Thursday, March 28, 2019

Welcome to GasNewsOnline.com!  We review over fifty interstate natural gas pipeline companies to share their most recent critical postings about changes in operating conditions. 

We’ll also update you on the latest publicly released news from energy companies and provide the latest National Weather Service extended temperature forecasts, too.  

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According to the US Energy Information Administration, working gas in storage for the week ending Friday, March 22, 2019 registered a net decrease of 36 Bcf.  This was close to the analysts’ estimates of a 40 Bcf weekly gas storage draw. 

Natural gas stocks were 285 Bcf less than last year at this time and 551 Bcf (or 33.2%) below the five-year average.

The May, 2019 natural gas futures price on the NYMEX responded by adding a little over one cent to finish Thursday at around $2.73/MMBtu.

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Southern California Gas (SoCalGas) announced on Tuesday that the company will lower the price of compressed natural gas at all of its 13 public access natural gas vehicle fueling stations by $0.26 per gallon beginning April 1st. Through a California Public Utilities Commission approved program, the utility is able to offer a reduced price by returning revenue generated from the sale of Low Carbon Fuel Standard (LCFS) credits to customers.

The LCFS program is administered by the California Air Resources Board and seeks to reduce greenhouse gas emissions from transportation fuels by 20 percent through 2030. Under the program, fuels that help lower GHG emissions, such as natural gas, generate LCFS credits.

Natural gas costs significantly less than gasoline or diesel per gallon. For example, the average pump price at utility compressed natural gas stations was $2.37 per gallon in February, whereas the average cost of gasoline in California was $3.24 per gallon, and the average cost of diesel was $3.73 per gallon, according to the Energy Information Administration.

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Florida Power & Light Company today announced a plan to build the world’s largest solar-powered battery system – four times the capacity of the largest battery system in operation – as part of an innovative modernization plan that will accelerate the retirement of two natural gas power generation units.

The future FPL Manatee Energy Storage Center will have 409 megawatts of capacity – the equivalent of approximately 100 million iPhone batteries – when it begins serving customers in late 2021 and will be charged by an existing FPL solar power plant in Manatee County. By deploying energy from the batteries when there is higher demand for electricity, FPL will offset the need to run other power plants – further reducing emissions and saving customers money through avoided fuel costs.

The FPL Manatee Energy Storage Center is part of an innovative modernization plan to accelerate the retirement of two, 1970s-era natural gas generating units at FPL’s neighboring power plant, and replace them with clean and renewable energy.

In addition to the energy storage system in Manatee County, FPL is planning smaller battery installations across the state, numerous solar power plants and efficiency upgrades to existing combustion turbines at other power plants to replace the 1,638 megawatts of generating capacity. The project will save customers more than $100 million and could eliminate more than 1 million tons of carbon dioxide emissions.

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Let’s now check the latest critical information postings from the interstate natural gas pipeline systems around the United States:

Algonquin Gas Transmission:

In order to maintain the operational integrity of the system, Algonquin Gas Transmission, LLC (AGT) is issuing an Operational Flow Order (OFO) pursuant to Section 26 of the General Terms and Conditions of AGT’s FERC Gas Tariff effective 9:00 AM CCT, April 1, 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 6,000 Dth or 106% 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.

This OFO will remain in effect until further notice.

ANR Pipeline:

Attn: All ANRPL FSS Customers

Reminder – FSS Customers with contracts expiring effective gas day 3/31/19 will need to transfer the ending balance from the terminating contract to another contract effective gas day 4/1/19. Customers are able to submit Infield Storage Transfers in Gems for gas day 4/1/19 prior to 9:00 a.m. CST on 4/2/19.
For any questions please contact the ANR Noms Team at 1-800-827-5267 or email to: ANR_Noms_Scheduling@Transcanada.com

Also from ANR:

SW Area Capacity Restriction (Posted 3/26/19)

Due to planned pipeline maintenance at the Transok Compressor Station, ANR will not schedule nominations at the Custer City /Transok (LOC #16842) location from April 22nd – 30th.

Based on current nominations, it is anticipated that this posting will result in the capacity allocation reduction of IT, Firm Secondary and Firm Primary volumes. Since ANR anticipates that this restriction will impact its ability to deliver nominated Firm Primary services, ANR will apply the Reservation Charge Crediting Mechanism of Section 6.36.4 as necessary.

Dominion Energy Questar Pipeline:

Dominion Energy Questar Pipeline, LLC (DEQP) is updating the Clay Basin Conditioning Reimbursement Factor (CRF). Effective May 1, 2019 the CRF applied to all injections and withdrawals from Clay Basin will be 1.5%. The CRF is calculated annually as required by Part 3 General Terms and Conditions §16.4(b) of DEQP’s FERC Gas Tariff and is posted in DEQP’s Informational Postings, Other, Storage, Clay Basin Stipulation.

East Tennessee Natural Gas:

East Tennessee Natural Gas, LLC (“ETNG”) will be hosting a WebEx meeting to provide customers and other interested parties an overview of ETNG’s upcoming 2019 planned outages on Wednesday, April 3, from 1:00PM CDT to 2:30PM CDT via WebEx. A copy of the presentation will be posted on ETNG’s bulletin board approximately one hour before the event. There will be a question and answer segment immediately following the presentation.

Enable Gas Transmission:

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.

EGT anticipates impacts to IT, Secondary services, and potentially Primary services.  During the unplanned maintenance, shippers with receipts West of Allen should nominate point-to-point to maintain the highest priority level of service.

Great Lakes Gas Transmission:

Due to planned compressor and pipeline maintenance at various compressor stations, the Emerson Eastbound capacity will be reduced as follows:

1,187-MMcf/d (leaving 1,251-MMcf/d available)  3/26 – 3/31
1,050-MMcf/d (leaving 1,251-MMcf/d available)  4/1 – 4/15
805-MMcf/d (leaving 1,496-MMcf/d available)  4/16 – 5/5

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

For any questions regarding nominations or scheduling, please call the GLGT Noms and Scheduling Hotline at 1-866-454-7572.

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.

MidContinent Express Pipeline (MEP):

MEP has been notified that the Fuel Reimbursement percentage for its Enable Leased Capacity (Segment 10) will change effective for gas day April 1, 2019, for all transports using the Leased Capacity.  Please check the company’s EBB for a link to the new Fuel Reimbursement percentages. 

Natural Gas Pipeline Company of America (NGPL):

SEGMENT 2/15 – OE#1 M/L (CS 156/801) – PIPELINE INTEGRITY

Natural will be inspecting and, if necessary, performing pipeline remediation work per its pipeline Integrity Management Program standards on the OE#1 mainline between Compressor Station 156 (CS 156) located in Kiowa County, Oklahoma and Compressor Station 801 (CS 801) located in Carter County, Oklahoma (Segment 2 of Natural’s Midcontinent Zone/Segment 15 of Natural’s Texok Zone).  Natural anticipates that this inspection and possible remediation work will continue through the end of May 2019.

Northwest Pipeline:

Effective Gas Day Friday, March 29, 2019 and until further notice, Northwest is issuing an OFO Recall Advisory and Operational Flow Order (OFO) through the Roosevelt compressor and the Plymouth South constraint location 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 northbound scheduled quantities exceed the greater of Northwest’s design capacity of 546,000 Dth/d at Roosevelt or 536,300 Dth/d at Plymouth South or the operational available capacity at Plymouth South, which is currently 575,000 Dth/d, Northwest will provide Shippers with their specific OFO obligations by 4:00 p.m. MST. Shippers must comply with their OFO obligations no later than the Evening nomination deadline (5:00 p.m. MST).

Northwest would like to remind customers that the Rangely OFO remains in effect.

Southern Natural Gas:

Southern is posting the following information in order to provide customers with additional operational data to assist in planning your business for the upcoming week.

The Muldon storage shut-in test will begin on Tuesday, April 2, 2019 and continue to Tuesday, April 9, 2019 at 9 AM.

As a result of the shut-in test, Southern will reduce each CSS customer’s DIQ and DWQ on a pro-rata basis. Each CSS customer will be allocated thirty- six percent (36%) of its currently effective DIQ and DWQ posted on the EBB during the Muldon shut-in test.

Based on current supplies and anticipated demand, we expect storage injection requirements to be near Southern’s maximum storage injection capabilities. We request that all Shippers/Poolers monitor the balance between actual receipts and deliveries to ensure that a daily out-of-balance situation does not occur.

Texas Eastern Transmission:

On March 25, 2019, Texas Eastern Transmission, LP submitted an OFO Penalty Disbursement Report.

https://infopost.spectraenergy.com/GotoLINK/GetLINKdocument.asp?Pipe=10076&Environment=Production&DocumentType=Notice&FileName=Report.pdf&DocumentId=8aa1649f699ac30d0169b64231f702b2

Transcontinental Gas Pipe Line Company (Transco):

The Operational Flow Order – Imbalance (OFO) currently in effect on the Transco system in Zones 4, 5, & 6 will be terminated effective Monday, April 01, 2019 at 9:00 AM CDT.

Effective April 1, 2019 and continuing until further notice, Transco may issue a Shipper and/or Location specific OFO(s) to Shippers and/or Locations that exceed 10 percent daily or 5 percent cumulative imbalance. These Shippers and/or Locations could be subject to a 10 percent daily “Due From” and/or “Due To” Operational Flow Order. The OFO could become effective immediately and continue until further notice or for the remainder of the month in which it was issued. Shippers that create imbalances in excess of the tolerance are subject to being included in the OFO.

Transco reminds all parties that it may also be required to issue system-wide or zonal OFOs regardless of the daily or cumulative imbalance percentage.

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Looking at the six-to-ten day temperature forecast for early April from the National Weather Service, normal temperatures are expected for most of the country.  Warmer than seasonal conditions are expected for New England, most of the desert Southwest, the Rockies, and along the West Coast. 

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

Please tell a friend in the natural gas scheduling and transportation business about us!  It’s FREE!  

Monday, March 25, 2019

Welcome to GasNewsOnline.com!  As spring temperatures rise, some of the natural gas pipeline companies are ready to “spring” some increases in transportation fuel rates soon.  But first, let’s check the latest energy news for this Monday.

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Energy Transfer LP and Shell US LNG, LLC (Shell) today signed a Project Framework Agreement (PFA) that provides the framework to further develop a large-scale LNG export facility in Lake Charles, Louisiana toward a potential final investment decision (FID). In addition, the parties have started actively engaging with LNG Engineering, Procurement and Contracting (EPC) companies with a plan to issue an Invitation to Tender (ITT) in the weeks ahead.

 “Lake Charles presents a material, competitive liquefaction project with the potential to provide Shell with an operated LNG export position on the U.S. Gulf Coast by the time global supply is expected to tighten in the mid-2020’s,” said Frederic Phipps, Shell’s Vice President, Lake Charles LNG. “Our partnership with Energy Transfer plays to our respective strengths. Together, we are expertly positioned to advance a project that could provide customers in Asia, Europe and the Americas with cleaner, reliable energy for decades to come.”

The PFA defines the commercial terms by which the two companies will work toward delivering an LNG export facility on the U.S. Gulf Coast. Shell will act as the Project Lead prior to the companies reaching an FID, and if sanctioned, as construction manager and operator of the facility. Energy Transfer will act as Site Manager and Project Coordinator prior to FID. The decision to make an affirmative FID to proceed with construction of the project will be subject to both companies’ assessment of the outcome of the EPC bidding process, overall project competitiveness and global LNG market conditions at the time of such decision.

The Lake Charles project is a 50/50 venture between Energy Transfer and Shell. The project, if sanctioned through an affirmative FID, would convert Energy Transfer’s existing Lake Charles LNG import and regasification terminal to an LNG export facility with a liquefaction capacity of 16.45 million tonnes per annum to export U.S. natural gas to global customers. The project is fully permitted, uses existing infrastructure and benefits from abundant natural gas supply and proximity to major pipeline infrastructure, including Energy Transfer’s vast pipeline network. If built, the project is estimated to create up to 5,000 local jobs during construction and 200 full-time positions when fully operational.

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

At the New York Mercantile Exchange (NYMEX), the price of the April 2019 contract on Monday was up slightly at nearly $2.76/MMBtu. The price of the 12-month strip averaging April 2019 through March 2020 futures contracts is now down to about $2.94/MMBtu.

Net withdrawals from working gas in storage totaled 47 billion cubic feet (Bcf) for the week ending March 15. Working natural gas stocks are 1.143 Tcf, which is 33% lower than the five-year (2014–18) average for this week.

According to Baker Hughes, for the week ending Tuesday, March 12, the natural gas rig count remained flat at 193. The number of oil-directed rigs fell by 1 to 833. The total rig count decreased by 1, and it now stands at 1,026.

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Several interstate natural gas pipeline companies are saying “April Fuel’s!” as rates may be changing for some transporters beginning April 1:

ANR Pipeline:

Southeast Mainline Capacity Reduction (Lifted 3/25/19)

ANR has completed the planned pipeline maintenance north of its Celestine compressor station along its Southeast Mainline in the Southeast Southern Segment (Zone 2). Effective Gas Day March 26th at the Evening Nomination Cycle, the Cottage Grove Southbound (LOC #505614) restriction is lifted.

Also from ANR:

ANRPL Transporter’s Use (%) effective April 1, 2019

In anticipation of FERC’s approval and to provide customers with adequate time to plan April 2019’s business, ANR’s GEMS system has been updated with the annual 2019 Transporters Use (%) that was filed with FERC on February 28, 2019 and nominations for April 1, 2019 forward can now be submitted.

For customers who have already submitted nominations for April 2019, please review your nominations and if necessary make changes to ensure your receipt and delivery quantities align with your supplies and markets.

Dominion Energy Transmission:

Effective start of gas day Tuesday, March 26, 2019, and continuing until further notice, DETI will not schedule any IT or Non PL-1 firm transportation on its PL-1 system.

This includes deliveries at the following locations: Texas Eastern Perulack 40209; Columbia of Pennsylvania (Pleasant Gap) 21305; Texas Eastern Chambersburg (East Coast) 40201; Texas Eastern Chambersburg (PL-1) 40202; Texas Eastern Steckman Ridge 40224; Baltimore Gas and Electric 22000; Washington Gas and Light 23500; Dominion Cove Point Loudoun 40704; Transco Nokesville 40303; Virginia Natural Gas 22400; Doswell 22500; City of Richmond 22600; VA Electric & Power 22700; Columbia of Virginia 22800; VEPCO (Lady Smith) 22900; Genon Mid-Atlantic (Dickerson) 30016; Panda Stonewall 30230;

PL-1 customers with delivery points north of Leesburg compressor station may not effectuate deliveries to any PL-1 point south of Leesburg.

PL-1 customers with delivery points south of Leesburg compressor station may effectuate deliveries to PL-1 points both north and south of Leesburg. DETI can effectuate secondary and IT deliveries to points north of Leesburg compressor station if sourced from the receipt of DETI-Loudoun (40704) or Transco-Nokesville (40303) via displacement.

DETI can effectuate secondary and IT deliveries to points south of Leesburg compressor station if sourced from the receipt of Transco-Nokesville (40303) via displacement.

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

Egan Hub Storage:

Egan Hub Storage (Egan) will be conducting maintenance beginning Gas Day April 5, 2019 and continuing through Gas Day April 11, 2019, which will impact Kinder Morgan MR 45122.

During this outage Egan will be unable to accept withdrawals for delivery to Kinder Morgan however; injections from Kinder Morgan will not impacted. As a result, Egan may be required to restrict withdrawal nominations at MR45122 to a net zero withdrawal position.

Enable Gas Transmission:

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

Effective immediately, March 25, 2019, EGT will begin the unplanned maintenance on the Chandler Compressor Station, located in Latimer County, Oklahoma and in EGT’s Neutral Pooling Area.

EGT anticipates impacts to IT, Secondary services, and potentially Primary services.  During the unplanned maintenance, shippers with receipts West of Chandler should nominate point-to- point to maintain the highest priority level of service.

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

Florida Gas Transmission:

APRIL 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 April 30, 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.

Midwestern Gas Transmission:

On March 1, 2019, Midwestern Gas Transmission Company (Midwestern) filed a revised Statement of Rates to reflect an annual change to the Fuel Retention Percentage (FRP) Rate.  The Fuel Retention Percentage filed is 0.98 percent for rate schedules FT-A, FT-B, FT-C, FT-D, FPAL, and PAL. The proposed FRP filed is inclusive of a Loss Percentage of 0.16 percent.

The FRP filing is still pending with the Federal Energy Regulatory Commission (Commission) with a requested effective date of April 1, 2019. 

Midwestern is notifying customers of this rate for time critical planning activity.  If you have any questions, please contact a member of the IPL Marketing group at IPLMarketing@oneok.com.

Southern Natural Gas:

SESH pipeline’s operator notified Southern that it will be conducting maintenance at its Gwinville (MS) Compressor Station from 4-6-19 to 4-10-19 that will reduce the available SNG – SESH capacity (Segment 380). This maintenance will result in a service reduction of SNG – SESH capacity as follows:

4-6-19 to 4-10-19 – SNG capacity will be reduced to 382,000 Dth/d.  Points impacted in Segment 380 are listed below.

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

Texas Eastern Transmission:

Texas Eastern Transmission, LP (TETLP) is providing the following update on the status of its integrity program and the corresponding impacts to its planned outage schedule and operational system capacities.

As part of Enbridge’s ongoing integrity program, TETLP has been conducting a comprehensive assessment of its pipeline operations and is identifying locations along its entire system that may require additional integrity tests, inspections, and subsequent actions. These items include, but are not limited to: (1) aerial and direct assessment of the pipeline, (2) close interval surveys, (3) additional in-line inspection tool runs and analysis, (4) temporary pressure reductions at certain locations across the system and (5) hydrostatic tests. As data becomes available from each of these items, we will identify any corresponding impacts to capacity on TETLP’s regular planned maintenance posting. Details on each work stream is provided below:

(1) Aerial and Direct Assessment
TETLP continues to verify the integrity of the pipeline through aerial observation, ground patrol and other forms of direct assessment to identify potential geological threats such as, but not limited to, lateral earth movements, water flow, and other forces of nature in the area of the pipeline. To the extent TETLP identifies any sites requiring remedial action, TETLP will safely and promptly mitigate the threat and post any required outage on its LINK® Electronic Bulletin Board.

(2) Close Interval Surveys (CIS)

TETLP will conduct CIS along sections of its pipeline to verify its cathodic protection systems. TETLP does not anticipate any capacity losses during the CIS, however, potential outages may be required in the event the findings warrant further investigation of the cathodic protection system.

(3) ILI inspection and Analysis and (4) Pressure Reductions

TETLP will continue with its base in-line inspection (ILI) program and accelerate the use of additional in-line tools to verify the integrity of its system. Depending on the results of the ILI analysis, repairs or further investigations may be required. TETLP will take temporary pressure reductions when necessary at various locations along its system until such ILI results are completed, fully analyzed and any anomalies are remediated. These ILI tool runs and any capacity loss due to any pressure reduction will be scheduled and posted as part of TETLP’s regular planned maintenance updates on its LINK® EBB.

(5) Hydrostatic Testing

As part of TETLP’s ongoing system wide integrity program, TETLP will review various sets of data from tool runs and inspections and will determine if additional hydrostatic testing is required. Similar to the ILI Inspections, TETLP will post any required hydrostatic tests as part of its regular planned maintenance posting on its LINK® EBB.

TETLP believes the safety of its facilities and pipelines are of the utmost importance and integral to system reliability. TETLP understands the importance to minimize the impact of the outages to its customers where possible and the urgency to restore full capacity along its system. TETLP is committed to providing regular outage updates as soon as the information becomes available. Please contact your Marketing Account Manager if you have any questions.

Williston Basin Interstate (WBI) Energy Transmission:

Effective April 1, 2019, as set forth in WBI Energy Transmission’s March 1, 2019 filing in Docket No. RP19-767-000, the proposed new fuel reimbursement percentages are 4.558% for gathering, 0.909% for transportation and 0.045% for storage. The proposed new electric power rates are $.00788 for transportation and $.00077 for storage.

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The National Weather Service has posted expected temperature estimates for the nation for the upcoming month of April.  These projections show cooler-than-average conditions are expected in the Midwest.  Warmer-than-average April temperatures are forecast for areas east of the Mississippi River all the way to the Atlantic Coastal areas and also in the Pacific Northwest.

That’s all for this Monday edition of GasNewsOnline.com.  We’ll return Thursday to provide an update on the interstate gas pipeline conditions expected for the weekend. 

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

Friday, March 22, 2019

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

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

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

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

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

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

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

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

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

Algonquin Gas Transmission:

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

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

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

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

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

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

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

ANR Pipeline:

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

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

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

Columbia Gas Transmission:

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

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

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

Columbia Gulf Transmission:

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

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

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

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

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

Dominion Energy Transmission:

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

Also from Dominion:

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

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

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

Gulf South Pipeline:

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

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

MidContinent Express Pipeline (MEP):

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

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

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

Natural Gas Pipeline Company of America (NGPL):

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

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

Northwest Pipeline:

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

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

Tennessee Gas Pipeline:

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

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

Texas Eastern Transmission:

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

Texas Gas Transmission:

North Louisiana System Maintenance:

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

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

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

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

Monday, March 18, 2019

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

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

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

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

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

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

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

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

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

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

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

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

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

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

ANR Pipeline:

Janesville NNG Capacity Reduction

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

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

Columbia Gas Transmission:

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

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

The dial-in details are provided below: 

Participant dial-in: (888) 455-0683

Participant passcode: 2730221 

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

El Paso Natural Gas:

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

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

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

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

Gulf South Pipeline:

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

Kiln to Mobile Scheduling Group

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

Mobile Bay Delivery Scheduling Group

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

Moss Point System Scheduling Group

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

Southeast Supply Header (SESH):

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

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

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

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

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

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

Southern Natural Gas:

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

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

WebEx meeting number:  991 986 350 – Password:  SNG

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

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

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

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

Thursday, March 14, 2019

Happy “Pi” Day!

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

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

Algonquin Gas Transmission:

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

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

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

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

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

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

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

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

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

Colorado Interstate Gas (CIG):

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

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

Columbia Gas Transmission and Columbia Gulf Transmission:

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

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

East Tennessee Natural Gas:

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

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

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

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

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

Natural Gas Pipeline Company of America (NGPL):

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

Also from NGPL:

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

Northwest Pipeline:

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

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

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

available. 

Tennessee Gas Pipeline:

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

Texas Eastern Transmission:

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

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

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

Texas Gas Transmission:

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

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

Transcontinental Gas Pipe Line Company:

Subject:Operational Flow Order – Imbalance

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

Effective:  Friday, March 15, 2019 until further notice

OFO Areas:  Zones 4, 5, and 6

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

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

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

It’s the right price. FREE!

Monday, March 11, 2019

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

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

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

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

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

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

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

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

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

Thursday, March 7, 2019

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

ANR Pipeline:

Attn: All ANR Pipeline Storage Customers

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

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

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



Dominion Energy Transmission:

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

Natural Gas Pipeline Company of America (NGPL):

SEGMENT 22 SOUTHBOUND – STA 300 VICTORIA – AT OPERATING CAPACITY 

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

Northwest Pipeline:

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

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

Southern Natural Gas:

Fairburn Force Majeure – Update #4

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

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

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

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

Texas Eastern Transmission:

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

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

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

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

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

WBI Energy Transmission (Williston Basin Interstate)

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

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

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

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

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

Edition 44 – Monday, March 4, 2019

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

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

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

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

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

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

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

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

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

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

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

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

ANR Pipeline:

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

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

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

El Paso Natural Gas:

Pipeline Conditions – Permian Basin Weather Concerns 

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

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

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

Washington Ranch is fully operational.

Gulf South Pipeline:

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

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

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

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

Northern Border Pipeline:

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

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

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

Northern Natural Gas:

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

Northwest Pipeline:

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

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

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

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

Panhandle Eastern Pipe Line:

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

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

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

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

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

Southern Natural Gas:

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

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

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

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

Southern Star Central Pipeline:

System Advisory Notice:

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

Tennessee Gas Pipeline:

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

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

Also on Tennessee Gas…

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

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

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

Texas Eastern Transmission:

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

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

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

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

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

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

Texas Gas Transmission:

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

Imbalance Payback from Transportation Service Provider

Park Withdrawal

Loan

ISS Withdrawal

FSS Overrun Withdrawal

Interruptible and out-of-path Firm Transportation

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

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

Transcontinental Gas Pipe Line Company:

Subject:Operational Flow Order – Imbalance

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

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

OFO Areas:  Zone 6

Tolerance %:  5% for gas Due from Shippers

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

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

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

Edition 43 – Thursday, February 28, 2019

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

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

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

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

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On Tuesday, Dominion Energy provided the following statement:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

The Transaction consists of the following actions:

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

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

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

ANR Pipeline:

Attention All ANR Shippers and Storage Customers

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

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

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

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

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

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

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

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

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

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

Colorado Interstate Gas (CIG):

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

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

Columbia Gas Transmission:

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

Columbia Gulf Transmission:

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

East Tennessee Natural Gas:

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

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

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

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

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

Gulf South Pipeline:

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

Expansion Receipts Upstream Tallulah Scheduling Group.

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

Mississippi River Transmission (MRT):

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

 During this time:

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

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

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

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

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

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

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

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

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

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

Northern Natural Gas:

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

Northwest Pipeline:

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

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

Panhandle Eastern Pipe Line:

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

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

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

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

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

Rover Pipeline:

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

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

Southern Star Central Gas Pipeline:

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

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

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

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

ISS withdrawals and PLS withdrawals will be unavailable

Incremental Loans will not be available

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

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

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

Operational flexibility will not be available during this time.

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

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

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

Trunkline Gas Company:

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

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

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

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

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

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

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

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