Monday, May 20, 2019

Welcome to GasNewsOnline.com!  As severe weather pounds the plains of Oklahoma and Texas again today, spot natural gas prices are rebounding slightly in advance of June’s NYMEX close. 

Today, we’ll also review the latest interstate pipeline company critical notices plus provide an update on latest energy news and give you the latest National Weather Service temperature forecast for the month of June, too.

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At the New York Mercantile Exchange (Nymex) today, the price of the June 2019 contract increased by nearly four cents to about $2.67/MMBtu on Monday.  The price of the 12-month strip averaging June 2019 through May 2020 futures contracts has gained about six cents the past week to nearly $2.81/MMBtu. 

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

Net injections to working gas totaled 106 billion cubic feet (Bcf) for the week ending May 10. Working natural gas stocks are 1.653 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, rose by five cents, averaging $5.73/MMBtu for the week ending May 15. The price of ethane and natural gasoline fell by 2% and 1%, respectively. The price of propane, isobutane, and butane rose by 3%, 2%, and 1%, respectively.

According to Baker Hughes, for the week ending Tuesday, May 7, the natural gas rig count remained flat at 183. The number of oil-directed rigs fell by 2 to 805. The total rig count decreased by 2, and it now stands at 988.

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Global investment firm KKR and Western Natural Resources, LLC (“Western”) today announced a new partnership to acquire producing and undeveloped oil and gas assets in the Williston Basin.

Western’s CEO Heath Mireles and his team bring extensive operating experience to the partnership, having drilled, completed and operated thousands of wells over the Williston Basin’s long history. The Western team will leverage their collective experiences from time spent at large public operators as well as other private companies to acquire, manage and develop producing wells and drilling locations throughout the play.

Ben Conner, Director on KKR’s Energy Real Assets team, said, “The Williston continues to be a core area of focus for us as we see a significant opportunity to acquire high quality producing assets with attractive long-term value creation opportunities to be delivered through superior technical and operational execution. We have known Heath and members of his team for years and believe our partnership is well positioned to acquire and manage assets in the Williston for the long run.”

Western is a private company focused on the acquisition and exploitation of upstream oil and gas assets. Headquartered in Oklahoma City, Oklahoma, its primary objective is to build and operate a large-scale portfolio of producing oil and gas wells and drilling locations in the Williston Basin.

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Today, NRG Energy, Inc. agreed to acquire Dallas-based Stream Energy’s retail electricity and natural gas business for $300 million plus working capital in an all-cash transaction.

“This transaction will strengthen NRG’s position as a growing, customer-driven energy company. It represents another step in perfecting our integrated business model,” said Mauricio Gutierrez, president and chief executive officer, NRG Energy. “Stream Energy’s retail energy business provides NRG an attractive opportunity to increase our national retail leadership position and potential for growth.”

Stream Energy, one of the largest direct selling companies in the energy market and one of the nation’s fastest growing retailers, serves more than 600,000 Residential Customer Equivalents (RCEs) in nine states and the District of Columbia. The transaction is expected to increase NRG’s market share in Texas, Pennsylvania and a number of other markets in the Eastern U.S., accelerating the pace of growth in these markets. The combination will also enhance NRG’s multi-brand strategy.

The transaction is expected to close in the third quarter of 2019 and is subject to various customary closing conditions, approvals and consents, including the Federal Energy Regulatory Commission (FERC), Georgia Public Service Commission, and antitrust review under Hart-Scott-Rodino.

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Late last week, Freeport LNG announced that it has received approval from the U.S. Federal Energy Regulatory Commission (FERC) to site, construct and operate its fourth natural gas liquefaction train, to be integrated into its existing natural gas liquefaction and LNG export facility on Quintana Island near Freeport, Texas. Approval from the U.S. Department of Energy for the export of Train 4 volumes to non-Free Trade Agreement countries is anticipated later this quarter.

Freeport LNG’s Train 4 is expected to add over 5 million tonnes per annum (mtpa) of LNG production to its existing project, increasing the total export capability of the 4-train facility to over 20 mtpa. Approximately 13.5 mtpa of this capacity has been contracted under 20-year tolling agreements to Osaka Gas Trading & Export, LLC, JERA Energy America, LLC, BP Energy Company, Toshiba America LNG Corporation, and SK E&S LNG, LLC, and approximately 0.5 mtpa has been contracted to Trafigura PTE LTD under a 3-year sale and purchase agreement commencing in 2020.

Train 4 operations are anticipated to commence in 2023.

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Now, let’s check the latest critical notices from the interstate natural gas pipeline grid:

Columbia Gas Transmission:

Columbia Gas Transmission, LLC (TCO) continues to work with upstream operators due to the operational event experienced by Markwest at the originally referenced Salem Plant.  Markwest has since clarified that the outage was on a line feeding the Hopedale Fractionation Plant in Salem, WV. 

TCO encourages customers to coordinate with its upstream operator regarding scheduled volumes for Gas Days Monday, May 20, 2019 and Tuesday, May 21, 2019. 

At this time, the operational event is anticipated to be resolved later today, May 20, 2019.  TCO will provide an update as soon as information becomes available.  Please contact your Customer Services Representative with any questions.

***Previous Posting***

Columbia Gas Transmission, LLC (TCO) has been notified of an operational event at the Markwest Salem Plant that is impacting scheduled deliveries into TCO.  TCO is working closely with Markwest and upstream operators to assess the impact, as well as a timeline for repairs. The Markwest Salem Plant impacts deliveries into TCO at the following points: 

642452 – CMG Majorsville

643053 – Gibraltar III

643106 – Majorsville-LXP

642645 – Sherwood1

642824 – Smithfield-Mobley

643185 – Sherwood-MXP

842867 – Braxton 

The current estimated impact is a reduction in supply on the TCO system of approximately 2.1 MMDth, necessitating a curtailment of scheduled volumes by the upstream point operators effective ID1 Cycle for Gas Day Sunday, May 19, 2019 and Timely Cycle for Gas Day Monday, May 20, 2019.  

El Paso Natural Gas:

EPNG remains concerned about delivery point operators taking their gas according to their scheduled quantities as a result of the forecast below average temperatures in the Desert Southwest. The SOC Warning for a high linepack condition issued on May 17, 2019 (Notice No. 605375) remains in effect.  

Washington Ranch is on maximum injection. 

Delivery point operators are encouraged to continue to take gas according to their scheduled quantities.  If the situation fails to improve EPNG will declare an SOC for a PACK condition. 

Supply operators are encouraged to reduce and/or maintain their deliveries into the EPNG system at their scheduled rates.   

Payback to the system, such as Payback (Imbalance Payback to TSP), may be limited or denied due to operational concerns related to the potential for a high linepack condition.  For scheduling questions, please call your scheduling representative at (800) 238-3764.

Also from El Paso:

EPNG will be conducting bottom hole surveys at the Washington Ranch Storage Facility starting Monday, June 10, through Friday, June 14. During this scheduled maintenance, operational flexibility will be extremely limited as no injection or withdrawal from the storage facility will be possible.   

Shippers are strongly encouraged to closely monitor their receipts and deliveries to ensure that their transportation is balanced during this time frame. If significant and persistent imbalances are experienced, EPNG may need to issue an SOC or COC, and/or take the necessary action to limit excess receipts into the system. 

Northern Natural Gas:

The results of the recent in-line inspections for sections of Northern’s pipeline system between the Beaver, Oklahoma and Mullinville, Kansas compressor stations have come back favorable and no additional reduction in operating capacity for Beaver North (Group 1025) is necessary.

The outage capacity will remain at 820,000 Dth for the group. As a result, Northern is willing to sell incremental capacity up to 62,259 Dth through Beaver North for Gas Day May 21, 2019.

Northwest Pipeline:

Due to high inventory levels at the Jackson Prairie storage facility (JP), Northwest is no longer accepting IT storage injections at JP beginning gas day Wednesday, May 22, 2019.

Northwest is not currently requesting SGS-2I storage customers vacate the facility.  Northwest will provide notice to begin the interruptible service vacate process when the Jackson Prairie facility balance is approximately 90 percent full. Discretion will be used to determine the percentage each interruptible storage customer will be required to vacate allowing Northwest to meet its firm obligations at the facility. Upon said notice, SGS-2I shippers will have seven (7) days to comply.

Northwest would also like to remind its shippers that the storage inventory levels as well as Park and Loan availability is posted each morning on Northwest’s website at www.northwest.williams.com.

Please contact your Marketing Services Representative or the Northwest Pipeline Hotline at (801) 584-7301 if you have any questions.

Southern Natural Gas:

On Tuesday May 21, 2019, Southern will post the May/June/July and other 2019 Maintenance projects.

On Wednesday, May 22, 2019 at 1:30 PM (Central Time) Southern will conduct a conference call/WebEx meeting and review the posted information.  For more information on how to participate in the conference call/WebEx, please review the Southern Natural Gas EBB posting dated May 20, 2019.

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The National Weather Service has published their initial temperature forecast for the upcoming month of June.  Temperatures are expected to be warmer than average along the Atlantic coast as well as along the Pacific coast.   Meanwhile, several states in the midsection of the country from the Dakotas and Nebraska down to Texas are shown with cooler than seasonal weather for June. 

That’s all for this Monday edition of GasNewsOnline.com.  Please let your friends in the natural gas scheduling and transportation business know about us! 

Also, our companion audio podcast is available via Apple PodcastsSubscribe today – it’s FREE! 

Thursday, May 16, 2019

Welcome to GasNewsOnline.com!  We always review the country’s interstate natural gas pipeline companies for their most recent critical postings and bring you information about changes in pipeline operating conditions. 

Plus, we will update you on the latest publicly released news from major energy companies and provide the extended temperature forecast for the next few weeks from the National Weather Service, too.  

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From the US Energy Information Administration, working gas in storage was estimated at 1,653 Bcf as of Friday, May 10, 2019. This represents a net increase of 106 Bcf from the previous week.

Stocks were 130 Bcf higher than last year at this time and 286 Bcf below the five-year average of 1,939 Bcf. At 1,653 Bcf, total working gas is within the five-year historical range.

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OG& E Chairman, President and CEO Sean Trauschke today told the company’s shareholders that the company is “strong and built for the long term.” Speaking at the company’s annual meeting, Trauschke said he was pleased with the performance of OG&E, Oklahoma’s largest investor-owned utility, and Enable Midstream, in which the company owns interest, as both had contributed to the company’s ability to invest in its customers, and maintain utility rates that are 31 percent below the national average.

“2018 will be the benchmark the company uses to gauge future performance. OG&E completed its largest ever investment program, wrapping up more than $6 billion of infrastructure investment since 2011, on time, under budget and while receiving recognition as the safest utility in the Southeastern Electric Exchange,” Trauschke said. “At Enable, we’re seeing continued solid operational and financial results, while volumes are increasing across all of their business segments.”

Looking ahead, he said the company will continue to focus on growing the business through an enhanced customer experience at affordable rates. “The new assets we’ve put into operation have increased fleet resiliency for customer benefit. We will continue to leverage our smart meters and technology that increases reliability and reduces outage response and restoration times.”

OGE Energy is the parent company of Oklahoma Gas and Electric Company, a regulated electric utility serving approximately 852,000 customers in Oklahoma and western Arkansas. In addition, OGE holds a 25.5 percent limited partner interest and a 50 percent general partner interest of Enable Midstream Partners, LP.

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On Tuesday, Sempra Energy celebrated the completion of construction of Train 1 of the Cameron LNG export project in Hackberry, La., with a group of international, federal, state and local officials, including the U.S. president and members of the U.S. administration. The celebratory visit coincided with today’s announcement that Cameron LNG is producing liquefied natural gas (LNG) from the first liquefaction train of the three-train facility, a major commissioning milestone.

Sempra Energy set a goal in 2018 to become the largest developer of North American LNG export infrastructure, targeting 45 million tonnes per annum of LNG export capacity to serve global markets. 

“With a renaissance in domestic energy production, Sempra Energy is pleased to advance America as one of the world’s largest exporters of LNG,” said Jeffrey W. Martin, chairman and CEO of Sempra Energy.  “We are committed to providing a cleaner fuel source to the global markets while supporting job creation right here at home.”

Cameron LNG Phase 1 is one of five LNG projects Sempra Energy is developing in North America. Other projects under development include Cameron LNG Phase 2, previously authorized by the Federal Energy Regulatory Commission (FERC), which could include up to two additional liquefaction trains and up to two additional LNG storage tanks; Port Arthur LNG in Texas, which recently was approved by FERC; and Energía Costa Azul LNG Phase 1 and Phase 2 in Mexico.

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Several interstate natural gas pipeline companies have posted notices warning customers that there isn’t much room left for excess gas supplies heading into the weekend. Let’s review the latest EBB postings:

ANR Pipeline:

ANR will begin planned maintenance at the Brownsville (Tennessee) Compressor Station located in the Southeast Southern Segment (Zone 2). The total Brownsville Southbound (LOC #1260569) capacity will be reduced by the following:

230-MMcf/d (leaving 900-MMcf/d available) 5/20-5/22

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. Additionally, customers may experience lower than normal line pressures south of the Brownsville Compressor Station.

The estimated impact to Firm Primary is as follows:

17% – Based on the Current Net Southbound Shipper Nominations
20% – Based on the Current Southbound Contracted MDQ

Columbia Gas Transmission:

Columbia Gas Transmission, LLC (TCO) reminds customers of upcoming pigging on MXP Line 100 (previously posted on the Construction and Maintenance Schedule) beginning Tuesday, May 21, 2019 through Friday, May 24, 2019.   Due to the pigging, the below impact is anticipated for the following Gas Days: 

643131 – Corral:

May 21, 2019 – 0 Non-Firm

SHERWODB – Sherwood B MA42:

May 21, 2019 – 940,000 Total Capacity

MXPSEG – MXPSEG MA42:

May 22, 2019 – 1,720,000 Total Capacity

May 23, 2019 – 1,600,000 Total Capacity

May 24, 2019 – 1,600,000 Total Capacity 

Based on current scheduled volumes, there are no anticipated reductions to firm service. As a reminder, the impacted capacities will not be reinstated until the work is complete, which may impact Timely and Evening Cycle nominations for Gas Day May 25, 2019. 

Reservation charge credits will be determined per the process set forth in the General Terms and Conditions, Section 38 of TCO’s FERC Gas Tariff.  Any shipper eligible for reservation charge credits should review this section and comply with the described process to ensure receipt of any credits.  

Dominion Energy Questar Pipeline:

Effective Gas Day May 16, 2019, Timely Cycle and continuing until further notice, Dominion Energy Questar Pipeline (DEQP) will not allow in-kind imbalance payback to the pipeline and is requiring shippers and point operators to have production volumes aligned with scheduled nominations.

This notice is due to the high inventory in DEQP’s Clay Basin balancing account and current pipeline conditions resulting in minimal line pack available for balancing.

Customers with questions should contact their DEQP representative or call the Customer Service Hotline at (801)324-5200.

Gas Transmission Northwest (GTN):

Effective immediately, GTN Pipeline is issuing an OFO watch. GTN Pipeline is concerned about the operational integrity of its system as a result of high line pressures.

The OFO watch is in effect through gas day Tuesday May 21st, in order to allow for GTN pipeline system to regain its operational integrity. GTN 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, GTN 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.

This posting will be updated as more information becomes available. Please contact your GTN Nominations Representative with any questions regarding nominations or scheduling at (888) 750-6275

Gulf South Pipeline:

Index 818 – ILI Pigging         Begins:  June 19, 2019              Ends:  June 21, 2019

Expansion Area 19 (Central Mississippi) Delivery Scheduling Group – Capacity could be impacted by up to 500,000 dth/d for the duration of the maintenance. Please contact your customer service representative if you have any questions.

Mississippi River Transmission (MRT): 

This System Protection Warning (SPW) is being issued to notify shippers of unplanned maintenance at MRT’s Fountain Hill Compressor Station located in Ashley County, Arkansas, effective May 17, 2019.

The unplanned maintenance on the Fountain Hill Compressor Station will begin May 17, 2019 and is anticipated to continue through September 30, 2019.  During this time, nominations and allocations to delivery points located south of MRT s Fountain Hill compressor station will be subject to the following criteria:

Nominations and allocations will need to be within their primary path and primary direction of flow. Nominations and allocations will not be allowed to exceed their Line Priority, Rate Zone Capacity or Line Capacity.

It may become necessary for MRT to schedule down primary firm nominations during this period of unplanned maintenance.  This System Protection Warning (SPW) will remain in effect until further notice and will be updated as more information becomes available.  If you have any questions concerning this Alert, please contact your Scheduling Representative.

Natural Gas Pipeline Company of America (NGPL):

Effective for gas day Thursday, May 16, 2019, and continuing until further notice, Natural is at operating capacity for gas going southbound through Compressor Station 302 located in Montgomery County, Texas (Segment 26 of Natural’s Texok Zone) for deliveries eastbound into Segment 25 or southbound into Segment 22.   AOR/ITS and Secondary out-of-path Firm transports are at risk of not being fully scheduled. 

Tennessee Gas Pipeline:

Effective Timely Cycle (9:00 AM CCT), for the Gas Day of Saturday, May 18, 2019, Tennessee Gas Pipeline, L.L.C. (“Tennessee”) will not accept nominations for Interruptible Storage Injection Services (IS-PA) at the Bear Creek (460017) or Portland (460025) storage fields.   

Tennessee will continue to not approve any transfers from accounts at TGP Bear Creek Storage to SNG Bear Creek Storage (460017)(IS-PA, FS-PA) until further notice.  Transfers into TGP Bear Creek Storage (460017) from SNG Bear Creek Storage will be allowed under the FS-PA storage service only with partner approvals. 

Texas Gas Transmission:

Effective today (May 16), based on current operating conditions on the Youngsville East Lateral (YVE) in Louisiana, capacity will be limited to 300,000 MMBtu.

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

Transcontinental Gas Pipe Line Company (Transco):

Transco has been advised that third party gas processing (North Terrebonne Gas Processing Plant) straddling the Southeast Louisiana Lateral (SELA) is currently not available. This condition is expected to continue until early next week.

Currently, Transco is able to manage gas quality for volumes received upstream of Station 62. However, the situation may require management of scheduled quantities upstream of Station 62 if increases are realized from current scheduled quantities.

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The latest six-to-ten day temperature forecast from the National Weather Service continues to project that above average temperatures will dominate the eastern US through May 26.  The West Coast and Rockies will continue to see below normal weather conditions through late this month.

Thanks for joining us at GasNewsOnline.com!  We’ll be back on Monday to bring you the publicly sourced natural gas pipeline and energy news for you along with an updated weather outlook for the coming week. 

Please tell a friend in the natural gas scheduling and transportation business about us.   Have a great weekend!

Monday, May 13, 2019

Welcome to GasNewsOnline.com.  A variety of springtime weather conditions has caused a late season snowfall in the Rockies and northern tier of states while a large area of severe weather and flooding caused issues in the South.  Meanwhile, spot natural gas prices seem to be stuck in neutral as we start the new week.   

Today, we’ll also review the latest interstate pipeline company critical notices, provide an update on latest energy news, and cover the latest National Weather Service temperature forecast into late May, too.

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

Net injections to working gas totaled 85 billion cubic feet (Bcf) for the week ending May 3. Working natural gas stocks are 1.547 Tcf, which is 16% lower than the five-year (2014–18) average for this week.

At the New York Mercantile Exchange (Nymex), the price of the June 2019 contract was nearly static at $2.62/MMBtu on Monday.  The price of the 12-month strip averaging June 2019 through May 2020 futures contracts is now about $2.75/MMBtu.

Strong natural gas production, as well as rapidly-rising demand, resulted in record-high production of natural gas plant liquids, which reached 4.7 million barrels per day (b/d) in February 2019. Growth in natural gas plant liquids production was led by ethane, which was nearly 130,000 barrels per day (b/d) higher than in the previous month.

The natural gas plant liquids composite price at Mont Belvieu, Texas, fell by 43¢/MMBtu, averaging $5.69/MMBtu for the week ending May 8. The price of natural gasoline, ethane, propane, butane, and isobutane all fell, by 2%, 5%, 8%, 12%, and 13%, respectively.

According to Baker Hughes, for the week ending Tuesday, April 30, the natural gas rig count decreased by three to 183. The number of oil-directed rigs rose by two to 807. The total rig count decreased by one and now stands at 990.

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OG&E, a subsidiary of Oklahoma City-based OGE Energy Corp., announced that the Oklahoma Corporation Commission (OCC) today unanimously approved the company’s preapproval application to acquire the AES Shady Point plant near Poteau, Oklahoma, and the Oklahoma Cogeneration LLC facility in Oklahoma City.

The company, which filed its preapproval request in December 2018, is expected to pay approximately $53 million for the two plants – both of which have served OG&E customers for several decades under federally mandated power purchase agreements.

“These acquisitions create a win-win on multiple fronts,” said OG&E spokesman Brian Alford. “Our customers will save tens of millions of dollars each year by eliminating costly, federally mandated agreements. The Shady Point acquisition will help maintain grid stability as growth continues in eastern Oklahoma and western Arkansas. It also ensures many jobs will be preserved in an economically challenged region. The Oklahoma Cogen acquisition will help ensure the facility’s natural-gas-fired capacity will continue to support reliability and resiliency in the ever-growing Oklahoma City-metro area. And, we’ll see a further reduction in power plant air emissions as a result of the acquisitions.”

Shady Point has a generation capacity of 360MW and Oklahoma Cogeneration has a capacity of 146MW.

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On Friday, Weatherford International plc (“Weatherford” or the “Company”) announced that it has executed a restructuring support agreement (the “Restructuring Agreement”) with a group of its senior noteholders (the “Ad Hoc Noteholder Group”) that collectively holds or controls approximately 62% of the Company’s senior unsecured notes. The proposed comprehensive financial restructuring would significantly reduce the Company’s long-term debt and related interest costs, provide access to additional financing and establish a more sustainable capital structure.

Weatherford expects to implement the Restructuring Agreement through a “pre-packaged” Chapter 11 process and expects to file U.S. chapter 11 and Irish examinership proceedings (collectively, the “Cases”). As part of this process, Weatherford intends to continue engaging in discussions with, and begin soliciting votes from, its creditors in connection with a proposed Plan of Reorganization prior to filing.

“During the past year, we have been executing a company-wide transformation to fundamentally improve the way we operate our business and to strengthen Weatherford for the long run,” said Mark A. McCollum, President and CEO of Weatherford. 

Under the terms of the Restructuring Agreement, the Company’s unsecured noteholders would exchange approximately $7.4 billion of senior unsecured notes for approximately 99% of the equity in the Company and $1.25 billion of new tranche B senior unsecured notes (the “Tranche B Notes”).

The Restructuring Agreement contemplates the Company will continue operating its businesses and facilities without disruption to its customers, vendors, partners or employees and that all trade claims against the Company (whether arising prior to or after the commencement of the Chapter 11 Cases) will be paid in full in the ordinary course of business.

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We’re off to a relatively quiet start to the work week Monday along the interstate natural gas pipeline grid.

East Tennessee Natural Gas:

As previously posted, East Tennessee Natural Gas (ETNG) has limited operational flexibility to manage imbalances. As a result, effective May 13, 2019, ETNG requires all delivery point operators on the system to keep actual daily takes out of the system equal to or greater than scheduled quantities regardless of their cumulative imbalance position unless otherwise coordinated with your operations account representative. All receipt point operators on the system are required to keep actual receipts into the system equal to or less than scheduled quantities regardless of their cumulative imbalance position unless otherwise coordinated with your operations account representative.

This notice will remain in effect until further notice.

Natural Gas Pipeline Company of America (NGPL):

Effective for gas day Tuesday, May 14, 2019, and continuing until further notice, Natural is at operating capacity for northbound flow through Compressor Station 106 located in Gage County, Nebraska (Segment 11 of Natural’s Midcontinent Zone).  AOR/ITS and Secondary out-of-path Firm transports are at risk of not being fully scheduled. 

Natural Gas Pipeline Company of America, LLC also conducted its customer meeting today, May 13, 2019.  In an effort to keep all customers informed relative to items discussed, the presentation slides from this meeting have been posted to the internet and can be accessed by clicking on the following link:

https://pipeline2.kindermorgan.com/Documents/NGPL/NGPL_2019_Customer_Meeting-20190513123438.pdf

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The National Weather Service six-to-ten day temperature forecast through May 23 shows temperature extremes on both coasts of the United States.  The eastern half of the country will see warmer than seasonal weather, while the West Coast and Rocky Mountain regions are expecting significantly colder than normal temperatures for the period.

That’s all for this Monday edition of GasNewsOnline.com.  We’ll return Thursday to provide 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 PodcastsSubscribe today – it’s FREE! 

Thursday, May 9, 2019

Welcome to GasNewsOnline.com!  We check the country’s interstate natural gas pipeline companies for their most recent critical postings and bring you information about significant changes in pipeline operating conditions prior to this Mother’s Day weekend.

Today, we will also update you on the latest publicly released news about one of Anadarko Petroleum‘s suitors. Plus, we’ll give you the extended temperature forecast through May 19 from the National Weather Service, too.  

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From the US Energy Information Administration, working natural gas in storage was 1.547 Tcf as of Friday, May 3, 2019.  This represents a net increase of 85 Bcf from the previous week.

Natural gas in storage is now 16% below the five-year historical average.

On the New York Mercantile Exchange, the natural gas futures price for June, 2019 was down more than three cents on Thursday to finish at about $2.57/MMBtu. 

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Chevron Corporation announced today that, under the terms of its previously announced Merger Agreement with Anadarko Petroleum Corporation, it will not make a counterproposal and will allow the four-day match period to expire.  Accordingly, Chevron anticipates that Anadarko will terminate the Merger Agreement.

Chevron’s Chairman and CEO Michael Wirth said, “Winning in any environment doesn’t mean winning at any cost. Cost and capital discipline always matter, and we will not dilute our returns or erode value for our shareholders for the sake of doing a deal. Our advantaged portfolio is driving robust production and cash flow growth, higher investment returns and lower execution risk. We are well positioned to deliver superior value creation for our shareholders.”

Upon termination of the Merger Agreement, Anadarko will be required to pay Chevron a termination fee of $1 billion.

Earlier this week, Anadarko’s Board of Directors deemed a revised offer from Occidental Petroleum Corporation as a “Superior Proposal” and plans to move ahead with the OXY offer.

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On Wednesday, Marathon Petroleum Corporation and midstream affiliates MPLX LP and Andeavor Logistics LP announced that the two midstream companies have entered into a definitive merger agreement whereby MPLX will acquire Andeavor in a unit-for-unit transaction at a blended exchange ratio of 1.07x. This represents an equity value of approximately $9 billion and an enterprise value of $14 billion for the acquired entity. The transaction has been unanimously approved by MPLX’s and ANDX’s respective Conflicts Committees and both Boards of Directors. Subject to the satisfaction of customary closing conditions and receipt of regulatory approvals, the transaction is expected to close in the second half of 2019.

Under the terms of the merger agreement, ANDX public unitholders will receive 1.135x MPLX common units for each ANDX common unit held, representing a premium of 7.3%, and MPC will receive 1.0328x MPLX common units for each ANDX common unit held, representing a 2.4% discount. The blended exchange ratio of 1.07x represents a 1% premium to market1.

“This transaction simplifies our MLPs into a single listed entity and creates a leading, large-scale, diversified midstream company anchored by fee-based cash flows,” said Gary R. Heminger, chairman and chief executive officer. “This transaction is projected to be immediately accretive to MPLX unitholders on distributable cash flow, demonstrating MPC’s commitment to positioning its midstream business for long-term success”.

Mike Hennigan will remain President of the combined entity and lead all midstream activities.

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Now, let’s take a look at the latest critical notices from the electronic bulletin boards of the country’s interstate natural gas pipeline grid:

ANR Pipeline:

Effectively Wednesday, May 8, ANR will reduce the capacity for the Jena Southbound location (LOC #95105489), due to unplanned compressor maintenance at Jena compressor station located in the Southeast Southern Area (Zone 2).

The Jena Southbound location (LOC #9505489) capacity restriction is as follows:

75-MMcf/d (leaving 1,105-MMcf/d available) 5/8 – 5/22

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.

Colorado Interstate Gas (CIG):

In response to continuing and prolific natural gas production growth in the Denver-Julesburg Basin – and the mounting market need for timely transportation capacity – Colorado Interstate Gas Company, L.L.C. (CIG) is conducting a binding Open Season for additional firm capacity to be made available by approximately November 1, 2019.  The additional transportation capacity offered in this Open Season will have primary receipt rights from a new receipt point immediately upstream of the High Five Meter Station (PIN#TBD), and have primary delivery rights into CIG’s 5C at the High Five delivery point interconnection (PIN#53893) which is currently under construction, and CIG will construct additional capacity at this meter to accommodate a minimum of 125,000 Dth/day of additional capacity.  CIG is conducting this Open Season on the terms described below. 

This binding Open Season will commence on May 8, 2019 and is scheduled to close at 10:00 a.m. Mountain Time on May 22, 2019.  CIG intends to provide notification of capacity awards by 5:00 p.m. Mountain Time on May 2, 2019. 

Questions concerning this Open Season should be directed to: Greg Ruben (719-520-4870) or Laine Lobban (719-520-4344).

Columbia Gulf Transmission:

Columbia Gulf Transmission, LLC reminds customers of upcoming meter station work at MS 478 (Transco Evangeline) on Tuesday, May 14, 2019.  During this work, MS 478 will be set to a total capacity of 270,000 Dth per day.  Based on current scheduled volume, there is no expected impact to firm service.

On Wednesday, May 15, Columbia Gulf reminds customers of meter station work at MS 4118 (Florida Gas).  During this work, MS 4118 will be set to a total capacity of 294,000 Dth per day.  Based on current scheduled volume, there is no expected impact to firm service.

East Tennessee Natural Gas:

East Tennessee Natural Gas (ETNG) has limited operational flexibility to manage imbalances downstream of Boyds Creek Compressor Station (Boyds Creek). As a result, effective Wednesday, May 8, ETNG requires all delivery point operators east of Boyds Creek 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 east of Boyds Creek are required to keep actual 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.

If necessary, ETNG will utilize any provision of its tariff to ensure system integrity including the issuance of customer specific or system wide OFOs.  This notice will remain in effect until further notice.

Gulf South Pipeline:

Longview Compressor Station Maintenance:  Begins: May 13, 2019            Ends:  July 2, 2019

Longview Station #2 Scheduling Group – Capacity could be impacted by up to 50,000 dth/d for the duration of the maintenance.

Natural Gas Pipeline Company of America (NGPL):

Natural has experienced mechanical issues at Compressor Station 104 (CS 104) located in Barton County, Kansas (Segment 11 of Natural’s Midcontinent Zone).  This is a Force Majeure event that will limit Natural’s throughput capacity northbound out of the Midcontinent Zone through Compressor Station 104.   

The scheduling constraint will be at CS 104; therefore, any gas received south of CS 104 for delivery north of CS 104 will be impacted for the duration of this restriction.  For scheduling purposes, the Midcontinent Pool (LOC 25078) is located south of the constraint.  Additionally, firm transportation nominated from receipt points south of CS 104 (including the Midcontinent Pool) for injection at any Amarillo storage point will be impacted.  Receipt points north of CS 104 will not be impacted.     

As such, effective for gas day, Wednesday, May 8, 2019, Timely Cycle and anticipated to continue through gas day Monday, May 13, 2019,Natural will schedule Primary Firm and Secondary in-path Firm transports to no less than 77% of contract MDQ through CS 104.  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. 

The stated scheduling percentage is based upon the current level of firm capacity contracted for during this restriction and is subject to change based upon operational conditions and Shipper utilization.  Permian Zone delivery points will be available as an alternative.  The Trailblazer Gage (LOC 902900), Rex Jefferson (LOC 42499), and Northern Border Harper (LOC 908090) receipt points, as well as other supply points downstream of this constraint will also be available.

Southeast Supply Header (SESH):

Effective immediately, SESH is lifting the previously posted imbalance warning issued on April 6, 2019.

Texas Eastern Transmission:

Texas Eastern Transmission, LP (TE) hereby declares a Force Majeure in accordance with Section 17 of the General Terms and Conditions of its FERC Gas Tariff. The Force Majeure event is due to an unplanned outage at its Danville Compressor Station (Danville) in Danville, Kentucky. While efforts to repair the station to full capacity are underway, the estimated time of restoration is unclear at this time.

As a result of this outage north to south capacity through stations on the 30 inch line will be reduced to approximately:

Owingsville 1,644,000 Dth/d
Danville 1,638,000 Dth/d
Tompkinsville 1,440,000 Dth/d

TE will post updates to the status of repairs as they are known.

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The latest six-to-ten day temperature forecast from the National Weather Service for the period May 15-19 reveals that warmer than average temperatures will be seen along both the Southeast and Pacific Northwest regions.  From the Southwest through the Great Lakes and into New England, cooler than seasonal temperatures will prevail during much of the third week of May.

Thank you for joining us at GasNewsOnline.com.  We’ll be back on Monday to bring you the publicly sourced natural gas pipeline and energy news for you along with an updated weather outlook for the coming week. 

Please tell a friend in the natural gas scheduling and transportation business about us!    Make sure to listen to our companion audio podcasts via Apple Podcasts. It’s FREE, too!


Monday, May 6, 2019

Welcome to GasNewsOnline.com! The battle for control of Anadarko Petroleum has taken another step as one of the suitors has sweetened the pot on Sunday! 

Meanwhile, a variety of springtime temperatures (some cool and others quite warm) have continued to depress the natural gas prices again as we start the week.    

We’ll check the latest interstate pipeline company critical notices plus an update on latest energy news and temperature forecasts into the middle of May, too.

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At the NYMEX, the June 2019 contract closed at about $2.53/MMBtu, down 4¢ from Friday. The price of the 12-month strip averaging June 2019 through May 2020 futures contracts has dropped 6¢ over the past week to about $2.67/MMBtu on Monday.

From the US Energy Information Administration’s “Natural Gas Weekly Update” publication, net injections to working gas in storage totaled 123 billion cubic feet (Bcf) for the week ending April 26. Volumes in storage are currently 1.462 Tcf, which is 18% lower than the five-year (2014–18) average for this week.

The natural gas plant liquids composite price at Mont Belvieu, Texas, fell by 1¢, averaging $6.11/MMBtu for the week ending May 1. The price of isobutane, natural gasoline, and butane fell by 1%, 2%, and 3% respectively. The price of propane rose by 2%. The price of ethane remained flat week over week.

According to Baker Hughes, for the week ending Tuesday, April 23, the natural gas rig count decreased by 1 to 186. The number of oil-directed rigs fell by 20 to 805. The total rig count decreased by 21, and it now stands at 991.

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On Sunday, Occidental Petroleum Corporation delivered a letter to the Board of Directors of Anadarko Petroleum Corporation setting forth the terms of a revised and significantly enhanced superior proposal to acquire Anadarko for $76.00 per share comprised of $59.00 in cash and 0.2934 shares of Occidental common stock per share of Anadarko common stock.

The revised proposal, which has been unanimously approved by the Occidental Board of Directors, represents a premium of approximately 23.3% to the $61.62 per share value of Chevron’s pending offer as of market close on May 3, 2019.

On April 29, 2019, Anadarko announced its Board of Directors had determined that Occidental’s prior proposal, made on April 24, could reasonably be expected to result in a “Superior Proposal”, and the two companies have engaged since that determination.

Occidental’s President and CEO, Vicki Hollub, said, “We firmly believe that Occidental is uniquely positioned to drive significant value and growth from Anadarko’s highly complementary asset portfolio. This combination will create a global energy leader with the scale and geographic diversification to drive compelling returns to the shareholders of both companies,” she added.

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Williams reported Friday that the Federal Energy Regulatory Commission (FERC) has issued a certificate of public convenience and necessity authorizing the Northeast Supply Enhancement project – an expansion of the existing Transco natural gas pipeline designed to serve New York markets in time for the 2020/2021 winter heating season.

The Northeast Supply Enhancement project will provide 400,000 dekatherms per day of additional natural gas supply to National Grid – the largest distributor of natural gas in the northeastern United States. National Grid is converting about 8,000 customers per year from heating oil to natural gas in New York City and Long Island. The Northeast Supply Enhancement Project is critical to make these conversions possible, as well as keep up with new development in the area.

“Natural gas is a critical component of the mix of energy sources necessary to meet the region’s growing energy needs and to help meet its aggressive clean air goals,” said Williams Chief Operating Officer Micheal Dunn. “We appreciate the Commission’s thorough review of this important infrastructure enhancement project, which will help ultimately advance New York City toward meeting the statewide carbon emissions goals outlined in the New York State Energy Plan.”

Following the receipt of all necessary regulatory approvals, Williams anticipates beginning construction on the Northeast Supply Enhancement project facilities in the fall of 2019.

Transco is a major provider of cost-effective natural gas services that reach U.S. markets in 12 Southeast and Atlantic Seaboard states, including major metropolitan areas in New York, New Jersey and Pennsylvania.

Additional information about the Northeast Supply Enhancement project can be found at www.northeastsupplyenhancement.com.

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Late last week, U.S. Secretary of Energy Rick Perry signed the Department of Energy’s authorization allowing Sempra Energy‘s Port Arthur LNG to export approximately 13.5 million tonnes per annum of U.S.-produced liquefied natural gas (LNG) to countries that do not have a free-trade agreement (FTA) with the U.S. during the first U.S.-EU Energy Council High-Level Energy Forum in Brussels, Belgium.

“I am pleased to announce the order signed authorizing Port Arthur LNG to export up to 1.91 billion cubic feet per day of LNG, to any country that does not have an FTA with the United States,” said Perry. “The United States is in its third consecutive year as a net exporter of natural gas, now exporting domestic LNG to 35 countries. I applaud the American private sector for continuing to reach new milestones and look forward to continued growth in this sector.”

The Port Arthur LNG export project in development in Jefferson County, Texas is expected to include two liquefaction trains, up to three LNG storage tanks and associated facilities.  

Port Arthur LNG is expected to create approximately 3,500 on-site engineering and construction jobs, as well as several hundred jobs in Texas in support of the project, including fabrication and operational jobs. Nearly 200 full-time jobs will be created to operate and maintain Port Arthur LNG facility.

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Now, let’s review the latest critical postings from the electronic bulletin boards of the interstate natural gas pipeline companies:

Dominion Energy Questar Pipeline:

The revised injection capacity at Clay Basin Storage is now 300 Mdth/d plus 25 Mdth/d Park and Loan for a total of 325 Mdth/d.  Storage withdrawal capacity will be 175 Mdth/d.

Enable Gas Transmission:

Effective Tuesday, May 7, 2019, EGT will begin planned maintenance at EGT’s Round Mountain Compressor Station, located in Conway County, Arkansas and in EGT’s North Pooling Area, with an anticipated completion date of May 10, 2019.         

During this period delivery locations East of EGT s Round Mountain Compressor Station should nominate from their MRO locations.  The availability of non-ratable services including EFT will be limited.  Shippers with EFT services should continue to submit their proposed non-ratable burn schedules in line with the normal scheduling process. Such schedules will be approved and scheduled daily, based on EGT s operating conditions for that day.

Delivery meters located East of EGT s Dunn Compressor Station will be limited to primary firm nominations only.

Also on Enable Gas Transmission:

This Operational Alert is being issued pursuant to Section 20, GT&C, of EGT s Tariff to notify its Shippers of upcoming pigging activity on EGT’s Line S system.  Pigging activity will begin May 14, 2019 at 9:00 a.m., with an anticipated completion date of May 18, 2019.

During this time nominations to delivery meters located in EGT’s South Pooling Area could be impacted.  EGT anticipates impacts to IT Services and possible impacts to Firm Services.

Kern River Gas Transmission:

The force majeure and associated pipe repair at Kern River’s Fillmore compressor station continues. Kern River requires that all customers match their scheduled nominations with physical receipts and deliveries to maintain system integrity.

Kern River does not currently have an estimated return to service date for the entire compressor station facility; however, beginning gas day May 6, 2019 Intraday 1 cycle the operating capacity at the Fillmore compressor station will be increased from 1,995,000 Dth to 2,308,000 Dth.  Kern River will provide updates as new information becomes available.

Natural Gas Pipeline Company of America (NGPL)

STORAGE – Changes/Restrictions

Injections  – Effective for gas day Tuesday, May 7, 2019, Timely Cycle and continuing until further notice, injections above MDQ for DSS and NSS in all zones on the Gulf Coast System will not be scheduled.

Texas Gas Transmission:

Texas Gas will be preforming maintenance at the Youngsville/Henry Hub meter (#2790) beginning May 7 through June 1, 2019. Deliveries to the meter will be unavailable for the duration of the maintenance.  If you have any questions, please contact your customer service representative.

Transwestern Pipeline:

East Mainline Receipts – Capacity reduction

May 7th thru May 11th, 2019 (5 Days) – Total capacity for East Mainline receipt volumes (West flow) will be reduced from 750,000 MMBtu/d to approximately 550,000 MMBtu/d. Perform verification digs to confirm pipe anomalies that were detected from an ILI Smart Tool run in the Section 9 – Mainline system from Roswell, NM to Station 8 (Corona, NM). 

This maintenance could affect receipt volumes from the West Texas & Panhandle Laterals flowing through the East Mainline system.

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The National Weather Service six-to-ten day temperature outlook continues to show that Pacific Northwest and parts of the Southeastern US should see warmer than seasonal temperatures through May 16.  In between, normal to cooler than average weather patterns should dominate most regions from West Texas into New England. 

That’s all for this Monday edition of GasNewsOnline.com.  We’ll return Thursday to provide 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 PodcastsSubscribe today – it’s FREE! 

Thursday, May 2, 2019

Welcome to GasNewsOnline.com!  We always review the country’s interstate natural gas pipeline companies for their most recent critical postings and bring you information about changes in pipeline operating conditions. 

Plus, we will update you on the latest publicly released news from major energy companies and, with golf weather covering most of the country, provide the extended temperature forecast for the next few weeks from the National Weather Service, too.  

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According to the US Energy Information Administration, working gas in storage was 1.462 Tcf as of Friday, April 26, 2019. This represents a net increase of 123 Bcf from the previous week.

Natural gas in storage is now 316 Bcf (approximately 18%) below the five-year average.

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NRG Energy, Inc. expects to return to service its inactive 385 MW Gregory natural gas plant in Corpus Christi, Texas. The Gregory plant ceased operations in late 2016 when its cogeneration partner, Sherwin Alumina, filed for bankruptcy and discontinued operations. Following resolution of certain issues resulting from the Sherwin Alumina bankruptcy, the Gregory plant is expected to return to service as a combined cycle facility in early June 2019.

“I am pleased to announce the return to service of this highly efficient natural gas plant,” said Mauricio Gutierrez, President and CEO of NRG. “The Public Utility Commission of Texas’ recent actions to further strengthen the ERCOT market reinforced our decision to return Gregory to service ahead of summer, providing additional reliability to our customers and Texas’ growing economy.”

At full power, the Gregory plant can meet the needs of approximately 77,000 homes on the hottest days of the year.

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Despite warmer weather across much of the United States, there are still several critical postings coming from the electronic bulletin boards of the major interstate natural gas pipeline transporters. Let’s review the latest news:

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, May 2, 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 that exceeds the greater of 4,000 Dth or 104% of scheduled delivery quantities. 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.

This OFO will remain in effect until further notice.

ANR Pipeline:

Bridgman Northbound Capacity Reduction (Updated 05/01/19)

ANR will continue planned pipeline and compressor maintenance along its Michigan Leg North Segment located in the Northern Fuel Segment (Zone 7). This will reduce the total Bridgman Northbound (Loc ID #226632) capacity by the following:

Bridgman Northbound (LOC #226632):

375-MMcf/d – (leaving 1,226 – MMcf/d available) 5/1 – 5/3
65-MMcf/d – (leaving 1,536 – MMcf/d available) 5/4 – 5/6
375-MMcf/d – (leaving 1,226 – MMcf/d available) 5/7 – 5/20
40-MMcf/d – (leaving 1,561 – MMcf/d available) 5/21 – 6/2
325-MMcf/d – (leaving 1,276 – MMcf/d available) 6/3 – 8/12

Since the last posting, the end date of the first maintenance period has been extended from 5/2 to 5/3, and each subsequent outage period has been adjusted accordingly.

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

Colorado Interstate Gas (CIG):

Effective May 5, 2019, Colorado Interstate Gas Company, L.L.C. (CIG) is removing the limitation on Transportation Service (NNT) requests for NNT authorized withdrawals declared in Notice Number 118466.

No limit is currently placed on requests for NNT authorized injections or withdrawals. 

Dominion Energy Transmission:

Due to integrity issues affecting LN-24 and LN-541 (Notice ID 213991), effective ID1 cycle for gas day May 2, 2019, Dominion Energy Transmission, Inc (DETI) will not accept any increases in Secondary or IT transport for delivery to the following meters:

Location Names: 20600 ROCHESTER GAS AND ELECTRIC; 20900 NATIONAL FUEL; 30005 SITHE ENERGIES (LOWER LEROY-SENECA); 23600 FILLMORE

Effective gas day May 3, 2019 the above meters will be limited to Primary Only deliveries until further notice. 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.

Gulf South Pipeline:

Hall Summit Expansion Compressor Station Maintenance: 

Begins:  May 19, 2019            Ends:  May 27, 2019

Expansion Receipts Upstream Vixen Scheduling Group – Capacity could be impacted by up to 300,000 dth/d for the duration of the maintenance.  Please contact your customer service representative if you have any questions.

Natural Gas Pipeline Company of America (NGPL):

Natural has experienced horsepower issues at Compressor Station 167 (CS 167), located in Lea County, New Mexico that require Natural to shut-in CS 167 for the duration of this restriction.  This is a Force Majeure event that will limit Natural’s throughput capacity from receipts south of CS 167 and just north of CS 167 (from LOC 908135 Targa Saunders Plt). 

The scheduling constraint will be north of CS 167; therefore, any gas received south of CS 167 from either Segment 7 or Segment 9 receipt points for delivery north of CS 167 will be impacted for the duration of the restriction.  Additionally, transports associated with storage injections will be impacted.  The Permian Pool (LOC 25077) is located south of the constraint. 

As such, effective for gas day Thursday, May 2, 2019, Intraday 1 Cycle, and continuing until further notice, Natural will schedule Primary Firm and Secondary in-path Firm transports to no less than 74% of contract MDQ through CS 167.  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.

Southern Natural Gas:

Based on current milder temperatures and resulting lower demand on Southern’s system, SNG is currently experiencing high line pack on the system.  SNG encourages all shippers to manage their system requirements to maintain balance between actual receipts and deliveries.  An Operational Flow Order for long imbalances could be required to help ensure system integrity as Southern’s Tariff provides that a Type 6 OFO can be implemented on four hours’ notice or less prior to the start of the gas day.

Deliveries with actual flows less than scheduled daily volumes are subject to reductions of nominations to demonstrated daily volumes.  Receipts should not exceed scheduled daily volumes.

We request that all Shippers/Poolers monitor the balance between actual receipts and deliveries to ensure that a daily out-of-balance situation does not occur.  Additionally, SNG requests all payback be nominated. 

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The latest six-to-ten day temperature forecast from the National Weather Service for May 8 – 12 reveals that warmer than average May temperatures will be seen along both the East and West coasts of the US.  For the midsection of the country, though, cooler than average temperatures will prevail from Texas northward into the Northern Plains during the second week of the month.

Thanks for joining us at GasNewsOnline.com.  We’ll be back on Monday to bring you the publicly sourced natural gas pipeline and energy news for you along with an updated weather outlook for the coming week. 

Please tell a friend in the natural gas scheduling and transportation business about us!    You may also listen to every show via Apple Podcasts. It’s free – try it today!

Monday, April 29, 2019

Welcome to GasNewsOnline.com!  With the month of May nearly upon us, warmer temperatures across much of the country are starting to cause the air conditioners to come online again and, with it, more electric generation utilizing natural gas for the summer season.

Today, we’ll take a look at the latest energy news, scan the interstate natural gas pipeline grid, and bring you the updated six-to-ten day temperature forecast from the National Weather Service

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From the US Energy Information Administration’s “Natural Gas Weekly Updatepublication, net injections into working gas totaled 92 Bcf for the week ending April 19. Working natural gas stocks are 1.339 Tcf, which is 22% lower than the five-year (2014–18) average for this week.

The NYMEX natural gas futures price beginning June, 2019 added two cents on Monday to finish the day a little more than $2.59/MMBtu.  The 12-month price strip from June, 2019 to May, 2020 is now $2.73/MMBtu.

The natural gas plant liquids composite price at Mont Belvieu, Texas, fell by 3¢/MMBtu, averaging $6.12/MMBtu for the week ending April 24. The price of propane fell by 3%. The price of natural gasoline and ethane rose by 2% and 1%, respectively. The price of butane and isobutane remained flat week over week.

According to Baker Hughes, for the week ending Tuesday, April 16, the natural gas rig count decreased by 2 to 187. The number of oil-directed rigs fell by 8 to 825. The total rig count decreased by 10, and it now stands at 1,012.

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Anadarko Petroleum Corporation today announced that it intends to resume negotiations with Occidental Petroleum Corporation in response to Occidental’s proposal to acquire Anadarko, which was announced by Occidental on April 24, 2019 (the “Occidental Proposal”). As disclosed previously, Anadarko entered into a definitive merger agreement with Chevron Corporation on April 11, 2019 (the “Chevron Merger Agreement”).

Anadarko is resuming its earlier negotiations with Occidental because Anadarko’s board of directors, following consultation with its financial and legal advisors, has unanimously determined that the Occidental Proposal could reasonably be expected to result in a “Superior Proposal” as defined in the Chevron Merger Agreement. The Occidental Proposal reflects significant improvement with respect to indicative value, terms and conditions, and closing certainty as compared to any previous proposal Occidental made to Anadarko.

Under the Occidental Proposal, Occidental would acquire Anadarko in a transaction with consideration comprised of $38.00 in cash and 0.6094 of a share of Occidental common stock per share of Anadarko common stock. 

Under the Chevron Merger Agreement, Chevron would acquire Anadarko in a transaction with consideration comprised of $16.25 in cash and 0.3869 of a share of Chevron common stock per share of Anadarko common stock.

The Anadarko board’s determination allows Anadarko to resume negotiations with Occidental in accordance with the Chevron Merger Agreement. The Chevron Merger Agreement remains in effect and accordingly the Anadarko board reaffirms its existing recommendation of the transaction with Chevron at this time.

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American Midstream Partners, LP announced Friday that Lynn Bourdon III, Chairman, President and Chief Executive Officer of American Midstream GP, LLC, the (“General Partner”) of American Midstream Partners, LP, notified the Partnership of his decision to resign effective May 3, 2019.

Jake Erhard, Partner at ArcLight Capital Partners stated, “On behalf of ArcLight and the entire Board of the General Partner, I would like to thank Lynn for his leadership and numerous contributions to the Partnership during a difficult environment over the past four years.  It has been a pleasure to work with Lynn and gain from his industry knowledge and management expertise.  As the Partnership transitions to private operatorship, we understand Lynn’s desire to move on and wish him success in his future endeavors.”

Lynn Bourdon III stated, “With the impending transformation of AMID, I believe the timing is right for me to step aside and let ArcLight manage the company in a private setting.  The past few years have been challenging for small capitalization MLPs, and the exceptional support ArcLight provided has been critical to the Partnership’s successes during this time.  I am grateful to have been involved in AMID’s significant accomplishments and believe the management team, along with the men and women delivering exceptional service to AMID’s customers, will continue to drive the Partnership’s progress in achieving its goals.”

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Oklahoma City-based producer, Roan Resources, Inc. today announced that it has received multiple unsolicited indications of interest to purchase the Company. In addition, the Company has also received indications of interest for in-basin consolidation opportunities. In response to the unsolicited indications of interests, the Company has formed a transactional working committee (the “Committee”) of its Board to evaluate a potential sale or merger of the Company.

The Committee is considering all potential merger and acquisition opportunities to assist the Board in maximizing shareholder value and will act in the best interest of all its shareholders. In order to assist the Committee in evaluating any potential sale or merger of the Company, it will mandate an investment bank in the near future.

Joseph A. Mills, Roan’s Executive Chairman of the Board stated, “We are focused on executing and delivering on our strategic objectives in the near and medium term. We will consider all potential consolidation opportunities as well as the inbound expressions of interest to purchase the Company. We believe consolidation in the core of the basin through a sale or merger combination could be value enhancing on many levels and could provide a more expeditious path to maximizing long term shareholder value.”

There can be no assurance that such evaluation will result in one or more transactions or other strategic change or outcome. The Company has not set a timetable for the conclusion of its evaluation of strategic alternatives, and it does not intend to comment further unless and until the Board has approved a specific course of action or the Company has otherwise determined that further disclosure is appropriate or required by law.

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As the seasonal transition into warmer temperatures and, along with it, natural gas pipeline maintenance projects, let’s take a look at the latest critical postings from the interstate natural gas pipeline grid:

ANR Pipeline:

Southwest Mainline Capacity Reduction – planned maintenance at the Havensville compressor station.

The total SWML Northbound (LOC#226630) capacity will be reduced by the following:

90-MMcf/d (leaving 600-MMcf/d available) 4/29 – 5/2

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.

El Paso Natural Gas:

The Force Majeure event that was declared on April 17, 2019 for the Cimarron Compressor Station (Unit 1) has been resolved.  The available capacity through the Cimarron constraint will be increased to 592,000 dekatherms (Dth) per day effective Intraday 1 (Cycle 3) for April 29, 2019.

Gulf South Pipeline:

N. Houston (Texas) Compressor Station Maintenance:  Begins: 4/29/19       Ends:  6/10/19

West 30″ North from Clarence Scheduling Group – Capacity could be impacted by up to 100,000 dth/d for the duration of the maintenance.  Please contact your customer service representative for questions.

Southern Natural Gas:

Southern is conducting unscheduled maintenance at our Bear Creek facility (North Louisiana) on a dehydration unit through 5-24-19.  Withdrawal will be limited to 600 Mdth/d.  We do not anticipate an operational impact to customers at this time.

Tennessee Gas Pipeline:

Tennessee Gas Pipeline Company, LLC (“Tennessee”) will be hosting a WebEx meeting to provide customers and other interested parties an overview of Tennessee’s upcoming Summer Scheduled Maintenance for the months of June, July and August 2019 on Tuesday, May 14, 2019, from 1:30 PM  CCT to 2:30 PM CCT via WebEx only.  There will be a question and answer segment immediately following.

For further information, please check the Tennessee Gas Pipeline EBB for the posting of April 29, 2019.

Transcontinental Gas Pipe Line Company (Transco):

Transco is conducting unplanned maintenance on the Southwest Louisiana Lateral in association with Job #23 on the Transco 2019 Planned Outage and Maintenance Summary.  Currently the following locations are unable to flow.  Beginning May 1, 2019, Transco will not be confirming nominations at these locations:

Vinton – FGT             Loc. #:  1006304         Meter 4381      Delivery

Vinton – Starks           Loc. #:  1006349         Meter 4374      Delivery

Also on Transco: 

The Operational Flow Order – Imbalance (OFO) currently in effect on the Transco system in Zones 4, 5, & 6 has been terminated effective with the start of gas day Monday, April 29, 2019 at 9:00 AM CDT.

Circumstances leading to the issuance of the OFO are expected to improve; however, Transco has limited flexibility to manage imbalances and strongly encourages all shippers to manage their system requirements to ensure a concurrent balance of receipts and deliveries daily.

Vector Pipeline:

Nominations into the new delivery point with Michigan Gas Utilities (MGU) at the Marshall, Michigan Interconnection (located at Mile Post 186.5) will be available beginning Gas Day May 1, 2019.

For questions concerning this notice, or pricing of any transportation services to this point, please contact Matt Malinowski (734-462-0236) or Dennis Scheibe (734-462-7622).

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The latest six-to-ten day temperature forecast from the National Weather Service shows that areas east of the Mississippi River will have a warmer-than-average beginning to the month of May.  Meanwhile, the northern plains and Rockies regions may see below seasonal temperatures into the second week of May. 

That’s all for this Monday edition of GasNewsOnline.com.  We’ll return Thursday to provide 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 PodcastsSubscribe today – it’s FREE! 

Thursday, April 25, 2019

Welcome to GasNewsOnline.com!  We always review the country’s largest interstate natural gas pipeline companies for their most recent critical postings and bring you information about changes in gas pipeline operating conditions. 

Plus, we will update you on the latest publicly released news from major energy companies and provide the extended temperature forecast for the next few weeks from the National Weather Service, too.  

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From the US Energy Information Administration, working natural gas in storage increased by 92 Bcf for the period ending Friday, April 19.   Natural gas volumes in storage are 369 Bcf or 22% below the five-year average for the same week. 

On the New York Mercantile Exchange, the May, 2019 natural gas futures price climbed nearly five cents on Thursday to close at nearly $2.51/MMBtu.

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Will there be a bidding war for Anadarko Petroleum?   After last week’s bid by Chevron to acquire Anadarko, Occidental Petroleum Corporation submitted a competing bid for the company on Tuesday.

Occidental delivered a letter to the Anadarko Board of Directors setting forth the terms of a superior proposal by Oxy to acquire Anadarko for $76.00 per share, in which Anadarko shareholders would receive $38.00 in cash and 0.6094 shares of Occidental common stock for each share of Anadarko common stock. The Occidental proposal represents a premium of approximately 20% to the value of Anadarko’s pending transaction from Chevron.

Occidental believes its proposal is superior both financially and strategically for Anadarko’s shareholders, creating a global energy leader with the scale and geographic diversification to drive growth and deliver compelling value and returns to the shareholders of both companies. The combined company will be uniquely positioned to leverage Occidental’s demonstrated operational and technical expertise, producing greater anticipated synergies than Anadarko’s pending transaction. The 50-50 cash and stock transaction is valued at $57 billion, based on Occidental’s closing price on April 23, 2019, including the assumption of net debt and book value of non-controlling interest.

“Occidental is a leader in using technological innovation to create value, and we will deploy our expertise to enhance the performance and productivity of Anadarko’s assets not only in the Permian, but globally,” said Vicki Hollub, Oxy’s President and Chief Executive Officer said, “Occidental and Anadarko have a highly complementary asset portfolio, providing us with a unique opportunity to realize significant operating, cost, and capital allocation synergies and achieve near-term cash flow accretion.”

Vicki Hollub continued, “We have been focused on Anadarko for several years because we have long believed that we are ideally positioned to generate compelling value from a combination with them. We look forward to engaging immediately with Anadarko’s Board and stakeholders to deliver this superior transaction.”

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Murphy Oil Corporation announced Tuesday that its wholly owned subsidiary, Murphy Exploration & Production Company – USA (“Murphy”), has entered into a definitive agreement to acquire deep water Gulf of Mexico assets from LLOG Exploration Offshore, L.L.C. and LLOG Bluewater Holdings, L.L.C.. The accretive, cash flow providing Gulf of Mexico assets currently produce approximately 38,000 barrels of oil equivalent per day net (Boepd) and are expected to add approximately 66 million barrels of oil equivalent net (Mmboe) of Proven (1P) reserves and 122 Mmboe of Proven and Probable (2P) reserves1.

Murphy will pay a cash consideration of $1.375 billion. Additional contingent consideration payments are based on the following: up to $200 million in the event that revenue from certain properties exceeds certain contractual thresholds between 2019 and 2022; and $50 million following first oil from certain development projects. The transaction will have an effective date of January 1, 2019 and is expected to close in the second quarter, subject to normal closing adjustments.

The acquisition will be funded by a combination of cash on hand and availability under the company’s $1.6 billion revolving credit facility. Total outstanding borrowings under the revolving credit facility, including the current balance of $325 million, are expected to be fully repaid immediately following the closing of the previously announced $2.127 billion divestiture of Murphy’s Malaysian assets.

“This immediately accretive transaction continues to strengthen our Gulf of Mexico portfolio by adding quality assets at a very attractive price. We expect these newly acquired assets to generate meaningful cash flow over the next several years that will provide us with additional flexibility for future capital allocation,” stated Roger W. Jenkins, President and Chief Executive Officer.

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There are several changes in the major interstate natural gas pipeline companies’ operating conditions to be aware of heading into the weekend. Let’s take a look:

ANR Pipeline:

ANR will begin planned pipeline and compressor maintenance along its Michigan Leg North Segment located in the Northern Fuel Segment (Zone 7). This will reduce the total Bridgman Northbound (Loc ID #226632) capacity by the following:

Bridgman Northbound (LOC #226632):

65-MMcf/d – (leaving 1,536 – MMcf/d available) 5/2 – 5/7
40-MMcf/d – (leaving 1,561 – MMcf/d available) 5/9 – 6/9
325-MMcf/d – (leaving 1,276 – MMcf/d available) 6/10 – 8/12

Based on current nominations through Bridgman Northbound, it is anticipated that this posting may result in the capacity allocation reduction of IT and Firm Secondary.

Also on ANR:

Willow Run Capacity Reduction (Updated 4/25/19)

ANR will continue planned pipeline maintenance between its Defiance Compressor Station and Willow Run Meter Station located in the Northern Area (Zone 7), which will result in the following capacity reduction:

Wilow Run Delivery (DRN #42078)

80-MMcf/d (leaving 777-MMcf/d available) 4/25
172-MMcf/d (leaving 685-MMcf/d available) 4/26 – 5/2
167-MMcf/d (leaving 690-MMcf/d available) 5/3 -5/11

Based on current nominations, it is anticipated that the above reductions may impact interruptible and firm secondary services.

Columbia Gas Transmission:

Columbia Gas Transmission, LLC (TCO) reminds customers of upcoming pigging on Line LEX (LXP) that will impact scheduled volumes for certain hours in the gas day between Lone Oak Compressor Station and Summerfield Compressor Station (May 1, 3) and between Summerfield Compressor Station and Rockbridge Regulator Station (May 4, 6).  

TCO is working with operators for hourly operational assistance during the pigging. As a result of this work, the following impact is anticipated at this time: 

Gas Day May 1: 

743093 – Stagecoach-LXP – 55,000 Total Capacity

743103 – Eureka – 200,000 Total Capacity

LONEOAKA – Lone Oak A MA41 – 100,000 Total Capacity

LONEOAKB – Lone Oak B MA41 – 565,000 Total Capacity

Gas Day May 3: 

743093 – Stagecoach-LXP – 55,000 Total Capacity

743103 – Eureka – 200,000 Total Capacity

LONEOAKA – Lone Oak A MA41 – 125,000 Total Capacity

LONEOAKB – Lone Oak B MA41 – 690,000 Total Capacity

Gas Day May 4: 

LXPSEG – LXPSEG MA41 – 550,000 Total Capacity

Gas Day May 6: 

LXPSEG – LXPSEG MA41 – 750,000 Total Capacity

Dominion Energy Transmission:

Dominion Energy Transmission, Inc. (DETI)’s Cornwell Station (West Virginia) will be out of service for planned maintenance from Friday, April 26, 2019 to Friday, May 3, 2019.

During this outage, all production flowing on the Dominion Gathering and Processing (DGP) system to the DETI facilities listed below, must be shut in. DETI will make another posting when production can be turned back in line.

The facility shut in dates and requirements are as follows:

All gathering wet system production flowing to Cornwell Station 7 and 8 will need to be shut in by 7:00 am EDT on Friday, April 26. Direct Taps on TL-585 will need to be shut in by 7:00 a.m. EDT on Monday, April 29. DGP Production Bubbles to be shut in: 2206, 2303, 2304, 2305, and 9912. Producers in bubbles 2301, 2306 and 9913 that can physically flow off system via H-18155 can do so. This includes production behind Oscar Nelson Station, Searls Station, Shadd Station, Panther Station, Oozley Station, and Hardman Station.

DETI will make another posting if allocations become necessary. Delivery nominations during this period from 10, 12 and 13 will be kept whole by DETI. Delivery nominations during this period from EB005, EB045, EB145, EB335, EB460, EB620 and EB635 will be kept whole by DETI. Please monitor these postings for further updates.

El Paso Natural Gas:

El Paso Natural Gas is pleased to announce the new Graphical Pipe screen in the iDART system.  This new screen will enable shippers to view nominations, priorities, and entitlements based on segment for a given gas day and cycle. The new Graphical Pipe screen is located in the Scheduled Quantity folder under the Nominations folder in the iDART system. 

Please contact the scheduling hotline at 1-800-238-3764 Option 1 if you have any questions about this new screen.

Enable Gas Transmission:

This Operational Alert is being issued pursuant to Section 20, GT&C of EGT s Tariff to notify all parties of planned maintenance on EGT s Line BT-1 in the North Pooling Area beginning April 27, 2019, with an expected completion date of May 13th, 2019.

During this maintenance, a series of integrity digs will be conducted along EGT s Line BT-1. Be advised, there is no capacity impact associated with the integrity digs, but should a determination be made that a repair is necessary, there could be a capacity reduction associated with the repair.  Depending upon the nature of any required repair, the announcement of a capacity reduction could come at short notice.

This alert will remain in effect until further notice and will be updated as more information becomes available.

Gas Transmission Northwest (GTN):

Effective Gas Day April 26th at the Timely Nomination Cycle, GTN is lifting the Force Majeure related to the repairs at the Ione Compressor Station 9 (Oregon).

The operationally available capacity for the Flow Past Kingsgate location has been increased to 2126-MMcf/d.

The operationally available capacity for the Flow Past Station 8 Location is 1865-MMcf/d.

As a reminder to customers, planned maintenance at Compressor Station 8 continues until May 10th. 

Natural Gas Pipeline Company of America (NGPL):

SEGMENT 11 – SOUTH OF STA 106 – AT OPERATING CAPACITY 

Effective for gas day Friday, April 26, 2019, and continuing until further notice, Natural is at operating capacity for northbound flow through Compressor Station 106 located in Gage County, Nebraska (Segment 11 of Natural’s Midcontinent Zone).  AOR/ITS and Secondary out-of-path Firm transports are at risk of not being fully scheduled.

Also from NGPL:

SEGMENT 13 – STA 107– AT OPERATING CAPACITY

Effective for gas day Friday, April 26, 2019, and continuing until further notice, Natural is at operating capacity for northbound flow through Compressor Station 107 located in Mills County, Iowa (Segment 13 of Natural’s Amarillo Mainline Zone).  AOR/ITS and Secondary out-of-path Firm transports are at risk of not being fully scheduled. 

Rockies Express Pipeline (REX):

CHANDLERSVILLECOMPRESSOR STATION MAINTENANCE

On Gas Day Wednesday, May 1, 2019 through Gas Day Friday, May 3, 2019, REX will be performing maintenance at its Chandlersville (Ohio) Compressor Station. Operating capacity will be limited to 2.935 Bcf/d through pipeline Segment 380. At this capacity level, primary and secondary firm quantities, as well as ITS/AOR are at risk of not being scheduled.

TransColorado Gas Transmission:

The Force Majeure (FMJ) declared at Blanco Hub Compressor Station, Segment 310, in notice #118680 has been lifted. 

TransColorado Gas Transmission Company, L.L.C. (TC) has repaired the compressor station and, as such, is lifting the Force Majeure that was in effect. The capacity will return to 250,000 Dth effective Gas Day April 25, Cycle 4 (Intraday 2) and Gas Day April 26, Cycle 1 (Timely).

Transcontinental Gas Pipe Line Company (Transco):

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:        Saturday, April 27, 2019

Ends:               Until Further Notice

Transactions:  Deliveries

Type:               Due to Shipper

OFO Area(s):  Zones 4, 5, and 6

Tolerance:        10% (or 1000 dth, whichever is greater)

This OFO is directed to shippers consistent with Section 52 of Transco’s FERC Gas Tariff General Terms and Conditions with a minimum of $50 per dth per day penalty.  This OFO will continue until further notice.  Buyers with imbalances greater than allowed tolerance will be subject to penalties specified in Section 52 of Transco’s FERC Gas Tariff General Terms and Conditions.

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The National Weather Service six-to-ten day forecast for the first few days of May is showing some cooler weather on the way for the northern plains states as well as New England.  Otherwise, May will be ushered in with average temperatures across much of the nation.  In the South, though, temperatures may be slightly above average for the first week of the new month.

Thanks for joining us at GasNewsOnline.com.  We’ll be back on Monday to bring you the publicly sourced natural gas pipeline and energy news for you along with an updated weather outlook for the coming week. 

Please tell a friend in the natural gas scheduling and transportation business about us. Have a great weekend!  

Monday, April 22, 2019

Happy Earth Day from GasNewsOnline.com!

April temperatures are starting to rise around the country as the annual springtime warm-up is underway.  Today, we’ll take a look at the latest energy news, scan the interstate natural gas pipeline grid, and bring you an update on the six-to-ten day temperature forecast from the National Weather Service

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

Net natural gas injections into storage totaled 92 billion cubic feet (Bcf) for the week ending April 12. Working natural gas stocks are 1.247 Tcf, 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, rose by 21¢/MMBtu, averaging $6.15/MMBtu for the week ending April 17. The price of ethane, propane, butane, isobutane, and natural gasoline all rose, by 7%, 4%, 2%, 2% and 1%, respectively.

According to Baker Hughes, for the week ending Tuesday, April 9, the natural gas rig count decreased by 5 to 189. The number of oil-directed rigs rose by 2 to 833. The total rig count decreased by 3, and it now stands at 1,022.

At the New York Mercantile Exchange (Nymex), the price of the May 2019 contract increased by a few cents on Monday to about $2.53/MMBtu. The price of the 12-month strip averaging May 2019 through April 2020 futures contracts is now about $2.75/MMBtu.

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ExxonMobil said today that it signed a sales and purchase agreement with Zhejiang Provincial Energy Group for liquefied natural gas (LNG) supply. Under the agreement, Zhejiang Energy is expected to receive 1 million metric tons per annum of LNG over 20 years as Zhejiang Energy will build a Wenzhou LNG receiving terminal.

“This sales and purchase agreement represents an important milestone and provides a solid foundation for our strategic partnership with Zhejiang Provincial Energy Group,” said Peter Clarke, senior vice president of LNG at ExxonMobil.

“ExxonMobil shares Zhejiang Energy’s vision in developing a major LNG gateway in the Ningbo-Zhoushan region,” Clarke said. “We look forward to continuing our support for Zhejiang Energy during the construction, commissioning and operation of its Wenzhou LNG receiving terminal.”

With a long-term commitment to China, ExxonMobil expects to help meet China’s energy needs through its products, technologies, partnerships and investments.

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American Electric Power today announced that its competitive renewable energy subsidiary, AEP Clean Energy Resources, has completed the purchase of Sempra Renewables LLC and its 724 megawatts (MW) of operating wind generation and battery assets for approximately $1.05 billion. AEP will pay Sempra $584 million in cash, which includes $33 million in working capital, and assume $470 million in existing project debt and tax equity obligations, subject to adjustments.

The purchase includes all or part of seven wind farms and one battery installation in seven states. Five of the wind farms are jointly owned with BP Wind Energy. BP Wind Energy will retain its ownership share of those projects.

The seven operating wind farms have an average capacity factor of 37 percent. They are located in Colorado, Hawaii, Indiana, Kansas, Michigan, Minnesota and Pennsylvania. They all have long-term, power purchase agreements (PPAs) for 100 percent of the energy produced with investment-grade investor-owned utilities, municipal utilities and electric cooperatives. The project PPAs have an average remaining life of 16 years. AEP operating units AEP Ohio, Indiana Michigan Power and Southwestern Electric Power Company have Power Purchase Agreements with two of the wind farms.

AEP Renewables also recently signed a separate agreement to purchase a 75 percent interest (227 MW) in the Santa Rita East Wind Project currently under construction west of San Angelo, Texas. AEP Renewables will acquire its share of the project upon completion, which is expected in June.

With this acquisition, AEP’s competitive renewable generation portfolio has grown to 1,075 MW of renewable generation in 11 states. It will increase to 1,302 megawatts upon completion of the Santa Rita project.

AEP plans to cut its carbon dioxide emissions 80 percent from 2000 emission levels by 2050. The company is developing a more balanced portfolio of power generation to help achieve this target. AEP’s generation capacity has gone from 70 percent coal-fueled in 2005 to 46 percent today. Its natural gas capacity increased from 19 percent in 2005 to 27 percent today, and its renewable generation capacity has increased from 4 percent in 2005 to 16 percent today. AEP’s nuclear generation capacity has increased from 6 percent in 2005 to 7 percent today.

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Late last week, Southern Power, a wholesale energy provider and subsidiary of Southern Company, announced that it has entered into an agreement to sell the Nacogdoches Generating Facility to Austin Energy for $460 million.

Southern Power began commercial operation of the Nacogdoches Generating Facility (located about 30 miles NW of Nacogdoches, Texas) in 2012. The 115-megawatt (MW) plant serves electricity needs in Austin, Texas under a long-term power purchase agreement with Austin Energy.  

“The Nacogdoches Generating Facility is one of the largest wood-fired biomass plants in the United States and has been a part of Southern Power’s generation fleet since 2012, demonstrating strong operating performance,” said Southern Power President and CEO, Mark Lantrip.

The $460 million purchase price is subject to customary closing adjustments. The transaction is expected to close in mid-2019, subject to customary closing conditions. Proceeds will be used to strengthen the balance sheet of Southern Company, help meet projected equity needs and further de-risk financing plans.

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After a busy Easter weekend of natural gas pipeline critical notices, there were noticably fewer postings on the pipeline grid to begin the week on Monday.

Dominion Energy Transmission:

Reminder: Limited Daily and Hourly Flexibility:

Due to forecasted temperatures and customer requirements, DETI has determined that daily and hourly flexibility is very limited. Excess takes – daily and hourly – may cause reduced pressures in various areas of the DETI system and jeopardize DETI’s ability to meet its firm service obligations.

Effective immediately, and until further notice, DETI hereby issues a reminder of the prior Alert (prior notice ID 213177) to request the following:

Buyers under DETI’s transportation rate schedules are requested to the extent possible to deliver to DETI and receive natural gas on a uniform hourly flow basis during the day (or 1/24th of the scheduled confirmed nominations for the applicable day or other pre-authorized hourly flow rates accepted by DETI). Any such requests shall be directed to your Interstate Marketing Manager.

In addition, Power Plant Operators are reminded that they must continue to provide information mandated by FERC Order No. 698, which includes the hourly consumption profile of power generation facilities served by DETI. DETI will continue to review and approve the Order No. 698 burn profiles pursuant to the procedures distributed to each agent/power generator and posted on DETI’s EBB. DETI will consider requests for hourly low flexibility on a not unduly discriminatory basis, subject to the projected availability of operational capability and provided further, that the additional flexibility will not impair Operator’s ability to render other nominated and scheduled firm services. Power Generators should direct their requests to the DETI Power Desk. Failure to comply with this Alert could result in the issuance of an OFO.

Southern Natural Gas:

Southern has experienced an unscheduled unit outage at the Muldon compressor station (Mississippi). As a result of this outage, Muldon storage injection capacity of 345 Mdth/d will be limited to 230 Mdth/d.  Return to service is unknown at this time.

We will continue to provide updates as more information is known.

Texas Gas Transmission:

Planned Maintenance – Harrison (Ohio) compressor station

Begins:  June 11, 2019            Ends: June 14, 2019

Texas Gas will be performing turbine inspection maintenance at the Harrison Compressor Station (Ohio). Capacity will be limited to 525,000 MMBtu south through the station for the duration of the maintenance.

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

TransColorado Gas Transmission:

Force Majeure Declared at Blanco Hub Compressor Station – Segment 310

TransColorado Gas Transmission Company, LLC (TC) has experienced a mechanical failure at its Blanco Hub Compressor Station that is affecting TD2 (North Bound) flow.  As such, TC is declaring an event of Force Majeure pursuant to TC’s FERC Gas Tariff, General Terms and Conditions, Section 14.

Effective Timely Cycle (Cycle 1), Gas Day Tuesday, April 23rd, 2019, capacity at Blanco Hub Compressor Station will be reduced from 250,000 Dth/day to 150,000 Dth/day in a backhaul direction (South to North).  This reduction will be in effect until further notice.

For scheduling questions, please contact the Nominations and Scheduling hotline at 1-800-238-3764 option 2.

Transcontinental Gas Pipe Line Company (Transco):

The Operational Flow Order – Imbalance (OFO) currently in effect on the Transco system in Zones 4, 5, & 6 was terminated effective with the start of gas day Monday, April 22, 2019 at 9:00 AM CDT.

Circumstances leading to the issuance of the OFO are expected to improve; however, Transco has limited flexibility to manage imbalances and strongly encourages all shippers to manage their system requirements to ensure a concurrent balance of receipts and deliveries daily.

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The six-to-ten day temperature forecast from the National Weather Service is showing that the northern tier of states along the entire I-80 and I-90 corridors east to west will see cooler than average temperatures in early May.  Meanwhile, expectations are that warmer than seasonal temperatures can be expected across the Southeast, South Central, and desert Southwest early in May.

That’s all for this Monday edition of GasNewsOnline.com.  We’ll return Thursday to provide 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

Thursday, April 18, 2019

Welcome to a very busy Easter weekend edition of GasNewsOnline.com!  There are a host of critical notices from several of the country’s interstate natural gas pipeline companies about issues relating to changes in pipeline operating conditions. 

Plus, we’ll also update you on the latest publicly released news of the day and provide the first glimpse of May’s expected temperatures from the National Weather Service, too.  

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Working natural gas in storage was 1.247 Tcf as of Friday, April 12, 2019, according to US Energy Information Administration estimates. This represents a net increase of 92 Bcf (which was 5 Bcf greater than analyst estimates). 

Natural gas stocks were 414 Bcf (or 26%) below the five-year average for the same week. 

On the NYMEX, the May, 2019 natural gas futures price reacted to the news and was down about three cents on Thursday at approximately $2.49/MMBtu.   Natural gas prices declined to their lowest level in nearly three years due to a seasonal lull in heating and cooling demand combined with surging gas supplies. 

It is interesting to note that not a single month of today’s NYMEX natural gas futures strip (through April, 2021) showed a natural gas price above $3.00/MMBtu.

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During today’s quarterly earnings release and conference call, Kinder Morgan provided an update on a few natural gas pipeline projects currently in progress:

In the Permian area, construction continues on the Gulf Coast Express Pipeline (GCX) project. The remaining 40 miles of the 36-inch Midland lateral was placed in service at the beginning of April 2019. Construction is progressing well on the 42-inch mainline and compressor stations associated with the project, which remains on schedule for a full in-service date of October 2019.

The approximately $1.75 billion project is designed to transport about 2.0 Bcf/d of natural gas from the Permian Basin to the Agua Dulce, Texas area, and is fully subscribed under long-term, binding agreements.

Progress also continues on the Permian Highway Pipeline (PHP) project . The civil and environmental surveys are substantially complete, and the land acquisition process is underway.

The approximately $2 billion PHP Project is designed to transport up to 2.1 Bcf/d of natural gas through approximately 430 miles of 42-inch pipeline from the Waha, Texas area to the U.S. Gulf Coast and Mexico markets and is expected to be in service in October 2020, pending regulatory approvals.

On the East Coast, the first of ten liquefaction units of the nearly $2 billion Elba Liquefaction Project is expected to be placed in service by approximately May 1, 2019. The remaining nine units are expected to be placed in service sequentially, one per month thereafter.

The federally approved project at the existing Southern LNG Company facility at Elba Island near Savannah, Georgia, will have a total liquefaction capacity of approximately 2.5 million tonnes per year of LNG, equivalent to approximately 350 million cubic feet per day of natural gas.

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In summary, many interstate natural gas pipelines have posted critical notices to shippers requiring that they do not create pipeline imbalances caused by lack of market demand during the upcoming Easter holiday weekend.  Let’s review… 

Algonquin Gas Transmission:

Algonquin Gas Transmission (AGT) has limited operational flexibility to manage imbalances. Effective 9:00 AM CCT, Friday, April 19, 2019, AGT requires all delivery point operators keep actual daily takes out of the system equal to or greater than scheduled quantities regardless of their cumulative imbalance position unless otherwise coordinated with your operations account representative.

All receipt point operators are required to keep actual daily receipts into the system equal to or less than scheduled quantities regardless of their cumulative imbalance position unless otherwise coordinated with your operations account representative.

ANR Pipeline:

Southwest Mainline Capacity Reduction (Posted 4/18/19)

ANR will begin planned maintenance at the Havensville compressor station between April 29 and May 2.  The total SWML Northbound (LOC#226630) capacity will be reduced by the following:

90-MMcf/d (leaving 600-MMcf/d available) 4/29 – 5/2

Based on current nominations through the SWML, it is anticipated that this posting will result in the capacity allocation reduction of IT and Firm Secondary volumes.

Also from ANR:

SW Area Capacity Restriction (Posted 4/18/19)

From April 29th through May 4th, ANR will perform planned pipeline maintenance between its E.G. Hill and Gageby Compressor Stations in the Southwest Area (Zone 4). As a result, ANR will shut-in the Beaver-CIG (REC FR CIG) receipt point, DRN #16435.

The total E.G. Hill from Gageby (LOC #226643) capacity will be reduced by the following:

50-MMcf/d (leaving 175-MMcf/d available) 4/29 – 5/4

Based on current nominations, it is anticipated the above reductions will result in the curtailment of nominations associated with IT and Firm Catalog Receipt points in the affected area.  Also, interconnects along this segment may experience higher line pressures.

Colorado Interstate Gas (CIG):

In response to continuing and prolific natural gas production growth in the Denver-Julesburg Basin – and the mounting market need for timely transportation capacity – Colorado Interstate Gas Company, L.L.C. (CIG) is conducting a binding Open Season for additional firm capacity to be made available by approximately November 1, 2019.  The additional transportation capacity offered in this Open Season will have primary receipt rights into CIG’s 5C Line north of a proposed new interconnection (“High Five Meter Station”) with CIG’s High Plains Lateral to be constructed at approximately milepost 29, and will have primary delivery rights at the High Five Meter Station of the CIG 5C Line and the Wyoming Interstate Company, L.L.C. (“WIC”) facilities at Bowie. 

For more details, please check the CIG Electronic Bulletin Board.  The posting is dated April 18, 2019.

This binding Open Season will commence today (April 18, 2019) and is scheduled to close at 10:00 a.m. Mountain Time on May 8, 2019.  CIG intends to provide notification of capacity awards by 5:00 p.m. Mountain Time on May 9, 2019.

Questions concerning this Open Season should be directed to:  Greg Ruben (713-520-4870) or Laine Lobban (719-520-4344). 

Columbia Gas Transmission:

Columbia Gas Transmission, LLC (TCO) reminds customers of a station power outage at the Cobb Compressor Station scheduled for Saturday, April 27, 2019 through Sunday, April 28, 2019.   

Due to this maintenance, the below internal constraints will be set to Zero Total Capacity.  All production will be shut-in with the exception of a limited quantity that may be needed to serve localized markets. 

Cobb South MA18 (A03SOUTH)

Cobb Northeast MA18 (A03NORTH)

Cobb Northwest MA18 (A03LOW)

Cobb Line H (A03LINEH)

Cobb CS MA18 (COBBA03) 

East Tennessee Natural Gas:

Boyds Creek Compressor Station Outage – April 23 – 24

ETNG will be conducting a compressor station outage at its Boyds Creek Compressor Station (Boyds) on the 3300 line. During this outage, west to east capacity through Boyds will be reduced to approximately 80,000 Dth per day.

Based on historical nominations, restrictions may be required for interruptible and secondary services and potentially primary firm services.

Enable Gas Transmission:

This Operational Alert is being issued pursuant to Section 20, GT&C, of EGT’s Tariff to advise shippers system wide that they will be required to maintain actual receipts and deliveries commensurate with scheduled volumes, beginning on Friday, April 19, 2019 at 9:00 A.M. and continuing until further notice.

Due to limited storage capacity, EGT anticipates it may be unable to support imbalance positions and may reduce scheduled quantities intraday to balance actual receipts and deliveries necessary to maintain system deliverability and operational integrity.

The availability of balancing and non-ratable services will be limited.  Hourly non-ratable nominations, as well as the use of imbalance positions must be pre-approved or within the posted limits on EGT s Daily Operating Plan. EGT will continue to monitor the pipeline s pressure and imbalances and will, if necessary, take further actions, including the issuance of one or more Operational Flow Orders (OFO).

EGT will schedule receipts and deliveries in accordance with EGT s Tariff.  This Operational Alert will remain in effect until further notice and will be updated as more information becomes available.

Gas Transmission Northwest (GTN):

May 2019- GTN Fuel and Line Loss Percentage

Pursuant to Gas Transmission Northwest’s (GTN) Tariffed Fuel Adjustments Provision, for the period of May 01, 2019 through May 31, 2019, a fuel usage rate of 0.0021% per Dth/mile will be in effect.

This percentage is inclusive of GTN’s current fuel and line loss surcharge of 0.0000% per Dth per pipeline mile, which is in effect through December 31, 2019, in accordance with GTN’s approved tariff provision, “Adjustment Mechanism for Fuel, Line Loss, and Other Unaccounted For Gas.”

Gulf South Pipeline:

Index 818 I.L.I. Pig Run – Begins April 23, 2019 – Ends April 24, 2019

Expansion Area 19 (Mississippi) Delivery Scheduling Group.- Capacity could be impacted by as much as 300,000 dth/d for the duration of the maintenance.  Please contact your customer service representative if you have any questions.

Kinder Morgan Louisiana Pipeline (KMLP):

SEGMENT 140 – MLV #7 – AT OPERATING CAPACITY 

Effective for gas day Friday, April 19, 2019, Timely Cycle, and continuing until further notice, KMLP is at operating capacity for gas going southbound through Segment 140, located in Jefferson Davis Parish, Louisiana.  AOR/ITS and Secondary out-of-path Firm transports are at risk of not being fully scheduled. 

Mississippi River Transmission (MRT):

Due to the potential negative impact of significant shipper long imbalance positions on MRT storage withdrawal operations, MRT is issuing a System Protection Warning (SPW) effective 9:00 a.m. Thursday, April 18, 2019, and continuing until further notice.

During this time:

1) Shippers should avoid daily long imbalance positions

2) MRT may not schedule any nominations that result in a daily long position.

3) MRT may not accept any makeup of short positions

4) MRT may not schedule nominations that result in counter-seasonal injection.

Failure to comply with this SPW may result in the issuance of an OFO.  Nominations will be confirmed and scheduled in accordance with MRT s Tariff.

Southern Natural Gas:

Based on the current milder weather forecast and projected demand on Southern’s system for the Holiday weekend, we are implementing an OFO Type 6 for long imbalances on Southern’s contiguous pipeline system effective for the start of the gas day, Friday, April 19, 2019, and until further notice. In order to maintain the operational integrity of Southern’s system, it is essential that Shippers and Poolers remain in balance (including their available no-notice injection entitlements).

The OFO Type 6 order will subject each Shipper/Pooler to the following tiered imbalance penalties:

Daily Imbalance Penalty
(Percent of Allocated Deliveries ) ( Per Dth )

0 – 2% or < 200 dth No Penalty
> 2 – 5% $1.00
> 5 – 8% $ 5.00
> 8% $15.00

Since the projected operational conditions are affected by receipts exceeding deliveries, the penalty will apply only to each Shipper/Pooler that has a net long imbalance (i.e., the party’s total allocated receipts exceed total allocated deliveries including available no-notice storage injections).

Tennessee Gas Pipeline:

OFO DAILY CRITICAL DAY 1 FOR ALL OF ZONES L, 1, 2, 3, 4, 5 AND 6 EFFECTIVE 4-19-19 

Due to forecasted milder weather, storage fields on test and anticipated lower demand for the holiday weekend, effective for the Gas Day of Friday, April 19, 2019, and until further notice, Tennessee Gas Pipeline, L.L.C.  (“Tennessee”) is implementing an OFO Daily Critical Day 1 for all of Zones L, 1, 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 L, 1, 2, 3, 4, 5 and 6 are required to keep actual daily takes out of the system equal to or greater than scheduled quantities regardless of their cumulative imbalance position.  All receipt point operators in all of Zones L, 1, 2, 3, 4, 5 and 6 are required to keep actual daily receipts into the system equal to or less 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 over-deliveries into the system and under-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 over-deliveries by receipt point operators and under-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.

Trailblazer Pipeline Company:

TRAILBLAZER MECHANICAL ISSUE–COMPRESSOR STATION 603–UPDATE #1

Trailblazer Pipeline Company LLC (“Trailblazer”) identified a mechanical issue with one of the two compressor units at Compressor Station 603. The unit is currently unavailable and is not expected to be available until late May, 2019. 

At this time, secondary firm quantities, as well as ITS/AOR are at risk of not being scheduled. Trailblazer will post updates as additional information becomes available.  For questions, please call your Account Director or Scheduling Representative.

Transcontinental Gas Pipe Line Company (Transco):

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, April 19, 2018

Ends:               Until Further Notice

Transactions:  Deliveries

Type:               Due to Shipper

OFO Area(s):  Zones 4, 5, and 6

Tolerance:        10% (or 1000 dth, whichever is greater)

This OFO is directed to shippers consistent with Section 52 of Transco’s FERC Gas Tariff General Terms and Conditions with a minimum of $50 per dth per day penalty.  This OFO will continue until further notice.  Buyers with imbalances greater than allowed tolerance will be subject to penalties specified in Section 52 of Transco’s FERC Gas Tariff General Terms and Conditions.

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The National Weather Service has published their first glimpse at the temperature forecast from the month of May.  It shows that the East and West coast areas could see above normal temperatures next month, while the majority of the midsection of the US is predicted to have normal to slightly below seasonal temperatures during the month of May.

That’s a wrap for this Thursday edition of GasNewsOnline.com.  We’ll return on Monday to provide an update on pipeline conditions and the latest energy news. 

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Happy Easter!