Monday, April 29, 2019

Welcome to GasNewsOnline.com!  With the month of May nearly upon us, warmer temperatures across much of the country are starting to cause the air conditioners to come online again and, with it, more electric generation utilizing natural gas for the summer season.

Today, we’ll take a look at the latest energy news, scan the interstate natural gas pipeline grid, and bring you the updated six-to-ten day temperature forecast from the National Weather Service

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From the US Energy Information Administration’s “Natural Gas Weekly Updatepublication, net injections into working gas totaled 92 Bcf for the week ending April 19. Working natural gas stocks are 1.339 Tcf, which is 22% lower than the five-year (2014–18) average for this week.

The NYMEX natural gas futures price beginning June, 2019 added two cents on Monday to finish the day a little more than $2.59/MMBtu.  The 12-month price strip from June, 2019 to May, 2020 is now $2.73/MMBtu.

The natural gas plant liquids composite price at Mont Belvieu, Texas, fell by 3¢/MMBtu, averaging $6.12/MMBtu for the week ending April 24. The price of propane fell by 3%. The price of natural gasoline and ethane rose by 2% and 1%, respectively. The price of butane and isobutane remained flat week over week.

According to Baker Hughes, for the week ending Tuesday, April 16, the natural gas rig count decreased by 2 to 187. The number of oil-directed rigs fell by 8 to 825. The total rig count decreased by 10, and it now stands at 1,012.

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Anadarko Petroleum Corporation today announced that it intends to resume negotiations with Occidental Petroleum Corporation in response to Occidental’s proposal to acquire Anadarko, which was announced by Occidental on April 24, 2019 (the “Occidental Proposal”). As disclosed previously, Anadarko entered into a definitive merger agreement with Chevron Corporation on April 11, 2019 (the “Chevron Merger Agreement”).

Anadarko is resuming its earlier negotiations with Occidental because Anadarko’s board of directors, following consultation with its financial and legal advisors, has unanimously determined that the Occidental Proposal could reasonably be expected to result in a “Superior Proposal” as defined in the Chevron Merger Agreement. The Occidental Proposal reflects significant improvement with respect to indicative value, terms and conditions, and closing certainty as compared to any previous proposal Occidental made to Anadarko.

Under the Occidental Proposal, Occidental would acquire Anadarko in a transaction with consideration comprised of $38.00 in cash and 0.6094 of a share of Occidental common stock per share of Anadarko common stock. 

Under the Chevron Merger Agreement, Chevron would acquire Anadarko in a transaction with consideration comprised of $16.25 in cash and 0.3869 of a share of Chevron common stock per share of Anadarko common stock.

The Anadarko board’s determination allows Anadarko to resume negotiations with Occidental in accordance with the Chevron Merger Agreement. The Chevron Merger Agreement remains in effect and accordingly the Anadarko board reaffirms its existing recommendation of the transaction with Chevron at this time.

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American Midstream Partners, LP announced Friday that Lynn Bourdon III, Chairman, President and Chief Executive Officer of American Midstream GP, LLC, the (“General Partner”) of American Midstream Partners, LP, notified the Partnership of his decision to resign effective May 3, 2019.

Jake Erhard, Partner at ArcLight Capital Partners stated, “On behalf of ArcLight and the entire Board of the General Partner, I would like to thank Lynn for his leadership and numerous contributions to the Partnership during a difficult environment over the past four years.  It has been a pleasure to work with Lynn and gain from his industry knowledge and management expertise.  As the Partnership transitions to private operatorship, we understand Lynn’s desire to move on and wish him success in his future endeavors.”

Lynn Bourdon III stated, “With the impending transformation of AMID, I believe the timing is right for me to step aside and let ArcLight manage the company in a private setting.  The past few years have been challenging for small capitalization MLPs, and the exceptional support ArcLight provided has been critical to the Partnership’s successes during this time.  I am grateful to have been involved in AMID’s significant accomplishments and believe the management team, along with the men and women delivering exceptional service to AMID’s customers, will continue to drive the Partnership’s progress in achieving its goals.”

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Oklahoma City-based producer, Roan Resources, Inc. today announced that it has received multiple unsolicited indications of interest to purchase the Company. In addition, the Company has also received indications of interest for in-basin consolidation opportunities. In response to the unsolicited indications of interests, the Company has formed a transactional working committee (the “Committee”) of its Board to evaluate a potential sale or merger of the Company.

The Committee is considering all potential merger and acquisition opportunities to assist the Board in maximizing shareholder value and will act in the best interest of all its shareholders. In order to assist the Committee in evaluating any potential sale or merger of the Company, it will mandate an investment bank in the near future.

Joseph A. Mills, Roan’s Executive Chairman of the Board stated, “We are focused on executing and delivering on our strategic objectives in the near and medium term. We will consider all potential consolidation opportunities as well as the inbound expressions of interest to purchase the Company. We believe consolidation in the core of the basin through a sale or merger combination could be value enhancing on many levels and could provide a more expeditious path to maximizing long term shareholder value.”

There can be no assurance that such evaluation will result in one or more transactions or other strategic change or outcome. The Company has not set a timetable for the conclusion of its evaluation of strategic alternatives, and it does not intend to comment further unless and until the Board has approved a specific course of action or the Company has otherwise determined that further disclosure is appropriate or required by law.

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As the seasonal transition into warmer temperatures and, along with it, natural gas pipeline maintenance projects, let’s take a look at the latest critical postings from the interstate natural gas pipeline grid:

ANR Pipeline:

Southwest Mainline Capacity Reduction – planned maintenance at the Havensville compressor station.

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, 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.

El Paso Natural Gas:

The Force Majeure event that was declared on April 17, 2019 for the Cimarron Compressor Station (Unit 1) has been resolved.  The available capacity through the Cimarron constraint will be increased to 592,000 dekatherms (Dth) per day effective Intraday 1 (Cycle 3) for April 29, 2019.

Gulf South Pipeline:

N. Houston (Texas) Compressor Station Maintenance:  Begins: 4/29/19       Ends:  6/10/19

West 30″ North from Clarence 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 for questions.

Southern Natural Gas:

Southern is conducting unscheduled maintenance at our Bear Creek facility (North Louisiana) on a dehydration unit through 5-24-19.  Withdrawal will be limited to 600 Mdth/d.  We do not anticipate an operational impact to customers at this time.

Tennessee Gas Pipeline:

Tennessee Gas Pipeline Company, LLC (“Tennessee”) will be hosting a WebEx meeting to provide customers and other interested parties an overview of Tennessee’s upcoming Summer Scheduled Maintenance for the months of June, July and August 2019 on Tuesday, May 14, 2019, from 1:30 PM  CCT to 2:30 PM CCT via WebEx only.  There will be a question and answer segment immediately following.

For further information, please check the Tennessee Gas Pipeline EBB for the posting of April 29, 2019.

Transcontinental Gas Pipe Line Company (Transco):

Transco is conducting unplanned maintenance on the Southwest Louisiana Lateral in association with Job #23 on the Transco 2019 Planned Outage and Maintenance Summary.  Currently the following locations are unable to flow.  Beginning May 1, 2019, Transco will not be confirming nominations at these locations:

Vinton – FGT             Loc. #:  1006304         Meter 4381      Delivery

Vinton – Starks           Loc. #:  1006349         Meter 4374      Delivery

Also on Transco: 

The Operational Flow Order – Imbalance (OFO) currently in effect on the Transco system in Zones 4, 5, & 6 has been terminated effective with the start of gas day Monday, April 29, 2019 at 9:00 AM CDT.

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

Vector Pipeline:

Nominations into the new delivery point with Michigan Gas Utilities (MGU) at the Marshall, Michigan Interconnection (located at Mile Post 186.5) will be available beginning Gas Day May 1, 2019.

For questions concerning this notice, or pricing of any transportation services to this point, please contact Matt Malinowski (734-462-0236) or Dennis Scheibe (734-462-7622).

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The latest six-to-ten day temperature forecast from the National Weather Service shows that areas east of the Mississippi River will have a warmer-than-average beginning to the month of May.  Meanwhile, the northern plains and Rockies regions may see below seasonal temperatures into the second week of May. 

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 PodcastsSubscribe today – it’s FREE! 

Monday, March 18, 2019

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

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

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

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

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

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

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

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

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

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

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

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

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

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

ANR Pipeline:

Janesville NNG Capacity Reduction

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

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

Columbia Gas Transmission:

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

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

The dial-in details are provided below: 

Participant dial-in: (888) 455-0683

Participant passcode: 2730221 

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

El Paso Natural Gas:

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

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

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

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

Gulf South Pipeline:

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

Kiln to Mobile Scheduling Group

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

Mobile Bay Delivery Scheduling Group

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

Moss Point System Scheduling Group

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

Southeast Supply Header (SESH):

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

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

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

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

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

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

Southern Natural Gas:

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

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

WebEx meeting number:  991 986 350 – Password:  SNG

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

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

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

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

Edition 28 – Monday, January 7, 2019

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

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

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

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

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

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

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

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

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

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

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

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

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

Enable Gas Transmission:

Posting dated January 5 – BYARS LAKE UNPLANNED MAINT

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

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

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

Florida Gas Transmission:

JANUARY 2019 — FGT SUPPLY AREA MAINTENANCE IN ZONE 3

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

Gulf South Pipeline:

Hall Summit (Louisiana) Compressor Maintenance

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

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

Mississippi River Transmission (MRT):

MAINLINE UTILIZATION SPW

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

During this time:

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

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

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

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

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

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

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

Shippers whose deliveries are affected by any of the Seven (7) conditions above are encouraged to source supply at their primary receipt points, MRT s East Line, MoGas, or reduce applicable delivery volumes.

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

Tennessee Gas Pipeline:

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

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

Texas Eastern Transmission:

Heidlersburg Compressor Station: January 8-9, 2019

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

Transcontinental Gas Pipe Line Company (Transco):

Subject: Terminate Operational Flow Order – Imbalance

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

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

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

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

Edition 4 – Monday, October 1, 2018

Welcome into October!  This month promises to be quite busy for scheduled maintenance work and preparations on the natural gas pipeline grid in advance of the winter season.

Beginning along the east coast and working west, let’s take a look at some of the latest postings from the interstate gas pipeline electronic bulletin boards to start the work week:

Columbia Gas Transmission:

Columbia’s current working gas storage inventory and the prior two years inventory for the same week are as follows:  As of 10 AM (EST) Monday, October 1:

9/28/2018        210,554 mmcf

9/29/2017        242,984 mmcf

9/30/2016        241,920 mmcf

Midwestern Gas Transmission:

Effective October 1, 2018, beginning with the ID1 Cycle, Midwestern Gas Transmission (MGT) will restore the Channahon (Illinois) delivery point capacity from 120,000 mcf and 126,000 dth, back to 180,000 mcf and 189,000 dth.  Effective September 19, 2018, Midwestern Gas Transmission (MGT) had decreased the Channahon point capacity.

Northern Natural Gas:

During the month of October, Northern is anticipating a greater likelihood of storage injection allocations due to anticipated lower system demand and increased daily firm storage injection nominations. Northern will have a limited ability to accommodate interruptible storage injections and long system imbalances. Interruptible storage injections, including firm deferred delivery overrun, may be allocated. Firm storage injections will not be impacted.

Trailblazer Pipeline:

On Gas Day Monday October 1, 2018 through Gas Day Wednesday, October 10, 2018, Trailblazer will be performing maintenance at its Compressor Station 601. Operating capacity will be limited to 830 MDth/d through Segment 20. At this capacity level, secondary firm quantities as well as ITS/AOR are at risk of not being scheduled.

Northwest Pipeline Company:

Northwest would like to remind customers of the Jackson Prairie scheduled storage maintenance October 1-12, 2018.  Northwest will not be accepting injection or withdrawal nominations during the outage.

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From the Monday, October 1 2018 edition of the EIA’s “Today in Energy” publication:

Through June of 2018, net natural gas exports from the United States averaged 0.87 billion cubic feet per day (Bcf/d), more than double the average daily net exports during all of 2017 (0.34 Bcf/d). The United States became a net natural gas exporter on an annual basis in 2017 for the first time in almost 60 years.

Total U.S. LNG export capacity reached 3.6 Bcf/d in March 2018.

The LNG facility at Cheniere’s Sabine Pass in Louisiana has an export capacity of 2.8 Bcf/d, which includes the recently completed Train 4.

Cove Point LNG in Maryland, which has an export capacity of 0.8 Bcf/d, delivered its first cargo in March 2018 and entered full commercial service in April. In the first two full months of operation after the capacity additions (May and June), Cove Point exported an average of 0.57 Bcf/d (76%) of its capacity.

Another four LNG facilities are under construction and planned to enter into service by the end of 2019, tripling U.S. LNG export capacity to 9.6 Bcf/d.

In other energy business news:

American Midstream Partners, LP announced the Board of Directors of American Midstream GP, LLC (“GP Board”) received an unsolicited non-binding proposal from affiliates of ArcLight Energy Partners Fund V, L.P. (“ArcLight”), directed to members of the GP Board, pursuant to which ArcLight would acquire all common units of the Partnership that ArcLight and its affiliates do not already own in exchange for $6.10 per common unit.  If approved, it is currently expected that the transaction would be consummated through a merger of the Partnership with a subsidiary of ArcLight.

Marathon Petroleum Corporation says it has completed the acquisition of Andeavor  (formerly known as Tesoro until mid-2017).  This makes the company the largest independent U.S. refiner by capacity.

MPC now controls 16 refineries in the U.S. with a combined throughput capacity of 3 million barrels/day, and owns and operates more than 16,000 miles of pipeline and more than 11,000 retail gas stations.

Chairman and Chief Executive Officer Gary R. Heminger said, “MPC is now the leading refining, midstream, and marketing company in the U.S. and is well-positioned for long-term growth and shareholder value creation.”

Encana Corporation has agreed to sell its San Juan assets located in New Mexico for $480 Million to Denver-based DJR Energy.

Encana said the assets include 182,000 net acres which averaged production of 5,400 barrels of oil per day in 2017.  The transaction is expected to close in the fourth quarter of 2018.

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In weather news, the tropics are fairly quiet with only one named storm (Tropical Storm Leslie) meandering in the middle Atlantic.  According to the National Hurricane Center, T.S. Leslie is not expected to strengthen early this week and does not pose a threat to the United States for this week.

The National Weather Service has updated its six-to-ten day forecast for the second full week of October.  From the looks of it, even the country’s weather looks to be divided between the blue states and the red ones for next week!

Thank you for reading!  You are now more informed – for FREE!  Please tell your friends about the new GasNewsOnline.com!