Thursday, May 2, 2019

Welcome to GasNewsOnline.com!  We always review the country’s interstate natural gas pipeline companies for their most recent critical postings and bring you information about changes in pipeline operating conditions. 

Plus, we will update you on the latest publicly released news from major energy companies and, with golf weather covering most of the country, provide the extended temperature forecast for the next few weeks from the National Weather Service, too.  

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According to the US Energy Information Administration, working gas in storage was 1.462 Tcf as of Friday, April 26, 2019. This represents a net increase of 123 Bcf from the previous week.

Natural gas in storage is now 316 Bcf (approximately 18%) below the five-year average.

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NRG Energy, Inc. expects to return to service its inactive 385 MW Gregory natural gas plant in Corpus Christi, Texas. The Gregory plant ceased operations in late 2016 when its cogeneration partner, Sherwin Alumina, filed for bankruptcy and discontinued operations. Following resolution of certain issues resulting from the Sherwin Alumina bankruptcy, the Gregory plant is expected to return to service as a combined cycle facility in early June 2019.

“I am pleased to announce the return to service of this highly efficient natural gas plant,” said Mauricio Gutierrez, President and CEO of NRG. “The Public Utility Commission of Texas’ recent actions to further strengthen the ERCOT market reinforced our decision to return Gregory to service ahead of summer, providing additional reliability to our customers and Texas’ growing economy.”

At full power, the Gregory plant can meet the needs of approximately 77,000 homes on the hottest days of the year.

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Despite warmer weather across much of the United States, there are still several critical postings coming from the electronic bulletin boards of the major interstate natural gas pipeline transporters. Let’s review the latest news:

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, May 2, 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 4,000 Dth or 104% of scheduled delivery quantities. The penalty will be equal to three times the daily Platts Gas Daily “Daily Price Survey” posting for the High Common price for “Algonquin, city-gates” for the day on which such violation occurred as indicated in AGT’s General Terms and Conditions Section 26.8. In addition, AGT will not permit retroactive nominations to avoid an OFO penalty.

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

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

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

This OFO will remain in effect until further notice.

ANR Pipeline:

Bridgman Northbound Capacity Reduction (Updated 05/01/19)

ANR will continue planned pipeline and compressor maintenance along its Michigan Leg North Segment located in the Northern Fuel Segment (Zone 7). This will reduce the total Bridgman Northbound (Loc ID #226632) capacity by the following:

Bridgman Northbound (LOC #226632):

375-MMcf/d – (leaving 1,226 – MMcf/d available) 5/1 – 5/3
65-MMcf/d – (leaving 1,536 – MMcf/d available) 5/4 – 5/6
375-MMcf/d – (leaving 1,226 – MMcf/d available) 5/7 – 5/20
40-MMcf/d – (leaving 1,561 – MMcf/d available) 5/21 – 6/2
325-MMcf/d – (leaving 1,276 – MMcf/d available) 6/3 – 8/12

Since the last posting, the end date of the first maintenance period has been extended from 5/2 to 5/3, and each subsequent outage period has been adjusted accordingly.

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

Colorado Interstate Gas (CIG):

Effective May 5, 2019, Colorado Interstate Gas Company, L.L.C. (CIG) is removing the limitation on Transportation Service (NNT) requests for NNT authorized withdrawals declared in Notice Number 118466.

No limit is currently placed on requests for NNT authorized injections or withdrawals. 

Dominion Energy Transmission:

Due to integrity issues affecting LN-24 and LN-541 (Notice ID 213991), effective ID1 cycle for gas day May 2, 2019, Dominion Energy Transmission, Inc (DETI) will not accept any increases in Secondary or IT transport for delivery to the following meters:

Location Names: 20600 ROCHESTER GAS AND ELECTRIC; 20900 NATIONAL FUEL; 30005 SITHE ENERGIES (LOWER LEROY-SENECA); 23600 FILLMORE

Effective gas day May 3, 2019 the above meters will be limited to Primary Only deliveries until further notice. Please note that “Unauthorized Overrun Charges – Daily” rate of $10.00/dth will apply to deliveries made in excess of FT and FTNN entitlements while these restrictions are in place.

Gulf South Pipeline:

Hall Summit Expansion Compressor Station Maintenance: 

Begins:  May 19, 2019            Ends:  May 27, 2019

Expansion Receipts Upstream Vixen Scheduling Group – Capacity could be impacted by up to 300,000 dth/d for the duration of the maintenance.  Please contact your customer service representative if you have any questions.

Natural Gas Pipeline Company of America (NGPL):

Natural has experienced horsepower issues at Compressor Station 167 (CS 167), located in Lea County, New Mexico that require Natural to shut-in CS 167 for the duration of this restriction.  This is a Force Majeure event that will limit Natural’s throughput capacity from receipts south of CS 167 and just north of CS 167 (from LOC 908135 Targa Saunders Plt). 

The scheduling constraint will be north of CS 167; therefore, any gas received south of CS 167 from either Segment 7 or Segment 9 receipt points for delivery north of CS 167 will be impacted for the duration of the restriction.  Additionally, transports associated with storage injections will be impacted.  The Permian Pool (LOC 25077) is located south of the constraint. 

As such, effective for gas day Thursday, May 2, 2019, Intraday 1 Cycle, and continuing until further notice, Natural will schedule Primary Firm and Secondary in-path Firm transports to no less than 74% of contract MDQ through CS 167.  Actual nomination levels and changes in pipeline conditions could result in changes to the percentages scheduled (lower or higher) on subsequent gas days.  AOR/ITS and Secondary out-of-path Firm transports continue to not be available for the duration of this restriction.

Southern Natural Gas:

Based on current milder temperatures and resulting lower demand on Southern’s system, SNG is currently experiencing high line pack on the system.  SNG encourages all shippers to manage their system requirements to maintain balance between actual receipts and deliveries.  An Operational Flow Order for long imbalances could be required to help ensure system integrity as Southern’s Tariff provides that a Type 6 OFO can be implemented on four hours’ notice or less prior to the start of the gas day.

Deliveries with actual flows less than scheduled daily volumes are subject to reductions of nominations to demonstrated daily volumes.  Receipts should not exceed scheduled daily volumes.

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.  Additionally, SNG requests all payback be nominated. 

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The latest six-to-ten day temperature forecast from the National Weather Service for May 8 – 12 reveals that warmer than average May temperatures will be seen along both the East and West coasts of the US.  For the midsection of the country, though, cooler than average temperatures will prevail from Texas northward into the Northern Plains during the second week of the month.

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

Please tell a friend in the natural gas scheduling and transportation business about us!    You may also listen to every show via Apple Podcasts. It’s free – try it today!

Thursday, April 18, 2019

Welcome to a very busy Easter weekend edition of GasNewsOnline.com!  There are a host of critical notices from several of the country’s interstate natural gas pipeline companies about issues relating to changes in pipeline operating conditions. 

Plus, we’ll also update you on the latest publicly released news of the day and provide the first glimpse of May’s expected temperatures from the National Weather Service, too.  

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Working natural gas in storage was 1.247 Tcf as of Friday, April 12, 2019, according to US Energy Information Administration estimates. This represents a net increase of 92 Bcf (which was 5 Bcf greater than analyst estimates). 

Natural gas stocks were 414 Bcf (or 26%) below the five-year average for the same week. 

On the NYMEX, the May, 2019 natural gas futures price reacted to the news and was down about three cents on Thursday at approximately $2.49/MMBtu.   Natural gas prices declined to their lowest level in nearly three years due to a seasonal lull in heating and cooling demand combined with surging gas supplies. 

It is interesting to note that not a single month of today’s NYMEX natural gas futures strip (through April, 2021) showed a natural gas price above $3.00/MMBtu.

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During today’s quarterly earnings release and conference call, Kinder Morgan provided an update on a few natural gas pipeline projects currently in progress:

In the Permian area, construction continues on the Gulf Coast Express Pipeline (GCX) project. The remaining 40 miles of the 36-inch Midland lateral was placed in service at the beginning of April 2019. Construction is progressing well on the 42-inch mainline and compressor stations associated with the project, which remains on schedule for a full in-service date of October 2019.

The approximately $1.75 billion project is designed to transport about 2.0 Bcf/d of natural gas from the Permian Basin to the Agua Dulce, Texas area, and is fully subscribed under long-term, binding agreements.

Progress also continues on the Permian Highway Pipeline (PHP) project . The civil and environmental surveys are substantially complete, and the land acquisition process is underway.

The approximately $2 billion PHP Project is designed to transport up to 2.1 Bcf/d of natural gas through approximately 430 miles of 42-inch pipeline from the Waha, Texas area to the U.S. Gulf Coast and Mexico markets and is expected to be in service in October 2020, pending regulatory approvals.

On the East Coast, the first of ten liquefaction units of the nearly $2 billion Elba Liquefaction Project is expected to be placed in service by approximately May 1, 2019. The remaining nine units are expected to be placed in service sequentially, one per month thereafter.

The federally approved project at the existing Southern LNG Company facility at Elba Island near Savannah, Georgia, will have a total liquefaction capacity of approximately 2.5 million tonnes per year of LNG, equivalent to approximately 350 million cubic feet per day of natural gas.

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In summary, many interstate natural gas pipelines have posted critical notices to shippers requiring that they do not create pipeline imbalances caused by lack of market demand during the upcoming Easter holiday weekend.  Let’s review… 

Algonquin Gas Transmission:

Algonquin Gas Transmission (AGT) has limited operational flexibility to manage imbalances. Effective 9:00 AM CCT, Friday, April 19, 2019, AGT requires all delivery point operators keep actual daily takes out of the system equal to or greater than scheduled quantities regardless of their cumulative imbalance position unless otherwise coordinated with your operations account representative.

All receipt point operators are required to keep actual daily receipts into the system equal to or less than scheduled quantities regardless of their cumulative imbalance position unless otherwise coordinated with your operations account representative.

ANR Pipeline:

Southwest Mainline Capacity Reduction (Posted 4/18/19)

ANR will begin planned maintenance at the Havensville compressor station between April 29 and May 2.  The total SWML Northbound (LOC#226630) capacity will be reduced by the following:

90-MMcf/d (leaving 600-MMcf/d available) 4/29 – 5/2

Based on current nominations through the SWML, it is anticipated that this posting will result in the capacity allocation reduction of IT and Firm Secondary volumes.

Also from ANR:

SW Area Capacity Restriction (Posted 4/18/19)

From April 29th through May 4th, ANR will perform planned pipeline maintenance between its E.G. Hill and Gageby Compressor Stations in the Southwest Area (Zone 4). As a result, ANR will shut-in the Beaver-CIG (REC FR CIG) receipt point, DRN #16435.

The total E.G. Hill from Gageby (LOC #226643) capacity will be reduced by the following:

50-MMcf/d (leaving 175-MMcf/d available) 4/29 – 5/4

Based on current nominations, it is anticipated the above reductions will result in the curtailment of nominations associated with IT and Firm Catalog Receipt points in the affected area.  Also, interconnects along this segment may experience higher line pressures.

Colorado Interstate Gas (CIG):

In response to continuing and prolific natural gas production growth in the Denver-Julesburg Basin – and the mounting market need for timely transportation capacity – Colorado Interstate Gas Company, L.L.C. (CIG) is conducting a binding Open Season for additional firm capacity to be made available by approximately November 1, 2019.  The additional transportation capacity offered in this Open Season will have primary receipt rights into CIG’s 5C Line north of a proposed new interconnection (“High Five Meter Station”) with CIG’s High Plains Lateral to be constructed at approximately milepost 29, and will have primary delivery rights at the High Five Meter Station of the CIG 5C Line and the Wyoming Interstate Company, L.L.C. (“WIC”) facilities at Bowie. 

For more details, please check the CIG Electronic Bulletin Board.  The posting is dated April 18, 2019.

This binding Open Season will commence today (April 18, 2019) and is scheduled to close at 10:00 a.m. Mountain Time on May 8, 2019.  CIG intends to provide notification of capacity awards by 5:00 p.m. Mountain Time on May 9, 2019.

Questions concerning this Open Season should be directed to:  Greg Ruben (713-520-4870) or Laine Lobban (719-520-4344). 

Columbia Gas Transmission:

Columbia Gas Transmission, LLC (TCO) reminds customers of a station power outage at the Cobb Compressor Station scheduled for Saturday, April 27, 2019 through Sunday, April 28, 2019.   

Due to this maintenance, the below internal constraints will be set to Zero Total Capacity.  All production will be shut-in with the exception of a limited quantity that may be needed to serve localized markets. 

Cobb South MA18 (A03SOUTH)

Cobb Northeast MA18 (A03NORTH)

Cobb Northwest MA18 (A03LOW)

Cobb Line H (A03LINEH)

Cobb CS MA18 (COBBA03) 

East Tennessee Natural Gas:

Boyds Creek Compressor Station Outage – April 23 – 24

ETNG will be conducting a compressor station outage at its Boyds Creek Compressor Station (Boyds) on the 3300 line. During this outage, west to east capacity through Boyds will be reduced to approximately 80,000 Dth per day.

Based on historical nominations, restrictions may be required for interruptible and secondary services and potentially primary firm services.

Enable Gas Transmission:

This Operational Alert is being issued pursuant to Section 20, GT&C, of EGT’s Tariff to advise shippers system wide that they will be required to maintain actual receipts and deliveries commensurate with scheduled volumes, beginning on Friday, April 19, 2019 at 9:00 A.M. and continuing until further notice.

Due to limited storage capacity, EGT anticipates it may be unable to support imbalance positions and may reduce scheduled quantities intraday to balance actual receipts and deliveries necessary to maintain system deliverability and operational integrity.

The availability of balancing and non-ratable services will be limited.  Hourly non-ratable nominations, as well as the use of imbalance positions must be pre-approved or within the posted limits on EGT s Daily Operating Plan. EGT will continue to monitor the pipeline s pressure and imbalances and will, if necessary, take further actions, including the issuance of one or more Operational Flow Orders (OFO).

EGT will schedule receipts and deliveries in accordance with EGT s Tariff.  This Operational Alert will remain in effect until further notice and will be updated as more information becomes available.

Gas Transmission Northwest (GTN):

May 2019- GTN Fuel and Line Loss Percentage

Pursuant to Gas Transmission Northwest’s (GTN) Tariffed Fuel Adjustments Provision, for the period of May 01, 2019 through May 31, 2019, a fuel usage rate of 0.0021% per Dth/mile will be in effect.

This percentage is inclusive of GTN’s current fuel and line loss surcharge of 0.0000% per Dth per pipeline mile, which is in effect through December 31, 2019, in accordance with GTN’s approved tariff provision, “Adjustment Mechanism for Fuel, Line Loss, and Other Unaccounted For Gas.”

Gulf South Pipeline:

Index 818 I.L.I. Pig Run – Begins April 23, 2019 – Ends April 24, 2019

Expansion Area 19 (Mississippi) Delivery Scheduling Group.- Capacity could be impacted by as much as 300,000 dth/d for the duration of the maintenance.  Please contact your customer service representative if you have any questions.

Kinder Morgan Louisiana Pipeline (KMLP):

SEGMENT 140 – MLV #7 – AT OPERATING CAPACITY 

Effective for gas day Friday, April 19, 2019, Timely Cycle, and continuing until further notice, KMLP is at operating capacity for gas going southbound through Segment 140, located in Jefferson Davis Parish, Louisiana.  AOR/ITS and Secondary out-of-path Firm transports are at risk of not being fully scheduled. 

Mississippi River Transmission (MRT):

Due to the potential negative impact of significant shipper long imbalance positions on MRT storage withdrawal operations, MRT is issuing a System Protection Warning (SPW) effective 9:00 a.m. Thursday, April 18, 2019, and continuing until further notice.

During this time:

1) Shippers should avoid daily long imbalance positions

2) MRT may not schedule any nominations that result in a daily long position.

3) MRT may not accept any makeup of short positions

4) MRT may not schedule nominations that result in counter-seasonal injection.

Failure to comply with this SPW may result in the issuance of an OFO.  Nominations will be confirmed and scheduled in accordance with MRT s Tariff.

Southern Natural Gas:

Based on the current milder weather forecast and projected demand on Southern’s system for the Holiday weekend, we are implementing an OFO Type 6 for long imbalances on Southern’s contiguous pipeline system effective for the start of the gas day, Friday, April 19, 2019, and until further notice. In order to maintain the operational integrity of Southern’s system, it is essential that Shippers and Poolers remain in balance (including their available no-notice injection entitlements).

The OFO Type 6 order will subject each Shipper/Pooler to the following tiered imbalance penalties:

Daily Imbalance Penalty
(Percent of Allocated Deliveries ) ( Per Dth )

0 – 2% or < 200 dth No Penalty
> 2 – 5% $1.00
> 5 – 8% $ 5.00
> 8% $15.00

Since the projected operational conditions are affected by receipts exceeding deliveries, the penalty will apply only to each Shipper/Pooler that has a net long imbalance (i.e., the party’s total allocated receipts exceed total allocated deliveries including available no-notice storage injections).

Tennessee Gas Pipeline:

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

Due to forecasted milder weather, storage fields on test and anticipated lower demand for the holiday weekend, effective for the Gas Day of Friday, April 19, 2019, and until further notice, Tennessee Gas Pipeline, L.L.C.  (“Tennessee”) is implementing an OFO Daily Critical Day 1 for all of Zones L, 1, 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 L, 1, 2, 3, 4, 5 and 6 are required to keep actual daily takes out of the system equal to or greater than scheduled quantities regardless of their cumulative imbalance position.  All receipt point operators in all of Zones L, 1, 2, 3, 4, 5 and 6 are required to keep actual daily receipts into the system equal to or less 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 over-deliveries into the system and under-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 over-deliveries by receipt point operators and under-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.

Trailblazer Pipeline Company:

TRAILBLAZER MECHANICAL ISSUE–COMPRESSOR STATION 603–UPDATE #1

Trailblazer Pipeline Company LLC (“Trailblazer”) identified a mechanical issue with one of the two compressor units at Compressor Station 603. The unit is currently unavailable and is not expected to be available until late May, 2019. 

At this time, secondary firm quantities, as well as ITS/AOR are at risk of not being scheduled. Trailblazer will post updates as additional information becomes available.  For questions, please call your Account Director or Scheduling Representative.

Transcontinental Gas Pipe Line Company (Transco):

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

Effective:        Friday, April 19, 2018

Ends:               Until Further Notice

Transactions:  Deliveries

Type:               Due to Shipper

OFO Area(s):  Zones 4, 5, and 6

Tolerance:        10% (or 1000 dth, whichever is greater)

This OFO is directed to shippers consistent with Section 52 of Transco’s FERC Gas Tariff General Terms and Conditions with a minimum of $50 per dth per day penalty.  This OFO will continue until further notice.  Buyers with imbalances greater than allowed tolerance will be subject to penalties specified in Section 52 of Transco’s FERC Gas Tariff General Terms and Conditions.

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The National Weather Service has published their first glimpse at the temperature forecast from the month of May.  It shows that the East and West coast areas could see above normal temperatures next month, while the majority of the midsection of the US is predicted to have normal to slightly below seasonal temperatures during the month of May.

That’s a wrap for this Thursday edition of GasNewsOnline.com.  We’ll return on Monday to provide an update on pipeline conditions and the latest energy news. 

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

Happy Easter!

Monday, April 15, 2019

Welcome to GasNewsOnline.com!  April continues to show a springtime warm-up in many parts of the country, while Chicago recorded a five inch snowfall on Sunday. Yes, it is spring!

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

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Working natural gas in storage in the Lower 48 states as of March 31, which is the traditional end of the heating season (November 1–March 31), totaled 1.137 Trillion cubic feet (Tcf) according to EIA’s Weekly Natural Gas Storage Report released last week

As of March 31, working natural gas stocks were 491 Bcf (30%) lower than the five-year (2014–18) average for the end of the heating season. This winter’s heating season ended at the lowest level for working natural gas stocks since 2014.

At the New York Mercantile Exchange (Nymex), the price of the May 2019 contract decreased 7 cents on Monday to approximately $2.59/MMBtu. The price of the 12-month strip averaging May 2019 through April 2020 futures contracts fell to about $2.79/MMBtu.

According to Baker Hughes, for the week ending Tuesday, April 2, the natural gas rig count increased by 4 to 194. The number of oil-directed rigs rose by 15 to 831. The total rig count increased by 19, and it now stands at 1,025.

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Chevron Corporation announced Friday that it has entered into a definitive agreement with Anadarko Petroleum Corporation to acquire all of the outstanding shares of Anadarko in a stock and cash transaction valued at $33 billion, or $65 per share. Based on Chevron’s closing price on April 11th, 2019 and under the terms of the agreement, Anadarko shareholders will receive 0.3869 shares of Chevron and $16.25 in cash for each Anadarko share. The total enterprise value of the transaction is $50 billion.

The acquisition of Anadarko will significantly enhance Chevron’s already advantaged Upstream portfolio and further strengthen its leading positions in large, attractive shale, deepwater and natural gas resource basins. Furthermore, Western Midstream Partners, LP is a successful midstream company whose assets are well aligned with the combined companies’ upstream positions, which should further enhance their economics and execution capabilities.

“This transaction builds strength on strength for Chevron,” said Chevron’s Chairman and CEO Michael Wirth. “The combination of Anadarko’s premier, high-quality assets with our advantaged portfolio strengthens our leading position in the Permian, builds on our deepwater Gulf of Mexico capabilities and will grow our LNG business. It creates attractive growth opportunities in areas that play to Chevron’s operational strengths and underscores our commitment to short-cycle, higher-return investments.” “This transaction will unlock significant value for shareholders, generating anticipated annual run-rate synergies of approximately $2 billion and will be accretive to free cash flow and earnings one year after close,” Wirth concluded.

“The strategic combination of Chevron and Anadarko will form a stronger and better company with world-class assets, people and opportunities,” said Anadarko Chairman and CEO Al Walker. “I have tremendous respect for Mike and his leadership team and believe Chevron’s strategy, scale and operational capabilities will further accelerate the value of Anadarko’s assets.”

Transaction Details

The acquisition consideration is structured as 75 percent stock and 25 percent cash, providing an overall value of $65 per share based on the closing price of Chevron stock on April 11th, 2019.  In aggregate, upon closing of the transaction, Chevron will issue approximately 200 million shares of stock and pay approximately $8 billion in cash. Chevron will also assume estimated net debt of $15 billion. Total enterprise value of $50 billion includes the assumption of net debt and book value of non-controlling interest. 

The transaction has been approved by the Boards of Directors of both companies and is expected to close in the second half of the year. The acquisition is subject to Anadarko shareholder approval. It is also subject to regulatory approvals and other customary closing conditions. 

Upon closing, the Company will continue be led by Michael Wirth as Chairman and CEO. Chevron will remain headquartered in San Ramon, California.

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It was a fairly quiet day on Monday along the interstate natural gas pipeline grid. Let’s check the latest postings:

Algonquin Gas Transmission:

In order to maintain the operational integrity of the system, Algonquin Gas Transmission, LLC (AGT) is issuing an Operational Flow Order (OFO) pursuant to Section 26 of the General Terms and Conditions of AGT’s FERC Gas Tariff effective 9:00 AM CCT, April 16, 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 4,000 Dth or 104% of scheduled delivery quantities. The penalty will be equal to three times the daily Platts Gas Daily “Daily Price Survey” posting for the High Common price for “Algonquin, city-gates” for the day on which such violation occurred as indicated in AGT’s General Terms and Conditions Section 26.8. In addition, AGT will not permit retroactive nominations to avoid an OFO penalty.

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

This OFO will remain in effect until further notice.

Northern Natural Gas:

To Our Valued Customers:

After 38 years at Northern Natural Gas, Kent Miller, Vice President, Customer Service and Business Development, has decided to retire in April, 2020. With his guidance, Northern has risen from the bottom to the top in customer satisfaction. Kent’s commitment to the company’s success is evident in his actions and we appreciate the many contributions he has made over the course of his career. Please join me in congratulating Kent.

While we personally hate to see Kent transition into retirement, I am excited about the prospects the following changes will bring to Northern. Effective May 1, 2019, the following organizational changes will be made:

Kent will assume the role of Senior Vice President reporting to me, and will focus his efforts on the 2019 rate case, completing large transactions currently in negotiation, employee development and ensuring a successful transition.

Laura Demman will accept the role of Vice President, Customer Service and Business Development at Northern. Laura has been with BHE Pipeline Group for five years, starting as director of rates and tariffs. She was promoted to Vice President of Regulatory and Government Affairs in 2014, and became Vice President, General Counsel and Regulatory Affairs in 2017. She has played a key role in completing two innovative rate settlements at Kern River, and she supported efforts to advance Kern River’s successful strategy to remarket turned-back capacity in 2018.

Prior to joining BHE Pipeline Group, Laura was the director of the natural gas department at the Nebraska Public Service Commission for over ten years; she also worked at the Nebraska Legislature. Laura’s experience as a regulator provides an understanding of the issues facing our local distribution utility customers, and she will bring a unique perspective to her new commercial role.

Kirk Lavengood will be promoted to the role of Vice President, General Counsel and Regulatory Affairs for BHE Pipeline Group. Kirk joined Northern in 2003, working as the Vice President, Marketing. In 2010, Kirk was named Vice President, Business Development. Prior to joining Northern, Kirk worked at MidAmerican Energy Company as the director of short-term trading and as the director of gas supply planning. Kirk also practiced law in Detroit with the law firm Kerr, Russell and Weber, PLC, before joining MidAmerican Energy Company. Prior to practicing law, Kirk spent nine years in various marketing and financial capacities with ANR Pipeline Company and ANR Storage Company.

I look forward to the contributions Laura and Kirk will make in their new roles and am excited about what the future holds for Northern. Kent and Laura will be completing the transition in leadership of the commercial group over the next year. As this transition occurs, we commit to not missing a step regarding the quality of service that you have come to expect from Northern. Please feel free to contact either Kent or Laura regarding any question you may have about any aspect of your business with Northern.

Mark Hewett, President and CEO

Rockies Express Pipeline (REX):

The availability of the REX SRO program in Zone 1 will be limited to a net zero scheduled quantity effective Timely cycle for Gas Day April 16, 2019 and until further notice.

Zone 1 includes the following SRO locations:

REX/REX MEEKER HUB POOL RIO BLANCO (Location 43493)

OPAL HUB POOL (Location 43495)

WAMSUTTER HUB POOL (Location 43494)

REX/REX CHEYENNE HUB POOL WELD (Location 43492)

In addition, other PALS activity may be at risk of not being scheduled in Zone 1.

Southern Natural Gas:

On Tuesday April 16, 2019 Southern will post the April/May/June and other 2019 Maintenance projects. On Wednesday, April 17, 2019 at 1:30 PM (Central Time) Southern will conduct a con call/WebEx meeting and review the posted information. 

Please visit the Southern Natural Gas electronic bulletin board for information about how to join Wednesday’s WebEx or the conference call. 

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The National Weather Service six-to-ten day temperature outlook through April 25 now shows much of the continental United States with warmer than seasonal average temperatures.  Only the Pacific Northwest will be cooler than average beginning late next week. 

That’s all for this Tax Day Monday April 15, 2019 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! 

Monday, April 8, 2019

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

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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.

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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.

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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:

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

AMARILLO SYSTEM

“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.  

Northwest Pipeline:

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:

Texas 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:

Approximately
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.

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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. 

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! 

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!  

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!

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!

Edition 41 – Thursday, February 21, 2019

Welcome back to GasNewsOnline.com!   Count on us to bring you the latest publicly-sourced news and information about the natural gas business twice every week – for FREE

Though a relatively mild weekend awaits, Ol’ Man Winter will be returning to visit us again beginning around March 1. Stay tuned for the latest long-term temperature forecast!

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From the US Energy Information Administration, working gas in storage for the week ending Friday, February 15 decreased by 177 Bcf from the previous week.  The storage draw was 10% higher than the 162 Bcf estimate made by industry analysts. 

Natural gas volumes in storage are now 362 Bcf (or 17.5%) below the five-year average for the same week. 

In related news, the NYMEX natural gas futures price for March, 2019 rose 6 cents to about $2.70/MMBtu on Thursday. 

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Devon Energy Corp. announced yesterday that the board of directors has authorized the company to pursue the separation of its Canadian and Barnett Shale assets to complete its transformation to a high-return U.S. oil growth business. Devon will evaluate multiple methods of separating the assets, including a potential sale or spin-off. The separation will allow the company to focus on its top-tier, high-return U.S. oil assets and is aligned with Devon’s previously announced long-term strategic plan.

“With our world-class U.S. oil resource plays rapidly building momentum and achieving operating scale, the final step in our multi-year transformation is an aggressive, transformational move that will accelerate value creation for our shareholders by further simplifying our resource-rich asset portfolio,” said Dave Hager, president and CEO. “New Devon will emerge with a highly focused U.S. asset portfolio and has the ability to substantially increase returns and profitability as we aggressively align our cost structure to expand margins with this top-tier oil business. The New Devon will be able to grow oil volumes at a mid-teens rate while generating free cash flow at pricing above $46 per barrel.”

The company expects to complete the separation of its Canadian and Barnett Shale assets by the end of 2019. Devon has hired advisors for each asset, and data rooms for Canada and the Barnett are expected to be open by the second quarter of 2019.

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QEP Resources, Inc. Wednesday announced that its Board of Directors has commenced a comprehensive review of strategic alternatives to maximize shareholder value, which could result in a merger or sale of the Company or other transaction involving the Company or its assets. QEP intends to engage in discussions with a variety of parties that have expressed interest in a potential transaction, including Elliott Management Corporation.

QEP cautions that there can be no assurance that any transaction will be approved or consummated. The Company does not intend to disclose developments relating to its strategic review unless and until the Board of Directors has approved a specific agreement or transaction or has terminated its review of strategic alternatives.

The Company also announced that, given the deterioration in commodity prices and that it was unlikely that the conditions to closing would be satisfied, the Company has agreed with Vantage Acquisition Operating Company, LLC, a wholly owned subsidiary of Vantage Energy Acquisition Corp. to terminate the definitive agreement to sell its assets in the Williston Basin to Vantage. QEP will continue to operate and develop its assets in the Williston Basin, including the Company’s South Antelope and Fort Berthold leaseholds.

Additionally, QEP has reassessed its organizational needs and intends to significantly reduce its general and administrative expense by approximately 45%, when comparing 2018 to 2020, to ensure its cost structure is competitive with industry peers. The Company expects the majority of these reductions will be implemented during the first half of 2019.

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Now let’s take a look at the latest notices from the electronic bulletin boards of the major interstate natural gas pipeline companies:

Algonquin Gas Transmission:

Algonquin posted its planned outages presentation from Wednesday, February 20, 2019  to its Electronic Bulletin Board.  See below:

https://infopost.spectraenergy.com/GotoLINK/GetLINKdocument.asp?Pipe=10076&Environment=Production&DocumentType=Notice&FileName=AGT+2019+Planned+Outage+Presentation.pdf&DocumentId=8aa1649f68e6c87f01690bf272270bea

ANR Pipeline:

ANR is performing planned compressor maintenance at its Jena Compressor Station located in the Southeast Southern Segment (Zone 2).

The capacity restriction is as follows:

Jena Southbound (DRN# 9505489):
320-MMcf/d (leaving 850-MMcf/d available) 2/25 – 2/26

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

Columbia Gas Transmission:

Columbia posted its monthly customer update conference call as shown below:

http://www.columbiapipeinfo.com/cpginfopost/webmethods/DownloadFile.aspx?Mode=V&S3FN=Columbia%20Pipelines%20Monthly%20Customer%20Update%2002_20_19.pdf&S3K=%5ctco%5cpresentations%5cColumbia+Pipelines+Monthly+Customer+Update+02_20_19.pdf

Gulf South Pipeline:

McComb (MS) Compressor Station Maintenance #2:  Start date:  February 27, 2019   End Date:  March 2, 2019

Montpelier to McComb Index 130 Scheduling Group:

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

Contact your customer service representative if you have any questions/concerns.

Natural Gas Pipeline Company of America (NGPL):

Effective for gas day Friday, February 22, 2019, and continuing until further notice, Natural is at operating capacity for southbound flow into Segment 22 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.   

Rockies Express Pipeline (REX):

SENECA COMPRESSOR STATION MAINTENANCE

On Gas Day Wednesday, March 6, 2019 through Gas Day Thursday, March 7, 2019, REX will be performing maintenance at its Seneca Compressor Station. Operating capacity will be limited to 0 MDth/d through Segment 400.

At this capacity level, primary and secondary firm quantities, as well as ITS/AOR are at risk of not being scheduled.

Southern Natural Gas:

Fairburn Force Majeure – Update #1

As posted in Critical Notice 703048, SNG has experienced an unscheduled station outage at the Fairburn Compressor Station.  Effective February 8, 2019, SNG is not accepting nominations at the TRNSCO/SNG FAIRBURN TO SNG FAYETTE – PIN 50069 until further notice.

Based on its investigation of Units 1 and 2 at the Fairburn Compressor Station, SNG has determined that Unit 1 has experienced damage that will delay its return to service for several months, with the in-service date to be determined. 

With regard to Unit 2, SNG is actively performing work and tests, and we believe, based on what we know right now, that completion of this work will allow us to return the unit to service in the near future. A further update will be provided once we have more information on the return to service timeline.

This unscheduled station 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.  SNG is working diligently to return both units to service.

Trailblazer Pipeline:

SUMMIT INTERCONNECT (SEG 10)

On Gas Day Tuesday, March 5, 2019, Trailblazer will be performing a hot tap on Segment 10. Capacity will be limited to 781 MDth/d through Segment 10. 

At this capacity level, primary and secondary firm quantities as well as ITS/AOR are at risk of not being scheduled.

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From the National Weather Service, the 8-to-14 day temperature forecast beginning March 1 shows that winter will return with a vengeance for almost the entire US.  Only portions of southern Florida and the desert Southwest are expected to see temperatures at or above normal for the first week of the new month. 

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

Please tell a friend in the natural gas scheduling and transportation business about us! Remember that our companion audio podcast is available via Apple Podcasts.  Subscribe today – it’s FREE

Edition 37 – Thursday, February 7, 2019

Welcome back to GasNewsOnline.com! After a week of warmer weather across much of the US, temperatures are returning to normal across the West and Upper Midwest.  A number of natural gas pipeline companies have posted critical notices regarding colder weather conditions for their systems.

Before we cover those notices, let’s check out the latest energy news:

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The US Energy Information Administration released its weekly estimate of natural gas volumes in storage.  For the week ending February 1, working gas in storage decreased by 237 Bcf.   

Stocks were estimated to be 415 Bcf or 17.5% below the five-year average for the same week. 

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Yesterday, as part of its ongoing commitment to reducing wildfire risk, Pacific Gas and Electric Company (PG&E) submitted its 2019 Wildfire Safety Plan to the California Public Utilities Commission. The safety plan marks an expansion of enhanced and additional safety precautions PG&E began implementing in 2017 and 2018 to address the growing threat of extreme weather and wildfires across its service area.

Given the continued and growing threat of extreme weather and wildfires, and as an additional precautionary measure, PG&E’s plan includes expanding and enhancing its Community Wildfire Safety Program to further reduce wildfire risks and help keep customers and the communities it serves safe. Ongoing and expanded efforts include further enhancing vegetation management around power lines, conducting enhanced safety inspections of electric infrastructure in high fire-threat areas, and a hardening of our electric system.

Also included in the 2019 plan, PG&E announced additional and enhanced safety precautions including the expansion of PG&E’s Public Safety Power Shutoff (PSPS) program to include all electric lines that pass through high fire-threat areas – both transmission and distribution. While customers in high fire-threat areas are more likely to be affected, any of PG&E’s more than 5 million electric customers could have their power shut off for safety only as a last resort when forecasted fire danger conditions warrant.

“We know how much our customers rely on electric service. Proactively turning off power is a highly complex issue with significant public safety risks on both sides – all of which need to be carefully considered and addressed,” said Michael Lewis, Electric Operations senior vice president. “We understand and appreciate that turning off the power affects first responders and the operation of critical facilities, communications systems and much more. We will only turn off power for public safety and only as a last resort to keep our customers and communities safe.”

To be clear, the decision to initiate a PSPS is informed by local forecasts, so PG&E is not indicating that it would ever turn off power to all customers at once. Instead, due to the complexity of the electric grid, and the web-like connection between transmission lines, distribution lines and substations, there is a possibility that some customers outside a high-risk fire threat area could have their power turned off based on the need to turn off a specific high-voltage circuit. The expanded program includes timely notification to customers of potential PSPS events.

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With another blast of winter affecting the northern half of the US for a few more days, 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, February 8, 2019, to all parties, with the exception of those Operational Balancing Agreements required by FERC regulations, on the AGT system.

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

***During the effectiveness of this OFO, all parties must be balanced such that actual deliveries of gas out of the system must be equal to or less than scheduled deliveries. The penalty shall apply to each dekatherm of actual delivery quantities that exceeds the greater of 2,000 Dth or 102% of scheduled delivery quantities. The penalty will be equal to three times the daily Platts Gas Daily “Daily Price Survey” posting for the High Common price for “Algonquin, city-gates” for the day on which such violation occurred as indicated in AGT’s General Terms and Conditions Section 26.8. In addition, AGT will not permit retroactive nominations to avoid an OFO penalty.

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

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.

Correspondingly, the OFO issued on February 6, 2019 will continue to be in effect until 9:00 AM CCT, February 8, 2019.

This OFO will remain in effect until further notice.

ANR Pipeline:

Attn: All ANR Shippers

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

As of February 7, ANR is not taking further action at this time other than to notify our customers of the projected weather forecast. However, ANR Pipeline will continue to monitor pipeline operations and the weather forecasts, and may take further action if necessary. Please continue to monitor our EBB for updates.

Columbia Gas Transmission:

Shippers are advised that due to forecasted colder temperatures, storage levels, and increased market demands beginning Saturday, February 9, 2019, Columbia Gas Transmission, LLC (TCO) may issue Transport Critical Days for deliveries to all Operating Areas and Storage Critical Days for withdrawals (MDWQ overruns) for all Operating Areas.  TCO will post the Critical Day notices, if warranted, on Friday, February 8, 2019.   

Also, TCO may have limited ability to handle non-ratable takes in the impacted Market Areas during this period.  Please monitor the Daily Capacity Posting for details. 

TRANSPORT CRITICAL DAY:  If a Transport Critical Day is called for Saturday, February 9, 2019 until further notice, the following daily Transport Critical Day penalty will apply:

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

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

STORAGE CRITICAL DAY:  If a Storage Critical day is called for Saturday, February 9, 2019 until further notice, all firm storage services will be fully available.  Interruptible storage withdrawals (SIT and ISS), excess FSS withdrawals, and PAL loans and unparks will not be available if delivered in the impacted operating areas.  

Applicable Penalties: 

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

– FSS MMWQ – Monthly Withdrawal Quantities that exceed 30% (February Limit) of SCQ will be assessed a penalty of $5.00 per Dth.  

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

Colorado Interstate Gas (CIG):

With significantly colder temperatures being forecast beginning Wednesday, February 6, 2019 through Friday, February 8, 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.

Dominion Energy Transmission:

Effective start of gas day Friday, February 8, 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:

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 Electric

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.

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 8, 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.

Gas Transmission Northwest:

GTN OFO Watch (Posted 2/6/19)

Effective immediately, GTN Pipeline is issuing an OFO watch.  GTN Pipeline is concerned about the operational integrity of its system as a result of low line pressures.

The OFO watch is in effect through gas day February 15th, in order to allow for GTN pipeline system to regain its operational integrity. GTN 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, GTN 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.

This posting will be updated as more information becomes available.  Please contact your GTN Nominations Representative with any questions regarding nominations or scheduling at (888) 750-6275.

Kern River Transmission:

Line pack continues to decrease (approximately 75,000 Dth over the past 24 hours) despite Kern River’s warning of colder than normal weather and expected high demand in Kern River’s market areas. Additionally, several upstream and downstream operators have declared some form of strained operating condition.

Therefore, all Kern River shippers and delivery point operators are required to align daily scheduled nominations and physical receipts and deliveries. If line pack continues to decrease, Kern River may take corrective action to increase line pack by limiting physical flow at delivery points where a negative imbalance was created during prior gas days to ensure line pack and the integrity of the system is maintained.

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 7, 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 Border Pipeline:

Northern Border OFO Watch (Posted 2/6/19)

Effective immediately, Northern Border Pipeline is issuing an OFO watch. Northern Border is concerned about the operational integrity of its system as a result of extremely cold weather.

The OFO watch is in effect through gas day February 16th, 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. This posting will be updated as more information becomes available

Northern Natural Gas:

Operational Alert – A System Overrun Limitation (SOL) has been called for all Market Area zones (ABC, D and EF) with 0% System Management Service (SMS) available for Gas Day Friday February 8, 2019 due to lower than normal system weighted temperatures.

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

Northwest Pipeline:

Please keep in mind that pursuant to All-shipper Notice No. 19-016, Northwest is currently under a Stage II (8%) Overrun Entitlement for all Receiving Parties north of the Kemmerer compressor station which began on gas day February 06, 2019.

Effective gas day Saturday, February 9, pursuant to All-shipper Notice No. 19-017, Northwest will be under a Stage I (3%) overrun Entitlement north of the Plymouth compressor and a Stage II (8%) overrun Entitlement in the Kemmerer to Plymouth corridor.

Northwest would like to clarify that the Stage I (3%) overrun Entitlement north of the Plymouth compressor includes the Spokane and Wenatchee laterals.

PG&E – California Gas Transmission:

PG&E’s California Gas Transmission has revised the Low Inventory System-Wide OFO for gas day 02/08/2019 to a Stage 4 at $25.00/Dth, 5% tolerance.

Southern Star Central Gas Pipeline:

With a colder weather forecast across the Southern Star system, Southern Star is issuing a winter weather watch beginning Thursday, February 7, 2019 at 9:00 AM CST. Southern Star requests that shippers adhere to the following criteria:

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

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

Incremental Loans will be available on a limited basis

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

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

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

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

These conditions are expected to remain in effect through Saturday, February 9, 2018.

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 February 8, 2019 to all delivery parties, with the exception of those governed by a FERC gas tariff, in Texas Eastern’s Market Area Zones M1-24, M2-24 and M3.

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

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

TE may be required to issue an hourly OFO pursuant to General Terms and Conditions Section 4.3(H) to impose further restrictions in order to maintain the operational integrity of the system. TE will inform customers via EBB when this OFO will be lifted.

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The National Weather Service temperature forecast for the next six-to-ten days shows that the Northwest, Rockies, Midwest and Great Lakes areas will to see below average temperatures while the above-normal temperatures remaining across the South, Mid-Atlantic, and New England.

You’re now up-to-date courtesy of GasNewsOnline.com.  All for you, and all for FREE!  Please tell a friend in the natural gas transportation business about us, and check out our FREE podcasts on iTunes. Have a great weekend!

Edition 35 – Thursday, January 31, 2019

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Algonquin Gas Transmission:

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

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

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

ANR Pipeline:

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

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

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

Columbia Gas Transmission:

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

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

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

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

TCO will continue to provide updates as information becomes available.

Reservation charge credits will be determined per the process set forth in the General Terms and Conditions, Section 38 of TCO’s FERC Gas Tariff.  Any shipper eligible for reservation charge credits should review this section and comply with the described process to ensure receipt of any credits.

Florida Gas Transmission:

FEBRUARY 2019 — FGT SUPPLY AREA MAINTENANCE IN ZONE 3

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

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

Gulf South Pipeline:

Vixen Compressor Station Maintenance

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

Expansion Receipts Upstream Vixen Scheduling Group.

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

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

Mojave Pipeline Company:

Force Majeure Lifted – Mojave-Topock Unit #2 

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

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

Northern Natural Gas:

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

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

Northwest Pipeline:

Notice ID:  19-014

Subject:  Overrun Entitlement north of Kemmerer for all Receiving Parties

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

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

Rockies Express Pipeline (REX):

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

Sabine Pipeline Company:

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

Maintenance is scheduled to occur February 4 through February 8. 

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

Southern Star Central Gas Pipeline:

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

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

Texas Eastern Transmission:

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

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

Transcontinental Gas Pipe Line Company (Transco):

Subject:Operational Flow Order – Imbalance

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

Beginning:  Friday, February 1, 2019 and until further notice

OFO Areas:  Zone 6

Tolerance %:  10% for gas Due from Shippers

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

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

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