Edition 35 – Thursday, January 31, 2019

Welcome to another “Polar Vortex” edition of GasNewsOnline.com!  While we search over fifty interstate natural gas pipeline companies for their critical postings, a lot of other news is happening this week.  Here at GasNewsOnline.com, we’ll update you on the publicly released news from energy companies and will give you the latest National Weather Service temperature forecast, too.    All for FREE!

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The US Energy Information Administration released its weekly update on natural gas in storage today.

Working gas in storage decreased by 173 Bcf from the previous week (versus an estimate of 189 Bcf by industry analysts).  Stocks were still 328 Bcf (or 13%) below the five-year average for the same week. 

On the NYMEX, the March, 2019 natural gas futures price has decreased by about 4 cents on Thursday at approximately $2.82/MMBtu.

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Consumers Energy greatly appreciates conservation efforts by all its natural gas customers across Lower Michigan to assist with a supply issue on the company’s gas distribution network. Conservation, even by gas customers served by other utilities than Consumers Energy, is making a difference.

Thursday morning, the company is cautiously optimistic that public requests to reduce gas use are having a positive effect.

However, with Thursday’s continued historically cold weather, the company asks that conservation measures continue through the end of the day Friday, Feb. 1.

Repairs at the Ray Compressor Station are ongoing and the station is partially in service, providing natural gas to our distribution system. However, customers are requested to continue to conserve energy until the end of the day Friday, Feb. 1, to allow for temperatures to moderate and additional repairs to the Ray Station.

“As a result of an unexpected incident at a Gas Compressor station on Wednesday January 30 in Southeast Michigan, we are asking customers to temporarily reduce gas usage at this time while we continue to contain the incident and help keep Michigan residents warm during this cold spell,” said Garrick Rochow, Senior Vice President of Operations for Consumers Energy.

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Tallgrass Energy, LP (NYSE: TGE) and Blackstone (NYSE: BX) today announced that affiliates of Blackstone Infrastructure Partners (“BIP”) have entered into a definitive agreement with affiliates of Kelso & Co., The Energy & Minerals Group, and Tallgrass KC, LLC, an entity owned by certain members of TGE’s management, to acquire 100% of the membership interests in TGE’s general partner, as well as an approximately 44% economic interest in Tallgrass, for total cash consideration of approximately $3.3 billion. Affiliates of GIC, Singapore’s sovereign wealth fund, will be a minority investor in the transaction.

“Blackstone’s scale, long-term capital, and investment expertise across the energy industry make it an ideal partner for our business as we continue to create value and invest capital in accretive growth opportunities,” said Tallgrass President and CEO David G. Dehaemers Jr. “We appreciate the successful partnership we have had with Kelso and EMG since 2012 and thank them for their significant support. We look forward to working with Blackstone to continue maximizing value for all stakeholders.”

“Tallgrass is managed by an exceptional team that has an outstanding track record of commercial, operational and financial success,” said Sean Klimczak, Global Head of Infrastructure at Blackstone. “This transaction represents a rare opportunity to invest in a large-scale U.S. midstream infrastructure platform that connects high-production supply basins to key markets and is underpinned by long-term contracts. We are excited to partner with and to support the established Tallgrass management team over the long term as they execute on their robust backlog of attractive growth projects.”

Closing of the transaction remains subject to customary closing conditions and is expected within the first quarter of 2019.

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On January 29, 2019, PG&E moved forward with its previously announced plan to file for Chapter 11 with the following press release.

We are continuing to provide safe and reliable electric and natural gas service. We are not “going out of business,” and we expect that there will be no disruption to the services you expect from us as a result of the Chapter 11 process.

Our extensive restoration and rebuilding efforts to help communities recover from the devastating wildfires are continuing. We are committed to these efforts and safety remains our most important responsibility.

PG&E is also working very hard to address future wildfire risks and continuing to make critical investments in our systems and infrastructure to further improve safety. Our Community Wildfire Safety Program includes:

  • Conducting detailed and enhanced safety inspections of more than 50,000 transmission poles and towers and 5,500 miles of transmission lines in the highest wildfire-threat areas;
  • Aggressively removing vegetation in areas of high wildfire risk, including trees and branches near power lines and trees at risk of damaging our lines;
  • Investing in more real-time monitoring and intelligence like 1,300 new weather stations and nearly 600 new, high definition cameras to enhance weather forecasting and modeling;
  • Installing stronger and more resilient poles and covered power lines in the highest fire risk areas; and
  • Replacing equipment to further reduce wildfire risks and tailoring upgrades based on terrain and weather conditions using more granular analysis of fire-prone regions.

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ExxonMobil said Wednesday that it has reached a final investment decision and started construction on a new unit at its Beaumont, Texas refinery that will increase crude refining capacity by more than 65 percent, or 250,000 barrels per day. The third crude unit within the facility’s existing footprint will expand light crude oil refining, supported by the increased crude oil production in the Permian Basin area.

 “With access to terminals, railways, pipelines and waterways nearby, the Beaumont refinery is strategically positioned to benefit from Permian production growth,” said Bryan Milton, president of ExxonMobil Fuels and Lubricants Company. “The addition of a third crude unit in Beaumont will enhance the refinery’s competitive position and truly establish it as a leader in the U.S. refining industry.”

Startup of the new unit is anticipated by 2022. The project is expected to create up to 1,850 jobs during construction and between 40 and 60 permanent jobs once completed.

ExxonMobil’s integrated operations in Beaumont include a 366,000 barrel-per-day capacity refinery, as well as chemical, lubricants and polyethylene plants. ExxonMobil has approximately 2,100 employees in the Beaumont area and its operations account for approximately one in every seven jobs in the region.

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With much of the country still dealing with extremely cold weather, let’s take a look at the latest critical postings from the interstate natural gas pipeline companies around the lower 48 states:

Algonquin Gas Transmission:

With the impending colder weather beginning Wednesday January 30, 2019 and in order to maintain the operational integrity of the “G” system, Algonquin Gas Transmission, LLC (AGT) is requesting all customers/point operators on the “G” system to fully nominate their 6% “G” system contracts to the appropriate “G” system meter station. In the event customers do not properly nominate in such a manner, point operators will be limited in their ability to take non-ratable/accelerated deliveries above scheduled volumes to these meters for 6 consecutive hours.

Furthermore, AGT requires that customers/point operators on the “G” lateral be aware of the impact non-ratable hourly takes from the system and the impact it could have on system operations. Delivery pressures could reach lower than desire levels to the extent point operators’ hourly takes exceed their maximum hourly transportation quantity (MHTQ) based on their scheduled quantities. AGT’s “G” lateral is not designed to sustain delivery pressures above contractual pressure obligations if:
1)Point operators’ hourly rates are exceeding their MHTQ levels based on nominated quantities or
2)Point operators’ hourly rates are exceeding 1/24th of the daily nominated quantity for more than 6 consecutive hours (or greater than 6 hours on any gas day)

Furthermore, if customers/point operators do not manage hourly takes from the system within their scheduled MHTQ limits AGT may be required to impose further restrictions or courses of action in order to maintain the operational integrity of the system including the issuance of an hourly OFO pursuant to General Terms and Conditions Section 26.7(d).

ANR Pipeline:

Attention All ANR Shippers (Lifted 2/1/19 Timely Cycle)
This posting supersedes CN ID #9059

Update: Effective February 1 at the Timely Nomination Cycle, ANR is lifting the restriction limiting customers delivering north of the Woodstock compressor station to their contractual primary delivery points.

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

Columbia Gas Transmission:

Pursuant to Section 15 of the General Terms and Conditions of Columbia Gas Transmission LLC’s (TCO’s) FERC Gas Tariff, TCO is declaring a Force Majeure effective immediately for the ID-1 cycle for Gas Day 31.

The Force Majeure will impact volumes flowing through the MXP (Markwest) Sherwood Plant (Loc Prop 643185) receipt location only at this time.

A need for an investigative dig has been discovered that necessitates further action. TCO will keep shippers apprised of any changes in operational restrictions for this outage.   

For the Timely cycle for Gas Day Friday, February 1st and until further notice, the MXP Sherwood receipt location will be set to zero Total Capacity. 

TCO will continue to provide updates as information becomes available.

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.

Florida Gas Transmission:

FEBRUARY 2019 — FGT SUPPLY AREA MAINTENANCE IN ZONE 3

FGT will continue pipeline maintenance near FGT Compressor Station 10. This maintenance is expected to continue through the end of gas day February 28, 2019.  During this maintenance FGT will schedule up to 1,150,000 MMBtu/day through Station 10. During normal operations FGT schedules up to 1,300,000 MMBtu/day through Station 10.

FGT will perform pipeline maintenance near FGT Compressor Station 11. This maintenance is scheduled to begin February 1, 2019 and to continue through the end of gas day February 28, 2019.  During this maintenance FGT will schedule up to 3,050,000 MMBtu/day through Station 11. During normal operations FGT schedules up to 3,250,000 MMBtu/day through Station 11.

Gulf South Pipeline:

Vixen Compressor Station Maintenance

Begins: February 4, 2019  –  Ends: February 8, 2019

Expansion Receipts Upstream Vixen Scheduling Group.

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

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

Mojave Pipeline Company:

Force Majeure Lifted – Mojave-Topock Unit #2 

The Force Majeure event that was declared on January 18, 2019 (Reference Critical Notice #604348) at Topock Compressor Station with Unit 2 has been resolved.  

The available capacity through the Segment 3000 constraint will be increased to 463,000 dekatherms (Dth) per day effective Cycle 1 (Timely) for February 1, 2019

Northern Natural Gas:

Effective Gas Day 02/01 and until further notice, the Carlton Resolution flow obligation will be at 100%.

Operational Alert – A System Overrun Limitation (SOL) has been called for all Market Area zones (ABC, D and EF) with 0% System Management Service (SMS) available for Gas Day Friday, February 1, 2019, due to lower than normal system weighted temperatures.

Northwest Pipeline:

Notice ID:  19-014

Subject:  Overrun Entitlement north of Kemmerer for all Receiving Parties

Due to a forecast of colder than normal weather, Northwest is declaring a Stage III (13%) Overrun Entitlement for all Receiving Parties north of the Kemmerer compressor station beginning gas day Saturday, February 02, 2019 until further notice.

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

Rockies Express Pipeline (REX):

Effective for the ID 1 Cycle, Gas Day Thursday, January 31, 2019 and until further notice, REX is partially lifting the capacity constraint at Markwest – Seneca (Loc 56116) and accepting receipts up to 200 MDth/d. 

Sabine Pipeline Company:

Sabine Pipe Line LLC (“Sabine”) plans to perform maintenance to one of the units at its Henry Compressor Station (the “Compressor Station”) which will reduce overall available compression capacity at the Henry Hub.

Maintenance is scheduled to occur February 4 through February 8. 

While we do not expect capacity in this area to be affected, we encourage shippers to closely monitor the website for capacity updates.

Southern Star Central Gas Pipeline:

Winter Weather Warning will terminate effective 1/31/2019 ID1 cycle due to elevated temperatures.

Thank you all for working with Southern Star during this weather event.

Texas Eastern Transmission:

Texas Eastern Transmission, LP (TE) hereby declares a Force Majeure in accordance with Section 17 of the General Terms and Conditions of its FERC Gas Tariff. The Force Majeure event is due to an unplanned outage on its 36″ system at the Marietta Compressor Station (Marietta) in Marietta, Pennsylvania which occurred on January 31, 2019. While efforts to repair the compressor station to full capacity are underway, the estimated time of restoration is unclear at this time.

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

Transcontinental Gas Pipe Line Company (Transco):

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, February 1, 2019 and until further notice

OFO Areas:  Zone 6

Tolerance %:  10% for gas Due from Shippers

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With the Midwest, Great Lakes, Middle Atlantic, and New England still dealing with another day of the latest Polar Vortex cold weather outbreak, the National Weather Service six-to-ten day temperature outlook paints a brighter picture for those regions by this time next week. 

The forecast for February 6 – 10 is now calling for warmer than seasonal temperatures generally east of the Mississippi River to the East Coast while the West Coast and Rockies get their first winter cold blast of this new year. 

That wraps up an eventful January here at GasNewsOnline.com!  Please let your friends in the natural gas scheduling and transportation business know about us.  Our companion audio podcast is FREE and available via iTunes.  Check it out!

Edition 34 – Monday, January 28, 2019

With a polar vortex weather system bringing extremely cold weather to areas east of the Rockies this week, this is a busy time for the natural gas pipeline companies.  Here at GasNewsOnline.com, we will update you on the latest news and provide a full report on the latest critical notices from the interstate natural gas pipeline companies’ electronic bulletin boards.

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Let’s first take a look at a few stories making news today.

On Sunday, Enbridge released an update about ongoing work on the two additional lines that parallel the impacted 30-inch Line 10 Texas Eastern Transmission pipeline in Noble County, Ohio.  A week ago, Texas Eastern’s 30-inch line ruptured in southeast Ohio. 

Following a completion of a comprehensive integrity assessment, the company placed one of the other two pipelines in the right-of-way (Line 25) back into service.

Texas Eastern will continue to shippers informed as work progresses and more definite timelines are known for returning the 2 other pipelines (Line 10 and parallel Line 15) back into service.

Enbridge is working with the Ohio Public Utilities Commission and the federal government’s Pipeline and Hazardous Materials Safety Administration (PHMSA) to verify the integrity of the Texas Eastern pipeline system.

EBB from Sunday 1/27 – PM

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

As previously posted, TE has determined that further investigations on Line 10 between its Athens and Uniontown compressor stations are required and TE had isolated Line 10 between Athens and Uniontown. At this time, TE has returned Line 10 valve section 4 between Holbrook and Uniontown back to service while the remainder of Line 10 remains isolated. As a result of valve section 4 between Holbrook and Uniontown returning to service, TE estimates the eastbound capacity through its Uniontown compressor station will increase to approximately 4,300,000 Dth/d. TE will provide a timeline on the restoration of capacity through Uniontown as soon as it is known.

As posted this morning, TE returned Line 25 for north to south flow through its Berne compressor station to approximately 1,600,000 Dth/d effective for Gas Day January 27th, 2019. TE is taking the necessary steps to return Line 15 immediately south of the Berne compressor station to service as soon as safely possible. TE will provide a timeline on the restoration of north to south capacity through Berne as soon as it is known.

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Despite a blast of frigid cold air with this week’s “Polar Vortex”, the February, 2019 NYMEX natural gas futures price took a dive on Monday and closed down about 27 cents at about $2.91/MMBtu.   As we’ll cover later, the National Weather Service temperature forecast for the first week of February is showing a significant warm-up in store for the Great Lakes and East coast areas coming next week at this time.

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

Net withdrawals from working gas totaled 163 billion cubic feet (Bcf) for the week ending January 18. Working natural gas stocks 11% lower than the five-year (2014–18) average for this week.

The natural gas plant liquids composite price at Mont Belvieu, Texas, rose by 5¢/MMBtu, averaging $6.51/MMBtu for the week ending January 23. The price of natural gasoline fell by 2%. The price of ethane and butane rose by 2%, and the price of propane rose by 1%. The price of isobutane remained flat week over week.

According to Baker Hughes, for the week ending Tuesday, January 15, the natural gas rig count decreased by 4 to 198. The number of oil-directed rigs fell by 21 to 852. The total rig count decreased by 25, and it now stands at 1,050. This is the largest week-over-week decrease in total rig count since February 2016.

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With much of the nation gripped in a deep freeze this week, let’s review the latest critical notices from the interstate gas pipeline grid.

Colorado Interstate Gas (CIG):

In anticipation of colder weather, Colorado Interstate Gas Company, L.L.C., CIG will take the following actions impacting its No-Notice Storage and Transportation Service (NNT) beginning Gas Day January 28, 2019, and continuing until further notice.

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

Interruptible Storage Withdrawals will be taken to zero (0 Dth).

CIG expects operators to continuously manage their confirmations on a cycle to cycle basis to match actual flow rates, factoring in freeze off and other conditions as necessary, particularly the cold weather impacts to field production and pipeline operations.

Dominion Energy Transmission:

Subject: System Alert/OFO Advisory Due to Forecasted Extreme Weather Conditions

Due to extreme weather conditions that are expected in our area this upcoming week, Dominion Energy

Transmission, Inc. (DETI) hereby advises its customers that OFOs will likely be issued in certain areas of DETI’s system. Customers are advised to continue to monitor the EBB for any OFO issuances.

As a reminder, the penalties for violations of transportation OFOs are based on a penalty per Dth equal to the higher of $10.00 or two times the Penalty Index Price.

East Tennessee Natural Gas:

Due to impending colder weather, in order to maintain the operational integrity of the system, ETNG is issuing a Balancing Alert Operational Flow Order (OFO) pursuant to Section 14.7 of the General Terms and Conditions of ETNG’s FERC Gas Tariff effective 9:00 AM CCT, January 29, 2019 for all meters east of the Boyds Creek Compressor Station.

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

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

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

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

Florida Gas Transmission:

Overage Alert Day 25% Tolerance

Near freezing temperatures are forecasted to move into North Florida over the next couple of days; therefore, for the gas day of January 28, 2019, FGT would like to notify their customers in FGTs Market Area that it is issuing an Overage Alert Day at 25% (twenty five percent) tolerance.

For the gas day of January 28, 2019, FGT will not interrupt previously scheduled Market Area ITS-1 service below the elapsed prorated scheduled quantity.

FGT will continue to monitor hourly and daily takes. Please closely monitor your scheduled point quantities versus actual burn point quantities.

Gas Transmission Northwest (GTN):

As referenced in a recent posting, TransCanada will be hosting an industry meeting on February 12th in Calgary to discuss the dithiazine matter.  At this meeting, TransCanada and others from the industry will provide a forum to detail technical issues caused by the presence of dithiazine in natural gas, ongoing research and development, provide an opportunity to hear from others, and to discuss next steps.  Please be advised that the intent of this meeting is to discuss technical challenges and solutions only.  Space will be limited.

The meeting will be held at the Westin in Downtown Calgary from 1:30pm to 4:30pm Mountain Time.  Company representatives planning to attend the meeting must register in advance.  To register for the meeting, please reach out to Scott Currier (scott_currier@transcanada.com or 708-446-3738) by February 7. 

Gulf South Pipeline:

During the McComb (MS) compressor station maintenance, capacity could be impacted by as much as 100,000 dth/d for the duration of the maintenance beginning today (January 28 – February 16). 

The following meters are in the Montpelier to McComb Index 130 Scheduling Group.

002424 GREENSBURG CITY GATE

002432 KENTWOOD CITY GATE

002549 MONTPELIER & PINE GROVE CITY GATE

002559 TANGIPAHOA CITY GATE

002583 KENTWOOD BRICK & TILE PLANT

002690 HOLMESVILLE (TO TRANSCO)

013087 TRANSFER @ MONTPELIER / ST HELENA

013456 TRANSFER @ HOLMESVILLE (TRANSCO)

022114 WALTHALL (TO TRANSCO)

022182 MONTPELIER/ST HELENA (TO FGT)

022573 TRANSFER @ WALTHALL (TO TRANSCO)

Mississippi River Transmission (MRT):

Due to the potential for maximum utilization of northbound firm Main Line capacity causing a potential supply deficiency in the Market Zone, MRT is issuing a System Protection Warning (SPW) effective 9:00 a.m. Tuesday, January 29, 2019 and continuing until further notice.

 During this time:

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

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

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

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

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

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

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

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

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

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

This SPW will be updated as more information becomes available.

Natural Gas Pipeline Company of America (NGPL):

CRITICAL TIME DECLARATION – MARKET DELIVERY ZONE  

Natural is declaring a Critical Time in its Market Delivery Zone effective gas day, Tuesday, January 29, 2019, which will remain in effect until further notice.  This action is in response to the recent cold weather and the current forecast for continued extreme colder than normal weather, the high demand for gas on Natural’s system, and the need to maintain system pressures in its Market Delivery Zone.  Based on this current weather forecast, the Critical Time is anticipated to continue in effect at least through the end of the gas day, Friday, February 1, 2019.  The Critical Time will apply to under-receipts and over-deliveries of gas vis-à-vis confirmed nominations.  Please monitor Natural’s Interactive Website for updates as to the duration of the Critical Time. 

During the Critical Time, Shippers are required to comply with the ongoing Operational Flow Order (See most recent posting dated Sunday, January 27, entitled “OPERATIONAL FLOW ORDER ISSUED – MARKET DELIVERY ZONE – UPDATE #2”).  Variances to the detriment of the system at any of a Shipper’s Receipt or Delivery Points are subject to significant charges and penalties, as set forth in Sections 12.4 and 23.7 (c) of the General Terms and Conditions of Natural’s Tariff.  There is no right to be out of balance by any amount and Shippers can be required to correct any and all imbalances. It is Shipper’s responsibility to ensure that appropriate nominations are in place to reflect actual quantities that will flow. 

Accordingly, a Shipper should ensure by communication with its Point Operator that quantities of gas equal to or greater than its nominations are being delivered into Natural’s system at Receipt Points.  A Shipper should also ensure that quantities no greater than those nominated (plus firm no-notice rights) are being taken from Natural’s system at Delivery Points.   

Northern Natural Gas:

Effective Gas Day 01/28 and until further notice, the Carlton Resolution flow obligation will be at 100%.

Operational Alert – A System Overrun Limitation (SOL) has been called for all Market Area zones (ABC, D and EF) with 0% System Management Service (SMS) available for Gas Days Tuesday and Wednesday, January 29 and 30, 2019, due to lower than normal system weighted temperatures.

Northern is expecting record cold temperatures and record market deliveries this week. At this time, Northern does not anticipate the need to call a Critical Day. Northern will continually evaluate the condition of the system, and will make all efforts to call a Critical Day in advance of the gas day if the pipeline system experiences low line pack or other conditions, including significant natural gas price volatility, that threaten the integrity of Northern’s pipeline system. Customers are encouraged to nominate supply volumes sufficient to cover anticipated loads to prevent the need for Northern to call a Critical Day.

Southern Natural Gas:

Based on the weather forecast predicting colder temperatures as well as the corresponding increase in projected demand on Southern’s North and South pipeline systems, we are notifying all Shippers that the existing Type 3 Level 1 OFO is being upgraded to a Type 3 Level 2 OFO and is being expanded effective with the start of the gas day, Tuesday, January 29, 2019 until further notice.

OFO Type 3 Level 2: Daily Demand Exceeds Capacity
TARIFF SECTION 41.2
EFFECTIVE DATE: January 29, 2019
EFFECTIVE TIME of OFO: 9:00 AM (CCT)  

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

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

Southern Star Central Gas Pipeline:

Due to severe weather conditions forecasted, Southern Star is issuing a Winter Weather Warning effective Tuesday, January 29, 2019. The following actions will be taken to preserve system integrity:

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

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

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

ISS withdrawals and PLS withdrawals will be unavailable.

Incremental Loans will not be available.

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

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

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

Operational flexibility will not be available during this time.

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

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

These conditions are expected to remain in effect through Thursday, January 31, 2019.

Tallgrass Interstate Gas Transmission:

BIG SPRINGS EAST LOAD ADVISORY

This Advisory is effective starting Gas Day Tuesday, January 29, for Evening cycle until further notice.  Based on the current weather forecast, TIGT is expecting the Big Springs East loads to remain elevated through at least Thursday, January 31, 2019. 

TIGT requests that shippers continue to match their supply nominations to the on-system loads.  Otherwise, TIGT may issue a Directional Notice to maintain the operational integrity of its pipeline. 

PEPL/GRANT (Location 6616)

SSC/TIGT THOMAS (Location 7448)

NNG/TIGT MILLIGAN FILLMORE (Location 8601)

MCMC/TIGT GRANT (Location 11510, by displacement only)

TB/TIGT ADAMS (Location 7857)

TB/TIGT CLAY (Location 8382)

CHEYENNE PLAINS/TIGT SCOTT (Location 41544)

Tennessee Gas Pipeline:

OFO DAILY CRITICAL DAY 1 EXPANDED TO INCLUDE ALL OF ZONES 2, 3, 4, 5 AND 6 EFFECTIVE 1-30-19

Due to a forecast of colder weather and higher demand moving across most of the system, effective for the Gas Day of Wednesday, January 30, 2019, and until further notice, Tennessee Gas Pipeline, L.L.C.  (“Tennessee”) is expanding the existing OFO Daily Critical Day 1 from all areas east of STA 245 on the 200 Line to include all of Zones 2, 3, 4, 5 and 6 for all Balancing Parties (including LMS-PA, SA contracts acting as balancing parties, LMS-MA, and LMS-PL balancing parties).  This action is pursuant to Article X, Section 4 of the General Terms and Conditions of Tennessee’s FERC Gas Tariff. 

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

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

Texas Gas Transmission:

Below normal temperatures are expected to move across the Texas Gas service area over the next few days.

While it is fully expected that all primary firm service obligations will be met, the following services/activities are subject to scheduling reductions until further notice:

Imbalance Payback from Transportation Service Provider

Park Withdrawal

Loan

ISS Withdrawal

FSS Overrun Withdrawal

Interruptible and out-of-path Firm Transportation

HOT – Hourly Overrun Transportation

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

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

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While much of the country hunkers down this week with extremely cold temperatures in the offing, the National Weather Service six-to-ten day outlook is showing that temperatures will be significantly improved by this time next week.   Warmer than average temperatures are expected east of the Rockies while the Mountain West and West Coast will have the colder than seasonal weather for much of next week. 

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

Edition 33 – Thursday, January 24, 2019

Another weekend of cold weather is hitting the Upper Midwest and the East Coast. GasNewsOnline.com brings you the latest natural gas pipeline company critical notices, today’s energy news, and a peek at the February temperature forecast. All for FREE!

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Earlier today, Enbridge provided an update regarding an incident that occurred Monday, January 21, 2019, near Summerfield, Ohio, on its Texas Eastern pipeline system.

There was a natural gas pipeline rupture on the Texas Eastern Transmission 30-inch “Line 10” in Noble County, Ohio on Monday morning about two miles south of Summerfield.

There was a fire, which was extinguished.  In an earlier posting, the company acknowledged that two individuals living nearby suffered injuries and three nearby homes were damaged. 

Today’s press release said that company personnel have begun work to help further secure the site in preparation for investigation and maintenance activities.

This morning, the Texas Eastern electronic bulletin board posted the following critical notice:

30″ Unplanned Outage — UPDATE (2)

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

TE has three lines between its Berne and Athens compressor stations that make up its 30 inch pipeline system in this area. These lines are: Line 10, Line 15 and Line 25. As posted on January 22, 2019, TE has restricted capacity north to south thru its Berne compressor station to net -0- through the station by also isolating Lines 15 and 25 providing the ability to safely investigate the incident as well as the integrity of those two pipelines prior to returning them to service. At this time, TE is taking the necessary steps to return Line 25 back to service as soon as safely possible.

Texas Eastern will provide an update on the estimated date that Line 25 will be returned to partial service and the associated capacity of such activity as early as Friday evening.

TE will continue to post subsequent updates to the status of the repairs and return to service plan as soon as it is known for all three lines.

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Working gas in storage was 2,370 Bcf as of Friday, January 18, 2019, according to EIA estimates. This represents a net decrease of 163 Bcf versus the analysts’ estimate of 145 Bcf withdrawal. 

Natural gas volumes in storage remain at 305 Bcf or 11.4% below the five-year average.

As a result of the larger-than-expected gas storage pull, the NYMEX February, 2019 gas futures price is up around thirteen cents on Thursday at about $3.11/MMBtu.

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With frigid weather returning again for the weekend, let’s check out the latest critical posting information from the interstate natural gas pipeline company electronic bulletin boards:

ANR Pipeline:

Attention All ANR Shippers,

Effective gas day Thursday 1/24/2019, Evening cycle and until further notice, in order to preserve system integrity and to ensure ANR is able to meet scheduled delivery commitments to all locations in ML7, ML3 and in ML2 between the Sardis and Madisonville Compressor stations; ANR is, in accordance with the General Terms and Conditions, declaring an “Extreme Condition” as that term is defined in ANR’s FERC Gas Tariff §6.1, lowering the Swing Percentage from 10% to 5 %.

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

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

Requests for ITS-3 service will not be scheduled on ANR’s contiguous system in ML7, ML3 and in ML2 between the Sardis and Madisonville Compressor stations. Additionally, requests for Interruptible and Overrun delivery service on Rate Schedules ITS and IWS through Bridgman Westbound, Loc ID 226625, Sandwich Northbound, Loc Id 359925 and Crystal Falls-Fortune LK Loc Id 11661, WILL NOT be scheduled.

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

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

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

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

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

Southeast Mainline Capacity Reduction (Posted 1/23/19)

ANR will begin planned and unplanned pipeline maintenance on its SEML located in the Southeast Southern Area (Zone 2). For the period January 23rd through February 2nd, ANR will not schedule nominations at the Kinder Morgan Midcontinent Express location, LOC #803183.

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

Columbia Gas Transmission:

Pursuant to the General Terms & Conditions of TCO’s FERC Gas Tariff, Section 19.7, shippers are advised that due to sustained colder temperatures, storage levels, and increased market demand extending several days beginning Friday, January 25, 2019, Transport Critical Days are necessary in all Market Areas across the TCO system.  Please note the following: 

Transport Critical Days:  Friday, January 25, 2019 and until further notice.  TCO will monitor conditions and provide updates as necessary. 

Applicable Market Areas:  All Market Areas 

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

NOTE:  Takes in excess of Total Firm Entitlements (“TFE”) are penalized on Critical Days based on takes exceeding the aggregate daily amount of gas that TCO is obligated to deliver to a shipper under the shipper’s applicable rate schedule.  Each applicable rate schedule outlines this delivery obligation and, consequently, a shipper’s TFE.  (Notice ID 25678425 posted on December 1, 2015 explains in detail) 

Columbia will be evaluating whether shippers have exceeded their TFE within the specific Market Areas affected by the Critical Day. Firm entitlements in other Market Areas will not be included in determining whether a shipper’s flows are within their TFE in any Market Area subject to the Critical Day. 

In addition:

Pursuant to the General Terms & Conditions of TCO’s FERC Gas Tariff, Section 19.7, shippers are advised that due to sustained colder temperatures, storage levels, and increased market demand extending several days beginning Friday, January 25, 2019, Storage Critical Days are necessary for deliveries to all Market Areas across the TCO system.  Please note the following: 

Storage Critical Days:  Friday, January 25, 2019 and until further notice.  TCO will monitor conditions and provide updates as necessary. 

Applicable Market Areas:  All Storage Withdrawals delivered to all Market Areas. 

Applicable Penalties: 

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

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

– FSS MMWQ – Monthly Withdrawal Quantities that exceed 40% (November Limit) of SCQ will be assessed a penalty of $5.00 per Dth. 

NOTE:  Transporter projects no availability of interruptible storage withdrawal services (SIT and ISS) and excess FSS withdrawals with delivery to one of the affected Market Areas.  PAL loans or unparks with a delivery within the affected Market Areas will not be available.  Due ship nominations will be scheduled to zero. 

Florida Gas Transmission:

FEBRUARY 2019 — FGT SUPPLY AREA MAINTENANCE IN ZONE 3

FGT will continue pipeline maintenance near FGT Compressor Station 10 in southern Mississippi. This maintenance is expected to continue through the end of gas day February 28, 2019.  During this maintenance FGT will schedule up to 1,150,000 MMBtu/day through Station 10. During normal operations FGT schedules up to 1,300,000 MMBtu/day through Station 10.

FGT will perform pipeline maintenance near FGT Compressor Station 11 in southern Mississippi. This maintenance is scheduled to begin February 1, 2019 and to continue through the end of gas day February 28, 2019.  During this maintenance FGT will schedule up to 3,050,000 MMBtu/day through Station 11. During normal operations FGT schedules up to 3,250,000 MMBtu/day through Station 11.

Natural Gas Pipeline Company of America (NGPL):

OPERATIONAL FLOW ORDER ISSUED – MARKET DELIVERY ZONE – UPDATE #1

The hourly rights for Firm service have been decreased to 110% (previously 120%).  This notice was last posted on January 17, 2019, entitled “OPERATIONAL FLOW ORDER ISSUED – MARKET DELIVERY ZONE”. 

Based on current market demand, anticipated maximum peaking withdrawals from storage facilities, and current system operating conditions, Natural is issuing an Operational Flow Order (OFO) in the Market Delivery Zone effective 9:00 am., Central Clock Time, Thursday, January 24, 2019, and continuing until further notice.  

Additionally, Natural continues to monitor operating conditions system wide.  If necessary, Natural will issue additional OFOs to address Shipper actions that are detrimental to such operating conditions outside the Market Delivery Zone.  Additionally, if conditions warrant, a Critical Time will be issued in the near future.  Please monitor Natural’s Interactive Website for updates.

Northern Border Pipeline:

Northern Border OFO Watch (Posted 1/23/19)

Effective immediately, Northern Border Pipeline is issuing an OFO watch.  Northern Border is concerned about the operational integrity of its system as a result of extremely cold weather.  The OFO watch is through gas day February 5, 2019 in order to allow for the Northern Border pipeline system to regain its operational integrity. 

Northern Border has limited flexibility to manage imbalances and strongly encourages all shippers manage their system requirements to ensure the matching of receipts and deliveries daily.  Absent voluntary imbalance management by shippers to ensure daily balancing, Northern Border may be required to take further action, including the immediate issuance of an imbalance Operational Flow Order.  If further action is required, it may be necessary for that action to become effective immediately, with no additional prior notice available. 

Northern Natural Gas:

A System Overrun Limitation (SOL) has been called for all Market Area zones (ABC, D and EF) with 50% System Management Service (SMS) available for Gas Day January 25, 2019, due to lower than normal forecasted system weighted temperatures.

Northwest Pipeline:

Effective gas day January 24, 2019 and until further notice, Northwest is issuing an OFO Recall Advisory and Operational Flow Order (OFO) northbound through the Rangely compressor station pursuant to Section 14.15(d) of its Tariff. 

Under the OFO Recall Advisory, Shippers are required to: (1) recall capacity that is subject to an OFO recall provision; or (2) take other action that is acceptable to Northwest, to satisfy its OFO obligation.

If the scheduled quantities for gas day January 24, 2019 exceed the operational available capacities through the Rangely compressor, Northwest will provide Shippers with their specific OFO obligations.

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 January 19, 2019, Panhandle is requesting all delivery point operators to minimize over-takes and all receipt point operators to minimize their under-deliveries into the system. 

In addition, effective Gas Day January 24, 2019 – To ensure system integrity, Power Plant Operators must have nominated supply. Panhandle is requesting all Shippers under Rate Schedule EFT, EIT, SCT, GDS or LFT to limit their hourly deliveries to one-sixteenth of the quantity scheduled for delivery on the applicable Day. Please refer to the GT&C Section 12.11(g) of the Panhandle Tariff regarding the penalty provisions as it applies to customers in the event of noncompliance with this request. 

Southern Natural Gas:

Based on the weather forecast predicting colder weather as well as the corresponding increase in projected demand on Southern’s North and South pipeline systems, we are notifying all Shippers that the existing Type 3 Level 2 OFO is being expanded effective the start of the gas day, Friday, January 25, 2019 until further notice.

OFO Type 3 Level 2: Daily Demand Exceeds Capacity
TARIFF SECTION 41.2
EFFECTIVE DATE: January 25, 2019
EFFECTIVE TIME of OFO: 9:00 AM (CCT)

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

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

Also on SNG:

Southern Natural Gas Company has experienced an unscheduled station outage at its Providence compressor station.  Segment 120 capacity of 658 MMBtu/d will be impacted up to 114 MMBtu/d effective Gas Day, January 25th 2019. 

During this outage, a reduction in IT service and Out of Path service will be necessary.   

SNG is working diligently to return these units to full service. We will continue to send updates as more information becomes available. 

Tennessee Gas Pipeline:

OFO DAILY CRITICAL DAY 1 FOR ALL OF ZONES 2, 3, 4, 5 AND 6 EFFECTIVE 1-25-19

Due to a forecast of colder weather and higher demand moving across most of the system, effective for the Gas Day of Friday, January 25, 2019, and until further notice, Tennessee Gas Pipeline, L.L.C.  (“Tennessee”) is implementing an OFO Daily Critical Day 1 for all of Zones 2, 3, 4, 5 and 6 for all Balancing Parties (including LMS-PA, SA contracts acting as balancing parties, LMS-MA, and LMS-PL balancing parties).  This action is pursuant to Article X, Section 4 of the General Terms and Conditions of Tennessee’s FERC Gas Tariff. 

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

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

Also on Tennessee Gas:

EMERGENT REPAIR AT STA 254 UNIT 2A EFFECTIVE 1/28/19 THROUGH 2/1/19

In accordance with Article XII of Tennessee Gas Pipeline, LLC’s (“Tennessee”) FERC Gas Tariff, Tennessee is posting notice of an emergent repair issue at Station 254 Unit 2A near Nassau, NY.  A unit outage will be required to check the foundation bolts of the unit.  Based on current nominations, Secondary Out of the Path nominations pathed through STA 254 (Segment 256 FH) are at risk as early as Timely Cycle for the Gas Day of Monday, January 28, 2019.  The expected return to service is Friday, February 1, 2019.

Tennessee estimates the impact to be up to 10,000 Dths of Secondary Out of the Path nominations pathed through STA 254 (Segment 256 FH).  

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, January 25, 2019 and until further notice

OFO Areas:  Zone 6

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

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Looking at the temperature outlook for the entire month of February, the National Weather Service is showing that cooler than normal temperatures are likely in the Midwest and Southern states east of the Mississippi River.  Also, colder average temps are forecast for much of the Middle Atlantic region.  Normal February conditions are expected for New England, with warmer than seasonal weather conditions forecast for the Rockies to the West Coast.

Stay warm this weekend! Thanks for visiting GasNewsOnline.com! We check the publicly available sources to keep you up informed about the natural gas transportation business twice every week. All for you, and all for FREE! Please tell a friend, and remember to check out our nifty audio podcast and subscribe via iTunes, too. It’s FREE!

Edition 32 – Tuesday, January 22, 2019

Welcome to this Tuesday edition of GasNewsOnline.com.  After the MLK holiday, the National Weather Service is now advising that the colder weather pattern is now expected to continue right into early February.

We’ll give you the latest temperature update, a look at the gas pipeline companies’ critical notices, and take a look at the latest energy news of the day.  It is all for FREE from GasNewsOnline.com.

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From the US Energy Information Administration, let’s review some of the highlights of last week’s “Natural Gas Weekly Update” publication.

Natural gas spot prices rose at most locations last week.  For example, Henry Hub spot prices in Louisiana rose from $2.91 per million British thermal units (MMBtu) the prior week to over $3.60 MMBtu late last week.  .

At the NYMEX, the price of the February 2019 natural gas futures contract also increased last week, but it was trending backward in Tuesday’s trading.  After rising about fifty cents to over $3.50 last week, Tuesday’s NYMEX price was dropping back to about $3.05 MMBtu near today’s close.   

Net withdrawals from working gas totaled 81 billion cubic feet (Bcf) for the week ending January 11. Working natural gas stocks are still 11% lower than the five-year (2014–18) average for the same week.

The natural gas plant liquids composite price at Mont Belvieu, Texas, rose by 26¢/MMBtu, averaging $6.46/MMBtu for the week ending January 16. The price of natural gasoline, ethane, propane, butane, and isobutane all rose, by 5%, 1%, 7%, 3%, and 1%, respectively.

According to Baker Hughes, for the week ending Tuesday, January 8, the natural gas rig count increased by 4 to 202. The number of oil-directed rigs fell by 4 to 873. The total rig count remains unchanged at 1,075.

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Earlier today, BlueMountain Capital Management has delivered a second open letter today to the Board of Directors of PG&E Corporation. 

As you may recall, PG&E announced that it plans to file for bankruptcy protection prior to the end of January. 

In response, the investment firm, which reportedly owns several million shares of the California utility company’s stock, said that PG&E’s plan to file bankruptcy before the end of January is unnecessary and should be postponed at least until the next Annual Meeting of the company’s shareholders. 

Today’s letter concludes, “If the Board is unwilling to slow down, consult with stakeholders, and make a more deliberate decision, then the Company and its stakeholders deserve a different Board.”

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Let’s examine some of the latest critical notices from the interstate gas pipeline companies’ Electronic Bulletin Boards:

ANR Pipeline:

Attention All ANR Shippers:

Effective gas day Thursday 1/24/2019 for the Timely cycle and until further notice, in order to preserve system integrity and to ensure ANR is able to meet scheduled delivery commitments to all Market Area locations; ANR is, in accordance with the General Terms and Conditions, declaring an “Extreme Condition” as that term is defined in ANR’s FERC Gas Tariff §6.1, lowering the Swing Percentage from 10% to 5 %.

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

Requests for operational flexibility with regard to variable hourly flow rates will be denied. All shippers must adhere to the flow rates applicable to the rate schedule of their nominated contract. Nominations on FTS-3 and ETS contracts to Secondary delivery gates must flow at an even-hourly rate. In addition, no incremental interruptible and overrun services including ANR’s hourly ITS-3 service will be scheduled in the Market Area (ML7) until further notice. Any currently scheduled ITS-3 nominations must flow at their nominated approved flow profile.

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

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

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

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

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

Kern River Gas Transmission:

Colder weather and higher demand are forecasted in Kern River’s market areas throughout Wednesday, January 23rd. 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.

Customers should visit Kern River’s Daily Operational Report (DOR) at http://services.kernrivergas.com to monitor system conditions and other important information.

Mojave Pipeline Company:

Force Majeure – Mojave – Topock Station – Unit 2

Mojave Pipeline Company, L.L.C. (Mojave) has experienced an equipment failure associated with its Topock Compressor Station, and as such Unit 2 is currently unavailable. Accordingly, the operational capacity through the Segment 3000 constraint will be reduced from 463,000 dekatherms (Dth) per day to 346,000 Dth/day effective on January 19, 2019, Timely Cycle (Cycle 1) and remain in effect until further notice. 

Mojave will provide updates as more information becomes available. 

This incident constitutes an event of force majeure under Section 11.5 of the General Terms and Conditions of Mojave’s FERC Gas Tariff.

Nexus Gas Transmission:

Hanoverton Compressor Station Outage: January 23 – 28, 2019
Nexus Gas Transmission, LLC (NEXUS) will be conducting an outage at its Hanoverton Compressor Station. During this outage, capacity through Hanoverton will be reduced to approximately 900,000 Dth/d.

Based on recent nominations patterns, NEXUS does not anticipate restrictions associated with this outage; however depending on nominated quantities, restrictions may be required.

Northern Natural Gas:

A System Overrun Limitation (SOL) has been called for all Market Area zones (ABC, D and EF) with 50% System Management Service (SMS) available for Gas Day January 23, 2019, due to lower than normal forecasted system weighted temperatures.

SOCAL Gas:

Due to cold weather conditions and high customer demand for natural gas, a system‐wide voluntary curtailment of electric generation demand was issued today at approximately 5:00 PM PCT and is effective for gas day January 22, 2019 through gas day January 23, 2019.

Note that a gas day is from 7:00 AM to 7:00 AM. SoCalGas has issued the system‐wide voluntary curtailment order of electric generation demand in accordance with the Aliso Canyon Withdrawal Protocol. The curtailment is a voluntary request coordinated through the Balancing Authorities (CAISO and LADWP) for them to limit and/or reduce electric generation demand on our system, to the extent it does not impact electric system integrity.

If needed, the Aliso Canyon Storage field may be used to meet the current demand as well as maintain inventory levels at the other storage fields for core reliability.

In addition, with the current forecasted weather, SoCalGas is asking customers to conserve natural gas where possible. 

Southern Natural Gas:

The Type 3 Level 2 OFO that was implemented effective January 20, 2019 will be partially lifted for certain groups on the North and South systems effective gas day, Tuesday, January 22, 2019 until further notice.  Please refer to SNG’s EBB dated January 22, 2019 for more information.

Southern Star Central Gas Pipeline:

Winter Weather Watch – Effective Thursday, January 24, 2019

With colder weather forecast across the Southern Star system, Southern Star is issuing a winter weather watch beginning Thursday, January 24, 2019 at 9:00 AM CST. Southern Star requests that shippers adhere to the following criteria:

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

ISS withdrawals and PLS withdrawals will be available on a limited basis

Incremental Loans will be available on a limited basis

Imbalance makeup for gas due others (Southern Star off-system) will be available on a limited basis

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

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

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

These conditions are expected to remain in effect through Sunday, January 27, 2018.

Tennessee Gas Pipeline:

OFO DAILY CRITICAL DAY 1 LIFTED FOR ALL OF ZONES 2,3,4 AND PART OF ZONE 5 EFFECTIVE 1-22-19

Effective for today’s Gas Day of Tuesday, January 22, 2019, and until further notice, Tennessee Gas Pipeline, L.L.C. (“Tennessee”) is LIFTING the existing OFO Daily Critical Day 1 for all Zones 2, 3, 4 and part of Zone 5 due to milder temperatures moving into those areas.  THE OFO DAILY CRITICAL DAY 1 WILL CONTINUE TO BE IN EFFECT FOR ALL AREAS EAST OF STA 245 IN ZONE 5 ON THE 200 LINE AND FOR ALL OF ZONE 6 ON BOTH THE 300 (EAST OF MLV 336) AND 200 LINES for all Balancing Parties (including LMS-PA, SA contracts acting as balancing parties, LMS-MA, and LMS-PL balancing parties).  This action is pursuant to Article X, Section 4 of the General Terms and Conditions of Tennessee’s FERC Gas Tariff. 

All delivery point operators in all areas east of Station 245 in Zone 5 on the 200 Line and for all of Zone 6 on both the 300 (east of MLV 336) and 200 lines are still required to keep actual daily takes out of the system equal to or less than scheduled quantities regardless of their cumulative imbalance position.  All receipt point operators in all areas east of Station 245 in Zone 5 on the 200 Line and for all of Zone 6 on both the 300 (east of MLV 336) and 200 lines are still 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:

Texas Eastern Transmission, LP (TE) hereby declares a Force Majeure in accordance with Section 17 of the General Terms and Conditions of its FERC Gas Tariff. The Force Majeure event is due to an unplanned outage on its 30″ system south of the Berne Compressor Station (Berne) in Berne, Ohio which occurred on January 21, 2019. While efforts to restore this line to full capacity are underway, the estimated time of restoration is unclear at this time.

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

Transcontinental Gas Pipe Line Corporation:

The Operational Flow Order – Imbalance (OFO) currently in effect on the Transco system in Zones 4, 5, & 6 will be terminated effective January 23, 2019 at 9:00 AM CST. 

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

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The continuation of cold weather across the Upper Midwest to the East Coast is expected to linger into early February according to the 8-14 day temperature outlook from the National Weather Service.  The Southern states should also see temperatures at or a little below normal, while the Rockies and West Coast may continue to have warmer than seasonal weather conditions for early February. 

That wraps up this special Tuesday edition of GasNewsOnline.com.  Please look for our next update on Thursday in front of the coming weekend.  Remember that our audio podcast is available to you for FREE via iTunes as well!

Edition 31 – Thursday, January 17, 2019

If you like cold weather, you’ll LOVE this edition of GasNewsOnline.com!  With another winter storm bearing down on the midsection of the country and, this weekend, along a large portion of the East Coast, the gas pipelines are busy writing critical notices.  GasNewsOnline.com brings you all of the publicly released gas pipeline news and the updated temperature forecasts.  All for FREE!

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As a follow up to its EBB notice dated June 29, 2018, Gas Transmission Northwest LLC (GTN), indirectly and partially owned by TransCanada PipeLines Limited (TransCanada), is informing interested parties that a chemical substance, Dithiazine, continues to appear at facilities on the GTN System, and those of some upstream and downstream connecting pipelines.

Dithiazine is a sulphur compound by-product created through the use of Triazine, a liquid chemical scavenger used by producers to remove hydrogen sulfide (H2S) from gas streams. TransCanada has become aware that Dithiazine may drop out of the gas stream, under certain conditions, in the form of a white powder, and further chemically change to an adhesive, putty-like substance at some points of pressure reduction (for example, at a regulator) due to a temperature drop that accompanies the pressure reduction. If a sufficient quantity of the material is accumulated in certain appurtenances, it could cause them not to function properly.

As TransCanada has previously advised, multi-stage pressure regulation and/or heating of the gas stream prior to the pressure cut can mitigate against Dithiazine dropping out of the natural gas stream. In addition, periodic equipment inspections and cleaning to remove any observed solid deposits may help prevent operational issues with facility equipment.

However, due to the potential for Dithiazine to interfere with equipment functionality, TransCanada is considering disallowing the receipt of gas that has interacted with Triazine into the GTN System if the factors contributing to the presence of Dithiazine do not change. In the event Dithiazine continues to appear at facilities on the GTN System, GTN may decide to issue an Operational Flow Order by April 1, 2019 in accordance with Section 6.30 of its FERC Gas Tariff, as amended from time to time, to maintain or restore the operational integrity of its system.

To provide additional clarity and address any questions, TransCanada invites all parties to attend a working session to be held the second week of February 2019 in Calgary, Alberta.

TransCanada will continue to provide stakeholders with updates as appropriate. In the meantime, GTN commercial and operations representatives are available to meet with any affected parties at their convenience, or to address any questions.

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BlueMountain Capital Management has delivered an open letter to the Board of Directors of PG&E Corporation. 

The investment firm, which owns several million shares of PGE stock, said that the company’s plan to file bankruptcy soon is “damaging, avoidable, and unnecessary” for the company’s stockholders.    

According to the letter, BlueMountain Capital Management asserts that PG&E “has ample liquidity to operate its business; the amount of liabilities remains uncertain and contestable; there are meaningful probabilities of offsets from settlements and cost recovery; and any potential liabilities are payable in the future”.

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From the US Energy Information Administration, the weekly natural gas storage report showed a net decrease of 81 Bcf pulled from storage for the week ending January 11.  Remaining natural gas stocks in storage are now 2.5 Tcf.  That volume is 11.4% below the five-year average for the same week.

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Due to another winter storm moving across the MidWest and, for this weekend, into the Northeast, this is an extremely busy week of gas pipeline company critical notices.

ANR Pipeline:

Attn: All ANR Market Area Shippers

Due to projected cold weather forecasts, current operational conditions, and nomination levels, it is increasingly important that ANRPL shippers maintain sufficient receipt and delivery volumes to minimize imbalances and ensure system integrity.

ANR is not taking further action at this time other than to notify our customers of the projected weather forecast. However, ANR Pipeline will continue to monitor pipeline operations and the weather forecasts, and may take further action if necessary. Please continue to monitor our EBB for updates.

Columbia Gas Transmission:

Pursuant to the General Terms & Conditions of TCO’s FERC Gas Tariff, Section 19.7, shippers are advised that due to sustained colder temperatures, storage levels, and increased market demand extending several days beginning Friday, January 18, 2019, Transport and Storage Critical Days are necessary in all Market Areas across the TCO system.  Please note the following: 

Transport and Storage Critical Days:  Friday, January 18, 2019 and until further notice.  TCO will monitor conditions and provide updates as necessary. 

Applicable Market Areas:  All Market Areas and All Storage Withdrawals delivered to all Market Areas. 

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

NOTE:  Takes in excess of Total Firm Entitlements (“TFE”) are penalized on Critical Days based on takes exceeding the aggregate daily amount of gas that TCO is obligated to deliver to a shipper under the shipper’s applicable rate schedule.  Each applicable rate schedule outlines this delivery obligation and, consequently, a shipper’s TFE.  (Notice ID 25678425 posted on December 1, 2015 explains in detail) 

Columbia will be evaluating whether shippers have exceeded their TFE within the specific Market Areas affected by the Critical Day. Firm entitlements in other Market Areas will not be included in determining whether a shipper’s flows are within their TFE in any Market Area subject to the Critical Day.

Applicable Storage Penalties:

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

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

– FSS MMWQ – Monthly Withdrawal Quantities that exceed 40% (November Limit) of SCQ will be assessed a penalty of $5.00 per Dth. 

NOTE:  Transporter projects no availability of interruptible storage withdrawal services (SIT and ISS) and excess FSS withdrawals with delivery to one of the affected Market Areas.  PAL loans or unparks with a delivery within the affected Market Areas will not be available.  Due ship nominations will be scheduled to zero.

East Tennessee Natural Gas:

ETNG Operational Flow Order – East of Boyds Creek

In order to maintain the operational integrity of the system, ETNG is issuing a Balancing Alert Operational Flow Order (OFO) pursuant to Section 14.7 of the General Terms and Conditions of ETNG’s FERC Gas Tariff effective 9:00 AM CCT, January 17, 2019 for all meters east of the Boyds Creek Compressor Station.

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

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

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

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

Enable Gas Transmission:

BALANCING OPERATIONAL ALERT

THIS OPERATIONAL ALERT IS BEING ISSUED PURSUANT TO SECTION 20, GT&C, OF EGT S TARIFF TO  ADVISE SHIPPERS SYSTEM WIDE THAT THEY WILL BE REQUIRED TO MAINTAIN ACTUAL RECEIPTS AND  DELIVERIES COMMENSURATE WITH SCHEDULED VOLUMES, BEGINNING ON THURSDAY, JANUARY 17,  2019 AT 9:00 A.M. AND CONTINUING UNTIL FURTHER NOTICE. 

DUE TO FORECASTED HIGH DEMANDS, EGT ANTICIPATES IT MAY BE UNABLE TO SUPPORT IMBALANCE POSITIONS AND MAY REDUCE SCHEDULED QUANTITIES INTRADAY TO BALANCE ACTUAL RECEIPTS AND DELIVERIES NECESSARY TO MAINTAIN SYSTEM DELIVERABILITY AND OPERATIONAL INTEGRITY.

DURING THIS TIME, EGT ANTICIPATES HIGH STORAGE DEMAND AND MAY, IF NECESSARY, SCHEDULE ACCORDINGLY IN ORDER TO GET THE WITHDRAWALS THROUGH ITS ALLEN AND CHANDLER  COMPRESSOR STATIONS.  IT AND SECONDARY SHIPPERS IN THE WEST 1, WEST 2 AND FLEX (WEST OF  CHANDLER) POOLING AREAS MAY BE IMPACTED.

THE AVAILABILITY OF BALANCING AND NON-RATABLE SERVICES WILL BE LIMITED.  HOURLY NON- RATABLE NOMINATIONS MUST BE PRE-APPROVED OR WITHIN THE POSTED LIMITS ON EGT S DAILY OPERATING PLAN. EGT WILL CONTINUE TO MONITOR THE PIPELINE S PRESSURE AND IMBALANCES AND  WILL, IF NECESSARY, TAKE FURTHER ACTIONS, INCLUDING THE ISSUANCE OF ONE OR MORE OPERATIONAL FLOW ORDERS (OFO).  SHIPPERS WHOSE TAKES EXCEED THEIR APPLICABLE SCHEDULED VOLUMES WILL BE SUBJECT TO EXCESS CONTRACT QUANTITIES CHARGES PURSUANT TO EGT’S TARIFF.

EGT WILL SCHEDULE RECEIPTS AND DELIVERIES IN ACCORDANCE WITH EGT’S TARIFF.  THIS

OPERATIONAL ALERT WILL REMAIN IN EFFECT UNTIL FURTHER NOTICE AND WILL BE UPDATED AS MORE INFORMATION BECOMES AVAILABLE.

Florida Gas Transmission:

Overage Alert Day 25% Tolerance

FGT line-pack is below target levels.  Near freezing temperatures are forecasted in Florida this weekend; therefore, for the gas day of January 17, 2019, FGT would like to notify their customers in FGTs Market Area that it is issuing an Overage Alert Day at 25% (twenty five percent) tolerance.

For the gas day of January 17, 2019, FGT will not interrupt previously scheduled Market Area ITS-1 service below the elapsed prorated scheduled quantity.

FGT will continue to monitor hourly and daily takes. Please closely monitor your scheduled point quantities versus actual burn point quantities.

Gulf Crossing Pipeline:

Below normal temperatures are expected to move across the Gulf Crossing service area over the next few days.

While it is fully expected that all primary firm service obligations will be met, the following services/activities are subject to scheduling reductions until further notice:

Imbalance Payback from Transportation Service Provider

Park Withdrawal

Loan

Interruptible

Additionally, Gulf Crossing is requesting all shippers to balance their transportation and storage contracts by conforming receipts into the system with the deliveries being taken from the system, and to receive and deliver quantities at a uniform hourly rate of flow, pursuant to Section 6.7[1.] and 6.7[2.] of Gulf Crossing’s FERC Gas Tariff.

If shippers do not voluntarily comply with these provisions, Gulf Crossing may be forced to declare a Critical Period or issue an Operational Flow Order, which could result in penalties for shippers.

Gulf South Pipeline:

Below normal temperatures are expected to move across the Gulf South service area over the next few days.

While it is fully expected that all primary firm service obligations will be met, the following services/activities are subject to scheduling reductions until further notice:

Imbalance Payback from Transportation Service Provider

Park Withdrawal

Loan

ISS and ISS-P Withdrawal

FSS-P Overrun Withdrawal

Interruptible, Firm Secondary Service, Firm Supplemental Service and Firm Out-of-Path Service

Additionally, Gulf South is requesting all shippers to balance their transportation and storage contracts by conforming receipts into the system with the deliveries being taken from the system, and to receive and deliver quantities at a uniform hourly rate of flow “as practicable”, pursuant to Section 6.7[2.] and 6.7[3.] of Gulf South’s FERC Gas Tariff (Tariff).

If shippers do not voluntarily comply with these provisions, Gulf South may be forced to declare a Critical Period or issue an Operational Flow Order, which could result in penalties for shippers.

Mississippi River Transmission (MRT):

Due to the potential for maximum utilization of northbound firm Main Line capacity causing a potential supply deficiency in the Market Zone, MRT is issuing a System Protection Warning (SPW) effective 9:00 a.m. Wednesday, January 16, 2019, and continuing until further notice.

During this time:

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

 2)           It may be necessary for MRT to limit firm volumes to their primary direction of flow on the system north of Glendale.

 3)           MRT may not be able to schedule volumes that result in a daily short position in either the Market or Field Zones, and Shippers must ensure that they remain in balance.

 4)           MRT may not be able to schedule the use of imbalance positions, and Shippers must ensure physical receipts sufficient to cover scheduled deliveries.

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

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

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

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):

OPERATIONAL FLOW ORDER ISSUED – MARKET DELIVERY ZONE 

Based on current market demand, anticipated maximum peaking withdrawals from storage facilities, and current system operating conditions, Natural is issuing an Operational Flow Order (OFO) in the Market Delivery Zone effective 9:00 am., Central Clock Time, Saturday, January 19, 2019, and continuing until further notice.  Additionally, Natural continues to monitor operating conditions system wide.  If necessary, Natural will issue additional OFOs to address Shipper actions that are detrimental to such operating conditions outside the Market Delivery Zone.  See below for specific actions Natural is requiring shippers follow and the applicable timing requirements (daily and hourly) for compliance with the OFO.  Additionally, if conditions warrant, a Critical Time will be issued in the near future.  Please monitor Natural’s Interactive Website for updates. 

DAILY 

For the gas day, each Shipper (including Point Operators) is prohibited from taking any volume in excess of those equal to confirmed transportation nominations plus no-notice rights at delivery points in the Market Delivery Zone.  Excess daily takes will be subject to applicable Unauthorized Overrun charges, OFO charges and/or OFO balancing charges (as described below).  Natural is reminding Shippers and Point Operators that as part of this OFO, tolerances under POA agreements are limited to 2% (instead of 5%) of confirmed nominations or 1,000 Dth/d; whichever is greater, at the point.  Daily Balancing Charges and overrun charges associated with Shippers and Point Operators under taking volumes (long position) will be waived during this OFO in accordance with Natural’s FERC Gas Tariff. 

HOURLY 

Additionally, as provided in Section 7.4 of Natural’s FERC Gas Tariff, at each point in the Market Delivery Zone, Point Operators and Shippers (where no point operator exists) are required to limit hourly takes.  The hourly rights for each Shipper and Point Operator will be limited by service priority and nomination cycle, based on hours remaining in the gas day.  Shippers and Point Operators are responsible for calculating and monitoring their hourly usage so as not to exceed the limits described herein.  Excess hourly takes will be subject to OFO charges (as described below).

Hourly Rights for Firm Service – 120%

Includes Primary and Secondary Confirmed Nominations and Unused No-Notice firm service rights

Timely/Evening Cycles

Limited to 5.00% (120% / 24 hours) of Firm Service. 

Intra-Day 1 Cycle

Limited to the hourly rights computed in the previous cycle for Firm Service; plus 6.316% (120% / 19 hours) of the difference of current cycle Firm Service minus prior cycle Firm Service. 

Intra-Day 2 Cycle

Limited to the hourly rights computed in the previous cycle for Firm Service; plus 8.00% (120% / 15 hours) of the difference of current cycle Firm Service minus prior cycle Firm Service. 

Intra-Day 3 Cycle

Limited to the hourly rights computed in the previous cycle for Firm Service; plus 10.91% (120% / 11 hours) of the difference of current cycle Firm Service minus prior cycle Firm Service.

Hourly Rights for Interruptible Service – 105%

Includes Interruptible and AOR nominations, as well as POA tolerances

Timely/Evening Cycles

Limited to 4.375% (105% / 24 hours) of Interruptible Service. 

Intra-Day 1 Cycle

Limited to the hourly rights computed in the previous cycle for Interruptible Service; plus 5.53% (105% / 19 hours) of the difference of current cycle Interruptible Service minus prior cycle Interruptible Service. 

Intra-Day 2 Cycle

Limited to the hourly rights computed in the previous cycle for Interruptible Service; plus 7.00% (105% / 15 hours) of the difference of current cycle Interruptible Service minus prior cycle Interruptible Service. 

Intra-Day 3 Cycle

Limited to the hourly rights computed in the previous cycle for Interruptible Service; plus 9.55% (105% / 11 hours) of the difference of current cycle Interruptible Service minus prior cycle Interruptible Service. 

Limitation on Nominations in All Cycles for Firm and Interruptible Service

Shippers are advised that nominations should be received by Timely/Evening Cycle in order to utilize full rights over 24 hours, to avoid exceeding the 24 hour ratable hourly takes calculation.  In all cases, any first time nominations received on Non-Timely Cycles for full MDQ utilization rights, plus any scheduled ITS nominations, are subject to penalty on any hourly takes overages if the hourly takes rate exceeds the 24 hour ratable calculation.  Shipper’s hourly rights based on firm MDQ, plus interruptible nominations, must be sufficient to accommodate the calculated hourly rights for the remaining hours of the gas day.  Specifically, hourly rights cannot exceed 120% / 24 hours of Shipper’s MDQ on the nominated contract, plus 105% / 24 hours of Shipper’s interruptible nominations.

CHARGES FOR VIOLATIONS OF OFOs  

HOURLY

Section 23.6 of the General Terms and Conditions of Natural’s FERC Gas Tariff sets forth the provisions, including applicable penalties, for failure to comply with an OFO.

DAILY 

UNATHORIZED OVERRUN

Point Operators are on notice that any volumes taken in excess of the confirmed nominations and no-notice rights plus the greater of 2% of all confirmed nominations, or one thousand (1,000) Dth/day, will be treated as Unauthorized Overrun subject to any applicable charges (Section 12), penalties for violating the OFO (Section 23.6), and any Balancing Service Charges (as referenced below). This OFO overrides any prior predetermined allocation included in Section 11 of the General Terms and Conditions of Natural’s FERC Gas Tariff to the extent the overtake would be treated differently. 

BALANCING SERVICE CHARGES

Section 12.3 of the General Terms and Conditions of Natural’s FERC Gas Tariff sets forth the provisions when Balancing Service Charges shall apply when an OFO is in effect, if actual deliveries allocated to a Shipper at any point or under any Agreement do not conform to the sum of such Shipper’s confirmed nominations and no-notice rights applicable to such point. 

Daily Balancing Charges and overrun charges associated with Shippers and Point Operators under taking volumes (long position) will be waived during this OFO in accordance with Natural’s FERC Gas Tariff.

Northern Natural Gas:

Effective Gas Day 01/18/2019 09:00:00 AM until further notice, the Carlton Resolution flow obligation will be at 100%.

Operational Alert – A System Overrun Limitation (SOL) has been called for all Market Area zones (ABC, D and EF) with 50% System Management Service (SMS) available for Gas Day Friday, January 18, 2019, due to lower than normal system weighted temperatures.

Northwest Pipeline:

Northwest Pipeline’s current account balance at the Jackson Prairie Storage Facility is currently under 1 Bcf.  This is due to cooler weather experienced over the last several days and subsequent drafting of the system North of the Kemmerer Compressor station.  In addition, with the change of gas flows due the Westcoast incident in early October, Northwest has significantly under recovered fuel for the last several months.  With cooler weather anticipated early next week, intermittent volumes from Westcoast based on planned in-line inspections and declining deliverability from Jackson Prairie; Northwest will be implementing a Stage III (13%) Entitlement North of the Kemmerer Compressor station pursuant to Section 14.6 of the Northwest Gas Pipeline Tariff effective January 18, 2019.

In addition, Northwest is preparing to file an Emergency Fuel Filing with the Federal Energy Regulatory Commission seeking approval, to be effective February 1, 2019, to change the current system fuel rate from 1% to 1.61%.  

Panhandle Eastern Pipe Line Corporation:

Weather Alert 

Based on current cold weather forecasts, Panhandle is preparing for increased pipeline utilization and reduced operational flexibility. Effective Gas Day January 19, 2019, until further notice, Panhandle is requesting all delivery point operators to minimize over-takes and all receipt point operators to minimize their under-deliveries into the system. 

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

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

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

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 Natural Gas:

Based on the latest weather forecast predicting colder weather with a significant drop in temperatures as well as the corresponding increase in projected demand on Southern’s system, we are notifying Shippers on the North and South systems will be subject to an OFO Type 3 Level 2 effective the start of the gas day, Sunday, January 20, 2019 until further notice.

OFO Type 3 Level 2: Daily Demand Exceeds Capacity
TARIFF SECTION 41.2
EFFECTIVE DATE: January 20, 2019
EFFECTIVE TIME of OFO: 9:00 AM (CCT)  

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

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

This is to notify all customers who are allocated gas at any delivery point in the North and South system segments listed by SNG 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) exceed both 102% of their daily entitlement and 200 dth at such delivery point(s) within an OFO Group.

Southern Star Central Gas Pipeline:

Due to severe weather conditions expected, Southern Star is issuing a Winter Weather Warning effective Saturday, January 19, 2019.

The following actions will be taken to preserve system integrity:

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

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

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

ISS withdrawals and PLS withdrawals will be unavailable.

Incremental Loans will not be available.

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

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

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

Operational flexibility will not be available during this time.

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

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

These conditions are expected to remain in effect through Monday, January 21, 2019. Southern Star will review and provide any changes or updates on the status of its system for the period of this posting.

Tennessee Gas Pipeline:

OFO DAILY CRITICAL DAY 1 FOR ALL AREAS EAST OF STA 245 EFFECTIVE 1-17-19

Due to forecasted colder weather and higher demand moving back into the northeast, effective for the Gas Day of Thursday, January 17, 2019, and until further notice, Tennessee Gas Pipeline, L.L.C.  (“Tennessee”) is issuing an OFO Daily Critical Day 1 for all areas east of STA 245 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 east of STA 245 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 east of STA 245 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.

In the event this OFO is not sufficient to maintain the operational integrity of the system, Tennessee may escalate to a Critical Day II, an OFO Balancing Alert, Meter Specific OFO(s) or Hourly OFO(s). Tennessee cannot accept unscheduled imbalances and requires all customers to nominate and schedule all payback requests.

Tennessee will deem all affected Shippers to be in compliance with the actions specified in these Daily Critical Day 1 OFOs if after the measurement close the actual system conditions were opposite to the conditions for which the OFOs were issued.

Texas Gas Transmission:

Below normal temperatures are expected to move across the Texas Gas service area over the next few days.

While it is fully expected that all primary firm service obligations will be met, the following services/activities are subject to scheduling reductions until further notice:

Imbalance Payback from Transportation Service Provider

Park Withdrawal

Loan

ISS Withdrawal

FSS Overrun Withdrawal

Interruptible and out-of-path Firm Transportation

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

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

Transcontinental Gas Pipe Line Company:

Subject:Operational Flow Order – Imbalance

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

Effective:  Sunday, January 20, 2019 until further notice

OFO Areas:  Zones 4, 5, and 6

Delivery Tolerance %:  5%

Trunkline Gas Company:

Weather Alert 

Based on current cold weather forecasts, Trunkline is preparing for increased pipeline utilization and reduced operational flexibility. Effective Gas Day January 19, 2019, until further notice, Trunkline is requesting all delivery point operators to minimize over-takes and all receipt point operators to minimize their under-deliveries into the system. 

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

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

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

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

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As you can tell based on today’s gas pipeline report, the weather forecast through the end of January is for colder than average temperatures.  The National Weather Service temperature forecast through the end of the month is now showing only the West Coast of the US with above average weather.

Bundle up, and enjoy the football games this weekend!  Remember to subscribe to our audio podcasts via iTunes!

Edition 30 – Monday, January 14, 2019

Welcome to GasNewsOnline.com!   We check-out the latest postings from the interstate natural gas pipelines, the latest corporate filings, and, of course, the temperature forecasts so that you can stay current on your business.  All for FREE!   

First, the weather leads the news this Monday. 

Just last Thursday on our previous post, the late month forecast showed average temperatures across most of the East Coast with colder than average weather in New England.

The National Weather Service has updated their forecast and shows “below average to much below average” temperatures predicted for late January from the Rockies from Canada to the Gulf Coast and eastward to the Atlantic coast states.  Areas from Texas to the Upper Great Lakes are now expected to see temperatures nosedive below normal for most of the second half of January.

As a result of the expanded regions of cold weather expected to linger through the second half of January, the NYMEX gas futures price for February jumped 49 cents today to $3.59/MMBtu.  Just a few days ago, the February gas futures price was less than $3. 

Historically speaking, nothing moves natural gas prices upward or downward quite like significant expected temperature changes.  The revisions to the National Weather Service temperature forecasts showed how quickly the market can and will respond to new information. 

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In the other big news in the energy business on Monday, Pacific Gas & Electric announced that it is planning to file for Chapter 11 bankruptcy protection on or about January 29, 2019.

On Sunday, PG&E CEO Geisha Williams stepped down and was replaced by general counsel John Simon, who will serve as the interim CEO.

Today, the company publicly released an announcement concerning these changes:

At PG&E, our single most important responsibility is safety, and we must work harder every day to demonstrate that the safety of the public, our employees and our contractors comes first. PG&E has been part of the California landscape for more than 100 years, and we care deeply about the communities that we serve and where our employees live and work.

We recognize that the devastating and unprecedented Northern California wildfires of 2017 and 2018 have had a profound impact on our customers and their communities. PG&E faces extensive litigation and significant potential liabilities resulting from these wildfires. It is clear that a solution is needed that enables the continued safe delivery of natural gas and electric service to our customers and supports the orderly, fair and expeditious resolution of PG&E’s potential liabilities resulting from the recent wildfires.

We have determined that a Chapter 11 reorganization is the only viable option for meeting these goals. PG&E is not going out of business. We do not expect any impact to natural gas or electric service for our customers as a result of the Chapter 11 process. We expect this court-supervised process will, among other things:

  • Assure the continued safe delivery of natural gas and electric service for our customers.
  • Enable PG&E to continue its extensive restoration and rebuilding efforts to assist communities affected by the 2017 and 2018 Northern California wildfires.
  • Support the orderly, fair and expeditious resolution of the potential liabilities resulting from the wildfires.
  • Allow us to work with all of our stakeholders in one forum to address their complex concerns and make appropriate changes.

PG&E’s common stock price dropped by 50% on Monday to finish below $10/share.  As recently as November 7, 2018, the company’s stock price reached $48.80 per share. 

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From the US Energy Information Administration’sNatural Gas Weekly Update” publication dated January 10:

Net withdrawals from working gas totaled 91 billion cubic feet (Bcf) for the week ending January 4. Working natural gas stocks are 15% lower than the five-year (2014–18) average for the same week.

The natural gas plant liquids composite price at Mont Belvieu, Texas, rose by 11¢/MMBtu, averaging $6.21/MMBtu for the week ending January 9. The price of propane fell by 1%. The price of natural gasoline, butane, isobutane, and ethane rose by 10%, 3%, 2%, and 1% respectively.

According to Baker Hughes, for the week ending Tuesday, January 1, the natural gas rig count remained flat at 198. The number of oil-directed rigs fell by 8 to 877. The total rig count decreased by 8, and it now stands at 1,075.

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Starting the new week, most of the interstate pipeline companies in the Midwest into the Northeast were emerging from a weekend of January snow and cold weather. There were very few new postings on this Monday, so let’s check out the latest from the gas pipeline grid:

Tennessee Gas Pipeline:

OFO DAILY CRITICAL DAY 1 LIFTED FOR ALL AREAS EAST AND NORTH OF STA 219 EFFECTIVE 1-15-19 

Effective for the Gas Day of Tuesday, January 15, 2019, and until further notice,Tennessee Gas Pipeline, LLC (“Tennessee”) is lifting the Daily Critical Day 1 OFO for all areas east and north of STA 219 in Zone 4, Zone 5 and Zone 6.  However, it is imperative that customers continue to match physical flows with scheduled volumes in these areas in order to avoid the issuance of any additional actions in these zones.

Transcontinental Gas Pipe Line Company (Transco):

The Operational Flow Order – Imbalance (OFO) currently in effect on the Transco system in Zones 4 & 5 will be terminated effective January 15, 2019 at 9:00 AM CST. The OFO currently in effect for Zone 6 will continue until further notice.

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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That’s a wrap for this Monday edition of GasNewsOnline.com.  Please tell your friends about us if they work in the natural gas transportation, scheduling, and marketing business.  Our information is available to you absolutely FREE!  Please also subscribe to our FREE podcast on iTunes.

 

Edition 29 – Thursday, January 10, 2019

The natural gas pipeline companies along the east coast of the US are tightening operational guidelines ahead of a blast of January cold weather.

Welcome back to GasNewsOnline.com! We review the critical postings from the electronic bulletin boards of interstate pipeline companies, the publicly released energy news from the biggest players in the business, and, of course, provide you with the National Weather Service outlook for the upcoming weeks. All for you. All for FREE!

Before we cover a large number of critical gas pipeline postings to end this week, below are a few of the latest news stories:

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Working natural gas in storage was 2,614 Bcf as of Friday, January 4, 2019, according to EIA estimates. This represents a net decrease of 91 Bcf from the previous week.

Gas stocks in storage were 464 Bcf (15.1%) below the five-year average.

Despite the natural gas withdrawal volumes a little higher than analyst estimates, Thursday’s gas futures price for February at the Henry Hub in Louisiana remained around the $3/MMBtu mark.

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TransCanada Corporation announced Wednesday its intention to change its name to TC Energy to better reflect the scope of the company’s operations as a leading North American energy infrastructure company. TransCanada’s shareholders will be asked to approve a special resolution to change the name at the company’s next Annual and Special Meeting of Shareholders.

“TC Energy better reflects the breadth of our business and acknowledges our proud history of safely and responsibly delivering the energy that millions of North Americans rely on every day,” said Russ Girling, TransCanada’s president and chief executive officer. “We believe the name TC Energy clearly articulates our complete business – pipelines, power generation and energy storage operations – and reflects our continued continental growth into an enterprise with critical assets and employees in Canada, the United States and Mexico.”

The proposed name change was announced at the kick-off to the company’s annual Employee Forum series that began today in Mexico City. The series includes face-to-face events for employees and contractors in Canada, the United States and Mexico.

Subject to shareholder and regulatory approval, the name change will be effective immediately following the Annual and Special Meeting of Shareholders in the second quarter of 2019. TransCanada intends to continue trading under “TRP” on the Toronto and New York stock exchanges after adopting the new name. 

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EP Energy Corporation today announced that on January 3, 2019, EP Energy was notified by the New York Stock Exchange of its noncompliance with continued listing standards because the average closing price of its class A common stock over a prior 30 consecutive trading day period had fallen below $1.00 per share, which is the minimum average closing price per share required to maintain listing on the NYSE.

EP Energy has a period of six months following the receipt of notice to regain compliance. EP Energy can regain compliance at any time during the six-month cure period if its common stock has a closing share price of at least $1.00 on the last trading day of any calendar month during the period and also has an average closing share price of at least $1.00 over the 30 trading day period ending on the last trading day of that month.

EP Energy’s common stock will continue to be listed and traded on the NYSE during this six-month cure period, subject to the company’s compliance with other continued listing requirements set forth in the NYSE Listed Company Manual.

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With colder weather returning to the East Coast, let’s take a look at some of the latest critical notices from the interstate gas pipeline grid:

ANR Pipeline:

SW Area Capacity Restriction (Updated 1/8/19)
This posting supersedes CN ID #8995

Update: ANR continues the unplanned compressor maintenance at its Mooreland Compressor Station located in Woodward County, Oklahoma, in the Southwest Area (Zone 4). During the period of January 8th through 25th, 2019, ANR Shippers can expect higher than normal pressures in the pipeline segment upstream of the Mooreland Compressor Station.

Columbia Gas Transmission:

Pursuant to the General Terms & Conditions of TCO’s FERC Gas Tariff, Section 19.7, shippers are advised that based on weather forecasts, storage levels, and increased markets, Transport Critical Days are necessary in Operating Areas 1, 4 and 10 (Market Areas listed below) on the TCO system. 

Please note the following:

Transport Critical Days:  Friday, January 11, 2019 and until further notice.  TCO will monitor conditions and provide updates as necessary.

Storage Critical Days:  Friday, January 11, 2019 and until further notice.  TCO will monitor conditions and provide updates as necessary.

Applicable Market Areas:  Operating Areas 1, 4 and 10 (See Market Areas below)

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

NOTE:  Takes in excess of Total Firm Entitlements (“TFE”) are penalized on Critical Days based on takes exceeding the aggregate daily amount of gas that TCO is obligated to deliver to a shipper under the shipper’s applicable rate schedule.  Each applicable rate schedule outlines this delivery obligation and, consequently, a shipper’s TFE.  (Notice ID 25678425 posted on December 1, 2015 explains in detail)

Columbia will be evaluating whether shippers have exceeded their TFE within the specific Market Areas affected by the Critical Day. Firm entitlements in other Market Areas will not be included in determining whether a shipper’s flows are within their TFE in any Market Area subject to the Critical Day.

Op Area 1 – MA 33, 34

Op Area 4 – MA 21, 22, 23, 24, 25, 29

Op Area 10 – MA 28, 30, 31

Applicable Storage Penalties:

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

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

– FSS MMWQ – Monthly Withdrawal Quantities that exceed 40% (November Limit) of SCQ will be assessed a penalty of $5.00 per Dth.

NOTE:  Transporter projects no availability of interruptible storage withdrawal services (SIT and ISS) and excess FSS withdrawals with delivery to one of the affected Market Areas.  PAL loans or unparks with a delivery within the affected Market Areas will not be available.  Due ship nominations will be scheduled to zero.

Dominion Energy Transmission:

System Alert Conform IT/FT to Sched Noms – CUSTOMER ACTION REQUIRED

Effective: Start of Gas Day, Friday, January 11, 2019, the following Alert shall be in force until further notice.

Basis for Alert

Due to forecasted cold weather, DETI’s ability to tolerate excess over deliveries by its customers will likely be affected. Any over deliveries could jeopardize DETI’s ability to satisfy its firm obligations.

To avoid this, this System Alert is issued pursuant to Section 26.2.D, Tariff Record No. 40.33, of the General Terms and Conditions of DETI’s FERC Gas Tariff, Fourth Revised Volume No. 1.

Customer Action Requested

Each Customer receiving service under Rate Schedule IT (including interruptible overruns under firm rate schedules), FT or MCS is advised to conform its receipts of gas from DETI to that Customer’s confirmed, scheduled nominations of gas being physically received by DETI on both an hourly and daily basis. Further, DETI requests that any Customer who has both service under Rate Schedule FT and Rate Schedule GSS conform its FT receipts from DETI to that Customer’s confirmed, scheduled nominations of gas being physically received by DETI under Rate Schedule FT; however, such FT Customer may elect under its Rate Schedule GSS service to inject its physical transportation over deliveries into storage and to withdraw under deliveries from storage, to the extent authorized under the applicable storage service agreements and Rate Schedules (subject to applicable nomination requirements).

Customer(s) Affected: All FT (including Replacement Customers), IT and MCS Customers.

Consequences

Failure to comply may result in the issuance of OFOs, which will be posted and issued in accordance with DETI’s FERC Gas Tariff

East Tennessee Natural Gas:

Glade Spring Compressor Station Unplanned Outage — REVISED

East Tennessee Natural Gas (ETNG) has experienced an unplanned outage at its Glade Spring Compressor Station (Glade Spring) on the 3300 Line. Repair efforts to restore this compressor station to full capacity are underway. As a consequence of this outage, ETNG estimates that west to east capacity through Glade Spring will be approximately 155,000 Dth /d.

Based on current pipeline conditions ETNG doesn’t anticipate any restrictions associated with this outage; however if nominations change, restrictions may be required.

Natural Gas Pipeline Company of America (NGPL):

SEGMENT 26 SOUTHBOUND – AT OPERATING CAPACITY – PRIMARY ONLY

Due to current operating conditions, Natural is at operating capacity for southbound flow through Compressor Station 302 located in Montgomery County, Texas (Segment 26 of Natural’s Texok Zone).  Therefore, effective for gas day, Friday, January 11, 2019, Timely Cycle, and continuing until further notice, only Primary Firm and Secondary in-path Firm transports will be scheduled.  AOR/ITS and Secondary out-of-path Firm transports will not be available.

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 various groups along its North and South systems effective the start of the gas day, Thursday, January 10, 2019, until further notice.

OFO Type 3 Level 1: Daily Demand Exceeds Capacity
TARIFF SECTION 41.2
EFFECTIVE DATE: January 10, 2019

EFFECTIVE TIME of OFO: 9:00 AM (CCT)
PENALTY: $10.00/Dth

Tennessee Gas Pipeline:

OFO DAILY CRITICAL DAY 1 FOR ZONES 2, 3 AND 4 EXPANDED TO INCLUDE ZONES 5 AND 6 EFFECTIVE JANUARY 10, 2019 

Effective for the Gas Day of Thursday, January 10, 2019, and until further notice, Tennessee Gas Pipeline, L.L.C. (“Tennessee”) is expanding the existing OFO Daily Critical Day 1 for all of Zones 2, 3 and 4 to also include all of Zones 5 and 6 due to anticipated colder temperatures and associated higher demand moving into the areas.  Tennessee is implementing this OFO Daily Critical Day 1 for all of Zones 2, 3, 4, 5 and 6 for all Balancing Parties (including LMS-PA, SA contracts acting as balancing parties, LMS-MA, and LMS-PL balancing parties).  This action is pursuant to Article X, Section 4 of the General Terms and Conditions of Tennessee’s FERC Gas Tariff.  

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

THIS DAILY OFO CRITICAL DAY 1 WILL REMAIN IN EFFECT UNTIL FURTHER NOTICE.

In the event this OFO is not sufficient to maintain the operational integrity of the system, Tennessee may escalate to an OFO Critical Day II, an OFO Balancing Alert, Meter Specific OFO(s) or Hourly OFO(s). Tennessee cannot accept unscheduled imbalances and requires all customers to nominate and schedule all payback requests.

Texas Eastern Transmission:

Shermans Dale Unplanned Outage

Texas Eastern (TE) has experienced an unplanned outage at its Shermans Dale Pennsylvania compressor station and efforts to restore this compressor station to full capacity are underway. This outage results in a capacity of approximately 3,153,000 Dth through the Shermans Dale compressor station.

TE will take into consideration the reduced capacity during the timely cycles for future gas days.

Transcontinental Gas Pipe Line Company:

Subject:Operational Flow Order – Imbalance

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

Effective:  Thursday, January 10, 2019 until further notice

OFO Areas:  Zones 4, 5, and 6

Delivery Tolerance %:  Zones 4 and 5 = 15% (or 1000 dth, whichever is greater); Zone 6 = 10% (or 1000 dth, whichever is greater)

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Finally, let’s check the updated weather. Looking ahead to the third week in January, the National Weather Service 8-to-14 day temperature outlook shows the New England area with a likelihood of below average temperatures while the rest of the East Coast remains about at its average wintertime temperatures.

For areas along the West Coast, Rockies, and much of the Midwest, January’s weather is expected to remain warmer than average for this time of year.

Stay warm along the East Coast! Thanks for visiting GasNewsOnline.com! Please let your friends in the natural gas transportation business know about us. We use publicly sourced information for our report so our service to you is FREE!

Be sure to subscribe to our FREE audio podcast via iTunes, too!

Edition 28 – Monday, January 7, 2019

Though you wouldn’t know it was January in the deep South today, we know that colder weather is right around the corner again soon.

Welcome back to GasNewsOnline.com! Even with the warmer temperatures, we will give you an update on several gas pipeline critical notice postings along with an update on the latest energy and weather news. All for FREE!

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According to the US Energy Information Administration, the estimated working gas in storage was 2.705 Tcf as of Friday, December 28, 2018. This represented a net storage decrease of just 20 Bcf from the previous week.

With a few weeks of warmer weather, the South Central region injected 20 Bcf of gas back into storage as the rest of the country drew down 40 Bcf for the reporting week. 

Natural gas stocks in storage were still 560 Bcf (or 17.2%) below the five-year average.

Meanwhile, the natural gas futures price for the upcoming month of February lagged below $3 per MMBtu and finished the day on Monday at about $2.96/MMBtu. 

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On January 3, American Midstream Partners announced that the Board of Directors received a revised non-binding proposal from an affiliate of ArcLight Energy Partners Fund V, L.P. (“ArcLight”) pursuant to which ArcLight would acquire all common units of the American Midstream (that ArcLight and its affiliates do not already own) in exchange for a revised offer price of $4.50 per common share.  The other proposed terms of the potential transaction remain as set forth in the original non-binding proposal announced on September 28, 2018.

The proposed transaction remains subject to a number of contingencies.  The company indicated that there is no assurance that definitive documentation will be executed or that any transaction will materialize.

American Midstream’s gas pipeline assets include Destin Pipeline Company and the MidLa, AlaTenn, and Trans-Union Interstate Pipeline systems. 

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Shell Chemical LP (Shell) today announced the start of production of the fourth alpha olefins unit at its Geismar, Louisiana, USA chemical manufacturing site.  Alpha olefins are key ingredients in many finished products including laundry detergents, motor oils, and hand soaps.

“Our team delivered this world-class expansion project safely, on time and within budget,” said Graham van’t Hoff, Executive Vice President for Shell’s global chemicals business. “This is a key growth project for Shell’s global chemicals business. Geismar will continue to play a leading role in providing the materials for products that an increasing number of people need and enjoy.”

The new unit strengthens Shell’s position in the US Gulf Coast. The Geismar site is supported with advantaged ethylene feedstock from Shell’s nearby Norco, Louisiana and Deer Park, Texas manufacturing sites, enabling the site to respond to market conditions.

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Let’s take a look at the latest critical postings from around the interstate gas pipeline grid for this Monday, January 7:

Enable Gas Transmission:

Posting dated January 5 – BYARS LAKE UNPLANNED MAINT

This Operational Alert is being issued pursuant to Section 20, GT&C, of EGT s Tariff and shall constitute notice of Force Majeure under Section 8, GT&C of EGT s Tariff to notify all parties of unplanned maintenance at EGT s Byars Lake Compressor station located in McClain County, Oklahoma.

During this period, nominations through EGT s Allen Compressor Station will be limited to approximately 700,000 Dth.

EGT will schedule nominations on each impacted day in accordance with its tariff. This alert will remain in effect until further notice.

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. 

Gulf South Pipeline:

Hall Summit (Louisiana) Compressor Maintenance

Begins: January 14, 2019      Ends:  January 18, 2019

Expansion Receipts Upstream – Vixen Scheduling Group – Capacity could be impacted by as much as 200,000 dth/d for the duration of the maintenance.

Mississippi River Transmission (MRT):

MAINLINE 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. Wednesday, January 9,  2019, and continuing until further notice.

During this time:

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

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

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

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

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

6) Customers with primary delivery points 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.

Tennessee Gas Pipeline:

ANTICIPATED RESTRICTIONS AT MLV 3, STA 17 AND STA 25 EFFECTIVE 1-8-19

Due to the current high volume of nominations from the north going south on the Mainline, effective Timely Cycle for the Gas Day of January 8, 2019, and going forward, Tennessee may be required to restrict nominations pathed through MLV 3 (Segment 101 BH), Station 17 (Segment 117 BH) and/or Station 25 (Segment 125 BH).  

Texas Eastern Transmission:

Heidlersburg Compressor Station: January 8-9, 2019

TE will be conducting a compressor station outage at its Heidlersburg Compressor Station (in south central Pennsylvania). During this outage, capacity through Heidlersburg on the 36 inch line, for deliveries up to Lambertville on TE’s 36 inch line will be approximately 1,740,000 Dth /d. Based on historical nominations TE anticipates restrictions for interruptible and secondary out of path nominations.

Transcontinental Gas Pipe Line Company (Transco):

Subject: Terminate Operational Flow Order – Imbalance

The Operational Flow Order – Imbalance (OFO) currently in effect on the Transco system in Zones 4, 5 & 6 will be terminated effective January 7, 2019 at 9:00 AM.

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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Taking a look at the temperature forecast for the middle week of January, the National Weather Service is showing that normal (cold) weather patterns will govern the eastern portions of the US, while warmer than seasonal weather will remain in place west of the Mississippi River during the period.

2019 looks to be off to a toasty start! Thanks for visiting GasNewsOnline.com! We check out the publicly sourced information twice weekly to keep you informed about the natural gas business. For FREE!

Edition 27 – Thursday, January 3, 2019

Happy New Year!  Welcome into 2019 with GasNewsOnline.com!   We review the latest natural gas pipeline and energy news from publicly available sources and summarize it here. 

Over the holidays, the weather has been less than frigid across much of the country.  Unfortunately, natural gas prices are starting to feel the pinch as the NYMEX natural gas futures price for February has dived below $3/MMBtu already. Caveat emptor!

We’ll take a look at the upcoming weather forecast just a bit later, but let’s start with a few large corporate deals consummated as we begin 2019. 

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On Wednesday, Dominion Energy, Inc. and SCANA Corporation announced that they have completed their proposed merger, benefiting customers and communities in Georgia, North Carolina and South Carolina.

“Dominion Energy is pleased to add SCANA’s fast-growing, high-performing Southeastern businesses to our 18-state footprint,” said Thomas Farrell, Dominion’s chairman, president, and chief executive officer. He added, “Together, we are committed to providing safe, dependable, affordable and clean energy to the communities served by SCANA and to maintaining its excellent record of reliability and customer service.”

The combination expands Dominion Energy’s operations in Georgia and the Carolinas, where the company had already operated an electric utility serving 120,000 customer accounts in northeastern North Carolina, a 1,500-mile interstate pipeline principally in South Carolina, and nearly 1,000 megawatts of gas, hydro and solar generating capacity in all three states.

SCANA Corporation will be a first-tier, wholly owned subsidiary of Dominion Energy. Its operating companies – including South Carolina Electric & Gas Company (SCE&G), Public Service Company of North Carolina, Incorporated (PSNC Energy), and SCANA Energy Marketing, Inc. (SEMI) – and its services company will be managed by a new operating segment, the Southeast Energy Group.

At the merger’s completion, each SCANA share was converted into 0.6690 shares of newly issued Dominion Energy common stock. The conversion resulted in a transaction value of approximately $6.8 billion, in addition to the assumption of approximately $6.6 billion in existing consolidated SCANA net debt.

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Also on Wednesday, Sempra Energy announced that its subsidiary has entered into an agreement to sell its non-utility U.S. natural gas storage facilities to an affiliate of ArcLight Capital Partners (ArcLight) for $332 million in cash, subject to adjustments for working capital. The facilities will become part of the Enstor natural gas storage platform, which ArcLight acquired in 2018.

The gas storage assets included in the sale to ArcLight are the Mississippi Hub storage facility in Simpson County, Miss., with a working capacity of 22.3 billion cubic feet (Bcf) of natural gas, and the Bay Gas storage facility in Southwest Alabama, which comprises five underground caverns with a working capacity of 20.4 Bcf of natural gas.

The sale of the non-utility natural gas assets to ArcLight is expected to be completed in the first quarter 2019, subject to customary closing conditions. At closing, ArcLight will own 100 percent of the Mississippi Hub and Bay Gas storage facilities. 

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With much of the United States getting a brief respite from the cold weather, there are fewer critical notices from the interstate gas pipeline companies posted on their electronic bulletin boards.  Let’s check out a few:

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, January 6, 2019, to all parties, with the exception of those Operational Balancing Agreements required by FERC regulations, on the AGT system. 

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

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

Dominion Energy Questar Pipeline

Beginning Gas Day January 4, 2019 total withdrawal capacity from Clay Basin will be 540 Mdth/d. Northwest Pipeline withdrawal capacity will be 320 Mdth/d. Injection capacity will be 200 Mdth/d plus 25 Mdth/d Park and Loan for a total of 225 Mdth/d. 

Please contact your Marketing and Contracting representative or the Customer Services hotline at 801-324-5200 should you have questions.

El Paso Natural Gas:

WARNING OF STRAINED OPERATING CONDITION (SOC) – DRAFT

Currently the EPNG system is experiencing a high draft condition. Linepack currently is at 7,650 MMcf to start the morning but falling due to significant deliveries in excess of scheduled quantities.  The continued draft of the EPNG system could lead to a low linepack condition.

Washington Ranch is on maximum operational withdrawal given the pipeline constraints through Guadalupe.

Delivery point operators are encouraged to review their transport to ensure that their takes are in balance with their supplies and to ensure their scheduled supplies are performing as expected.  If the situation fails to improve, EPNG will declare an SOC for a DRAFT condition.

Underperformance caps have been placed and will continue to be placed on underperforming supplies.

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

For scheduling questions, please call your scheduling representative at (800) 238-3764.

Northern Border Pipeline:

Northern Border OFO Watch (Posted 1/02/19)

Due to cumulative operational imbalance issues, Northern Border Pipeline is posting an OFO Watch for the following locations: Aberdeen (DRN# 19589) Grundy Ctr (DRN# 120859) Hazel (DRN# 1395646) Ivanhoe (DRN# 92252) Ledyard (DRN# 98993) Marshall (DRN# 11936) Ventura (DRN# 4680) Webster (DRN# 92254) Welcome (DRN# 11958) Westbrook (DRN# 112525)

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 January 8th, 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.

Interconnecting parties should contact Gas Control with to arrange payback on OBA imbalances: Loren Charbonneau 832-320-5674

Southern Natural Gas:

January 2, 2019

To All Southern Natural Gas Company Shippers

RE: Open Season Announced for Firm Transportation (FT)/Expansion 

Southern Natural Gas Company, L.L.C. (“SNG”) has placed into service its Fairburn expansion project and new interconnection with Transcontinental Gas Pipe Line (“Transco”) in Fayette County, GA (receipt pin 50069, Transco/SNG, Fayette County, GA). As a result, approximately 15,000 dth/day of incremental firm transportation capacity is available from this new interconnect to delivery locations on (i) SNG’s North Main Line as far west as the AGL-SNG Atlanta Suburbs Area (pin 940018), and (ii) along SNG’s South Main Line, west of SNG’s Thomaston compressor station, including limited deliveries to the South Georgia Lateral. Of this quantity, approximately 5,000 dth/day is also available as far east as the AGL-SNG West Macon Area Point (pin 940055), east of the Thomaston Compressor Station.

This open season is being made to solicit short term bids for the aforementioned 15,000 dth/day which will be operationally available for the remainder of the winter season (a period ending April 30, 2019). The capacity available to be awarded may not be available in the same increments to all locations along SNG’s South Main Line. SNG reserves the right to reject any bids at less than maximum tariff rate.  Any shippers interested in a term longer than April 30, 2019 should contact their Account Manager or Darryl Outlaw.

This open season will commence as of the date and time this notice is posted and end at 10:00 a.m. CCT on January 8, 2019.

Transwestern Pipeline:

1/02/19 – 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 in 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 Under Performance 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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If the six-to-ten day temperature forecast holds, then January’s typical cold weather will have to wait a bit longer.  The National Weather Service map shows warmer than seasonal weather for nearly all of the US through mid-month.  Golf, anyone???

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