Edition 19 – Thursday, November 29, 2018

Welcome back to GasNewsOnline.com!  We search for publicly released data from a variety of sources to keep you informed about the natural gas pipeline business twice every week.  FREE!

The US Energy Information Administration has provided some good news for most of the gas business in their latest release today.   Alas, Santa may be leaving a lump of coal for producers in the Permian basin of West Texas until additional gas pipeline transportation capacity arrives on the scene next year.

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From the Energy Information Administration’s “Natural Gas Weekly” dated November 29, 2018:

Net withdrawals from working gas totaled 59 billion cubic feet (Bcf) for the week ending November 23. The storage pull was less than the analyst estimate of 77 Bcf.

Working natural gas stocks are 3,054 Bcf.  That is 17% lower than the year-ago level and 19% lower than the five-year (2013–17) average for this week.

The Henry Hub, Louisiana average spot price for natural gas has seen four straight weeks of increases. During the past four report weeks, spot prices increased from $3.29/MMBtu to $4.68/MMBtu as most of country experienced generally cooler weather.

Unfortunately, discounting at the Permian Basin trading hub reached a new record low.   Prices at the Waha Hub in West Texas, which is part of the Permian Basin, averaged 46¢/MMBtu on Wednesday!  That is nearly $4/MMBtu lower than Henry Hub prices.  Yesterday’s discount is the highest price difference between the Henry Hub and Permian for the year as excessive gas supplies are trying to access extremely tight gas transportation takeaway capacity.

At the NYMEX, the December 2018 contract rose during the past report week, expiring Wednesday at $4.72/MMBtu. The January 2019 contract price settled down 6 cents on Thursday at about $4.59/MMBtu.

The EIA reported that, for the week ending Wednesday, the natural gas plant liquids composite price at Mont Belvieu, Texas, fell by 63¢/MMBtu.  The liquids price still equates to $6.54/MMBtu, though.

According to Baker Hughes, for the week ending Wednesday, November 21, the natural gas rig count remained flat at 194. The number of oil-directed rigs fell by 3 to 885. The total rig count decreased by 3, and now stands at 1,079.

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With cold weather in control of much of the country the past week, it is time to take a look at some of the latest critical information postings from the electronic bulletin boards of the interstate gas pipeline grid:

ANR Pipeline:

Southwest Mainline Capacity Reduction (Updated 11/29/18)
This posting supersedes CN ID #8972

ANR continues its planned and unplanned compressor maintenance at various compressor stations along its Southwest Mainline in Zones 5 and 6.

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

55-MMcf/d (leaving 675-MMcf/d available) 11/29 – 11/30
20-MMcf/d (leaving 710-MMcf/d available) 12/1 – 12/6
55-MMcf/d (leaving 675-MMcf/d available) 12/7 – 12/14
20-MMcf/d (leaving 710-MMcf/d available) 12/15 – 12/31

Since the last posting, ANR has made the following changes. December impacts are now posted as a result of compressor maintenance impact extensions. Future dates adjusted accordingly.

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.

 

Columbia Gulf Transmission:

In the event of FERC approval of the TRA rate change filing effective December 1, 2018, Columbia Gulf Transmission, LLC (CGT) has reflected the revised retainage fuel rates in Navigates to give customers time to align nominations between their supplies and markets.  As a reminder the proposed rates are as follows:

Mainline –  North to South     1.947%

Mainline –  South to North     0.0%

CGT will keep customers informed when approval is received.

 

Dominion Energy Transmission:

Subject: Storage/MCS/Transportation Imbalances Effective Immediately

Due to current and anticipated system conditions, customers are reminded to monitor contractual storage entitlements and take the necessary steps to manage deliveries within those firm entitlements.  Transportation customers are also advised to equalize receipts and deliveries so as to minimize imbalances on DETI’s system.

Capability for over-withdrawals, short-term loans, and park payback activity are expected to be very limited or possibly not available. They may be subject to allocation or potential penalties if warranted by an OFO, in accordance with the terms of DETI’s tariff.

  

East Tennessee Natural Gas:

East Tennessee Natural Gas, LLC (ETNG) hereby declares a Force Majeure in accordance with Section 24 of the General Terms and Conditions of its FERC Gas Tariff. The Force Majeure event is due to an unplanned outage at its Boyds Creek Compressor Station on the 3300 Line in Tennessee which occurred on November 28, 2018.

While repair efforts will commence as soon as possible, the estimated time of restoration is unclear at this time.   ETNG will post updates to the status of repairs as they are known.

 

Gulf Crossing Pipeline Company:

Subject:  Tallulah (LA) Compressor Station Maintenance

Effective:  December 1, 2018 – December 8, 2018 (9AM)

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

 

Natural Gas Pipeline Company of America (NGPL):

SEGMENT 20 – SOUTH TEXAS (CS 341) – HOT TAP INSTALLATION

On gas day Friday, November 30, 2018, and continuing through gas day Monday, December 3, 2018, Natural will be performing a hot tap installation on the Gulf Coast #1 mainline just south of Compressor Station 341 located in Nueces County, Texas (Segment 20 of Natural’s South Texas Zone).  Natural does not anticipate that this work will impact shippers.

 

Panhandle Eastern Pipe Line Company:

11/29/2018 – Weather Alert – Update #1

Effective immediately, Panhandle has lifted the weather restrictions set forth in Critical Notice ID 8059.

 

PG&E – California Gas Transmission:

Limits on Pipeline Inventory Flexibility

Thursday, November 29, 2018

Due to the start of scheduled maintenance on the Line 300 A/B system, we have reduced flexibility on our pipeline inventory. Beginning gas day November 30, 2018 through February 4, 2019, we will be reducing our upper and lower limits on our pipeline inventory:

Total System Demand above 2,800 MMcf will change from 4,350-4,000 MMcf to 4,200-3,850 MMcf

Total System Demand at 2,800 MMcf or below will change from 4,300-3,900 MMcf to 4,150-3,750 MMcf

With the reduced flexibility on our pipeline inventory, the likelihood of OFOs may increase.

What can shippers do to help avoid OFOs noncompliance charges?

Balance supply and demand daily. Work to ensure that supplies brought in for your customers balance with their daily demands.   Keep an eye on the System Inventory Status information posted on Pipe Ranger.

 

Southern Natural Gas:

The Type 3 Level 1 OFO that was implemented effective November 26, 2018 and expanded November 27, 2018 for the North and South systems will be cancelled effective start of the gas day, Thursday, November 29, 2018 until further notice.

 

Southern Star Central Gas Pipeline:

Subject: Winter Weather Advisory — Effective December 04, 2018

Cold weather is being forecasted across much of the Southern Star system beginning Tuesday, December 4, 2018, through Wednesday December 5, 2018. Southern Star is issuing a weather advisory effective gas day Tuesday, December 4, 2018, and requests that operators and shippers monitor weather conditions and ensure their business plans consider the temperatures forecasted.

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

Southern Star will review the status of its system throughout this period and will provide any changes or updates to this posting as necessary.

 

Transcontinental Gas Pipe Line Company (Transco):

Subject: Terminate Operational Flow Order – Scheduling

The Operational Flow Order – Scheduling (OFO) currently in effect on the Transco system in Zones 4, 5 & 6 will be terminated effective 9:00 AM CST, Friday, November 30, 2018.

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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It’s time to check out the extended temperature forecast from the National Weather Service.   The newly updated 8 -14 day map shows the Eastern third of the US back into the freezer for the second week of December.   West of the Rockies, though, temperatures will rise to above normal again.

 

That’s a wrap for November, 2018!  Thanks for your support of GasNewsOnline.com.  Please tell a friend in the natural gas scheduling and transportation business about us, and subscribe to our companion audio podcasts on I-tunes.  All for FREE!

Edition 18 – Tuesday, November 27, 2018

We’re back from the Thanksgiving break, and the natural gas business has come through with a couple of unique stories which may give you a chuckle to start your week.

Welcome to GasNewsOnline.com!  With December in sight, we will examine some of the latest corporate energy news, check the postings from the natural gas pipeline electronic bulletin boards, and, of course, bring you a peek at the temperature forecast for the first week of December.  All from public sources and, of course, we bring it to you for FREE!

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Porky would be proud…

Dominion Energy and Smithfield Foods, Inc. are joining forces in an historic initiative to transform the future of sustainable energy and agriculture, announcing their first projects in North Carolina, Virginia and Utah. The companies are forming a joint venture called Align Renewable Natural Gas (RNG) that will capture methane emissions from hog farms and convert them into clean renewable energy for residential home heating and power for local businesses.

By capturing methane that would otherwise be released into the atmosphere, the use of RNG leads to a significant reduction in methane emissions from the agriculture and energy industries.

RNG is produced from the methane generated from hog or dairy farms, landfills, wastewater treatment plants and food processing facilities. Capturing the methane from hog farms reduces the use of traditionally-sourced natural gas and keeps greenhouse gas from entering the atmosphere. It can be stored and delivered to homes and businesses through existing natural gas infrastructure, making it a cost-effective, renewable option.

The new joint venture will leverage Smithfield’s relationships with contract farmers, who raise and care for its hogs, and the decades the company has spent studying and perfecting the commercial viability of ‘manure-to-energy’ projects. Using a technology known as anaerobic digestion, the projects will capture and process methane from large clusters of Smithfield’s company-owned and contract hog farms. Once collected at the farms, the natural gas will then be transported to a central conditioning facility where it will be converted into RNG.

“Our companies recognize the urgent need to reduce greenhouse gas emissions for the future of our planet. RNG is an innovative and proven way to dramatically reduce greenhouse gas emissions from the agriculture industry by converting it into clean renewable energy,” said Thomas F. Farrell, II, chairman, president and chief executive officer of Dominion Energy.

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Another Big Foot sighting!  It’s true…read on!

Chevron Corporation announced that the Chevron-operated Big Foot deepwater project, located in the U.S. Gulf of Mexico, has started crude oil and natural gas production. The field is located approximately 225 miles (360 km) south of New Orleans, La., in a water depth of approximately 5,200 feet (1,584 m.).

The Big Foot field was discovered in 2006, is estimated to contain total recoverable resources of more than 200 million oil-equivalent barrels and has a projected production life of 35 years. The project uses a 15-slot drilling and production tension-leg platform, the deepest of its kind in the world, and is designed for a capacity of 75,000 barrels of oil and 25 million cubic feet of natural gas per day.

“The Big Foot project strengthens Chevron’s deepwater portfolio and further demonstrates that the Gulf of Mexico is an integral part of our diverse global portfolio and long-term strategy,” said Jeff Shellebarger, President of Chevron North America Exploration and Production. “The project advances our interest in safely providing reliable, affordable energy to meet a growing global demand.”

Chevron’s subsidiary, Chevron U.S.A. Inc., is the operator of Big Foot with a 60 percent working interest. Co-owners are Equinor Gulf of Mexico LLC (27.5%) and Marubeni Oil & Gas (USA) LLC (12.5%).

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Now that we have your attention, let’s check around the nation and discover a few of the critical postings affecting the interstate gas pipeline grid:

East Tennessee Natural Gas:

Weather forecasts show colder temperatures across the entire East Tennessee (ETNG) system beginning Gas Day November 27, 2018. As such, ETNG will be implementing its Maximum Allowable Delivery Service (MAD) effective 9:00 AM CCT November 27, 2018.

As a result, the following restrictions will be effective at 9:00 AM CCT November 27, 2018:

No secondary out of path receipts upstream of station 3104; No secondary out of path receipts upstream of station 3206; No secondary deliveries downstream of station 3313 on the 8 and 12 inch 3300 lines between Rural Retreat and Roanoke;

No interruptible, Authorized Overrun or secondary out of path deliveries to all meter stations downstream of station 3313;

Receipt meters under delivering to the ETNG system may be restricted to their recent historical performance levels.

LMSMA’s upstream of Lewisburg (station 3206) and Dixon Springs (station 3104) may be restricted to recent historical delivery consumption levels.

Furthermore, restrictions to secondary receipts may be required at ETNG’s interconnects with Tennessee Gas Pipeline at Lobelville (MR 53201) and Ridgetop (MR53101).

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.

 

Florida Gas Transmission:

DECEMBER 2018 — FGT SUPPLY AREA MAINTENANCE IN ZONES 2 AND 3

FGT will be performing maintenance on the FGT East White Lake Lateral upstream of FGT Compressor Station 75. This maintenance is scheduled to begin on December 3, 2018 and is to be completed by the end of gas day December 7, 2018. During this maintenance FGT will schedule up to 470,000 MMBtu/day from the FGT East White Lake group. During normal operations FGT schedules up to 590,000 MMBtu/day from the FGT East White Lake group.

FGT will be performing planned pipeline maintenance upstream of FGT Compressor Station 10. This maintenance is scheduled to begin on December 3, 2018 and is to be completed by the end of gas day December 21, 2018. During this maintenance FGT will schedule up to 1,100,000 MMBtu/day through Station 10. During normal operations FGT schedules up to 1,300,000 MMBtu/day through Station 10.

FGT will be performing maintenance on pipe near the FGT/Tennessee Carnes Interconnect (POI 10258). This maintenance is scheduled to begin on December 3, 2018 and is to be completed by the end of gas day December 21, 2018. During this maintenance zero volumes will be scheduled at the FGT/Tennessee Interconnect. During normal operations FGT schedules up to 60,000 MMBtu/day through the FGT/Tennessee Carnes Interconnect.

 

Natural Gas Pipeline Company of America (NGPL):

SEGMENT 27 – GULF COAST #3 (CS 305) – INSTALL LAUNCHER & RECEIVER – UPDATE #1

The project dates have been changed, as noted below.  This notice was last posted on November 16, 2018, entitled “DECEMBER 2018 – SCHEDULED MAINTENANCE”. 

On gas day Saturday, December 15, 2018, and continuing through gas day Thursday, January 3, 2019, (previously Friday, November 30, 2018, and continuing through gas day Friday, December 14, 2018), Natural will be performing pipeline maintenance to install pigging facilities on the Gulf Coast #3 mainline near Compressor Station 305, located in Miller County, Arkansas (Segment 27 of Natural’s Gulf Coast Mainline Zone).  AOR/ITS and Secondary out-of-path Firm transports may not be available during this work.  Primary Firm and Secondary in-path Firm transports may also be at risk of not being fully scheduled.

 

Southeast Supply Header (SESH):

Southeast Supply Header, LLC’s (“SESH”) previously posted Dentville compressor station outage which was to occur November 27 – December 1, 2018 has been canceled and will not need to be rescheduled.

Please contact your Operations Account Representative should you have any questions.

 

Southern Natural Gas:

Based on the current colder weather forecast and projected demand on Southern‘s system, we are notifying all Shippers that Southern is expanding the OFO Type 3 Level 1 OFO to the additional groups listed below effective the start of the gas day, Tuesday, November 27, 2018, until further notice.

OFO Type 3 Level 1: Daily Demand Exceeds Capacity
TARIFF SECTION 41.2
EFFECTIVE DATE: November 27, 2018

EFFECTIVE TIME of OFO: 9:00 AM (CCT)

PENALTY: $10.00/Dth

This is to notify all customers who are allocated gas at any delivery point in the segments listed below that they are subject to an operational flow order commencing on the effective date set out in this notice and continuing until further notice. The above-stated penalty will be assessed on any shipper whose allocated deliveries at any delivery point(s) within the groups listed below exceed 105% of their daily entitlement at such delivery point.

A daily entitlement report will be provided after the end of each scheduling cycle. The daily entitlement in effect after the last scheduling cycle (Intraday 3) will be the final one and will be used to determine any penalties. Maintaining deliveries within your daily entitlement at each delivery point will contribute to safe and efficient operation of the system, and also will avoid an OFO Type 3 penalty and help to minimize imbalances.

 

Tennessee Gas Pipeline:

EMERGENT REPAIR AT STA 261 EFFECTIVE 11-27-18

Pursuant to Article XII of the General Terms and Conditions of Tennessee’s FERC Gas Tariff, Tennessee is posting notice of an emergent repair issue at STA 261 near Agawam, MA. Tennessee is experiencing issues with the units that compress into the lateral to the Berkshire Power Plant (420901). Personnel are on site and evaluating. At this time there should be no impact to throughputs other than pressure fluctuations to Berkshire.   Updates will be posted as more information becomes available.

 

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 a Scheduling Operational Flow Order (OFO).

Effective date:  Wednesday, November 28, 2018 and until further notice

OFO areas:  Zones 4, 5, and 6

Type of Imbalance:  Due from Shipper

Tolerance %:  10% or 1,000 dth/zone, whichever is greater

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In weather news, the colder temperatures which kept much of the eastern US chilly over the past few weeks appear to be heading west to start December.  According to the National Weather Service, the Rockies and West Coast will receive a little cold weather to start the new month, while average to above average temperatures will warm the Southeast in early December.

 

Thank you for reading GasNewsOnline.com!  If you know someone in the natural gas transportation business, please let them know about us.  Our audio podcasts are now available via I-tunes!  All for FREE!

Edition 17 – Thursday, November 15, 2018

With snow flying from Houston (OK, a few flakes were seen) to the Midwest, Middle Atlantic, and the Northeast, the gas business was definitely roaring this week!

Welcome back to GasNewsOnline.com!  We check the gas pipelines’ electronic bulletin boards and other publicly sourced natural gas news to help you stay informed about the business – for FREE!

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Leading off this week’s gas news has been the incredible rise in the natural gas futures price for the upcoming month of December after this week’s vigorous cold snap across much of the country.

According to today’s Weekly Natural Gas Storage Report from the US Energy Information Administration, working gas in storage was 3,247 Bcf as of Friday, November 9, 2018.

Natural gas stocks were 528 Bcf less than last year at this time and 15.6% below the five-year average.

The December NYMEX natural gas futures price, which has zoomed around $1.50/MMBtu over  the past week, melted down by nearly 80 cents on Thursday.  December’s Henry Hub price still resides around a very healthy $4.00/MMBtu going into next month.

In other energy news today…

TransCanada Corporation today announced the Eastern Build of WB Xpress (WBX) has been placed into service.  This completes the final phase of a critical natural gas infrastructure project to provide Appalachian producers with access to Mid-Atlantic markets.

The Eastern Build of WBX spans various counties in West Virginia and Virginia and is designed to move approximately 0.5 billion cubic feet (Bcf/d) of natural gas per day.  The build also included construction of the Chantilly Compressor station in Chantilly, Virginia, along with associated pipeline and facilities.

Last month, the WB Xpress Western Build  was placed into service.  The project includes two new compressor stations, 30 miles of pipeline looping and modifications to seven existing compressor stations, allowing an additional 1.3 Bcf/d of natural gas to flow.

 

Today, the Federal Energy Regulatory Commission (FERC) approved Kern River Gas Transmission‘s settlement with customers for a rate credit to provide customers the benefit of the 2017 Tax Cuts and Jobs Act.

Kern River’s rate credit represents an 11% reduction to its maximum rates, equivalent to an annual cost reduction of $12.8 million for its customers.  Three other rate filings related to tax reform were approved by FERC the same day, and Kern River’s rate credit represents over 90% of the total rate reductions approved through the FERC Form 501-G process to date.

The effective date of the rate credit will be November 15, 2018, the earliest effective date of any rate reduction implemented through the FERC Form 501-G process.

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With a week of cold weather gripping much of the country, the natural gas pipeline electronic bulletin boards were heating up, too.

Dominion Energy Transmission:

PL-1 Restrictions South of Leesburg – Eff. November 15, 2018 – REV#1

Due to the forecasted weather, facility outages (Notice ID 209342), and requirements on the PL-1 system, effective start of gas day Thursday, November 15, 2018 and continuing until further notice, DETI will not accept any IT or Non PL-1 firm transportation south of Leesburg Compressor Station (northern Virginia). This will include the following meters:

Location Name Location

Transco Nokesville 40303

Virginia Natural Gas 22400

Doswell 22500

City of Richmond 22600

VA Electric & Power 22700

Columbia of Virginia 22800

VEPCO (Lady Smith) 22900

*PL-1 customers with delivery points north of Leesburg compressor station may not effectuate deliveries to any PL-1 point south of Leesburg. PL-1 customers with delivery points south of Leesburg compressor station may effectuate deliveries to PL-1 points both north and south of Leesburg.* DETI can effectuate secondary and IT deliveries to points north of Leesburg compressor station if sourced from the receipt of DETI-Loudon (40704) or Transco-Nokesville (40303) via displacement. DETI can effectuate secondary and IT deliveries to points south of Leesburg compressor station if sourced from the receipt of Transco-Nokesville (40303) via displacement.

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

 

Florida Gas Transmission:

FGT will be performing maintenance on the FGT East White Lake Lateral upstream of FGT Compressor Station 75. This maintenance is scheduled to begin on November 26, 2018 and is to be completed by the end of gas day November 30, 2018. During this maintenance FGT will schedule up to 470,000 MMBtu/day from the FGT East White Lake group. During normal operations FGT schedules up to 590,000 MMBtu/day from the FGT East White Lake group.

 

Gulf South Pipeline:

Airport Compressor Station MaintenanceNovember 27 – December 1, 2018

Mobile Bay Delivery Scheduling Group.  Capacity could be impacted by as much as 50,000 dth/d for the duration of the maintenance. Gulf South will be working with point operators to reduce impact.

Hall Summit Compressor Station Maintenance:  November 27 – December 17, 2018

Hall Summit/East Texas/Koran Area & Station Scheduling Group.  Capacity could be impacted by as much as 100,000 dth/d for the duration of the maintenance.

 

MidContinent Express Pipeline:

MEP anticipates that the Reimbursement Percentages for fuel Gas, Unaccounted for Gas (UAF), and the Booster Compression Fuel will change effective December 1, 2018, for all transportation contracts assuming FERC approval of its pending filing made on October 18, 2018.

This filing establishes the fuel Gas Reimbursement Percentages for Zone 1 and Zone 2 of MEP’s system, the UAF Gas Reimbursement Percentages for its entire system, and the incremental Booster Compression Fuel Reimbursement Percentage.

https://pipeline2.kindermorgan.com/Documents/MEP/MEP_Fuel_Matrix_1218-20181115133255.pdf

 

Natural Gas Pipeline Company of America (NGPL):

SEGMENT 6 – OE #2 M/L (CS 154) – INSTALL LAUNCHER & RECEIVER – UPDATE #4

The project completion date has been changed, as noted below.  This notice was last posted on November 8, 2018, entitled “SEGMENT 6 – OE #2 M/L (CS 154) – INSTALL LAUNCHER & RECEIVER – UPDATE #3”.

On gas day Saturday, September 15, 2018, and continuing through gas day Tuesday, November 20, 2018, (previously Sunday, November 18, 2018), Natural will be performing pipeline maintenance to install pigging facilities on the OE #2 line at Compressor Station 156, located in Gray County, Texas (Segment 6 of Natural’s Midcontinent Zone).  AOR/ITS and Secondary out-of-path Firm transports may not be available during this work.  Primary Firm and Secondary in-path Firm transports may also be at risk of not being fully scheduled.

Additionally, effective for gas day Tuesday, November 13, 2018, and continuing through gas day Tuesday, November 20, 2018, (previously Sunday, November 18, 2018), the following location will no longer be available for scheduling until this work has been completed.  No transport services are available.

LOC 905570    ONEOKWES CARSON

 

Southern Natural Gas:

Based on the current colder weather forecast on Southern’s system, we are notifying all Shippers that the groups listed below will be subject to an OFO Type 3 Level 1 effective the start of the gas day, Thursday, November 15, 2018 until further notice.

OFO Type 3 Level 1: Daily Demand Exceeds Capacity
TARIFF SECTION 41.2
EFFECTIVE DATE: November 15, 2018
EFFECTIVE TIME of OFO: 9:00 AM (CCT)
PENALTY: $10.00/Dth

The OFO Groups and affected segments are shown in the following notices for the North and South Systems:

https://pipeline2.kindermorgan.com/Notices/NoticeDetail.aspx?code=SNG&notc_nbr=702744

https://pipeline2.kindermorgan.com/Notices/NoticeDetail.aspx?code=SNG&notc_nbr=702745

 

 

Tennessee Gas Pipeline:

OFO DAILY CRITICAL DAY 1 EXPANDED TO INCLUDE DOWNSTREAM OF STA 325 EFFECTIVE 11-15-18

Due to forecasted colder temperatures moving into all areas of the Northeast with associated higher demand, for the Gas Day of Thursday, November 15, 2018, Tennessee is expanding the existing OFO Daily Critical Day 1 for downstream of STA 245 on the 200 Line to also include all areas downstream of STA 325 on the 300 Line for all Balancing Parties (including LMS-PA, SA contracts acting as balancing parties, LMS-MA, and LMS-PL balancing parties).  This action is pursuant to Article X, Section 4 of the General Terms and Conditions of Tennessee’s FERC Gas Tariff.

All delivery point operators downstream of STA 245 on the 200 Line and downstream of STA 325 on the 300 Line are required to keep actual daily takes out of the system equal to or less than scheduled quantities regardless of their cumulative imbalance position.  All receipt point operators downstream of STA 245 on the 200 and downstream of STA 325 on the 300 Line are required to keep actual daily receipts into the system equal to or greater than scheduled quantities regardless of their cumulative imbalance position.  In addition, it is essential that delivery point operators schedule gas at meters commensurate with takes within the affected areas.  All LMS-PA, SA contracts acting as balancing parties, LMS-MA and LMS-PL Balancing Parties are required to maintain an actual daily flow rate not exceeding 2% of scheduled quantities or 500 dths, whichever is greater for under-deliveries into the system and over-takes from the system. Customers will be assessed a rate of $5.00 plus the applicable Regional Daily Spot Price per dekatherm for that portion of physical quantities related to under-deliveries by receipt point operators and over-takes by delivery point operators which exceed this tolerance.

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.

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In weather news, the tropical wave in the Atlantic Ocean (discussed in our last edition on Monday) has dissipated.  There are no tropical systems expected to affect the United States over the Thanksgiving week.

Speaking of Thanksgiving, the National Weather Service six-to-ten day temperature forecast hints that the early snowfall in the Middle Atlantic and New England areas may hang around for the next week as more cold air will cover the region through the holiday weekend.  The western US continues to enjoy warmer than seasonal temperatures through Turkey Day.

Thanks for checking in with GasNewsOnline.com!  We appreciate your support, so please let your friends in the natural gas business know about us!  Our podcast is now available via I-tunes, too!

Edition 16 – Monday, November 12, 2018

Happy Veterans Day!   Today (and any day) is a terrific time to shake the hand of one of our beloved heroes and tell them how much you appreciate their service to our great country.

Welcome back to our 2018 Veteran’s Day edition of GasNewsOnline.com!  Though much of the industry is not working today, we have found plenty of new gas pipeline critical postings along with other natural gas news and weather to help get your week underway.  At GasNewsOnline.com, there is no charge for the public information which we assemble from a variety of sources.  It’s FREE!

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

Five LNG vessels (four from the Sabine Pass liquefaction terminal and one from Cove Point in Maryland) with a combined LNG-carrying capacity of 18.2 Bcf departed the United States from November 1 to November 7.

Natural gas feedstock deliveries to Sabine Pass terminal have been averaging more than 3 Bcf/d (on a weekly basis) since mid-October and reached 3.6 Bcf/d on November 3.  Cheniere Energy, the operator of Sabine Pass, filed a request last week with the Federal Energy Regulatory Commission for authorization to construct a third loading berth at the terminal.

 

Columbia Gulf Transmission announces open season for Louisiana XPress:

NOTICE OF BINDING OPEN SEASON:  Columbia Gulf Transmission, LLC (“CGT”) is pleased to announce this binding open season (“Open Season”) for the Louisiana XPress Project (“LAXP” or “Project”) on CGT’s system.  This binding Open Season will commence at 9:00 AM CDT on November 12, 2018, and close at 4:00 PM CDT on November 16, 2018. 

PROJECT OVERVIEW:  In response to market demand, the Project will provide firm transportation service of up to approximately 850,000 dekatherms (“Dth”) per day through (i) reservation and utilization of existing annual capacity, and (ii) construction of the necessary incremental facilities.  The Project offers receipts from CGT’s Mainline Pool (“ML Pool”), and potentially other mutually agreeable points along CGT’s system, and deliveries into Kinder Morgan Louisiana Pipeline (“KMLP”), and potentially other mutually agreeable delivery points as far south as Rayne, Louisiana, along CGT’s mainline system.

CGT has executed a precedent agreement with a pre-subscribed shipper that provides the shipper with sufficient capacity to move forward with commitments and expensive investments in specific unique facilities, and provides CGT with sufficient support to move forward with the Project.  The purpose of this Open Season is to provide all interested parties the opportunity to bid on up to approximately 130,000 Dth per day of Project capacity.  The anticipated LAXP in-service date is February 1, 2022, with potential service beginning as early as November 1, 2021.

CONTACT INFORMATION:  Interested parties should contact the following CPG personnel to discuss any questions or to seek additional information about this Open Season:

Jim Downs , Director, Business Development

832-320-5656 (office) or 832-374-0148 (cell)

Jim_downs@transcanada.com

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With cold weather across much of the eastern two-thirds of the United States to start this week, many of the gas pipeline companies are updating conditions via their electronic bulletin board systems.  Below are a few of the latest postings:

Algonquin Gas Transmission:

AGT Operational Flow Order – Notice Text:

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, November 14, 2018, 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:

Southeast Area Capacity Reduction (Updated 11/12/18) – This posting supersedes PSO ID #8954

Update: Due to planned compressor maintenance at the Greenville Compressor Station on the Southeast Mainline and pipeline maintenance in the Southeast Southern Segment (Zone 2), ANR will limit deliveries at the Eunice Total Location (LOC #505592) to the following:

875-MMcf/d 11/13 – 12/2
1,070-MMcf/d 12/3 – 12/15
1,165-MMcf/d 12/16 – 12/31

Since the last posting, ANR has made the following changes. The operationally available capacity of 875-MMcf/d has been extended to 12/2. The available capacity increases to 1,070-MMcf/d from 12/3 – 12/15 and to 1,165-MMcf/d from 12/16 – 12/31.

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.

 

Columbia Gas Transmission:

Columbia’s current working gas storage inventory and the prior two years inventory for the same week are as follows:  As of 10 AM (EST) Monday:

11/9/2018          216,267 mmcf

11/10/2017        242,913 mmcf

11/11/2016        253,985 mmcf

 

Gulf South Pipeline:

Effective December 3 through December 14, nominations at the following locations could be impacted by as much as 75,000 dth/d but will be scheduled to the extent that Gulf South is able to balance the system for the duration of the maintenance:

– SLN 108012 TRANSCO PETAL RECEIPT

– SLN 23105 TRANSCO HATTIESBURG RECEIPT

 

Gulf Crossing Pipeline:

Mira Compressor Station Maintenance – Revised completion dates – November 13 – November 16, 2018

Gulf Crossing Receipts – Capacity could be impacted by as much as 100,000 dth/d for the duration of the maintenance.   Please contact your customer service representative if you have any questions.

 

Mississippi River Transmission:

Due to the potential for maximum utilization of northbound firm Main Line capacity causing a potential supply deficiency in the Market Zone, MRT is issuing a System Protection Warning (SPW) effective Saturday, November 10, 2018 and until further notice.

During this time:

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

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

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

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

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

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

Shippers whose deliveries are affected by any of the six (6) conditions above are encouraged to source supply at their primary receipt points, MRT s East Line, MoGas, or reduce applicable delivery volumes.

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

 

Natural Gas Pipeline Company of America (NGPL)

SEGMENT 15 – A/G #1 LINE (CS 801) – HOT TAP INSTALLATION – PRIMARY ONLY – UPDATE #1 

The project dates have been changed, as noted below.  This notice was last posted on October 18, 2018, entitled “NOVEMBER 2018 – SCHEDULED MAINTENANCE PROJECTS”. 

On gas day Monday, November 19, 2018, and continuing through gas day Friday, November 30, 2018, (previously Monday, November 12, 2018 thru Wednesday, November 21, 2018), Natural will perform a hot tap installation on the A/G #1 line, near Compressor Station 801 located in Carter County, Oklahoma (Segment 15 of Natural’s Texok Zone).  Natural will continue to schedule to Primary only for the duration of the project.  AOR/ITS and Secondary out-of-path Firm transports remain unavailable.

 

Southern Natural Gas:

The Type 3 Level 1 OFO that was implemented effective November 10, 2018 for the South system will be cancelled effective start of the gas day, Monday, November 12, 2018 until further notice.

 

Tennessee Gas Pipeline:

EMERGENT REPAIR ON THE FITCHBURG TO GLOUCESTER LATERAL EFFECTIVE 11-13-18

Pursuant to Article XII of the General Terms and Conditions of Tennessee’s FERC Gas Tariff, Tennessee is posting notice of an emergent repair issue on the Fitchburg to Gloucester Lateral in Massachusetts (located downstream of Station 267 affecting only the meters on the Gloucester Lateral). Tennessee has identified anomalies that necessitate repairs on this lateral which will require lower pressures in the area until the repairs are completed.  Tennessee is estimating the current impact of this emergent repair to be up to 50,000 Dths.  Pressures in the area may fluctuate during this outage.  Based on current assessments, return to service is estimated to be Thursday, November 22, 2018.

Based on current nominations, Secondary In the Path nominations pathed to meters on the Fitchburg to Gloucester Lateral (Segment 268 FH) could be at risk as early as Timely Cycle for the Gas Day of Tuesday, November 13, 2018.

 

Texas Eastern Transmission:

Entriken Compressor Station Unplanned Outage – Notice Text:

Texas Eastern (TE) has experienced an unplanned outage at its Entriken, Pennsylvania compressor station and efforts to restore this compressor station to full capacity are underway. This outage results in a capacity of approximately 2,670,000 Dth through the Entriken compressor station.

TE will take into consideration the reduced capacity during the timely cycles for future gas days.  TE will post updates to the status of the repairs as soon as it is known.

 

Transcontinental Gas Pipe Line Company (Transco):

Subject: System Operating Conditions

Below normal temperatures and associated increased gas demand are currently forecasted for much of Transco’s market area throughout this week. 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 on a daily basis.

Specifically, shippers are encouraged not to create “due from” imbalances (short to the pipeline). In addition, shippers that currently have a “due to” (long to the pipeline) imbalance position are encouraged to not under-supply their market requirements in an effort to reduce their “due to” imbalance position.

Absent voluntary compliance, Transco may be required to take further action including, issuing an Imbalance or Scheduling Operational Flow Order (OFO). These OFOs may include Shipper(s) specific and Location(s) specific OFOs directed to parties that have imbalances which has or may, affect the operational integrity of the system.

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Believe it or not, hurricane season doesn’t officially end until November 30.

As of Monday afternoon, a tropical wave was forming in the western tropical Atlantic Ocean.  The system is drifting west-northwest.  The National Hurricane Center gives it a 50% chance of developing into a tropical storm before the end of the work week.

Colder-than-average temperatures look to dominate the weather headlines for the remainder of this week.  The National Weather Service six-to-ten day temperature forecast through next weekend shows much below average temperatures lingering in the Ohio Valley into New England.  Warmer than average temperatures will persist from the Rockies to the west coast regions.

That’s a wrap for today!  Thanks for checking out GasNewsOnline.com!  If you know someone working in gas scheduling or trading, make sure to tell them about us.  Our reports are available for FREE!

Edition 15 – Thursday, November 8, 2018

Winter is sneaking up on us quickly with some parts of the US expected to receive their first freeze or snowfall of the season over the next several days.

Welcome back to GasNewsOnline.com!  We do the heavy lifting so that you may receive a summary of some of the important publicly-released energy and gas pipeline news of the week along with a forecast of temperatures over the next few weeks, too.  All for FREE!  Let’s get started with a look at this week’s gas storage report.

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The weekly natural gas storage survey released today from the U.S. Energy Information Administration showed an additional 65 Bcf of gas injected into storage last week (vs. 58 Bcf predicted by a survey of analysts).  The current volume of gas in storage remains about 16% below the five-year average.

Thursday’s NYMEX natural gas futures price for December closed down one cent to finish Thursday at about $3.54/MMBtu.

From the EIA’s “Natural Gas Weekly Update” publication dated today, November 8, 2018:

The natural gas plant liquids composite price at Mont Belvieu, Texas, fell by 41¢/MMBtu, averaging $7.54/MMBtu for the week ending November 7. The price of natural gasoline, ethane, and propane fell by 10%, 7%, and 4%, respectively. The price of butane and isobutane remained flat week over week.

According to Baker Hughes, for the week ending Tuesday, October 30, the natural gas rig count remained flat at 193.

From the EIA’s “Short Term Energy Outlook” dated November 6, 2018:

EIA forecasts that dry natural gas production will average 83.2 Bcf/d in 2018, up 8.5 Bcf/d from 2017.

Both the level and growth of natural gas production in 2018 would establish new records. EIA expects natural gas production will continue to rise in 2019 to an average of 89.6 Bcf/d.

Despite relatively low storage levels, the EIA expects strong growth in U.S. natural gas production to put downward pressure on gas prices in 2019.

EIA predicts Henry Hub (Louisiana) natural gas spot prices to average $2.98/million British thermal units (MMBtu) in 2019, down 4 cents from the 2018 average.

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In other energy news today…

Anadarko Petroleum Corporation today announced a transaction to sell substantially all of its remaining midstream assets for $4.015 billion to Western Gas Partners, LP (WES) with $2.0075 billion cash proceeds, and the balance to be paid in new Western Gas equity. Concurrently, WES announced it has entered into a merger agreement with Western Gas Equity Partners, LP which will result in a simplified midstream structure. The sale is expected to close in the first quarter of 2019, concurrently with the closing of the merger.

“The size of this asset sale, along with the clear benefits of the simplification transaction, highlights the tremendous value of Anadarko’s midstream business,” said Al Walker, Anadarko Chairman, President and CEO.

Under the terms of the asset sale transaction, WES will acquire substantially all of Anadarko’s remaining midstream assets, which are largely associated with Anadarko’s two premier U.S. onshore oil plays in the Delaware and DJ basins. The acquired assets include DBM Oil Services (100-percent interest), APC Water Holdings (100-percent interest), the Bone Spring Gas Plant (50-percent non-operated interest), and the MiVida Gas Plant (50-percent non-operated interest) in the Delaware Basin of West Texas. In the DJ Basin of northeast Colorado, WES will acquire Anadarko’s 100-percent interest in both the DJ Basin Oil System and the Wattenberg Plant. Additional Anadarko midstream assets to be acquired by WES include equity stakes in the Saddlehorn Pipeline (20-percent non-operated interest), the Panola Pipeline (15-percent non-operated interest), and the Wamsutter Pipeline (100-percent interest).

Under the terms of their merger transaction, WGP will acquire all of the outstanding publicly held common units of WES and substantially all of the WES common units owned by Anadarko in a unit-for-unit, tax-free exchange. WES will survive as a partnership with no publicly traded equity, owned 98 percent by WGP and 2 percent by Anadarko. WES will remain the borrower for all existing debt and future issuances and the owner of all operating assets and equity investments.

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It’s a busy start to the winter season on the natural gas pipeline grid.  Let’s check out the latest critical postings from several gas pipelines’ electronic bulletin boards:

ANR Pipeline:

Southwest Mainline Capacity Reduction (Updated 11/8/18)
This posting supersedes CN ID #8922

ANR continues its planned and unplanned compressor and pipeline maintenance at various compressor stations along its Southwest Mainline in Zones 5 and 6. Additionally, ANR will be performing pipeline maintenance in Zone 6.

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

120-MMcf/d (leaving 610-MMcf/d available) 11/8 – 11/12
85-MMcf/d (leaving 645-MMcf/d available) 11/13 – 11/19
20-MMcf/d (leaving 710-MMcf/d available) 11/20 – 1122
55-MMcf/d (leaving 675-MMcf/d available) 11/23 – 11/30

Since the last posting, ANR has made the following changes. The 120-MMcf/d impact is extended from 11/10 – 11/12. Future dates adjusted accordingly.

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.

 

Columbia Gas Transmission:

Pursuant to Section 15 of the General Terms and Conditions of Columbia Gas Transmission, LLC’s (TCO) FERC Gas Tariff, TCO is declaring a Force Majeure effective Evening Cycle for Gas Day Thursday, November 8, 2018 until further notice for volumes flowing through the Waynesburg North MA35 (WAYNESNO) Internal Constraint due to discovered pipeline anomalies on Line 1360 south of Ellwood City Compressor Station in Pennsylvania. 

Effective Evening Cycle for Gas Day Thursday, November 8, 2018, WAYNESNO will be set to a Total Capacity of 315,000 Dth.  Based on current scheduled volumes, the potential impact to firm service is 75,000 Dth/day.

 

Florida Gas Transmission:

FGT will be performing planned pipeline maintenance between FGT Compressor Station 9 and FGT Compressor Station 10. This maintenance is scheduled to begin on November 14, 2018 and to continue through end of gas day November 20, 2018. During this maintenance FGT will schedule up to 1,100,000 MMBtu/day through Station 10. During normal operations FGT schedules up to 1,300,000 MMBtu/day through Station 10.Potential Overage Alert Day

 

Gas Transmission Northwest (GTN):

Notice of Force Majeure (Posted 11/8/18):

This is to notify all contracted parties of Gas Transmission Northwest (“GTN”) that due to unforeseen and uncontrollable repairs at Stations 3 and 5, pursuant to Section 6.10 of GTN’s FERC Gas Tariff, GTN is issuing a Force Majeure event in effect for all natural gas transactions that Flow Past Kingsgate (Loc 3500), located in Boundary County, Idaho.

GTN anticipates that this restriction will result in the inability to deliver a portion of the Firm delivery volumes scheduled at Flow Past Kingsgate (Loc 3500). The Reservation Charge Crediting Mechanism of Section 5.1.3.9 shall apply to this outage.

GTN will reduce the capacity at Flow Past Kingsgate (Loc 3500) to 2,184-MMcf/d.

 

Natural Gas Pipeline Company of America (NGPL):

Natural has experienced horsepower issues at Compressor Station 168 (CS 168), located in Bailey County, Texas in Natural’s Permian Zone.  This is a Force Majeure event that requires Natural to temporarily reduce the maximum operating capacity northbound, thus limiting Natural’s throughput capacity through CS 168 during this restriction.

The scheduling constraint will be at CS 168; therefore, any gas received south of CS 168 for delivery north of CS 168 will be impacted for the duration of the restriction.  Additionally, transports associated with storage injections may be impacted.  The Permian Pool (PIN 25077) is located south (upstream) of the constraint.

As such, effective for gas day Friday, November 9, 2018, Timely Cycle, and continuing until further notice, Natural will schedule Primary Firm and Secondary in-path Firm transports to no less than 77% of contract MDQ through CS 168.  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.

Also – SEGMENT 22 – GULF COAST #2 (CS 302) – INSTALL LAUNCHER & RECEIVER – UPDATE #1

The project end date has been changed, as noted below.  This notice was last posted on October 18, 2018, entitled “NOVEMBER 2018 – SCHEDULED MAINTENANCE PROJECTS”. 

On gas day Wednesday, October 24, 2018, and continuing through gas day Tuesday, November 20, 2018, (previously Thursday, November 8, 2018), Natural will be performing pipeline maintenance to install pigging facilities on the Gulf Coast #2 mainline near Compressor Station 302, located in Montgomery County, Texas (Segment 22 of Natural’s South Texas Zone).  AOR/ITS and Secondary out-of-path Firm transports may not be available during this work.  Primary Firm and Secondary in-path Firm transports may also be at risk of not being fully scheduled.

 

Northern Border Pipeline:

Northern Border OFO Watch (Posted 11/08/18)

Due to low inventory levels and cumulative operational imbalance issues, Northern Border Pipeline is posting an OFO Watch for the following locations:

Stateline (DRN# 1251297)

Squaw Creek (DRN# 1113226)

Rawson (DRN# 1399965)

Hay Butte (DRN# 1367615)

Watford City (DRN# 109973)

Spring Creek (DRN #1251436)

Kildeer (DRN # 1402285)

Manning (DRN# 378214)

Glen Ullin (DRN# 43726)

The issuance is per Northern Border Tariff Section 6.10.6 Interruption of Service.

The OFO Watch is effective immediately and extends through gas day November 13th, in order to allow the interconnecting parties to remediate the cumulative operational imbalance issue. If an interconnect operator is unable to remediate the issue within the given timeframe, Northern Border will, pursuant to Northern Border Tariff Section 6.10.6 Interruption of Service, issue an OFO requiring curtailment of interruptible services and/or forced balancing of nominations and actual flows at these interconnects.

 

Panhandle Eastern Pipeline:

Based on current cold weather forecasts and ongoing pipeline maintenance, Panhandle is preparing for increased pipeline utilization and reduced operational flexibility. Effective Gas Day November 9, 2018, until further notice, Panhandle is requesting all delivery point operators to minimize over-takes and all receipt point operators to minimize their under-deliveries into the system.

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

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

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

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

 

Southern Natural Gas:

Based on the current colder weather forecast in addition to the unplanned maintenance on Southern’s South system, we are notifying all Shippers will be subject to an OFO Type 3 Level 1 effective the start of the gas day, Saturday, November 10, 2018 until further notice.

OFO Type 3 Level 1: Daily Demand Exceeds Capacity
TARIFF SECTION 41.2
EFFECTIVE DATE: November 10, 2018
EFFECTIVE TIME of OFO: 9:00 AM (CCT)
PENALTY: $10.00/Dth

This is to notify all customers who are allocated gas at any delivery point in these segments that they are subject to an operational flow order commencing on the effective date set out in this notice and continuing until further notice. The above-stated penalty will be assessed on any shipper whose allocated deliveries at any delivery point(s) within the groups listed below exceed 105% of their daily entitlement at such delivery point.

 

Transcontinental Gas Pipe Line Company (Transco):

Subject: System Operating Conditions

Below normal temperatures and associated increased gas demand are currently forecasted for much of Transco’s market area late this week and into next week. 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 on a daily basis.

Specifically, shippers are encouraged not to create “due from” imbalances (short to the pipeline). In addition, shippers that currently have a “due to” (long to the pipeline) imbalance position are encouraged to not under-supply their market requirements in an effort to reduce their “due to” imbalance position.

Absent voluntary compliance, Transco may be required to take further action including, issuing an Imbalance or Scheduling Operational Flow Order (OFO). These OFOs may include Shipper(s) specific and Location(s) specific OFOs directed to parties that have imbalances which has or may, affect the operational integrity of the system.

 

Trunkline Gas Company:

South Texas System Pigging – Beginning Gas Day December 1, 2018, Trunkline Gas Company will undertake pigging operations on its South Texas Modified Transmission System. Expected duration of the run is 11 days.   Operators could experience higher daily line pressures and pressure fluctuations while the pigging operations are in progress.

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Based on all of the pipeline activities above, the temperatures are definitely heading downward quickly.  The updated National Weather Service temperature outlook for the period ending November 18 shows the eastern 2/3 of the country with below average readings, while the Rockies and west coast regions will continue to enjoy warmer-than-normal temperatures.

 

Go out and enjoy the fall temperatures!  Thanks for visiting us at GasNewsOnline.com.  Check out I-tunes as our Podcast should now be available if you would prefer to listen on your drive to or from work.  Please tell a friend!

Edition 14 – Monday, November 5, 2018

With Election Day coming on Tuesday, we are glad you have “elected” to choose GasNewsOnline.com for your FREE compilation of natural gas business information and weather news from public sources to start the new month!

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Let’s take a look at some of the energy companies making news on this Monday, November 5th:

On its electronic bulletin board, Rover Pipeline (an affiliate of Energy Transfer) posted that it has commenced natural gas service on the final laterals needed to complete the Rover Pipeline project.

Effective November 2, the Sherwood Lateral, the Columbia Gas Transmission Lateral and the associated compression and metering facilities located in West Virginia are now in service. The full 713-mile pipeline can transport up to 3.25 billion cubic feet per day of natural gas from the Marcellus and Utica Shale production areas.

Rover transports natural gas from processing plants in West Virginia, Eastern Ohio and Western Pennsylvania to the Midwest Hub near Defiance, Ohio, for delivery to markets across the U.S., as well as to the Union Gas Dawn Storage Hub in Ontario, Canada.

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SandRidge Energy of Oklahoma City announced Monday it has closed two separate transactions.

On November 1, the company sold substantially all of its oil and gas properties, rights and related assets in the Central Basin Platform (“CBP”) region of the Permian Basin, together with 13,125,000 Common Units of the SandRidge Permian Trust (the “Trust”), to an unaffiliated party for net proceeds of $14.5 million. The divestiture of almost 1,500 wells eliminates approximately 32% of the Company’s total asset retirement obligations.

On November 2, SandRidge  acquired certain oil and gas properties, rights and related assets in the Mississippi Lime and NW STACK areas of Oklahoma and Kansas for $25.1 million. The acquired interests in these assets are additive to existing SandRidge ownership positions. The Company operates approximately 80% of the subject wells and holds an existing working interest in most of the remaining wells operated by others.

“Both transactions will have a positive impact on the Company’s operating efficiency,” said Bill Griffin, President and CEO. “The CBP properties accounted for more than 12% of our total operating expenses, while contributing only 4% of the production during the first half of 2018.”

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Sempra Energy said Friday that Cameron LNG has initiated the commissioning process for the support facilities and first liquefaction train of Phase 1 of its Hackberry, La., liquefaction-export project.

“All major construction activities have been completed to begin the commissioning and start-up process to produce LNG from the first liquefaction train,” said Joseph A. Householder, president and chief operating officer of Sempra Energy.

Phase 1 of the Cameron LNG liquefaction-export project, which includes the first three liquefaction trains, is a $10 billion facility with a projected export capability approximately 1.7 billion cubic feet per day of natural gas. All three trains are expected to be producing LNG in 2019.

The commissioning process includes testing of all support systems, combustion turbines and compressors, as well as the delivery of feed gas from the transmission pipeline and production of the first LNG. Once all of the steps of the commissioning process are approved by the Federal Energy Regulatory Commission (FERC) and successfully completed for the first liquefaction train, LNG production will start up, and then ramp up to full production for delivery to global markets.

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The natural gas pipeline company electronic bulletin boards are busy with postings to start this week:

Columbia Gas Transmission:

As previously posted in the Construction and Maintenance Schedule in Navigates, Columbia Gas Transmission, LLC (TCO) reminds customers of an outage at Huff Creek Compressor Station in Wyoming County, WV scheduled November 7 through November 8, 2018.  Production at the following meters will be shut in with the exception of nominal quantities to serve local markets.  Nominations at the impacted points will not be scheduled until the station is returned to service.

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.

Capacities at the receipt points listed below will be set to Zero Total Capacity during this outage:

833517  CNX – Cline

833682  Isaban A

834416  Kinzer – Beech Creek

CNR11  CHK – Stafford

CNR13  CHK – Briar Mtn

CNR14 CHK – Huff Creek

 

Florida Gas Transmission:

FGT will be performing maintenance at its FGT Sabine Pass/Vinton Interconnect (POI 282 and POI 408). This maintenance is scheduled to begin on November 12, 2018 and is to be completed by the end of gas day November 13, 2018. During this maintenance zero volumes will be available to be scheduled for receipt. During normal operations FGT schedules up to 135,000 MMBtu/day at the FGT Sabine Pass/Vinton Interconnect.

FGT will be performing maintenance on its FGT Compressor Station 75. This maintenance is scheduled to begin on November 12, 2018 and is to be completed by the end of gas day November 16, 2018. During this maintenance FGT will schedule up to 700,000 MMBtu/day through Station 75. During normal operations FGT schedules up to 980,000 MMBtu/day through Station 75.

 

Gulf South Pipeline:

Effective 11/02/18 – 12/02/18:

Enterprise Burns Plant in South Louisiana will be shutdown for the duration of the maintenance.

The plant will not process any gas during this time.

Gulf South will operate in plant by-pass mode for the duration of the outage. As long as Gulf South is able to blend volumes to meet our tariff specifications the locations upstream of the plant will be allowed to remain on line.

If blending is not possible, the following locations will be required to shut in until plant processing resumes. Gulf South Shippers should adjust their nominations accordingly including associated PTR locations:

– SLN 21947 POINT CHEVREUIL SL-18350 #1

– SLN 289 E.I.BLK 32 PLTFM A

– SLN 20841 BELLE ISLE

– SLN 20801 RABBIT ISLAND PRODUCTION

– SLN 23081 BURNS POINT PROCESSING PLANT RESIDUE

 

Gulf Crossing Pipeline:

Mira Compressor Maintenance – 11/12/18 – 11/14/18

Gulf Crossing Receipts – Capacity could be impacted by as much as 100,000 dth/d for the duration of the maintenance.

 

Natural Gas Pipeline Company of America (NGPL):

Natural will be performing an ESD test and electrical inspections at Compressor Station 300 (CS 300) located in Victoria County, Texas (Segment 22 of Natural’s South Texas Zone).

The scheduling constraint is at Compressor Station 302 (CS 302), located in Montgomery County, Texas.  Any gas received north of CS 302 or east of CS 302, included storage withdrawals, for delivery into Segment 22 will be impacted.

As such, on gas day Monday, November 12, 2018, and continuing through gas day Thursday, November 15, 2018, Natural will schedule Primary Firm and Secondary in-path Firm transports only southbound into Segment 22.  AOR/ITS and Secondary out-of-path Firm transports will not be available.

 

Northwest Pipeline:

Northwest is hosting a conference call on Friday, Nov. 9 at 10:00 a.m. MST to discuss proposed tariff changes to its OFO provisions in the event Northwest’s shippers are unable to comply with its OFO obligations due to lack of supplies as a result of the Enbridge incident on October 9.

Northwest will provide red-lined tariff sheets early next week for customers review prior to Friday’s call.  The call in number is 1-385-355-3006. The conference code is 5655198.

If you like, you can pre-submit questions and comments via email to Mike Rasmuson (Michael.D.Rasmuson@Williams.com)

 

Southern Natural Gas:

Southeast Supply Header, LLC (SESH) pipeline’s operator notified Southern that it will be conducting maintenance at its Gwinville Compressor Station November 10 – November 11,  2018 that will reduce the available SNG – SESH capacity of 506,841 DTH/d to 395,000 Dth/d.

Points impacted are listed below.

606400 SESH – CENTERPOINT TO SNG
606500 SESH – GULF SOUTH TO SNG
606700 SESH – ETC TIGER TO SNG

 

Southern Star Central Pipeline Company:

Southern Star Central Gas Pipeline posted a Force Majeure Update on Line Segment 130, which began Tuesday, June 19, 2018.

Work has been completed ahead of schedule.  Effective ID1 Cycle Gas Day November 5, 2018, Southern Star will increase capacity at the Kansas Hugoton Receipt constraint to 343,000 Dth/d.

Southern Star also posted some general guidelines to assist shippers during the upcoming winter season at:

https://csimain.sscgp.com/EBBPostingDocs/Miscellaneous/49135.pdf

 

Tennessee Gas Pipeline:

OFO DAILY CRITICAL DAY 1 SOUTH OF STA 9 – LIFTED EFFECTIVE 11-6-18

Effective for the Gas Day of Tuesday, November 6, 2018, and until further notice, Tennessee Gas Pipeline, LLC (“Tennessee”) is lifting the Daily Critical Day 1 OFO for South of STA 9.  However, it is imperative that customers continue to match physical flows with scheduled volumes in this area in order to avoid the issuance of any additional actions in these zones.

 

Transcontinental Gas Pipe Line Company (Transco):

Transco will be performing facility modifications associated with Job No. 567 on the 2018 Planned Outage and Maintenance Summary on its Mainline near M.P. 713.0 in Covington County, Mississippi from November 14, 2018 through November 22, 2018. The location listed below will be isolated and unable to flow during this time.

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The tropics are still quiet as the “official” hurricane season starts to come to a close this month.

The National Weather Service six-to-ten day temperature forecast is showing a large part of the United States will expect to receive a few days of early season cooler temperatures through the second week of November.

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Edition 13 – Thursday, November 1, 2018

Is it already November?  Why, yes it is!  Cooler weather, great football games, and, sadly, this is the weekend for you to re-set your clocks as the “Fall Back – Time change” begins Sunday morning.

Welcome back to GasNewsOnline.com!  We review a large variety of publicly released information to keep you informed about the natural gas business – for FREE!  We have a busy report for you today with a lot of gas pipeline news, a few publicly reported energy company transactions, and another update of the nation’s November temperature outlook.

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From the US Energy Information Administration Natural Gas Weekly Update dated November 1, let’s get started!

The Energy Information Administration released its weekly natural gas storage report today.  Storage levels rose 48 Bcf for the week ending last Friday vs. a consensus industry estimate of 50 Bcf.   Total gas in storage remains about 17% lower than the 5-year average.

At the New York Mercantile Exchange (Nymex), the November 2018 contract expired Monday at $3.185/MMBtu.  The natural gas futures price for December fell two cents Thursday and settled at nearly $3.24/MMBtu.

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In energy news…

Encana Corporation has agreed to acquire Newfield Exploration Company in an all-stock transaction valued at $5.5 billion.  Encana will also assume $2.2 billion of Newfield’s debt.

The deal includes 360,000 net acres in Oklahoma near the center of the STACK/SCOOP areas in the Anadarko Basin.

Dominion Energy announced Wednesday that it will sell its 50% interest in the Blue Racer Midstream pipeline to private equity company First Reserve and affiliated investment funds for up to $1.5 billion including $1.2 billion in cash and up to $300 million payable from 2019 through 2021 based on Blue Racer Midstream’s performance.

Dominion said that Blue Racer has become non-core to the company as it focuses on its regulated energy infrastructure.  The transaction is expected to close by year-end 2018.

Enterprise Products Partners said Wednesday that it is planning an expansion to its natural gas liquids fractionation complex in Mont Belvieu, Texas to add another 150,000 barrels/day of processing capability.  The company said that the newest NGL fractionator will be completed by early 2020 and is supported by long-term fee-based contracts with customers.

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Now let’s take a look at some recent critical notices from several interstate gas pipeline companies:

Columbia Gas Transmission:

Columbia Gas Transmission, LLC (TCO) reminds customers of maintenance work at the Summerfield Compressor Station in Noble County, Ohio scheduled November 5 through November 9, 2018.  During this work, the Leach Express system (LXPSEG MA41) Internal Constraint will be set to 1,340,000 Dth Total Capacity. At this level, TCO estimates a reduction to firm service of less than 50,000 Dth per day based on current scheduled volumes.

Dominion Energy Transmission:

Storage and Transportation Imbalances Effective Immediately – Notice Text:

Due to current and anticipated system conditions, customers are reminded to monitor contractual storage entitlements and take the necessary steps to manage deliveries within those firm entitlements.

Transportation customers are also advised to equalize receipts and deliveries so as to minimize imbalances on DETI’s system. Capability for over-injections, short-term parking, and loan payback activity are expected to be very limited or possibly not available. They may be subject to allocation or potential penalties if warranted by an OFO, in accordance with the terms of DETI’s tariff.

In addition, DETI may restrict due pipe imbalance paybacks. Your cooperation is appreciated.

El Paso Natural Gas:

El Paso Natural Gas Company, (EPNG) plans to conduct a review of the 2019 scheduled Permian Basin maintenance on Wednesday, November 7 in Odessa, Texas. The intent of the meeting is to better coordinate EPNG’s 2019 planned maintenance with Permian Basin producer maintenance to minimize the impact to EPNG’s customers.

The meeting is primarily designed for Permian Basin operators and gas control personnel, but EPNG will not seek to exclude any interested individuals.

The meeting will be held at the EPNG Odessa Area Operations office located at 1550 Windway, Odessa, Texas.  The meeting will start at 9:00 AM CST.  EPNG will provide lunch.

Please RSVP to: Vic_Villalva@kindermorgan.com

El Paso also posted a copy of its October 31, 2018 WebEx with customers in preparation for the upcoming winter heating season.  It can be found at: https://pipeline2.kindermorgan.com/Documents/EPNG/EPNG_Winter_Prep_10.31.2018_Presentation-20181031085917.pdf

Gas Transmission Northwest:

GTN has posted its November maintenance schedule, and shippers will have to deal with some capacity restrictions over the next few weeks.

From November 6 through November 8, pipeline ILI activities will reduce capacity to about 1.9 Bcf/d at Station 14.  At this volume, the pipeline projects a high probability of cuts to primary firm transportation during the period.

Beginning November 9 through the 21st, maintenance at the Starbuck Compressor Station will create a similar capacity restriction of 1.9 Bcf/d through Station 14 and a likelihood of reductions to firm transport shippers.

Natural Gas Pipeline Company of America:

STORAGE RESTRICTIONS – Update

WITHDRAWALS  – No changes

INJECTIONS  – Change concerning Amarillo System

Effective for gas day Friday, November 2, 2018, Timely Cycle, and continuing until further notice, injections above MDQ for DSS and NSS in all zones on the Amarillo System will not be scheduled.

No changes yet for the Gulf Coast System.  Injections above IQ and MDQ for DSS and NSS in all zones on the Gulf Coast System will be scheduled.

Northern Natural Gas:

Northern is experiencing major underperformance at several Field Area delivery points located in the Permian Basin area. Northern has limited operational flexibility due to high line pack and capacity constraints to accommodate underperformance at these delivery points. As a result, Northern will be calling a Field Area specific System Underrun Limitation (SUL) for all delivery points located in the Beaver System South Allocation Group (Group #13) effective for Gas Day Thursday, November 1, 2018 and continuing until further notice. In addition, Northern may be required to allocate the underperforming delivery points to actual flowing volumes during an intraday nomination cycle in order to protect the pipeline’s integrity. Allocations will continue at corresponding rates of performance and the initial occurrence for any particular gas day may be on the Intraday 3 nomination cycle. As performance improves at these delivery points, allocations may be lifted.

Nomination changes impacting constrained Field Area allocation groups may not be allowed during the Final true-up nomination cycle. This includes nominations to storage points for injection that would impact constrained groups not allocated during the Intraday 3 nomination cycle because nominated quantities for the group were slightly less than or equal to the operating capacity level.

During an SUL, System Management Service (SMS) is available below and above the scheduled volume; however, no 5% tolerance will apply below the customer’s scheduled volume before the Positive daily delivery variance charges (DDVCs) $1.00 rate will apply. (See Tariff Sheet No. 292).

Southern Natural Gas:

Transco Fairburn – New I/C Update #1

Southern Natural Gas Company, L.L.C. (“SNG”) provides this information to update its Shippers on the latest estimated in-service date for the new interconnect being placed in service with Transco during the 4th quarter of this year. SNG continues working on the Fairburn Expansion Project which will provide access to a new interconnection with Transco near Atlanta, Georgia (PIN # 50069) capable of receiving supplies of natural gas from Transco into SNG. The Fairburn Expansion Project provides new firm capacity on the SNG system by up to 370,000 Dth/d. Due to additional testing and related work, SNG now expects the project to be placed in-service by November 15, 2018 barring any further unexpected delays.  If you have any questions about this planned project, please contact your account manager.  We will post another notice with the in-service date prior to November 15th.

Southern Star Central Gas Pipeline:

Line Segment 130 Force Majeure (UPDATE #10)

Southern Star will be hosting a Webex call on Friday 11/02/2018 at 1:30 PM CST

Please join this Webex for updates on Line R (Kansas Hugoton Line) (Line Segment 130).    Phone – 650-479-3208 – Access Code – 731 336 303

This call will provide updates on the status to fully restore service for Line Segment 130.

Also on Southern Star:

Notice Text – Location 121415 (NGPL Barton), and Location 35515 (ANR Alden) Operational Capacity Changes

Effective gas day November 1, 2018, operational capacities will remain reduced at the following locations due to changes in pipeline conditions:

  • Location 121415 (NGPL Barton) – 30,000 Dth/d
  • Location 35515 (ANR Alden) – 0 Dth/d

These operational capacities will remain in effect until January 1, 2019.

Transcontinental Gas Pipe Line Company (Transco):

Has posted its monthly FERC Watch containing details about recent regulatory activity:  http://www.1line.williams.com/Transco/info-postings/regulatory/ferc/files/FERCWatch_11_18.pdf

Also on Transco:

Subject: Gulf Connector Expansion and the Assessment of Fuel Charges in Zones 1, 2 and 3

On August 16, 2016, Transcontinental Gas Pipe Line Company, LLC (Transco) filed an application, as supplemented on May 2, 2017, under section 7(c) of the Natural Gas Act (NGA) and Part 157 of the Commission’s regulations for a certificate of public convenience and necessity authorizing the construction and operation of three new compressor stations, a new pipeline interconnect, and modifications to two existing compressor stations in Southeast Texas for its Gulf Connector Expansion Project (“Project”). The Project will provide 475,000 dekatherms per day of firm transportation under Rate Schedule FT from Transco’s existing Compressor Station 65 Zone 3 Pool southward to new delivery points in Transco’s Zones 1 and 2.

Once the project facilities are placed in service, Transco’s Zones 1, 2 and 3, which previously flowed from South to North, will become bi-directional and Transco will begin compressing gas southward for deliveries in Zones 1 and 2. Given the need to compress gas for these deliveries and the bi-directional nature of Zones 1 through 3, Transco will begin assessing its generally applicable Zones 1, 2 and 3 fuel retention percentages, coincident with the in-service date of the Project, on all gas transported in Transco’s Zones 1, 2 and 3. The assessment of Transco’s generally applicable fuel retention percentages is consistent with the assessment of fuel in Transco’s other bi-directional zones.

The Gulf Connector Expansion Project is expected to be placed into full or partial service as early as December 1, 2018.

Williston Basin Interstate Pipeline:

Valley Expansion Project In Service

WBI Energy Transmission, Inc. is pleased to announce that the eastern North Dakota Valley Expansion Project is in service effective November 1, 2018.

The new receipt and delivery point locations associated with the interconnect with Viking Gas Transmission are now available for scheduling and are as follows:
Point 01950 VGT-Felton (D)
Point 01951 VGT-Felton (R)
In conjunction with the expansion project, WBI has added Line Section 31.  Please call the Scheduling Department at (701)530-1630 if you have any questions.

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In weather news, there are no tropical cyclones in either the Atlantic Ocean or in the Gulf of Mexico to report as we start the month.

The National Weather Service has updated their November temperature outlook for the United States.  With warmer than seasonal weather expected along the east and west coast regions, the new forecast predicts a likelihood that the midsection of the country will see average to below average November temperatures.

 

Remember to “Fall Back” this Saturday night for the time change back to standard time again beginning Sunday!

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