Edition 26 – Thursday, December 27, 2018

Welcome back to GasNewsOnline.com for Thursday, December 27, 2018.  The New Year is right around the corner, so we will check out the latest natural gas news and gas pipeline information which may affect your business through early next week.  All for FREE!

January’s natural gas futures contract looks to be up ten cents today and near $3.64/MMBtu for the new month at the Henry Hub in Louisiana.

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

The natural gas plant liquids composite price at Mont Belvieu, Texas, fell by 52¢/MMBtu, averaging $6.21/MMBtu for the week ending December 19. The price of natural gasoline, ethane, propane, butane, and isobutane all fell for that reporting week.

According to Baker Hughes, for the week ending Tuesday, December 11, the natural gas rig count remained flat at 198. The number of oil-directed rigs fell by 4 to 873. The total rig count decreased by 4, and it now stands at 1,071.

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Let’s check out the latest postings from the electronic bulletin boards of the major interstate gas pipeline companies around the United States:

Algonquin Gas Transmission:

AGT Operational Flow Order


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, December 29, 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.

East Tennessee Natural Gas:

Line 3100 Outage Update (5)

East Tennessee Natural Gas, LLC (ETNG) is providing the following update on its progress in returning to service the 3100 Line near its Dixon Spring compressor station. As posted on December 21, 2018, ETNG is working diligently to return the capacity thru Dixon Springs to approximately 300,000 Dth/d. The updated progress report is as follows: 

Progress Report: ETNG continues to be diligent on the three major construction activity work streams required to return the pipeline back to service. The three major work streams are: (1) Testing and installing new section of pipeline, (2) Installing temporary pig launchers/receivers and cleaning of the pipeline around incident location and (3) Removing temporary pig launcher/receivers and returning pipeline to service. 

As of December 26, 2018, the testing and installation of the new section of pipeline has been completed. As previously posted, ETNG has commenced and continues its pigging operations to clean the pipeline around the incident location. ETNG is projecting the final pig runs and other commissioning activities, such as the purging and packing of the system, to be completed on December 29th. There are various factors that could potentially change the projected return to service date, such as, but not limited to: weather conditions and unforeseen events due to existing pipeline conditions that could lengthen the work schedule. Based on the current schedule and progress made to date, ETNG is now projecting returning to service approximately 300,000 Dth/d of capacity thru Dixon Spring on DECEMBER 30, 2018.

Looking Ahead: ETNG will continue to provide updates on its progress until the 3100 line has been restored to full capacity. ETNG is committed to prioritizing the work in a safe and efficient manner in order to increase system capacity as quickly as feasible. 

El Paso Natural Gas:

Pipeline Conditions – Increasing Linepack in Advance of Weather

EPNG is concerned about the winter weather forecast to move into the Permian and San Juan basins Friday afternoon into Saturday morning and the potential for a loss of supply due to freeze offs. EPNG will be maintaining higher linepack until the winter weather moves out of the supply basins. Drafting of the system will undermine EPNG’s ability to increase and maintain linepack in advance of the potential supply underperformance.

Delivery point operators are encouraged to review their scheduled supplies to ensure that they are aligned with their flowing quantities.

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

Underperformance caps will be placed on non-performing supplies.

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

Kinder Morgan Louisiana Pipeline (KMLP):

FORCE MAJEURE – COMPRESSOR STATION 760 – LIFTED

KMLP has completed repairs at Compressor Station 760 in Acadia Parish, Louisiana (CS 760).  Therefore, effective for gas day Thursday, December 27, 2018, Intraday 1 Cycle and continuing thereafter, the force majeure will be lifted and flow will resume to normal operations.  All transport services are available.

Mississippi River Transmission (MRT):

MAIN LINE UTILIZATION SPW

Due to the potential for maximum utilization of northbound firm Main Line capacity causing a potential supply deficiency in the Market Zone, MRT is issuing a System Protection Warning (SPW) effective 9:00 a.m. Saturday, December 29, 2018 and continuing until further notice.

 During this time:

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

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

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

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

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

 6)           Customers with primary delivery points 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.

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

Shippers whose deliveries are affected by any of the Seven (7) 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 11 – CS 104 – FORCE MAJEURE

Natural is experiencing electrical issues at Compressor Station 104 (CS 104), located in Barton County, Kansas (Segment 11 of Natural’s Midcontinent Zone).  As a result, Natural is required to reduce the maximum operating capacity through CS 104.  This is a Force Majeure event that limits Natural’s throughput capacity northbound through CS 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 outage.  For scheduling purposes, the Midcontinent Pool (LOC 25078) is located south (upstream) of the constraint.  Additionally, firm transportation nominated from receipt points south of CS 104 (including the Midcontinent Pool) and transports associated with withdrawals from all Amarillo Storage points will be impacted.  Receipt points north of CS 104 will not be impacted.    

As such, effective for gas day, Friday, December 28, 2018, Timely Cycle and anticipated to continue until further notice,Natural will schedule Primary Firm and Secondary in-path Firm transports to no less than 75% 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 outage 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.

Southern Star Central Gas Pipeline:

Winter Weather Advisory – Effective December 28, 2018 Cold weather is being forecasted across much of the Southern Star system beginning Friday, December 28, 2018, through Sunday, December 30, 2018. Southern Star is issuing a weather advisory effective gas day Friday, December 28, 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.

Transwestern Pipeline Company:

12/26/18

Pipeline Conditions – Low Line Pack – Cold Weather

Transwestern is working to maintain and/or increase current line pack. This notice is due to cold weather moving into the Permian and the San Juan basins this week.

Customers are encouraged to review their transport to ensure that their flowing quantities are aligned with their scheduled supplies and to ensure their scheduled supplies are performing as expected.

Correspondingly, Transwestern plans to issue Underperformance Cut Notices to Receipt Point Operators that are flowing less gas into Transwestern than scheduled.

Any such UPR cuts will be handled by separate notices.

No Make-Up Deliveries or over burns due to operational concerns related to
maintaining adequate line pack.

If you have any questions, please contact Gas Control or your Marketing
Representative.

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Taking a look ahead to temperatures in the first week of January, the National Weather Service six-to-ten day forecast shows below average temperatures across much of the Midwest and Mid-continent regions with normal temperatures across the Great Lakes and Northeast.   The West Coast and Southeast may see slightly warmer temperatures than average.

Thank you for reading GasNewsOnline.com! Have a safe weekend, and a HAPPY NEW YEAR!

Edition 25 – Thursday, December 20, 2018

Like George Bailey on the bridge in It’s A Wonderful Life, the natural gas business is hoping for a wintertime miracle to give another boost to natural gas prices for the coming year.

Welcome back to GasNewsOnline.com!   We take care of wrapping up the packages of natural gas news and gas pipeline bulletin board postings for you – all for FREEHo, Ho, Ho!

Before we take a look at a large number of critical notices from the interstate pipeline companies, let’s check out some of the latest natural gas news today:

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From the US Energy Information Administration‘s “Weekly Natural Gas Storage Report“, working gas in storage decreased by 141 Bcf from the previous week.   Natural gas stocks were 720 Bcf or 20.6% below the five-year average.

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Oklahoma Gas & Electric, the utility subsidiary of OGE Energy Corp., announced today that it will acquire two existing power plants to meet customers’ energy needs. The plants will replace capacity currently provided by power purchase contracts set to expire in 2019.

The company announced it will acquire the Shady Point plant near Poteau, Oklahoma, and the Oklahoma Cogeneration plant in Oklahoma City.

The Shady Point facility is a 360 MW coal- and natural gas-fired plant utilizing circulating fluidized bed boilers that produce lower emissions due to their design features and emissions controls.

The Oklahoma Cogeneration facility is a 146 MW natural gas-fired combined-cycle plant.

The company will pay approximately $53 million for the two plants, which currently serve OG&E customers.

“In the past five years, we’ve completed several critical projects that advance our commitment to deliver energy reliably and affordably to customers in an environmentally responsible way.  Today’s announcement builds on that commitment,” said OGE Energy Corp. Chairman, President and CEO Sean Trauschke. “Our diverse energy portfolio of natural gas, wind, solar and coal gives us the versatility to meet a variety of economic and environmental needs. The result is our electric rates are 29 percent below the national average, which is a driver of economic development, and OGE is among industry leaders in emissions reduction performance.

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ENGIE Resources today announced the acquisition of Plymouth Rock Energy based in Woodmere, NY. The transaction, which has received approval from the Federal Energy Regulatory Commission and became effective December 19, 2018, will enable ENGIE Resources to expand its natural gas and electricity presence in seven states and by more than 20,000 customers.

The combined organization expects to benefit from complementary products, geographies, and systems in addition to shared information technology and billing and service economies.

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The interstate gas pipeline network is getting ready for the long Christmas break by posting a number of critical notices to shippers and customers.  Let’s take a look:

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, December 24, 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.

This OFO will remain in effect until further notice.

Columbia Gulf Transmission:

Effective December 20, 2018 for the ID1 cycle, the Kinder Morgan La. interconnect, Meter 4206 is now designated as bidirectional and available for delivery nominations on Columbia Gulf Transmission, LLC (CGT).  This meter is located in Evangeline Parish, LA on CGT’s Mainline.  

Dominion Energy Questar Pipeline

Dominion Energy Questar Pipeline’s fuel reimbursement rate is changed for January 1,2019 from 1.87% to 1.57% pending FERC approval by the end of December. If there are any changes to the rate, the approved rate will be reposted.

East Tennessee Natural Gas:

Line 3100 Outage Update

Enbridge is working with PHMSA towards a timely in-service of East Tennessee Natural Gas’ (ETNG) 22-inch natural gas pipeline impacted by the incident that occurred in Pleasant Shade, Tennessee, on December 15, 2018.

Safety is a fundamental principle in everything we do and we are ensuring all construction and restoration operations are completed safely.  We continue to refine our return to service plan, and currently do not have an estimated time of restoration. 

Enbridge is committed to bringing the affected section of its East Tennessee Natural Gas system back to operation in a safe manner.  We will provide further updates as future milestones are achieved or as circumstances warrant.

El Paso Natural Gas: 

Pipeline Conditions – Weekend Linepack Concerns 

Currently EPNG linepack is within acceptable limits going into the holiday weekend. However, EPNG is concerned that the forecasted milder weather across our service area could result in a high linepack situation. 

Customers are encouraged to review their transport to ensure that their flowing quantities are aligned with their scheduled supplies.   

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

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

Washington Ranch is on maximum injection. 

Payback to the system, such as Make-Up Receipt (MR) transactions, may be limited or denied due to operational concerns related to the potential for a high linepack condition. 

Enable Gas Transmission:

REVISED PLND BYARS LAKE MAIN

New Information Posted December 19th, 2018

This Operational Alert is being issued pursuant to Section 20, GT&C, of EGT’s Tariff to notify shippers of planned maintenance at EGT s Byars Lake Compressor Station.

Effective February 6, 2019, at 9:00 a.m. and continuing through February 7, 2019 (previously January 9 through 10), EGT will conduct planned maintenance on its Byars Lake Compressor Station, located in McClain County, Oklahoma and in EGTs West 2 Pooling Area.  During this maintenance, capacity through EGT’s Allen Compressor Station will be limited to approximately 780,000 Dth/d; point operators will experience higher pressure.

Based on current nominations, EGT expects impacts to its services, including potential impacts to firm service.  During the planned maintenance, shippers whose receipts are in the West 1 and West 2 pooling areas West of the Allen Compressor Station should nominate point to point in order to maintain the highest priority level of service.

Gulf South Pipeline:

Olla (Louisiana) Compressor Station Maintenance – Update

Effective date:  December 20, 2018               End Date:  December 28, 2018

For the Marksville Deliveries Scheduling Group, capacity could be impacted by as much as 100,000 dth/d for the duration of the maintenance.

Northern Natural Gas:

In an effort to provide timely and useful information that may impact customers’ decisions regarding nominated volumes, and to assist shippers in scheduling their transportation and storage services, Northern is providing advance notice of the Carlton Sourcing Obligation, System Underrun Limitation (SUL), and System Overrun Limitation (SOL) for the holiday weekend.

Based on temperatures that are currently forecast for the Market Area throughout the holiday weekend, the following system conditions will be in effect to ensure adequate line pack and delivery pressures.

The Carlton Sourcing Obligation will be as follows:

Gas Day Saturday, December 22, 2018, will be 0%

Gas Day Sunday, December 23, 2018, will be 0%

Gas Day Monday, December 24, 2018, will be 0%

Gas Day Tuesday, December 25, 2018, will be 0%

Gas Day Wednesday, December 26, 2018, will be 0% 

SUL and SOL status for both the Market and Field Areas will be as follows:  No SUL or SOL 

Holiday Weekend Temperatures Projected to be Warmer-Than-Normal

The likelihood of storage injection allocations is at a higher probability for the extended holiday weekend due to the forecast of warmer than normal temperatures. These conditions could lead to the allocation of interruptible storage injections, including firm deferred delivery overrun injections.

Although Northern does not anticipate calling an SUL, Northern may be required to allocate overperforming receipt points and/or underperforming delivery points located in the Permian basin to actual flowing volumes during an intraday nomination cycle in order to maintain adequate supply/market balance. As performance improves at these receipt and delivery points, allocations would be lifted.

Northwest Pipeline:

Effective December 21-23, 2018, Jackson Prairie will be undergoing maintenance. Nominations that net to an injection or withdrawal of 50,000 Dth/d will be accepted. Northwest requests that customers stay on rate to avoid the issuance of an Entitlement.

Northwest will schedule up to 10,000 Dth at $0.10 for both Park and Loan at JP for December 21-23. 

Northwest is NOT allowing interruptible in or out of JP December 21-23.

Northwest is asking Shippers to voluntarily reduce nomination through the Rangely compressor station to avoid the issuance of an OFO over the holidays. Operational capacity is 370,000 Dth/d. If nominations exceed 370,000 Dth/d Northwest could issue an OFO.

Northwest encourages you to continue scheduling your supply so that sufficient gas is being delivered to Northwest to cover your market.

Northwest Pipeline reserves the right to cut secondary gas to protect the operational integrity of its pipeline. This includes cutting secondary gas at any compressor in a constrained corridor; moving balancing gas to and from Clay Basin and Jackson Prairie; or to minimize OFOs for primary irm shippers.

PG&E – California Gas Transmission:

Due to the completion of maintenance on Line 300 A/B, pipeline inventory limits will be restored to the following ranges starting on today’s gas day, December  20, 2018:

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

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

Southern Star Central Pipeline:

Line Segment 130 Force Majeure (UPDATE #13):

Southern Star Central Gas Pipeline (Southern Star) posted a Force Majeure Update on Line Segment 130 Tuesday, June 19, 2018. Southern Star continues working to fully restore service for Line Segment 130.

Additional work has been completed, Effective TIM Cycle Gas Day December 20, 2018, and Southern Star will increase capacity at the Kansas Hugoton Receipt constraint to 383,000 Dth/d.

Texas Eastern Transmission:

TE Imbalance Notice – UPDATE

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

Additionally, TE requires all shippers and point operators in Access Area Zones STX, ETX, WLA and ELA and Market Area Zone M1-30, M2-30 and M3 to carefully review demand for gas and schedule gas consistent with daily needs and to tender and receive gas consistent with confirmed nominations regardless of their cumulative imbalance position unless otherwise coordinated with your operations account representative.

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

This notice will remain in effect until further notice.

Trailblazer Pipeline:

TRAILBLAZER MECHANICAL ISSUE–COMPRESSOR STATION 603

Trailblazer Pipeline Company LLC (“Trailblazer”) has recently 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 early April 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.

Transcontinental Gas Pipe Line Company:

Subject: Operational Flow Order – Imbalance

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

Beginning:  Friday, December 21, 2018 and until further notice

OFO Areas:  Zones 4, 5, and 6

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

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The National Weather Service has posted its January, 2019 temperature forecast.  The picture shows average to slightly colder than average temperatures across the central and eastern portions of the United States.  The Rockies and West Coast will again see warmer than average weather.

Have a very MERRY CHRISTMAS and enjoy the holiday season!   Please tell a friend in the natural gas transportation business about GasNewsOnline.com!   Subscribe to our FREE audio podcasts on iTunes.

Edition 24 – Monday, December 17, 2018

The long-awaited thaw has begun for most of the country to start the new work week.  With expectations of moderating temperatures continuing through the end of December, the natural gas futures price for January is taking a beating today.   Scenes of a melting Frosty-the-Snowman are apparently going viral on gas traders’ screens today.   

Welcome back to GasNewsOnline.com!  We search for publicly available news and information about the natural gas business and bring it to you twice every week – for FREE!

Today, the NYMEX natural gas futures price for January, 2019 has dropped by about thirty cents as a lack of cold weather in the forecast for the next few weeks will cause a glut of gas supplies.   January’s natural gas price has tanked to just about $3.50/MMBtu. 

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Let’s review the EIA’s Natural Gas Weekly Update dated December 13, 2018:

At the NYMEX, the natural gas price of the 12-month strip from January 2019 through December 2019 futures contracts declined 8¢/MMBtu to $3.165/MMBtu last week.

Net storage withdrawals from working gas totaled 77 billion cubic feet (Bcf) for the week ending December 7.  Working natural gas stocks are 20% lower than the five-year (2013–17) average.

The natural gas plant liquids composite price at Mont Belvieu, Texas, rose by 6¢/MMBtu, averaging $6.73/MMBtu for the week ending December 12. The price of ethane and isobutane fell by 2% and 1%, respectively.  The price of natural gasoline, propane, and butane rose by 5%, 1%, and 4%, respectively.

According to Baker Hughes, for the week ending Tuesday, December 4, the natural gas rig count increased by 9 to 198. The number of oil-directed rigs fell by 10 to 877.  The total rig count decreased by 1, and it now stands at 1,075.

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Williams reported on Friday that the Federal Energy Regulatory Commission (FERC) has issued a certificate authorizing the Gateway Expansion Project – an expansion of the existing Transco natural gas pipeline designed to create 65,000 MMBtu/day of firm transportation capacity for northeastern markets.

The Gateway project helps meet growing natural gas demand by consumers in New Jersey and New York in time for the 2020/2021 winter heating season, providing additional natural gas service to PSEG Power and UGI Energy Services.

Virtually all of the project activities are within Transco’s existing rights of way and/or property boundaries. It includes adding electric horsepower at an existing Transco compressor station in Essex County, N.J., in addition to making modifications to two existing Transco meter stations in Passaic County and Essex County, N.J.

Williams anticipates beginning construction on the Gateway Expansion Project in the spring of 2019, with a target in-service date of Nov. 1, 2020.

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Enbridge Inc. and Spectra Energy Partners, LP announced today that they have completed the previously announced merger pursuant to an Agreement and Plan of Merger dated as of August 24, 2018 (the Merger Agreement). The Merger resulted in Enbridge (through a wholly owned subsidiary) acquiring all of the outstanding public common units of SEP and SEP becoming an indirect, wholly owned subsidiary of Enbridge.

Effective today, SEP unitholders of record as of the close of business on November 5, 2018 (other than Enbridge and its subsidiaries) are entitled to receive from Enbridge pursuant to the Merger Agreement, for each SEP common unit held, 1.111 common shares of Enbridge.

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The interstate gas pipeline system has eased-up on the weather-related critical notices to start the new week.  Let’s check out the latest postings.

Algonquin Gas Transmission:

In order to maintain the operational integrity of the system, Algonquin Gas Transmission, LLC (AGT) is issuing an Operational Flow Order (OFO) pursuant to Section 26 of the General Terms and Conditions of AGT’s FERC Gas Tariff effective 9:00 AM CCT, December 17, 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 2,000 Dth or 102% 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.

ANR Pipeline:

Southeast Mainline Capacity Reduction (Cancelled 12/17/18)
This posting supersedes PSO ID #8994

ANR has cancelled the planned station maintenance at its Cottage Grove Compressor Station (in Tennessee) along its Southeast Mainline. Effective immediately, the restriction for the Cottage Grove Southbound (LOC #505614) location has been lifted.

Since the last posting, ANR has made the following change. The operationally available capacity has been restored to 1,225-MMcf/d.

Columbia Gas Transmission:

Columbia Gas Transmission, LLC (TCO) notifies customers that the upcoming maintenance at the Chantilly Compressor Station has been delayed one day.  The work is now scheduled for Wednesday, December 19, 2018 through Thursday, December 20, 2018.  

Due to this maintenance, there is a potential to interrupt firm service at the Transco Chantilly interconnect (delivery meter 843105).

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 Rural Retreat Compressor Station in Rural Retreat, Tennessee which occurred on December 16,2018. 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.

Florida Gas Transmission:

JANUARY 2019 — FGT SUPPLY AREA MAINTENANCE IN ZONE 3

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

Tennessee Gas Pipeline:

OFO DAILY CRITICAL DAY 1 DOWNSTREAM OF STA 254 EFFECTIVE 12-18-18

Due to forecasted colder weather and higher demand moving back into the northeast, for the Gas Day of Tuesday, December 18, 2018,Tennessee is issuing an OFO Daily Critical Day 1 for downstream of STA 254 on the 200 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 254 on the 200 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 254 on the 200 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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Finally, the extended six-to-ten day temperature forecast from the National Weather Service is showing why Frosty-the-Snowman’s recent appearance may be a short one.   From coast-to-coast, holiday temperatures will be above to nearly normal.  

As a long-time friend in the energy business once told me nearly thirty years ago during a January when the temperature was above normal and natural gas prices were cratering, “Let’s go play golf!  At least we can be happy about something today, right?”

Indeed!  Thanks for checking in to GasNewsOnline.com!  We are your FREE source of information about the natural gas transportation business twice weekly.  Please tell a friend about us! 

Edition 23 – Thursday, December 13, 2018

Welcome back to GasNewsOnline.com!   We hope to give you a little holiday cheer with publicly available news and information about the natural gas business and a glimpse of warmer weather in the extended forecast for the week of Christmas.

First, let’s take a look at what is making news in the energy business:

The US Energy Information Administration published their weekly natural gas storage report today.  Below is a summary of the report:

EIA Natural Gas Storage Data
Total (12/07/18): 2,914 Bcf
Total (11/30/18): 2,991 Bcf
Net change: -77 Bcf
Year ago stocks: 3,636 Bcf
% change from year ago: -19.9
% 5-year avg stocks: 3,637 Bcf
% change from 5-year avg: -19.9 %

Cheniere Energy, Inc. announced Wednesday that the first commissioning cargo of liquefied natural gas (LNG) has loaded and departed from its Corpus Christi liquefaction facility in Texas, marking the first export of LNG from the state and from a greenfield liquefaction facility in the lower 48 states. The LNG was loaded on the LNG carrier Maria Energy, chartered by Cheniere Marketing, LLP.

“Exporting the first commissioning cargo of LNG from Texas demonstrates Cheniere’s ability to deliver projects safely and ahead of schedule, including the first greenfield LNG export facility in the lower 48 states,” said Jack Fusco, Cheniere’s President and CEO. “This milestone further reinforces Cheniere’s position as the leader in U.S. LNG, with a world-scale liquefaction platform that provides significant competitive advantages as we continue to execute on our growth strategy.” 

The Corpus Christi liquefaction facility consists of three large-scale LNG production units — or trains — and supporting infrastructure, with an additional seven smaller trains proposed.  The facility’s first train produced first LNG in November and is expected to reach substantial completion in the first quarter of 2019.  Train 2 is expected to reach substantial completion in the second half of 2019, and Train 3 in the second half of 2021. The facility will also feature three LNG storage tanks with capacity of approximately 10.1 billion cubic feet equivalent and two marine berths.

In other energy news:

Houston-based Parker Drilling Company announced Wednesday that it has entered into a restructuring support agreement (“RSA”) with holders of the Company’s securities.  To implement that agreement, Parker has voluntarily filed for Chapter 11 protection in the U.S. Bankruptcy Court for the Southern District of Texas.

The existing management team is expected to remain in place, and the Company expects to complete the restructuring process in the first quarter of 2019.

The Company anticipates that its cash flow and existing liquidity will be sufficient to support global operations during this period.   The proposed Plan, which is subject to Court approval, reduces approximately two-thirds of funded debt and injects $95 million of new equity capital.

“Our operational results have continued to improve this year, and we anticipate new opportunities for profitable growth across our drilling and rental tools businesses. The steps we are announcing today will ensure that we have the appropriate capital structure to take advantage of these opportunities to strategically grow our assets, our global footprint, and our suite of products and services,” said Gary Rich, Chairman, President and Chief Executive Officer.

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The interstate gas pipeline grid is shifting from an early winter mode of operation and providing the industry a brief chance to replenish storage levels as some warmer weather is upon us.  Let’s take a look at some of the critical postings:

ANR Pipeline:

SW Area Capacity Restriction

New: ANR will begin unplanned compressor maintenance at its Mooreland Compressor Station located in Woodward County, Oklahoma, in the Southwest Area (Zone 4).  During the period of December 13th, 2018 through January 13th, 2019, ANR Shippers can expect higher than normal pressures in the pipeline segment upstream of the Mooreland Compressor Station.

Dominion Energy Transmission:

Effective start of gas day, Friday, December 14, 2018, PL-1 restrictions will be lifted (supersedes Notice ID: 209910).

Additionally, Dominion is lifting capacity restrictions on its Northern, TL-400, and Oakford operating areas on Friday, December 14.

Dominion Energy Questar Pipeline:

In-line inspection results for JL47 indicate that remediation is necessary on a portion of the pipeline.  Dominion Energy Questar Pipeline (DEQP) has scheduled the repair for December 18, 2018.  To facilitate the work, Altamont MAP 145, Randlett Tap MAP 419, Pleasant Valley Tap MAP 413 and Brundage Mtn Tap MAP 144 will all need to be shut-in and nominations will not be accepted for cycles Timely through ID2 with volumes, returning to normal in cycle ID3.

East Tennessee Natural Gas:

ETNG Operational Flow Order – East of Boyds Creek — LIFTED

Effective today (Thursday, December 13), East Tennessee Natural Gas (ETNG) is lifting the Operational Flow Order for meters east of Boyds Creek issued on December 5, 2018.

ETNG has limited operational flexibility to manage imbalances. ETNG requires all delivery points located east of Boyds Creek to carefully review demand for gas and schedule gas consistent with daily needs and to tender and receive gas consistent with confirmed nominations regardless of their cumulative imbalance position unless otherwise coordinated with your operations account representative.

Additionally, ETNG requires all delivery points on its 3200 line located between Tracy City to Topside and on the 3500 line 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 on the 3200 Line between Tracy City to Topside and on the 3500 line are required to keep actual receipts into the system equal to or greater than scheduled quantities regardless of their cumulative imbalance position.

El Paso Natural Gas:

The Force Majeure event that was declared on December 7, 2018 (Reference Critical Notice 603991) at Dimmitt Compressor Station will be lifted effective for Gas Day December 13, 2018 Cycle 3 (Intraday 1). The net capacity at AMAR N returns to 283,100 dekatherms consistent with El Paso Natural Gas Company’s December Maintenance Report (Reference latest Maintenance Notice 603975).

Enable Gas Transmission:

This Operational Alert is being issued pursuant to Section 20, GT&C, of EGT Tariff to notify shippers of planned maintenance at EGT’s Byars Lake Compressor Station.

Effective January 9, 2019, at 9:00 a.m. and continuing through January 10, 2019, EGT will conduct planned maintenance on its Byars Lake Compressor Station, located in McClain County, Oklahoma and in EGT’s West 2 Pooling Area.  During this maintenance, capacity through EGT’s Allen Compressor Station will be limited to approximately 780,000 Dth/d.  Point operators will experience higherpressure.

Based on current nominations, EGT expects impacts to its services, including potential impacts to firm service. During the planned maintenance, shippers whose receipts are in the West1 and West 2 pooling areas West of the Allen Compressor Station should nominate point to point in order to maintain the highest priority level of service.

Florida Gas Transmission:

FGT is performing planned pipeline maintenance upstream of FGT Compressor Station 10. This maintenance began 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 is performing maintenance on pipe near the FGT/Tennessee Carnes Interconnect (POI 10258). This maintenance began 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.

Kinder Morgan Louisiana Pipeline (KMLP):

Compression associated with the Sabine Pass Expansion Project, (Docket No. CP 17-22-00), is expected to go into service on December 13, 2018.  KMLP will begin assessing fuel gas on the “North to South Transportation Path” as defined in Section 1.30 of KMLP’s General Terms and Conditions. 

Effective December 13, 2018, the Fuel Gas Total Reimbursement Percentage will increase from 0.00% to 0.72%.  This percentage was approved by FERC on November 27,2018 in KMLP’s filing in Docket No. RP19-197-000.  The Unaccounted For Gas Total Reimbursement Percentage remains at 0.00%.  Shippers are advised to schedule quantities with the revised percentages. 

Natural Gas Pipeline Company of America (NGPL):

Natural has experienced horsepower issues on the Amarillo mainline at Compressor Station 103 (CS 103),located in Ford County, Kansas (Segment 11 of Natural’s Midcontinent Zone).  This is a Force Majeure event that will require Natural to reduce temporarily the maximum operating capacity northbound through CS 103 during this restriction. 

The scheduling constraint will be at CS 103; therefore, any gas received south of CS 103 for delivery north of CS 103 will be impacted. The Midcontinent Pool (PIN 25078) is located south (upstream) of the constraint.  Additionally,transports associated with storage withdrawals will be impacted. 

As such, effective for gas day Thursday, December 13, 2018, Timely Cycle, and anticipated to continue until further notice, Natural will schedule Primary Firm and Secondary in-path Firm transports to no less than 82% of contract MDQ through CS 103.  Actual nomination levels and changes in pipeline conditions could result in changes to the percentages scheduled (lower or higher).  AOR/ITS and Secondary out-of-path Firm transports continue to not be available during this event.   

Tennessee Gas Pipeline:

Effective for the Gas Day of Friday, December 14, 2018, and until further notice, Tennessee Gas Pipeline, LLC (“Tennessee”) is lifting the Daily Critical Day 1 OFO for all areas east of STA 219 on the 200 Line (including the Niagara Spur) and on the 300 Line.  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. 

Texas Eastern Transmission:

Texas Eastern Transmission (TE) has experienced an outage impacting capacity through its Bernville compressor station in Pennsylvania. This outage results in a capacity of approximately 2,947,000 Dth/d through the Bernville compressor station beginning on Gas Day December 14, 2018.  TE anticipates the outage will last for approximately 2-3days.

In addition…

Effective today (Thursday,December 13), Texas Eastern (TE) is lifting the Market Area Zone M3 Operational Flow Order effective on December 4, 2018.

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

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

Furthermore, due to impending colder weather, in order to maintain the operational integrity of the system TE is issuing an Operational Flow Order (OFO) pursuant to Section 4.3 of the General Terms and Conditions of TE’s FERC Gas Tariff effective 9:00AM CCT Monday, December 17, 2018 to all delivery parties, with the exception of those governed by a FERC gas tariff, in Texas Eastern’s Market Area Zone M3.

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

During the effectiveness of this OFO, all parties must be balanced such that actual deliveries of gas out of the system must be equal to or less than scheduled deliveries out of the system. The penalty shall apply to each dekatherm of actual delivery quantities that exceeds the greater of 2,000 Dth or 102% of scheduled delivery quantities. The penalty will be equal to three times the arithmetic average of daily Platts Gas Daily “Daily Price Survey” posting for the High Common price for the geographical region, as defined in Section 8.5(a) of the General Terms and Conditions of TE’s FERC Gas Tariff for the day on which such violation occurred. In addition, TE will not permit retroactive nominations to avoid an OFO penalty.

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

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According to Santa’s friends at the National Weather Service, the eight-to-ten day temperature forecast is showing that most of the United States may see normal to above-average readings heading into Christmas!  Ho, Ho, Ho, indeed!

Enjoy a weekend of fewer operational flow orders on the pipelines for a change! 

Thanks for visiting GasNewsOnline.com!  Please tell a friend in the gas transportation and scheduling/trading business about us.  Our information is FREE!  


Edition 22 – Monday, December 10, 2018

While Mother Nature gives the Carolinas and Virginia a taste of Ol’ Man Winter, the natural gas business continues to deal with the cold weather with hotter spot gas prices than last year.

Welcome back to GasNewsOnline.com!  We cover the latest postings from the interstate gas pipeline companies and scour the headlines for publicly released news and information affecting the gas transportation business. 

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Let’s get started by reviewing some interesting information provided by the US Energy Information Administration.

From the EIA’s Natural Gas Weekly Update…

The natural gas plant liquids composite price at Mont Belvieu, Texas, rose by 16¢/MMBtu, averaging $6.67/MMBtu for the week ending December 5.  By comparison, the spot natural gas price at the Henry Hub in Louisiana averaged about $4.60/MMBtu last week.

According to Baker Hughes, for the week ending Tuesday, November 27, the natural gas rig count decreased by 5 to 189. The number of oil-directed rigs rose by 2 to 887. The total rig count decreased by 3, and it now stands at 1,076.

China becomes world’s largest natural gas importer, overtaking Japan

China’s combined imports of natural gas by pipeline and in the form of liquefied natural gas (LNG) have become the world’s largest consistently for the past six months, overtaking Japan, and exceeding 12 billion cubic feet per day (Bcf/d) in August and September. In the first nine months of this year, China’s total natural gas imports averaged 11.4 Bcf/d, a 34% increase over the same period last year.

Strong growth in China’s natural gas imports was led by the increase in domestic consumption, stimulated by government policies promoting coal-to-natural gas switching in an effort to reduce air pollution and meet emissions targets.

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On Friday, the EIA also reported that natural gas inventory withdrawals were just about at the projected volumes from industry analysts for the week ending November 30.   According to the EIA, 63 Bcf was pulled out of storage.  The 5-year average of gas in storage remains about 19% below normal. 

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Here are some of the latest critical notices from the interstate gas pipeline grid:

ANR Pipeline:

Southeast Area Capacity Reduction (Updated 12/10/18)

New: Due to compressor repairs at the Eunice Compressor Station located in the Southeast Area Segment (Zone 1), ANR will limit the Eunice Eastbound (LOC #226641) capacity to the following.

Eunice Eastbound capacity restriction (LOC #226641):
98-MMcf/d (leaving 490-MMcf/d available) 12/11 – 12/17
40-MMcf/d (leaving 548-MMcf/d available) 12/18 – 3/31/19

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

Columbia Gas Transmission:

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):

  • 12/7/2018       185,871 mmcf
  • 12/8/2017       227,659 mmcf
  • 12/9/2016       231,186 mmcf

Gulf South Pipeline:

Delhi Compressor Station Maintenance

Starts:  December 17, 2018                 Ends:  December 22, 2018

Delhi Expansion Compressor Scheduling Group

Capacity could be impacted as much as 140,000 dth/d for the duration of the maintenance.  Please contact your customer service representative if you have any questions.

Panhandle Eastern Pipe Line Company:

12/10/2018 – Weather Alert Update #1

Effective Gas Day December 11, 2018, Panhandle is lifting the weather restrictions set forth in Critical Notice ID 8093.   If you have any questions, please contact your Marketing or Customer Service Representative.

Southern Natural Gas:

Transco Fairburn – New I/C Update #6

As previously posted, Southern Natural Gas Company, L.L.C. (“SNG”) continues to work on the implementation of 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.

Facilities are complete and commissioning activities are ongoing.  SNG is making progress on resolving start-up issues at the compressor station but certain issues are taking longer than expected.  SNG is working diligently to put the project in service as soon as possible, but the outstanding issues make it difficult to predict the in-service date with certainty at this time.  SNG will provide another update on Thursday, December 13, 2018.

Because of the continued delay, SNG is offering to provide the Shippers that signed up for the Fairburn Expansion Project up to 40% of the FT quantity subscribed as part of the Fairburn Expansion beginning December 17, 2018 with other Transco receipt points to bridge the period until the Fairburn Expansion can be placed into service.  Interested Shippers may contact Devy Traylor at 205-325-3524 or Darryl Outlaw at 205-325-7421 for more information. For service to begin on December 17, each Fairburn Shipper should notify SNG of its interest on or before 5:00 pm CCT on Tuesday, December 11, 2018.

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The updated six to ten day temperature for the continental US is showing a dramatic warm-up expected for most of the country.  After such a cold start to the month, the eastern half of the US will appreciate a chance to thaw!

With two weeks to go, Santa is getting as confused about December’s weather as we are!   Somehow, he seems to rally on Christmas Eve! 

Thanks for checking-in at GasNewsOnline.com!  Please tell your friends in the natural gas business about us!

Edition 21 – Thursday, December 6, 2018

It’s been a busy week in the United States as we have honored the passing of our 41st President, George H. W. Bush.

Welcome back to GasNewsOnline.com!   The interstate pipeline grid is filled with cold weather advisories for this weekend as we provide a review of the latest postings from the electronic bulletin boards ending this week.

If you remember Merle Haggard’s hit song called, If We Make it Through December, the National Weather Service is now showing a chance for a break in the recent colder weather coming before Christmas.   Stay tuned!

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Columbia Gas Transmission:

Columbia Gas Transmission, LLC (TCO) reminds customers of upcoming maintenance at the Cobb Compressor Station in West Virginia scheduled for Tuesday, December 11, 2018 through Wednesday, December 19, 2018.

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)

As a reminder, nominations through the impacted internal constraints will not be scheduled until the work is complete.

 

Dominion Energy Transmission:

Niagara Mohawk East and Bethlehem Energy Deliveries Primary Only

Due to forecasted temperatures, effective with the start of gas day Friday, December 7, 2018, deliveries at Niagara Mohawk East Meter (20550) and Bethlehem Energy Center Meter (30200) will be limited to primary only 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.

 

Florida Gas Transmission:

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

FGT is performing maintenance on the FGT East White Lake Lateral upstream of FGT Compressor Station 75. This maintenance began on December 3, 2018. The original planned completion date of December 7, 2018 has been extended to the end of gas day December 13, 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 is performing planned pipeline maintenance upstream of FGT Compressor Station 10. This maintenance began 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 is performing maintenance on pipe near the FGT/Tennessee Carnes Interconnect (POI 10258). This maintenance began 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 FGTschedules up to 60,000 MMBtu/day through the FGT/Tennessee Carnes Interconnect.

 

Gulf South Pipeline:

Kiln Compressor Station Maintenance

Begin date:  12/6/18   End Date: 12/12/18

Capacity could be impacted by as much as 200,000 dth/d for the duration of the maintenance. Gulf South will be working with point operators to reduce impact.

 

Kern River Gas Transmission:

Kern River hereby announces a force majeure due to an unexpected mechanical issue that will require a turbine engine exchange on Unit 1 at the Salt Lake compressor station. The force majeure will be effective Timely cycle for gas day December 11, 2018, and is expected to continue through the end of gas day December 13, 2018.

Kern River will initially reduce the Veyo operating capacity by 50,000 Dth to 2,430,000 Dth, after which Kern River will evaluate system conditions and nomination flow patterns each cycle and will increase the Veyo operating capacity in subsequent cycles, if possible, to ensure throughput is maximized.  Kern River does not anticipate any impact to previously scheduled nominations or to new primary or secondary firm nominations.

 

Natural Gas Pipeline Company of America (NGPL)

FORCE MAJEURE – SEGMENT 8 – COMPRESSOR STATION 168 – UPDATE #3

Additional information on the end date, as noted below.  This notice was last posted on November 19, 2018, entitled “FORCE MAJEURE – SEGMENT 8 – COMPRESSOR STATION 168 – UPDATE #2”.

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 anticipated to continue through gas day Monday, December 17, 2018, (previously Monday, December 10, 2018), 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.

 

Panhandle Eastern Pipe Line Company

Based on current cold weather forecasts, Panhandle is preparing for increased pipeline utilization and reduced operational flexibility. Effective Gas Day December 6, 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.

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

 

Southern Star Central Gas Pipeline:

The Winter Weather Advisory that went into effect December 4, 2018 is being extended through December 9, 2018 based upon updated forecast.

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.

 

Tennessee Gas Pipeline

OFO DAILY CRITICAL DAY 1 FOR ALL AREAS EAST OF STA 219 EFFECTIVE 12-7-18

Due to forecasted colder temperatures moving into the Northeast, effective for Gas Day, Friday, December 7, 2018, Tennessee is implementing an OFO Daily Critical Day 1 for all areas east of STA 219 on the 200 Line (including the Niagara Spur) and all areas east of STA 219 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 east of STA 219 on the 200 Line (including the Niagara Spur) and east of STA 219 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 east of STA 219 on the 200 Line (including the Niagara Spur) and east of STA 219 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.

 

Texas Eastern Transmission:

Line 16 Unplanned Pipeline Outage — UPDATE 3

The previously posted unplanned outage on Line 16 between Santa Fe Compressor Station (Santa Fe) and CENEGAS Mexico (EOL) has been further delayed. Texas Eastern Transmission (TE) currently anticipates Line 16 will return to service between Sunday December 9 and start of Gas Day Tuesday December 11, 2018.

As a reminder due to this unplanned outage the following meters will continue to be unavailable for flow:

71142 – VERNON FAULKNER-SAN SALVADOR FIELD – HIDALGO CO., TX (REC)
72222 – DEWBRE PETROLEUM-VALDERAS #1 / HIDALGO COUNTY, TX (REC)
72377 – SENECA RESOURCES – #1 GARZA, HIDALGO CO., TX
72716 – ENTERPRISE TEXAS PIPELINE LLC HILDALGO COUNTY, TX (REC)
72744 – RIO GRANDE ROYALTY CO., INC. – RIO GRANDE #1/HIDALGO CO., T
73113 – ENTERPRISE TEXAS PIPELINE LLC – HIDALGO COUNTY, TX
73180 – BLUESTONE – HIDALGO CO., TX
73345 – DEFS/SANTA FE RANCH GATHERING – KLEBERG CO., TX (REC)
73362 – SUEMAUR E&P-PEDRAZA #1 – HIDALGO CO., TX (REC)
73385 – SUEMAUR E & P – GOLDSBERRY GATHERING / HIDALGO CO., TX (REC
73414 – HESCO – DENALI GATHERING / HIDALGO CO., TX (REC)
73425 – WILLIAMS PIPELINE/LACY CROSSOVER – HIDALGO CO., TX (REC)
75258 – MAGIC VALLEY PL-CALPINE-POWER PROJECT(D73258/R73259)
75333 – CENAGAS – REYNOSA, MX (D70333/R76333)

TE will post updates to the status of this unplanned outage as soon as it is known.

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In other energy news…

Williams today announced the sale of certain pipeline systems located in the Gulf Coast area to Easton Energy LLC for $177 million in cash.  The sale closed on Nov. 30, 2018.

The 31-mile Texas Belle Pipeline, which transports natural gas liquids from Mont Belvieu to customers along the Houston Ship Channel, is included in this transaction as are the Purity Pipeline System, certain assets in the Live Oak Pipeline System and additional idle pipelines located along the Gulf Coast.

“We continue to assess and execute on opportunities to optimize our portfolio,” said Williams Senior Vice President for Corporate Strategic Development, Chad Zamarin. “We’re pleased to be able to leverage these assets, which were not core to our business strategy, into a source for growth capital and a driver for improved credit metrics.”

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With much of the southern half of the nation expecting heavy rain or snow and ice this weekend, the updated National Weather Service temperature map for the week ending December 16 shows a much-needed warm-up for the eastern half of the United States.  The Rockies will see the brunt of the cold weather during the same period.

 

Thank you for visiting GasNewsOnline.com.  We bring you the latest natural gas news and information from publicly available sources twice every week – for FREE!  Please tell a friend in the natural gas business about us!

Edition 20 – Monday, December 3, 2018

Winter has made an impressive early entrance in 2018 with the forecast showing the cold weather has made plans to stick around for awhile.

Welcome back to GasNewsOnline.com!   We’re keeping an eye on the latest happenings in the natural gas business (with our hands on a warm beverage) so that you will be up-to-date – for FREE!

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There are several critical notices being posted by the interstate gas pipeline companies for this week due to the cold weather.  Let’s jump right in…

Dominion Energy Transmission:

Subject:  PL-1 Restrictions South of Leesburg Effective December 4, 2018

Due to the forecasted weather and requirements on the PL-1 system, effective start of gas day Tuesday, December 4, 2018 and continuing until further notice, DETI will not accept any IT or Non PL-1 firm transportation south of Leesburg Compressor Station in 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 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.

 

East Tennessee Natural Gas:

Force Majeure Declaration — LIFTED

As posted on November 28, 2018, East Tennessee Natural Gas (ETNG) experienced an unplanned outage at its Boyds Creek Compressor Station (Boyds Creek) in Boyds Creek, Tennessee. Effective immediately, Boyds Creek has returned to normal operation on December 1st.  As a result of the Boyds Creek return to service, all restrictions related with this Force Majeure have been lifted.

 

Florida Gas Transmission:

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.

 

Gulf South Pipeline Company: 

Subject:  Vixen Compressor Station Maintenance

Effective Date:  December 4, 2018 through December 7, 2018

Expansion Receipts Upstream Vixen Scheduling Group:

Capacity could be impacted by up to 200,000 Dth/d for the duration of the maintenance. Possible scheduling to all services other than Primary Firm may occur.  Please contact your customer service representative if you have any questions.

 

 

Kern River Gas Transmission: 

Subject:  Kern River – Cold Weather and High Demand Forecasted through December 5

Cold weather and high demand are forecasted in Kern River’s market areas through this week. Therefore, Kern River requires all shippers and receipt and delivery point operators align their daily scheduled nominations with physical receipts and deliveries to ensure Kern River’s line pack is maintained at current operating levels.

 

 

Mississippi River Transmission (MRT):

MAIN LINE UTILIZATION SPW

Due to the potential for maximum utilization of northbound firm Main Line capacity causing a potential supply deficiency in the Market Zone, MRT is issuing a System Protection Warning (SPW) effective 9:00 a.m. Tuesday, December 4, 2018 and continuing until further notice.

During this time:

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

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

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

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

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

6) Customers with primary delivery points 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.

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

Shippers whose deliveries are affected by any of the Seven (7) 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.

This SPW will be updated as more information becomes available.

 

Natural Gas Pipeline Company of America (NGPL):

FORCE MAJEURE – COMPRESSOR STATION 801

Natural experienced horsepower issues at Compressor Station 801 on its OE #1 Line in Grady County, Oklahoma (CS 801), in Segment 15 of Natural’s Texok A/G Zone, resulting in a need to make emergent repairs.  This is a Force Majeure event that will require Natural to temporarily reduce the maximum operating capacity eastbound through CS 801 during this event.

The scheduling constraint will be at CS 801; therefore, any gas received west of CS 801 for delivery east of CS 801 will be impacted. The Midcontinent Pool (PIN 25078) is located west (upstream) of the constraint.  Additionally, transports associated with storage injections or withdrawals will be impacted.

As such, effective for gas day Sunday, December 02, 2018, Intraday 2 Cycle, and continuing until further notice, Natural will schedule Primary Firm and Secondary in-path Firm transports to no less than 83% of contract MDQ through CS 801.  Actual nomination levels and changes in pipeline conditions could result in changes to the percentages scheduled (lower or higher).  AOR/ITS and Secondary out-of-path Firm transports continue to not be available during this event.

Continue to monitor Natural’s interactive website for any updates during this outage.

 

Northwest Pipeline:

Subject:  Entitlement changes and system info

Due to Westcoast’s notice to reduce the T-South flow and the weather forecasted to be below normal, the Stage III (13%) overrun Entitlement north/west of Roosevelt will remain in effect until further notice.

In addition, the following changes will be implemented on Northwest Pipeline to maintain integrity on its system:

-Stage III (13%) overrun Entitlement in the Kemmerer to Roosevelt corridor including the Spokane and Wenatchee laterals.

-Jackson Prairie Loan will be increased to 100,000 Dth

-Jackson Prairie Loan rate will be increased to the maximum Tariff rate

These changes are effective at the beginning of gas day December 4, 2018.

The Entitlement level will be evaluated on a daily basis based on system line pack, storage levels, weather forecasts and upstream pipeline notices.

If you have any questions, please contact your Marketing Services Representative or the Scheduling Hotline at 801-584-7301.

 

Rover Pipeline:

Pipeline Inspections – Majorsville and Sherwood Laterals

Rover will be performing pipeline inspections (pigging) on its Majorsville and Sherwood Laterals beginning Gas Day December 10, 2018, requiring limitations to scheduled quantities as specified below:

December 10 – 70004/Majorsville  – Operational capacity limited to 170 mmcf/d

December 11 – 70004/Majorsville  – Operational capacity limited to 250 mmcf/d

December 13 – 70001/Sherwood  – Operational capacity limited to 430 mmcf/d

December 18 – 70001/Sherwood  – Operational capacity limited to 500 mmcf/d

 

Southern Natural Gas:

Subject:  OFO Type 3 Level 1 South System 12-4-18
Based on the latest weather forecast predicting cooler temperatures moving into the area and the corresponding increase in projected demand 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, Tuesday, December 4, 2018 until further notice.

OFO Type 3 Level 1: Daily Demand Exceeds Capacity
TARIFF SECTION 41.2
EFFECTIVE DATE: December 4, 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.

 

Southern Star Central Gas Pipeline:

Subject: Update — Winter Weather Advisory — Effective December 04, 2018

The Winter Weather Advisory going into effect December 4, 2018 is being extended through December 7, 2018 based upon the updated forecast.

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.

 

TallGrass Interstate Gas Transmission:

TIGT  STORAGE  ADVISORY

Based on current storage inventory levels, anticipated deliverability from storage, and current operating conditions, TIGT is hereby notifying shippers that, effective for the Timely Cycle, Gas Day Tuesday, December 4th, 2018, and until further notice, interruptible withdrawal activity at Huntsman locations 994000 and 994500 will not be scheduled.  If you have any questions, please contact your Account Director or Scheduling Representative.

 

Texas Eastern Transmission:

TE M3 Operational Flow Order – Notice Text

Due to impending colder weather, in order to maintain the operational integrity of the system, TE is issuing an Operational Flow Order (OFO) pursuant to Section 4.3 of the General Terms and Conditions of TE’s FERC Gas Tariff effective 9:00AM CCT Tuesday, December 4, 2018 to all delivery parties, with the exception of those governed by a FERC gas tariff, in Texas Eastern’s Market Area Zone M3.

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

During the effectiveness of this OFO, all parties must be balanced such that actual deliveries of gas out of the system must be equal to or less than scheduled deliveries out of the system. The penalty shall apply to each dekatherm of actual delivery quantities that exceeds the greater of 2,000 Dth or 102% of scheduled delivery quantities. The penalty will be equal to three times the arithmetic average of daily Platts Gas Daily “Daily Price Survey” posting for the High Common price for the geographical region, as defined in Section 8.5(a) of the General Terms and Conditions of TE’s FERC Gas Tariff for the day on which such violation occurred. In addition, TE will not permit retroactive nominations to avoid an OFO penalty.

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

TE will inform customers via EBB when this OFO will be lifted.

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In other energy news on this Monday, December 3rd:

Kinder Morgan announces 2019 financial projections and growth plans

On Monday, Kinder Morgan, Inc. announced its preliminary 2019 financial projections.

“This year has been a very good one for Kinder Morgan and we expect to nicely exceed our budget. In 2019, with our market fundamentals remaining very strong, the Elba Liquefaction Project coming online and Gulf Coast Express entering service, we project continued growth,” said Steve Kean, KMI chief executive officer. “We expect to generate $5.0 billion of distributable cash flow (DCF) which is approximately a 10 percent increase over our 2018 budgeted DCF. Our growth will continue to be supported by an approximately $6.5 billion backlog of high probability energy infrastructure expansion opportunities,” continued Kean.

KMI expects to increase the declared dividend per common share for 2019 to $1.00 per share (annualized), beginning with $0.25 per share for the Q1 2019 dividend (which is paid in Q2 2019).   KMI also continues to expect to increase the dividend to $1.25 per share (annualized) for 2020.

The company plans to invest $3.1 billion in expansion projects and contributions to joint ventures in 2019.  It expects to use internally generated cash flow to fully fund its 2019 dividend payment as well as the vast majority of its 2019 discretionary spending, with no need to access equity markets.

The company also wants to end 2019 with a Net Debt-to-Adjusted EBITDA ratio of 4.5 times. According to Steve Kean, “We continue to be well positioned for an upgrade to our credit ratings and are on positive outlook at all three rating agencies”.

KMI’s expectations assume average annual prices for West Texas Intermediate (WTI) crude oil and Henry Hub natural gas of $60.00 per barrel and $3.15 per MMBtu, respectively, consistent with forward pricing during the budget process. For more information, please visit www.kindermorgan.com.

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SemGroup and DCP Midstream Announce Open Season for Light Crude Transportation Solution from Cushing to Gulf Coast Markets

SemGroup® Corporation and DCP Midstream, LP have announced the commencement of an open season process to solicit binding commitments for the development of a new pipeline system to transport segregated, light batches of crude oil originating in Cushing, Okla. and terminating in Houston, Texas. All potential shippers must submit binding commitments by 5 p.m. Central Time on January 31, 2019.

The proposed Gladiator Pipeline would originate at SemGroup’s Cushing terminal and provide crude oil service to Gulf Coast markets. The Cushing origin would provide potential shippers the connectivity to source barrels from key pipelines that converge in Cushing, including the White Cliffs Pipeline, which serves Colorado’s DJ Basin.

At the pipeline’s destination, potential shippers would have many options for connecting barrels to a variety of demand centers, including refineries in the Houston area or to crude oil storage and export facilities, such as SemGroup’s HFOTCO Terminal. If sufficient commitments are obtained, subject to the receipt of all of the necessary approvals, permits and force majeure, the proposed Gladiator Pipeline may be operational by the third quarter of 2020, following the potential construction of new NGL capacity by DCP.

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Finally, the colder weather has decided to stick around another week or more, according to the National Weather Service.  The six-to-ten day temperature forecast through the second week of December shows below average temperatures for the eastern half of the country.  A warming trend begins from the Great Plains to the desert Southwest during the period.

 

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