Midcontinent Zone.  This is a Force Majeure event that requires Natural to temporarily reduce the maximum operating capacity northbound, thus limiting Natural’s throughput capacity from Segment 8 into the Midcontinent Zone as well as the Affected Area segments 5/6 flowing northbound into Segment 10 of the Midcontinent Zone.   

Additionally, transports associated with storage withdrawals will be impacted.  The Permian Pool (LOC 25077) and the Midcontinent Pool (LOC 25078) are located south (upstream) of the constraint. 

As such, effective for gas day Monday, February 25, 2019, Evening Cycle, and continuing until further notice, Natural will schedule Primary Firm and Secondary in-path Firm transports to no less than 87% of contract MDQ from the Permian Zone (Segment 8) flowing into the Midcontinent Zone.  Actual nomination levels and changes in pipeline conditions could result in changes to the percentages scheduled (lower or higher) on subsequent gas days.  AOR/ITS and Secondary out-of-path Firm transports continue to not be available for the duration of this restriction.  

For the Affected Area 5/6, effective for gas day Monday, February 25, 2019, Intraday 1 Cycle, and continuing until further notice (previously Monday, February 25, 2019, Evening Cycle), Natural will schedule a total receipt point capacity of 86,000 dth per day (formerly 186,000 dth per day) in the Affected Area.  AOR/ITS, Secondary out-of-path Firm transports and Secondary in-path Firm transports will not be available.Natural will be required to schedule down nominations for Primary Firm transports. 

Northern Natural Gas:

A System Overrun Limitation (SOL) has been called for all Market Area zones (ABC, D and EF) with 0% System Management Service (SMS) available for Gas Day Tuesday, February 16, 2019, due to lower than normal forecasted system weighted temperatures.

Sabine Pipeline:

Effective for nominations made for transport during the Gas Day Tuesday February 26, 2019, due to planned maintenance, Sabine Pipe Line LLC is limiting total receipt nominations to a maximum of 100,000 MMBtu/day at the following Henry Hub receipt point:

COLUMBIA GULF/HENRY HUB 11202

Please continue to monitor this website for updates.

Tennessee Gas Pipeline:

OFO DAILY CRITICAL DAY 1 FOR ALL AREAS EAST OF STA 245 AND STA 325 EFFECTIVE 2-26-19

Due to a forecast of colder temperatures moving into areas of the Northeast with associated higher demand,for the Gas Day of Tuesday, February 26, 2019, Tennessee is implementing an OFO Daily Critical Day 1 for all areas east of STA 245 on the 200 Line and all areas east of STA 325 on the 300 Line for all Balancing Parties (including LMS-PA, SA contracts acting as balancing parties, LMS-MA, and LMS-PL balancing parties).  This action is pursuant to Article X, Section 4 of the General Terms and Conditions of Tennessee’s FERC Gas Tariff.  

All delivery point operators in all areas east of STA 245 on the 200 Line and all areas east of STA 325 on the 300 Line are required to keep actual daily takes out of the system equal to or less than scheduled quantities regardless of their cumulative imbalance position.  All receipt point operators in all areas east of STA 245 on the 200 and all areas east of STA 325 on the 300 Line are required to keep actual daily receipts into the system equal to or greater than scheduled quantities regardless of their cumulative imbalance position. 

In addition, it is essential that delivery point operators schedule gas at meters commensurate with takes within the affected areas.  All LMS-PA, SA contracts acting as balancing parties, LMS-MA and LMS-PL Balancing Parties are required to maintain an actual daily flow rate not exceeding 2% of scheduled quantities or 500 dths, whichever is greater for under-deliveries into the system and over-takes from the system. Customers will be assessed a rate of $5.00 plus the applicable Regional Daily Spot Price per dekatherm for that portion of physical quantities related to under-deliveries by receipt point operators and over-takes by delivery point operators which exceed this tolerance.

Transcontinental Gas Pipe Line Company:

Subject:Operational Flow Order – Imbalance

Transco recently provided notice of limited flexibility to manage imbalances and recommended shippers maintain a concurrent balance of receipts and deliveries. In order to ensure system integrity, maintain safe operations, manage imbalances, and handle within-the-day volatility, Transco is issuing an Imbalance Operational Flow Order (OFO).

Beginning:  Tuesday, February 26, 2019 and until further notice

OFO Areas:  Zone 6

Tolerance %:  10% for gas Due from Shippers or Due to Shippers

********************

The National Weather Service six-to-ten day temperature forecast predicts another blast of artic cold weather beginning next weekend into the first few days of March as most of the lower 48 states will be at or below normal temperatures.  Only Florida and the desert Southwest will escape the cold temperatures through March 7. 

Thanks for checking out the Monday edition of GasNewsOnline.com.  We’ll return on Thursday to give you an update on pipeline conditions heading into the weekend. 

Remember that our companion audio podcast is available to you via Apple Podcasts.  Please tell a friend about us and subscribe today – it’s FREE

Edition 41 – Thursday, February 21, 2019

Welcome back to GasNewsOnline.com!   Count on us to bring you the latest publicly-sourced news and information about the natural gas business twice every week – for FREE

Though a relatively mild weekend awaits, Ol’ Man Winter will be returning to visit us again beginning around March 1. Stay tuned for the latest long-term temperature forecast!

********************

From the US Energy Information Administration, working gas in storage for the week ending Friday, February 15 decreased by 177 Bcf from the previous week.  The storage draw was 10% higher than the 162 Bcf estimate made by industry analysts. 

Natural gas volumes in storage are now 362 Bcf (or 17.5%) below the five-year average for the same week. 

In related news, the NYMEX natural gas futures price for March, 2019 rose 6 cents to about $2.70/MMBtu on Thursday. 

********************

Devon Energy Corp. announced yesterday that the board of directors has authorized the company to pursue the separation of its Canadian and Barnett Shale assets to complete its transformation to a high-return U.S. oil growth business. Devon will evaluate multiple methods of separating the assets, including a potential sale or spin-off. The separation will allow the company to focus on its top-tier, high-return U.S. oil assets and is aligned with Devon’s previously announced long-term strategic plan.

“With our world-class U.S. oil resource plays rapidly building momentum and achieving operating scale, the final step in our multi-year transformation is an aggressive, transformational move that will accelerate value creation for our shareholders by further simplifying our resource-rich asset portfolio,” said Dave Hager, president and CEO. “New Devon will emerge with a highly focused U.S. asset portfolio and has the ability to substantially increase returns and profitability as we aggressively align our cost structure to expand margins with this top-tier oil business. The New Devon will be able to grow oil volumes at a mid-teens rate while generating free cash flow at pricing above $46 per barrel.”

The company expects to complete the separation of its Canadian and Barnett Shale assets by the end of 2019. Devon has hired advisors for each asset, and data rooms for Canada and the Barnett are expected to be open by the second quarter of 2019.

********************

QEP Resources, Inc. Wednesday announced that its Board of Directors has commenced a comprehensive review of strategic alternatives to maximize shareholder value, which could result in a merger or sale of the Company or other transaction involving the Company or its assets. QEP intends to engage in discussions with a variety of parties that have expressed interest in a potential transaction, including Elliott Management Corporation.

QEP cautions that there can be no assurance that any transaction will be approved or consummated. The Company does not intend to disclose developments relating to its strategic review unless and until the Board of Directors has approved a specific agreement or transaction or has terminated its review of strategic alternatives.

The Company also announced that, given the deterioration in commodity prices and that it was unlikely that the conditions to closing would be satisfied, the Company has agreed with Vantage Acquisition Operating Company, LLC, a wholly owned subsidiary of Vantage Energy Acquisition Corp. to terminate the definitive agreement to sell its assets in the Williston Basin to Vantage. QEP will continue to operate and develop its assets in the Williston Basin, including the Company’s South Antelope and Fort Berthold leaseholds.

Additionally, QEP has reassessed its organizational needs and intends to significantly reduce its general and administrative expense by approximately 45%, when comparing 2018 to 2020, to ensure its cost structure is competitive with industry peers. The Company expects the majority of these reductions will be implemented during the first half of 2019.

********************

Now let’s take a look at the latest notices from the electronic bulletin boards of the major interstate natural gas pipeline companies:

Algonquin Gas Transmission:

Algonquin posted its planned outages presentation from Wednesday, February 20, 2019  to its Electronic Bulletin Board.  See below:

https://infopost.spectraenergy.com/GotoLINK/GetLINKdocument.asp?Pipe=10076&Environment=Production&DocumentType=Notice&FileName=AGT+2019+Planned+Outage+Presentation.pdf&DocumentId=8aa1649f68e6c87f01690bf272270bea

ANR Pipeline:

ANR is performing planned compressor maintenance at its Jena Compressor Station located in the Southeast Southern Segment (Zone 2).

The capacity restriction is as follows:

Jena Southbound (DRN# 9505489):
320-MMcf/d (leaving 850-MMcf/d available) 2/25 – 2/26

Based on current nominations, it is anticipated that this posting may result in the capacity allocation reduction of IT, Firm Secondary and possibly a portion of Firm Primary volumes. Since ANR anticipates that this restriction may impact its ability to deliver all nominated Firm Primary services, ANR will apply the Reservation Charge Crediting Mechanism of Section 6.36.4 as necessary. This posting will be updated as more information becomes available.

Columbia Gas Transmission:

Columbia posted its monthly customer update conference call as shown below:

http://www.columbiapipeinfo.com/cpginfopost/webmethods/DownloadFile.aspx?Mode=V&S3FN=Columbia%20Pipelines%20Monthly%20Customer%20Update%2002_20_19.pdf&S3K=%5ctco%5cpresentations%5cColumbia+Pipelines+Monthly+Customer+Update+02_20_19.pdf

Gulf South Pipeline:

McComb (MS) Compressor Station Maintenance #2:  Start date:  February 27, 2019   End Date:  March 2, 2019

Montpelier to McComb Index 130 Scheduling Group:

Capacity could be impacted by up to 100,000 dth/d for the duration of the maintenance.

Contact your customer service representative if you have any questions/concerns.

Natural Gas Pipeline Company of America (NGPL):

Effective for gas day Friday, February 22, 2019, and continuing until further notice, Natural is at operating capacity for southbound flow into Segment 22 through Compressor Station 300 located in Victoria County, Texas (Natural’s South Texas Zone).  AOR/ITS and Secondary out-of-path Firm transports are at risk of not being fully scheduled.   

Rockies Express Pipeline (REX):

SENECA COMPRESSOR STATION MAINTENANCE

On Gas Day Wednesday, March 6, 2019 through Gas Day Thursday, March 7, 2019, REX will be performing maintenance at its Seneca Compressor Station. Operating capacity will be limited to 0 MDth/d through Segment 400.

At this capacity level, primary and secondary firm quantities, as well as ITS/AOR are at risk of not being scheduled.

Southern Natural Gas:

Fairburn Force Majeure – Update #1

As posted in Critical Notice 703048, SNG has experienced an unscheduled station outage at the Fairburn Compressor Station.  Effective February 8, 2019, SNG is not accepting nominations at the TRNSCO/SNG FAIRBURN TO SNG FAYETTE – PIN 50069 until further notice.

Based on its investigation of Units 1 and 2 at the Fairburn Compressor Station, SNG has determined that Unit 1 has experienced damage that will delay its return to service for several months, with the in-service date to be determined. 

With regard to Unit 2, SNG is actively performing work and tests, and we believe, based on what we know right now, that completion of this work will allow us to return the unit to service in the near future. A further update will be provided once we have more information on the return to service timeline.

This unscheduled station outage constitutes an event of Force Majeure under Section 8.3 of the General Terms and Conditions of SNG’s FERC Gas Tariff until further notice.  SNG is working diligently to return both units to service.

Trailblazer Pipeline:

SUMMIT INTERCONNECT (SEG 10)

On Gas Day Tuesday, March 5, 2019, Trailblazer will be performing a hot tap on Segment 10. Capacity will be limited to 781 MDth/d through Segment 10. 

At this capacity level, primary and secondary firm quantities as well as ITS/AOR are at risk of not being scheduled.

********************

From the National Weather Service, the 8-to-14 day temperature forecast beginning March 1 shows that winter will return with a vengeance for almost the entire US.  Only portions of southern Florida and the desert Southwest are expected to see temperatures at or above normal for the first week of the new month. 

That’s a wrap for this Thursday edition of GasNewsOnline.com.  We’ll return on Monday to give you an update on pipeline conditions to start the new work week. 

Please tell a friend in the natural gas scheduling and transportation business about us! Remember that our companion audio podcast is available via Apple Podcasts.  Subscribe today – it’s FREE

Edition 40 – Tuesday, February 19, 2019

Welcome to GasNewsOnline.com!  We bring you the latest publicly-sourced news and information about the natural gas transportation business every week – for FREE

Though winter is still with us, temperatures for the East Coast may receive a brief reprieve later this week.  First, let’s check the latest energy news:

********************

From the US Energy Information Administration’s “Natural Gas Weekly Update” publication:

Natural gas spot price movements were mixed this reporting week, Henry Hub spot prices rose from $2.56/MMBtu last week to about $2.66/MMBtu at the close today on Tuesday.   At the New York Mercantile Exchange (NYMEX), the price of the 12-month strip averaging March 2019 through February 2020 futures contracts is averaging about $2.82/MMBtu.

Net withdrawals from natural gas in storage totaled 78 billion cubic feet (Bcf) for the week ending February 8. Working natural gas stocks are 1.882 Tcf, which is 15% lower than the five-year (2014–18) average for this week.

The natural gas plant liquids composite price at Mont Belvieu, Texas, fell by 62¢/MMBtu, averaging $6.24/MMBtu for the week ending February 13. The price of ethane, propane, butane, natural gasoline, and isobutane all fell, by 9%, 9%, 7%, 3%, and 1%, respectively.

According to Baker Hughes, for the week ending Tuesday, February 5, the natural gas rig count decreased by 3 to 195. The number of oil-directed rigs rose by 7 to 854. The total rig count increased by 4, and it now stands at 1,049.

********************

Targa Resources Corp. announced today that it has entered into definitive agreements to sell a 45 percent interest in Targa Badlands LLC (“Badlands”), the entity that holds all of Targa’s assets in North Dakota, to funds managed by GSO Capital Partners and Blackstone Tactical Opportunities for $1.6 billion in cash.  Under the terms of the agreements, Targa will continue to be the operator.

The Badlands assets and operations are located in the Bakken and Three Forks Shale plays of the Williston Basin in North Dakota and include approximately 480 miles of crude oil gathering pipelines, 125,000 barrels of operational crude oil storage, approximately 260 miles of natural gas gathering pipelines and the Little Missouri natural gas processing plant with a current gross processing capacity of approximately 90 million cubic feet per day (“MMcf/d”). Additionally, Badlands owns a 50% interest in the 200 MMcf/d Little Missouri 4 (“LM4”) Plant that is anticipated to be completed in the second quarter of 2019.

Targa expects to use the net cash proceeds to pay down debt and for general corporate purposes including funding its growth capital program. The Transaction is expected to close in the second quarter of 2019 and is subject to customary regulatory approvals and closing conditions.

********************

It’s time to review the latest critical postings from the interstate natural gas pipeline companies’ electronic bulletin boards:

Columbia Gas Transmission:

Section 4(c) of the FSS Rate Schedule in Columbia Gas Transmission, LLCs FERC Gas Tariff   requiring Shippers to withdraw a minimum of 10% of its Storage Contract Quantity (SCQ) for the months of February and March 2019 is waived.

Section 4(d) of the FSS Rate Schedule in Columbia Gas Transmission, LLCs FERC Gas Tariff limits shippers storage inventory on April 1 to a maximum of 25% of its SCQ.

Due to current storage levels, Columbia hereby notifies shippers that the maximum storage inventory on April 1, 2019 is being raised to 35% of shippers SCQ.  This increase applies to 2019 only.  The normal tariff limit of 25% remains in effect going forward.

Columbia is providing the additional flexibility to shippers as they plan their supply purchases for the remainder of the winter season.

Enable Gas Transmission:

This Operational Alert is being issued pursuant to Section 20, GT&C, of EGT s Tariff, to notify its shippers of planned maintenance at EGT s Chandler Compressor Station.  Effective March 4, 2019, EGT will begin planned annual maintenance on each of the engines at the Chandler Compressor Station, located in Latimer County Oklahoma and in EGT s Neutral Pooling Area.

The maintenance will impact one engine at a time and is expected to be completed on or before May 24, 2019.

The expected date ranges for each unit and the corresponding capacities through the station are:

               March 4, 2019 to March 9, 2019                     Approximately 975,000

               April 2, 2019 to April 18, 2019                           To be determined

               May 6, 2019 to May 24, 2019                             To be determined  

During each period, EGT anticipates impacts to transportation services, including firm transport.

Shippers whose receipts are in the West 1, West 2, and the western portion of the Neutral pooling area should nominate point to point in order to maintain the highest priority level of service.

Should any of the details of this plan change, EGT will notify its shippers by updating this posting.  EGT will schedule nominations on each impacted day in accordance with its Tariff. This alert will remain in effect until further notice.

Gulf South Pipeline:

Tallulah Compressor Station Maintenance:  Start date:  February 25, 2019    End Date:  March 2, 2019

Expansion Receipts Upstream Tallulah Scheduling Group.

Capacity could be impacted by up to 100,000 dth/d for the duration of the maintenance.

Natural Gas Pipeline Company of America (NGPL):

FORCE MAJEURE – COMPRESSOR STATION 102

Natural has experienced horsepower issues at Compressor Station 102 in Natural’s Midcontinent Zone (CS 102), that will require this Compressor Station to be shut down for repairs.  This is a Force Majeure event that will require Natural to temporarily reduce the maximum operating capacity northbound, thus limiting Natural’s throughput capacity through CS 102 and CS 103 during this event.

The scheduling constraint will be at Compressor Station 103 located in Ford County, Kansas. Any gas received south of Station 103 for delivery north of Station 103 will be impacted for the duration of the event.  Additionally, transports associated with storage withdrawals will be impacted. 

As such, effective for gas day Monday, February 18, 2019, Intraday 1 Cycle, and continuing until further notice, Natural will schedule Primary Firm and Secondary in-path Firm transports to no less than 69% of contract MDQ through Compressor Station 103.  Actual nomination levels and changes in pipeline conditions could result in changes to the percentages scheduled (lower or higher).  For scheduling purposes, the Midcontinent Pool (PIN 25078) is located south (upstream) of the constraint.  AOR/ITS and Secondary out-of-path Firm transports continue to not be available. 

The stated scheduling percentage is based upon the current level of firm capacity contracted for during this event and is subject to change based upon operational conditions and Shipper utilization.  Permian Zone delivery points will be available as an alternative.  Any supply points downstream (north) of CS 103 will not be impacted by this constraint.

Continue to monitor Natural’s interactive website for any updates to the end date and/or scheduling percentages during this event. 

SoCalGas:

Due to forecasted low temperatures and expected high customer demand, SoCalGas is issuing a curtailment for electric generation customers on the SoCalGas and SDG&E system, in accordance with Rule 23, effective 12:00 AM PCT, February 20, 2019.

During this curtailment, electric generation customers will be curtailed based on current day‐ahead demand forecasts and weather conditions in coordination with the Balancing Authorities. This curtailment will continue until further notice. System conditions remain dynamic and are subject to change. Until further notice, a system‐wide curtailment watch for both SoCalGas and SDG&E will remain in effect for all other noncore customers. Customers are advised that they may be receiving a notice to curtail service.

Southern Star Central Gas Pipeline:

Line Segment 130 Force Majeure (UPDATE #15)

Southern Star will perform a shutout Friday, February 22 through Monday, February 25.

During that time, capacity will be reduced as follows:

0 Dth/d at the Kansas Hugoton Receipt Constraint

0 Dth/d Kansas Hugoton Delivery Constraint

0 Dth/d Cheyenne Plains Sand Dunes Location 16813

0 Dth/d KGST Ark River Location 14971

10,000 Dth/d NGPL Barton Location 121415

75,000 Dth/d KGST Alden Interconnect Location 208

Other locations on LS 130 are available, please see the Operationally Available report in CSI.

Capacity will return to 383,000 Dth/d effective gas day February 26, 2019, 9:00 AM CCT.

Transcontinental Gas Pipe Line Company (Transco):

Transco is performing facility modifications associated with Job No. 37 and 38 on the 2019 Planned Outage and Maintenance Summary on the Southeast Louisiana Lateral. 

The maintenance is scheduled from March 4, 2019 through April 10, 2019. The following locations listed below will be unable to flow during this time.

St. James – LIG          9002670          2888/4635       Receipt/Delivery

Thibodeaux                 1007206          3533                Receipt

St. James Faustina       1006268          3328/4362       Receipt/Delivery

LaRose                        9002040          3590                Receipt

Transco will provide notice of any changes to the current schedule. If you have any questions, please contact your Transportation or Customer Services Representative.

********************

For the next six-to-ten days until the end of February, the National Weather Service is predicting cold winter temperatures will continue in full force for areas west of the Mississippi River, the Rockies, and to the West coast.  Along the Gulf Coast and up the Atlantic seaboard, temperatures may climb a little above normal for all locations except New England. 

That wraps up this Tuesday edition of GasNewsOnline.com.  Please look for our next update on Thursday afternoon for the coming weekend.  Remember that our audio podcast is available to you via Apple Podcasts.  Subscribe today – it’s FREE!