Welcome to GasNewsOnline.com! April is upon us with springtime weather causing a severe weather outbreak in the South early this week, while an early spring heavy snowfall is expected in the upper Midwest by later this week!
Today, we’ll take a look at the latest energy news, scan the interstate natural gas pipeline grid, and bring you an update on the six-to-ten day temperature forecast from the National Weather Service.
From last week’s US Energy Information Administration’s “Natural Gas Weekly Update” publication:
Net natural gas storage injections totaled 23 billion cubic feet (Bcf) for the week ending March 29. Working natural gas stocks are now 1.13 Tcf, which is 31% lower than the five-year (2014–18) average for the same week.
According to Baker Hughes, for the week ending Tuesday, March 26, the natural gas rig count decreased by 2 to 190. The number of oil-directed rigs fell by 8 to 816. The total rig count decreased by 10, and it now stands at 1,006.
According to the EIA, U.S. LNG exports totaled 4.1 Bcf/d in January 2019, marking the third consecutive month where a new record high was reached. The volume of U.S. LNG exports rose steadily during 2018 as three new liquefaction units, called trains, totaling 1.9 Bcf/d capacity, began service:
A single train at the Cove Point (Maryland) terminal in March 2018;
Train 5 at the Sabine Pass (Louisiana) terminal in November 2018;
Train 1 at the Corpus Christi (Texas) terminal in December 2018.
LNG export volumes are expected to continue to rise in 2019 as an additional 4 Bcf/d of liquefaction capacity is brought online by the end of this year.
Today, Kinder Morgan, Inc. announced that Tennessee Gas Pipeline (TGP) and El Paso Natural Gas (EPNG) have agreed to settlements with their shippers to address issues raised by the Federal Energy Regulatory Commission’s (FERC) 501-G process.
Rate adjustments set forth in the agreements by TGP and EPNG will have a combined approximately $50 million EBITDA impact for 2019; and when fully implemented, will have an approximately $100 million combined annual impact on EBITDA. KMI expects that these two agreements, pending approval by FERC, should resolve the vast majority of KMI’s 501-G exposure.
Now, let’s check out the latest critical postings from the interstate natural gas pipeline companies’ Electronic Bulletin Boards:
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 9, 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.
As previously posted AGT, requests that customers/point operators on AGT be aware of the impact non-ratable hourly takes from the system may have in causing delivery pressures reaching lower than desired levels. As a reminder, AGT’s system is not designed to sustain delivery pressures above contract levels while making non-ratable/accelerated deliveries above scheduled quantities for more than 6 consecutive hours, to be followed by flows below scheduled quantity for the balance of any 24 hour period.
Furthermore, if customers/point operators don’t manage hourly takes from the system, 1) delivery pressures will be impacted and /or 2) AGT may be required to impose further restrictions or courses of action in order to maintain the operational integrity of the system.
This OFO will remain in effect until further notice.
ANR Pipeline Company Notice of Force Majeure (Lifted 04/08/19)
Effective today, ANR has lifted the Force Majeure event on its Southeast Southern Segment (Zone 2) related to the unexpected pipeline repairs north of its Celestine Compressor Station. The associated capacity restrictions for Cottage Grove compressor station have been lifted.
East Tennessee Natural Gas:
East Tennessee Natural Gas (ETNG) has experienced an unplanned outage at its Glade Spring Compressor Station (Glade Spring) on the 3300 Line. Repair efforts to restore this compressor station to full capacity are underway. As a consequence of this outage, ETNG estimates that west to east capacity will be as follows:
Glade Spring Compressor Station – 105,000 Dth/d
Rural Retreat Compressor Station – 200,000 Dth/d
Deliveries on the Roanoke Line – 57,000 Dth/d
Based on current pipeline conditions ETNG doesn’t anticipate any restrictions associated with this outage; however if nominations change, restrictions may be required.
Gulf South Pipeline:
Carthage Junction compressor station maintenance: Begins April 8, 2019 – Ends April 11, 2019
Hall Summit Scheduling Group – Locations will experience higher than normal operating pressures. Capacity could be impacted by up to 300,000 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 estimates the impact to be up to 360,000 into Segment 200. Actual nomination levels, changes in pipeline conditions, and assistance MEP is seeking from connecting pipelines upstream and downstream of the outage could result in a decrease to the capacity reduction. AOR/ITS and Secondary out-of-path Firm transports will not be available during this outage. Primary Firm and Secondary-in-path Firm transports are at risk of not being fully scheduled into Segment 200, assuming all such contracts are nominated at full applicable contract MDQ through the constrained segment.
LOC 44450 AMID/DESTIN will be unavailable for all transport services for the duration of 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):
Announces: TRANSPORTATION RESTRICTIONS – NSS STORAGE SERVICES
“IN-PATH” TRANSPORT FOR INJECTIONS”
Effective for gas day Tuesday, April 9, 2019, Timely Cycle, and continuing until further notice, Natural will require “in-path” transportation for NSS storage injections on the Amarillo System. AOR/ITS and Secondary out-of-path firm transportation associated with NSS injections will not be scheduled. Any receipt gas nominated from Rex Moultrie (LOC 44413) and pathed to the Amarillo System for storage injections will be available and scheduled on all transport services (subject to any posted constraints).
“IN-PATH” TRANSPORT FOR WITHDRAWALS TO THE MARKET AREA”
Effective for gas day Tuesday, April 9, 2018, Timely Cycle, and continuing until further notice, Natural will not require “in-path” transportation for NSS storage withdrawals on the Amarillo System to the Market Delivery Zone. AOR/ITS and Secondary out-of-path firm transportation associated with NSS withdrawals will be scheduled.
Jackson Prairie storage customers are required to forward in writing an estimate of the volumes to be injected into their accounts during the period May 1 through September 30, 2019. Please e-mail this information to your Marketing Services representative by May 1, 2019.
The suggested fill percentages are listed below in order to meet deliverability demands anticipated in the upcoming heating season. In order to have full use of your working gas quantity, it is recommended the three benchmark percentages be met to avoid the standard reduction of usage based on meeting the minimum fill percentages as outlined in Section 8.3 of Rate Schedule SGS-2F.
Jun 30 – minimum of 35% of total working gas quantity
Aug 31 – minimum of 80% of total working gas quantity
Sep 30 – 100% full
Texas Eastern Transmission:
Eastern (TE) has
experienced an unplanned outage at its Athens, Ohio compressor station and
efforts to restore the compressor station to full capacity are underway.
This outage results in the following capacity north to south through compressor stations on the 30 inch:
Berne 2,103,000 Dth/d
Wheelersburg 2,025,000 Dth/d
Tompkinsville 1,796,000 Dth/d
TE will take into consideration the reduced capacity during the timely cycles for future gas days.
TE will post updates to the status of its Athens compressor station as soon as it is known.
Texas Gas Transmission:
Texas Gas will be performing valve maintenance at location #9490 – Regency Riverton (Caldwell Parish, Louisiana) beginning Wednesday, April 10 and ending Thursday, April 11, 2019.
This location will be shut-in during this maintenance. If you have any questions please contact your Customer Service Representative.
The extended National Weather Service six-to-ten day temperature outlook shows that warmer than seasonal weather will continue in the Southeastern US. Expect normal April temperatures from New England, the Great Lakes and most of the Midwest. Cooler than seasonal weather will prevail in the Rockies into the Pacific Northwest through April 18.
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.
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