Thursday, May 9, 2019

Welcome to GasNewsOnline.com!  We check the country’s interstate natural gas pipeline companies for their most recent critical postings and bring you information about significant changes in pipeline operating conditions prior to this Mother’s Day weekend.

Today, we will also update you on the latest publicly released news about one of Anadarko Petroleum‘s suitors. Plus, we’ll give you the extended temperature forecast through May 19 from the National Weather Service, too.  

********************

From the US Energy Information Administration, working natural gas in storage was 1.547 Tcf as of Friday, May 3, 2019.  This represents a net increase of 85 Bcf from the previous week.

Natural gas in storage is now 16% below the five-year historical average.

On the New York Mercantile Exchange, the natural gas futures price for June, 2019 was down more than three cents on Thursday to finish at about $2.57/MMBtu. 

********************

Chevron Corporation announced today that, under the terms of its previously announced Merger Agreement with Anadarko Petroleum Corporation, it will not make a counterproposal and will allow the four-day match period to expire.  Accordingly, Chevron anticipates that Anadarko will terminate the Merger Agreement.

Chevron’s Chairman and CEO Michael Wirth said, “Winning in any environment doesn’t mean winning at any cost. Cost and capital discipline always matter, and we will not dilute our returns or erode value for our shareholders for the sake of doing a deal. Our advantaged portfolio is driving robust production and cash flow growth, higher investment returns and lower execution risk. We are well positioned to deliver superior value creation for our shareholders.”

Upon termination of the Merger Agreement, Anadarko will be required to pay Chevron a termination fee of $1 billion.

Earlier this week, Anadarko’s Board of Directors deemed a revised offer from Occidental Petroleum Corporation as a “Superior Proposal” and plans to move ahead with the OXY offer.

********************

On Wednesday, Marathon Petroleum Corporation and midstream affiliates MPLX LP and Andeavor Logistics LP announced that the two midstream companies have entered into a definitive merger agreement whereby MPLX will acquire Andeavor in a unit-for-unit transaction at a blended exchange ratio of 1.07x. This represents an equity value of approximately $9 billion and an enterprise value of $14 billion for the acquired entity. The transaction has been unanimously approved by MPLX’s and ANDX’s respective Conflicts Committees and both Boards of Directors. Subject to the satisfaction of customary closing conditions and receipt of regulatory approvals, the transaction is expected to close in the second half of 2019.

Under the terms of the merger agreement, ANDX public unitholders will receive 1.135x MPLX common units for each ANDX common unit held, representing a premium of 7.3%, and MPC will receive 1.0328x MPLX common units for each ANDX common unit held, representing a 2.4% discount. The blended exchange ratio of 1.07x represents a 1% premium to market1.

“This transaction simplifies our MLPs into a single listed entity and creates a leading, large-scale, diversified midstream company anchored by fee-based cash flows,” said Gary R. Heminger, chairman and chief executive officer. “This transaction is projected to be immediately accretive to MPLX unitholders on distributable cash flow, demonstrating MPC’s commitment to positioning its midstream business for long-term success”.

Mike Hennigan will remain President of the combined entity and lead all midstream activities.

********************

Now, let’s take a look at the latest critical notices from the electronic bulletin boards of the country’s interstate natural gas pipeline grid:

ANR Pipeline:

Effectively Wednesday, May 8, ANR will reduce the capacity for the Jena Southbound location (LOC #95105489), due to unplanned compressor maintenance at Jena compressor station located in the Southeast Southern Area (Zone 2).

The Jena Southbound location (LOC #9505489) capacity restriction is as follows:

75-MMcf/d (leaving 1,105-MMcf/d available) 5/8 – 5/22

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.

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 from a new receipt point immediately upstream of the High Five Meter Station (PIN#TBD), and have primary delivery rights into CIG’s 5C at the High Five delivery point interconnection (PIN#53893) which is currently under construction, and CIG will construct additional capacity at this meter to accommodate a minimum of 125,000 Dth/day of additional capacity.  CIG is conducting this Open Season on the terms described below. 

This binding Open Season will commence on May 8, 2019 and is scheduled to close at 10:00 a.m. Mountain Time on May 22, 2019.  CIG intends to provide notification of capacity awards by 5:00 p.m. Mountain Time on May 2, 2019. 

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

Columbia Gulf Transmission:

Columbia Gulf Transmission, LLC reminds customers of upcoming meter station work at MS 478 (Transco Evangeline) on Tuesday, May 14, 2019.  During this work, MS 478 will be set to a total capacity of 270,000 Dth per day.  Based on current scheduled volume, there is no expected impact to firm service.

On Wednesday, May 15, Columbia Gulf reminds customers of meter station work at MS 4118 (Florida Gas).  During this work, MS 4118 will be set to a total capacity of 294,000 Dth per day.  Based on current scheduled volume, there is no expected impact to firm service.

East Tennessee Natural Gas:

East Tennessee Natural Gas (ETNG) has limited operational flexibility to manage imbalances downstream of Boyds Creek Compressor Station (Boyds Creek). As a result, effective Wednesday, May 8, ETNG requires all delivery point operators east of Boyds Creek 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 east of Boyds Creek are required to keep actual 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.

If necessary, ETNG will utilize any provision of its tariff to ensure system integrity including the issuance of customer specific or system wide OFOs.  This notice will remain in effect until further notice.

Gulf South Pipeline:

Longview Compressor Station Maintenance:  Begins: May 13, 2019            Ends:  July 2, 2019

Longview Station #2 Scheduling Group – Capacity could be impacted by up to 50,000 dth/d for the duration of the maintenance.

Natural Gas Pipeline Company of America (NGPL):

Natural has experienced mechanical issues at Compressor Station 104 (CS 104) located in Barton County, Kansas (Segment 11 of Natural’s Midcontinent Zone).  This is a Force Majeure event that will limit Natural’s throughput capacity northbound out of the Midcontinent Zone through Compressor Station 104.   

The scheduling constraint will be at CS 104; therefore, any gas received south of CS 104 for delivery north of CS 104 will be impacted for the duration of this restriction.  For scheduling purposes, the Midcontinent Pool (LOC 25078) is located south of the constraint.  Additionally, firm transportation nominated from receipt points south of CS 104 (including the Midcontinent Pool) for injection at any Amarillo storage point will be impacted.  Receipt points north of CS 104 will not be impacted.     

As such, effective for gas day, Wednesday, May 8, 2019, Timely Cycle and anticipated to continue through gas day Monday, May 13, 2019,Natural will schedule Primary Firm and Secondary in-path Firm transports to no less than 77% of contract MDQ through CS 104.  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. 

The stated scheduling percentage is based upon the current level of firm capacity contracted for during this restriction and is subject to change based upon operational conditions and Shipper utilization.  Permian Zone delivery points will be available as an alternative.  The Trailblazer Gage (LOC 902900), Rex Jefferson (LOC 42499), and Northern Border Harper (LOC 908090) receipt points, as well as other supply points downstream of this constraint will also be available.

Southeast Supply Header (SESH):

Effective immediately, SESH is lifting the previously posted imbalance warning issued on April 6, 2019.

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 at its Danville Compressor Station (Danville) in Danville, Kentucky. While efforts to repair the station to full capacity are underway, the estimated time of restoration is unclear at this time.

As a result of this outage north to south capacity through stations on the 30 inch line will be reduced to approximately:

Owingsville 1,644,000 Dth/d
Danville 1,638,000 Dth/d
Tompkinsville 1,440,000 Dth/d

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

********************

The latest six-to-ten day temperature forecast from the National Weather Service for the period May 15-19 reveals that warmer than average temperatures will be seen along both the Southeast and Pacific Northwest regions.  From the Southwest through the Great Lakes and into New England, cooler than seasonal temperatures will prevail during much of the third week of May.

Thank you 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!    Make sure to listen to our companion audio podcasts via Apple Podcasts. It’s FREE, too!


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

********************

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.

********************

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.

********************

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.”

********************

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.

********************

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).

********************

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! 

Thursday, April 25, 2019

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

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

********************

From the US Energy Information Administration, working natural gas in storage increased by 92 Bcf for the period ending Friday, April 19.   Natural gas volumes in storage are 369 Bcf or 22% below the five-year average for the same week. 

On the New York Mercantile Exchange, the May, 2019 natural gas futures price climbed nearly five cents on Thursday to close at nearly $2.51/MMBtu.

********************

Will there be a bidding war for Anadarko Petroleum?   After last week’s bid by Chevron to acquire Anadarko, Occidental Petroleum Corporation submitted a competing bid for the company on Tuesday.

Occidental delivered a letter to the Anadarko Board of Directors setting forth the terms of a superior proposal by Oxy to acquire Anadarko for $76.00 per share, in which Anadarko shareholders would receive $38.00 in cash and 0.6094 shares of Occidental common stock for each share of Anadarko common stock. The Occidental proposal represents a premium of approximately 20% to the value of Anadarko’s pending transaction from Chevron.

Occidental believes its proposal is superior both financially and strategically for Anadarko’s shareholders, creating a global energy leader with the scale and geographic diversification to drive growth and deliver compelling value and returns to the shareholders of both companies. The combined company will be uniquely positioned to leverage Occidental’s demonstrated operational and technical expertise, producing greater anticipated synergies than Anadarko’s pending transaction. The 50-50 cash and stock transaction is valued at $57 billion, based on Occidental’s closing price on April 23, 2019, including the assumption of net debt and book value of non-controlling interest.

“Occidental is a leader in using technological innovation to create value, and we will deploy our expertise to enhance the performance and productivity of Anadarko’s assets not only in the Permian, but globally,” said Vicki Hollub, Oxy’s President and Chief Executive Officer said, “Occidental and Anadarko have a highly complementary asset portfolio, providing us with a unique opportunity to realize significant operating, cost, and capital allocation synergies and achieve near-term cash flow accretion.”

Vicki Hollub continued, “We have been focused on Anadarko for several years because we have long believed that we are ideally positioned to generate compelling value from a combination with them. We look forward to engaging immediately with Anadarko’s Board and stakeholders to deliver this superior transaction.”

********************

Murphy Oil Corporation announced Tuesday that its wholly owned subsidiary, Murphy Exploration & Production Company – USA (“Murphy”), has entered into a definitive agreement to acquire deep water Gulf of Mexico assets from LLOG Exploration Offshore, L.L.C. and LLOG Bluewater Holdings, L.L.C.. The accretive, cash flow providing Gulf of Mexico assets currently produce approximately 38,000 barrels of oil equivalent per day net (Boepd) and are expected to add approximately 66 million barrels of oil equivalent net (Mmboe) of Proven (1P) reserves and 122 Mmboe of Proven and Probable (2P) reserves1.

Murphy will pay a cash consideration of $1.375 billion. Additional contingent consideration payments are based on the following: up to $200 million in the event that revenue from certain properties exceeds certain contractual thresholds between 2019 and 2022; and $50 million following first oil from certain development projects. The transaction will have an effective date of January 1, 2019 and is expected to close in the second quarter, subject to normal closing adjustments.

The acquisition will be funded by a combination of cash on hand and availability under the company’s $1.6 billion revolving credit facility. Total outstanding borrowings under the revolving credit facility, including the current balance of $325 million, are expected to be fully repaid immediately following the closing of the previously announced $2.127 billion divestiture of Murphy’s Malaysian assets.

“This immediately accretive transaction continues to strengthen our Gulf of Mexico portfolio by adding quality assets at a very attractive price. We expect these newly acquired assets to generate meaningful cash flow over the next several years that will provide us with additional flexibility for future capital allocation,” stated Roger W. Jenkins, President and Chief Executive Officer.

********************

There are several changes in the major interstate natural gas pipeline companies’ operating conditions to be aware of heading into the weekend. Let’s take a look:

ANR Pipeline:

ANR will begin 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):

65-MMcf/d – (leaving 1,536 – MMcf/d available) 5/2 – 5/7
40-MMcf/d – (leaving 1,561 – MMcf/d available) 5/9 – 6/9
325-MMcf/d – (leaving 1,276 – MMcf/d available) 6/10 – 8/12

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.

Also on ANR:

Willow Run Capacity Reduction (Updated 4/25/19)

ANR will continue planned pipeline maintenance between its Defiance Compressor Station and Willow Run Meter Station located in the Northern Area (Zone 7), which will result in the following capacity reduction:

Wilow Run Delivery (DRN #42078)

80-MMcf/d (leaving 777-MMcf/d available) 4/25
172-MMcf/d (leaving 685-MMcf/d available) 4/26 – 5/2
167-MMcf/d (leaving 690-MMcf/d available) 5/3 -5/11

Based on current nominations, it is anticipated that the above reductions may impact interruptible and firm secondary services.

Columbia Gas Transmission:

Columbia Gas Transmission, LLC (TCO) reminds customers of upcoming pigging on Line LEX (LXP) that will impact scheduled volumes for certain hours in the gas day between Lone Oak Compressor Station and Summerfield Compressor Station (May 1, 3) and between Summerfield Compressor Station and Rockbridge Regulator Station (May 4, 6).  

TCO is working with operators for hourly operational assistance during the pigging. As a result of this work, the following impact is anticipated at this time: 

Gas Day May 1: 

743093 – Stagecoach-LXP – 55,000 Total Capacity

743103 – Eureka – 200,000 Total Capacity

LONEOAKA – Lone Oak A MA41 – 100,000 Total Capacity

LONEOAKB – Lone Oak B MA41 – 565,000 Total Capacity

Gas Day May 3: 

743093 – Stagecoach-LXP – 55,000 Total Capacity

743103 – Eureka – 200,000 Total Capacity

LONEOAKA – Lone Oak A MA41 – 125,000 Total Capacity

LONEOAKB – Lone Oak B MA41 – 690,000 Total Capacity

Gas Day May 4: 

LXPSEG – LXPSEG MA41 – 550,000 Total Capacity

Gas Day May 6: 

LXPSEG – LXPSEG MA41 – 750,000 Total Capacity

Dominion Energy Transmission:

Dominion Energy Transmission, Inc. (DETI)’s Cornwell Station (West Virginia) will be out of service for planned maintenance from Friday, April 26, 2019 to Friday, May 3, 2019.

During this outage, all production flowing on the Dominion Gathering and Processing (DGP) system to the DETI facilities listed below, must be shut in. DETI will make another posting when production can be turned back in line.

The facility shut in dates and requirements are as follows:

All gathering wet system production flowing to Cornwell Station 7 and 8 will need to be shut in by 7:00 am EDT on Friday, April 26. Direct Taps on TL-585 will need to be shut in by 7:00 a.m. EDT on Monday, April 29. DGP Production Bubbles to be shut in: 2206, 2303, 2304, 2305, and 9912. Producers in bubbles 2301, 2306 and 9913 that can physically flow off system via H-18155 can do so. This includes production behind Oscar Nelson Station, Searls Station, Shadd Station, Panther Station, Oozley Station, and Hardman Station.

DETI will make another posting if allocations become necessary. Delivery nominations during this period from 10, 12 and 13 will be kept whole by DETI. Delivery nominations during this period from EB005, EB045, EB145, EB335, EB460, EB620 and EB635 will be kept whole by DETI. Please monitor these postings for further updates.

El Paso Natural Gas:

El Paso Natural Gas is pleased to announce the new Graphical Pipe screen in the iDART system.  This new screen will enable shippers to view nominations, priorities, and entitlements based on segment for a given gas day and cycle. The new Graphical Pipe screen is located in the Scheduled Quantity folder under the Nominations folder in the iDART system. 

Please contact the scheduling hotline at 1-800-238-3764 Option 1 if you have any questions about this new screen.

Enable Gas Transmission:

This Operational Alert is being issued pursuant to Section 20, GT&C of EGT s Tariff to notify all parties of planned maintenance on EGT s Line BT-1 in the North Pooling Area beginning April 27, 2019, with an expected completion date of May 13th, 2019.

During this maintenance, a series of integrity digs will be conducted along EGT s Line BT-1. Be advised, there is no capacity impact associated with the integrity digs, but should a determination be made that a repair is necessary, there could be a capacity reduction associated with the repair.  Depending upon the nature of any required repair, the announcement of a capacity reduction could come at short notice.

This alert will remain in effect until further notice and will be updated as more information becomes available.

Gas Transmission Northwest (GTN):

Effective Gas Day April 26th at the Timely Nomination Cycle, GTN is lifting the Force Majeure related to the repairs at the Ione Compressor Station 9 (Oregon).

The operationally available capacity for the Flow Past Kingsgate location has been increased to 2126-MMcf/d.

The operationally available capacity for the Flow Past Station 8 Location is 1865-MMcf/d.

As a reminder to customers, planned maintenance at Compressor Station 8 continues until May 10th. 

Natural Gas Pipeline Company of America (NGPL):

SEGMENT 11 – SOUTH OF STA 106 – AT OPERATING CAPACITY 

Effective for gas day Friday, April 26, 2019, and continuing until further notice, Natural is at operating capacity for northbound flow through Compressor Station 106 located in Gage County, Nebraska (Segment 11 of Natural’s Midcontinent Zone).  AOR/ITS and Secondary out-of-path Firm transports are at risk of not being fully scheduled.

Also from NGPL:

SEGMENT 13 – STA 107– AT OPERATING CAPACITY

Effective for gas day Friday, April 26, 2019, and continuing until further notice, Natural is at operating capacity for northbound flow through Compressor Station 107 located in Mills County, Iowa (Segment 13 of Natural’s Amarillo Mainline Zone).  AOR/ITS and Secondary out-of-path Firm transports are at risk of not being fully scheduled. 

Rockies Express Pipeline (REX):

CHANDLERSVILLECOMPRESSOR STATION MAINTENANCE

On Gas Day Wednesday, May 1, 2019 through Gas Day Friday, May 3, 2019, REX will be performing maintenance at its Chandlersville (Ohio) Compressor Station. Operating capacity will be limited to 2.935 Bcf/d through pipeline Segment 380. At this capacity level, primary and secondary firm quantities, as well as ITS/AOR are at risk of not being scheduled.

TransColorado Gas Transmission:

The Force Majeure (FMJ) declared at Blanco Hub Compressor Station, Segment 310, in notice #118680 has been lifted. 

TransColorado Gas Transmission Company, L.L.C. (TC) has repaired the compressor station and, as such, is lifting the Force Majeure that was in effect. The capacity will return to 250,000 Dth effective Gas Day April 25, Cycle 4 (Intraday 2) and Gas Day April 26, Cycle 1 (Timely).

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:        Saturday, April 27, 2019

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.

********************

The National Weather Service six-to-ten day forecast for the first few days of May is showing some cooler weather on the way for the northern plains states as well as New England.  Otherwise, May will be ushered in with average temperatures across much of the nation.  In the South, though, temperatures may be slightly above average for the first week of the new 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. Have a great weekend!  

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

********************

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.

********************

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.

********************

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. 

********************

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! 

Edition 18 – Tuesday, November 27, 2018

We’re back from the Thanksgiving break, and the natural gas business has come through with a couple of unique stories which may give you a chuckle to start your week.

Welcome to GasNewsOnline.com!  With December in sight, we will examine some of the latest corporate energy news, check the postings from the natural gas pipeline electronic bulletin boards, and, of course, bring you a peek at the temperature forecast for the first week of December.  All from public sources and, of course, we bring it to you for FREE!

********************

Porky would be proud…

Dominion Energy and Smithfield Foods, Inc. are joining forces in an historic initiative to transform the future of sustainable energy and agriculture, announcing their first projects in North Carolina, Virginia and Utah. The companies are forming a joint venture called Align Renewable Natural Gas (RNG) that will capture methane emissions from hog farms and convert them into clean renewable energy for residential home heating and power for local businesses.

By capturing methane that would otherwise be released into the atmosphere, the use of RNG leads to a significant reduction in methane emissions from the agriculture and energy industries.

RNG is produced from the methane generated from hog or dairy farms, landfills, wastewater treatment plants and food processing facilities. Capturing the methane from hog farms reduces the use of traditionally-sourced natural gas and keeps greenhouse gas from entering the atmosphere. It can be stored and delivered to homes and businesses through existing natural gas infrastructure, making it a cost-effective, renewable option.

The new joint venture will leverage Smithfield’s relationships with contract farmers, who raise and care for its hogs, and the decades the company has spent studying and perfecting the commercial viability of ‘manure-to-energy’ projects. Using a technology known as anaerobic digestion, the projects will capture and process methane from large clusters of Smithfield’s company-owned and contract hog farms. Once collected at the farms, the natural gas will then be transported to a central conditioning facility where it will be converted into RNG.

“Our companies recognize the urgent need to reduce greenhouse gas emissions for the future of our planet. RNG is an innovative and proven way to dramatically reduce greenhouse gas emissions from the agriculture industry by converting it into clean renewable energy,” said Thomas F. Farrell, II, chairman, president and chief executive officer of Dominion Energy.

********************

Another Big Foot sighting!  It’s true…read on!

Chevron Corporation announced that the Chevron-operated Big Foot deepwater project, located in the U.S. Gulf of Mexico, has started crude oil and natural gas production. The field is located approximately 225 miles (360 km) south of New Orleans, La., in a water depth of approximately 5,200 feet (1,584 m.).

The Big Foot field was discovered in 2006, is estimated to contain total recoverable resources of more than 200 million oil-equivalent barrels and has a projected production life of 35 years. The project uses a 15-slot drilling and production tension-leg platform, the deepest of its kind in the world, and is designed for a capacity of 75,000 barrels of oil and 25 million cubic feet of natural gas per day.

“The Big Foot project strengthens Chevron’s deepwater portfolio and further demonstrates that the Gulf of Mexico is an integral part of our diverse global portfolio and long-term strategy,” said Jeff Shellebarger, President of Chevron North America Exploration and Production. “The project advances our interest in safely providing reliable, affordable energy to meet a growing global demand.”

Chevron’s subsidiary, Chevron U.S.A. Inc., is the operator of Big Foot with a 60 percent working interest. Co-owners are Equinor Gulf of Mexico LLC (27.5%) and Marubeni Oil & Gas (USA) LLC (12.5%).

********************

Now that we have your attention, let’s check around the nation and discover a few of the critical postings affecting the interstate gas pipeline grid:

East Tennessee Natural Gas:

Weather forecasts show colder temperatures across the entire East Tennessee (ETNG) system beginning Gas Day November 27, 2018. As such, ETNG will be implementing its Maximum Allowable Delivery Service (MAD) effective 9:00 AM CCT November 27, 2018.

As a result, the following restrictions will be effective at 9:00 AM CCT November 27, 2018:

No secondary out of path receipts upstream of station 3104; No secondary out of path receipts upstream of station 3206; No secondary deliveries downstream of station 3313 on the 8 and 12 inch 3300 lines between Rural Retreat and Roanoke;

No interruptible, Authorized Overrun or secondary out of path deliveries to all meter stations downstream of station 3313;

Receipt meters under delivering to the ETNG system may be restricted to their recent historical performance levels.

LMSMA’s upstream of Lewisburg (station 3206) and Dixon Springs (station 3104) may be restricted to recent historical delivery consumption levels.

Furthermore, restrictions to secondary receipts may be required at ETNG’s interconnects with Tennessee Gas Pipeline at Lobelville (MR 53201) and Ridgetop (MR53101).

ETNG will utilize any provision of its tariff to ensure system integrity including the issuance of customer specific or system wide OFOs.  This notice will remain in effect until further notice.

 

Florida Gas Transmission:

DECEMBER 2018 — FGT SUPPLY AREA MAINTENANCE IN ZONES 2 AND 3

FGT will be performing maintenance on the FGT East White Lake Lateral upstream of FGT Compressor Station 75. This maintenance is scheduled to begin on December 3, 2018 and is to be completed by the end of gas day December 7, 2018. During this maintenance FGT will schedule up to 470,000 MMBtu/day from the FGT East White Lake group. During normal operations FGT schedules up to 590,000 MMBtu/day from the FGT East White Lake group.

FGT will be performing planned pipeline maintenance upstream of FGT Compressor Station 10. This maintenance is scheduled to begin on December 3, 2018 and is to be completed by the end of gas day December 21, 2018. During this maintenance FGT will schedule up to 1,100,000 MMBtu/day through Station 10. During normal operations FGT schedules up to 1,300,000 MMBtu/day through Station 10.

FGT will be performing maintenance on pipe near the FGT/Tennessee Carnes Interconnect (POI 10258). This maintenance is scheduled to begin on December 3, 2018 and is to be completed by the end of gas day December 21, 2018. During this maintenance zero volumes will be scheduled at the FGT/Tennessee Interconnect. During normal operations FGT schedules up to 60,000 MMBtu/day through the FGT/Tennessee Carnes Interconnect.

 

Natural Gas Pipeline Company of America (NGPL):

SEGMENT 27 – GULF COAST #3 (CS 305) – INSTALL LAUNCHER & RECEIVER – UPDATE #1

The project dates have been changed, as noted below.  This notice was last posted on November 16, 2018, entitled “DECEMBER 2018 – SCHEDULED MAINTENANCE”. 

On gas day Saturday, December 15, 2018, and continuing through gas day Thursday, January 3, 2019, (previously Friday, November 30, 2018, and continuing through gas day Friday, December 14, 2018), Natural will be performing pipeline maintenance to install pigging facilities on the Gulf Coast #3 mainline near Compressor Station 305, located in Miller County, Arkansas (Segment 27 of Natural’s Gulf Coast Mainline Zone).  AOR/ITS and Secondary out-of-path Firm transports may not be available during this work.  Primary Firm and Secondary in-path Firm transports may also be at risk of not being fully scheduled.

 

Southeast Supply Header (SESH):

Southeast Supply Header, LLC’s (“SESH”) previously posted Dentville compressor station outage which was to occur November 27 – December 1, 2018 has been canceled and will not need to be rescheduled.

Please contact your Operations Account Representative should you have any questions.

 

Southern Natural Gas:

Based on the current colder weather forecast and projected demand on Southern‘s system, we are notifying all Shippers that Southern is expanding the OFO Type 3 Level 1 OFO to the additional groups listed below effective the start of the gas day, Tuesday, November 27, 2018, until further notice.

OFO Type 3 Level 1: Daily Demand Exceeds Capacity
TARIFF SECTION 41.2
EFFECTIVE DATE: November 27, 2018

EFFECTIVE TIME of OFO: 9:00 AM (CCT)

PENALTY: $10.00/Dth

This is to notify all customers who are allocated gas at any delivery point in the segments listed below that they are subject to an operational flow order commencing on the effective date set out in this notice and continuing until further notice. The above-stated penalty will be assessed on any shipper whose allocated deliveries at any delivery point(s) within the groups listed below exceed 105% of their daily entitlement at such delivery point.

A daily entitlement report will be provided after the end of each scheduling cycle. The daily entitlement in effect after the last scheduling cycle (Intraday 3) will be the final one and will be used to determine any penalties. Maintaining deliveries within your daily entitlement at each delivery point will contribute to safe and efficient operation of the system, and also will avoid an OFO Type 3 penalty and help to minimize imbalances.

 

Tennessee Gas Pipeline:

EMERGENT REPAIR AT STA 261 EFFECTIVE 11-27-18

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 at STA 261 near Agawam, MA. Tennessee is experiencing issues with the units that compress into the lateral to the Berkshire Power Plant (420901). Personnel are on site and evaluating. At this time there should be no impact to throughputs other than pressure fluctuations to Berkshire.   Updates will be posted as more information becomes available.

 

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 a Scheduling Operational Flow Order (OFO).

Effective date:  Wednesday, November 28, 2018 and until further notice

OFO areas:  Zones 4, 5, and 6

Type of Imbalance:  Due from Shipper

Tolerance %:  10% or 1,000 dth/zone, whichever is greater

********************

In weather news, the colder temperatures which kept much of the eastern US chilly over the past few weeks appear to be heading west to start December.  According to the National Weather Service, the Rockies and West Coast will receive a little cold weather to start the new month, while average to above average temperatures will warm the Southeast in early December.

 

Thank you for reading GasNewsOnline.com!  If you know someone in the natural gas transportation business, please let them know about us.  Our audio podcasts are now available via I-tunes!  All for FREE!

Edition 9 – Thursday, October 18, 2018

We’re coming down the home stretch of October with an estimated 17% deficit in gas storage volumes heading into November’s start of the traditional winter heating  season.

Welcome back to GasNewsOnline.com where we keep you posted on the latest natural gas news from a variety of public sources twice every week – for FREE!

*****************************

Let’s lead-off this edition with the latest gas storage data release from the U.S. Energy Information Administration:

On Thursday, the EIA’s weekly survey of natural gas in storage showed a weekly inventory gain of 81 Bcf for last week vs. a consensus estimate of 82 Bcf into storage.

Working gas in storage now totals 3.037 Trillion cubic feet as of Friday, October 12, 2018, according to EIA estimates.  This represents a net increase of 81 Bcf from the previous week. Stocks were nearly 17% less than last year at this time and 17% below the five-year average.

Natural gas futures were down ten cents on Thursday, October 18 to about $3.21/MMBtu.

From the EIA’s “Today in Energy” publication, the October 9, 2018 rupture of Enbridge’s BC natural gas pipeline near Prince George, British Columbia, continues to affect natural gas supply, electricity generation, and petroleum refining in the Pacific Northwest. The BC Pipeline links natural gas production in northeastern British Columbia with distribution markets in Canada as well as Washington, Oregon, and Idaho.

Imports of natural gas through the pipeline, which in the first half of the year averaged 1.1 billion cubic feet per day (Bcf/d) at the Sumas hub import point, fell to zero for a day after the rupture.

The rupture occurred on the 36-inch diameter mainline, one of two pipelines that make up the BC Pipeline system. Both pipelines were shut down and depressurized following the rupture.

The following day,  Enbridge restarted the second, smaller 30-inch diameter pipeline, which is now operating at 80% capacity.  The company has not announced a timeline on when it will complete the repair work.

********************************

In other energy-related news:

Matador Resources says its San Mateo Midstream joint venture has entered into an agreement for the gathering and processing of natural gas production from an unnamed producer in the Permian Basin in New Mexico.

Matador Resources said San Mateo has now entered into contracts to provide firm gathering and processing services for more than 200 mmcf/day of natural gas, or more than 80% of the 260 mmcf/day designed inlet capacity at its Black River cryogenic natural gas processing plant.

Chevron USA announced a contribution of $500,000 from the Chevron Global Community Fund to assist with efforts to recover from the damage done by Hurricane Michael.

“Hurricane Michael has taken a devastating toll,” said Dale Walsh, president of Chevron Americas Products. “The communities will come back stronger than ever, but in the meantime, there are families who are struggling.  We are making this donation to help get these families the immediate assistance they need as they put their lives back together.”

*********************************

Now let’s check the latest critical postings from the electronic bulletin boards around the natural gas pipeline business:

Vector Pipeline:

Vector Pipeline – Critical Notice – Capacity Constraint at Rover – Update for Gas Day October 17, 2018.

This notice is for Shippers using Rover to make deliveries into the Vector System. Rover is currently delivering gas to Vector Pipeline that contains free liquids and does not meet the Gas Quality Specifications required by the Vector FERC Gas Tariff, General Terms and Conditions, 2.1 (b) and (h). At this time, Rover is working to remedy the situation but is not able to provide a time period for its resolution. Pursuant to Vector’s FERC Gas Tariff General Terms and Conditions, beginning Gas Day October 17, 2018, Vector will restrict all receipts at the Rover interconnection to zero until further notice. Further information will be communicated as it becomes available.

Natural Gas Pipeline Company of America (NGPL):

SEGMENT 26 SOUTHBOUND – GULF COAST #3 M/L (CS 304) – INSTALL LAUNCHER & RECEIVER – UPDATE #4

 The project dates have been changed, as noted below.  This notice was last posted on October 11, 2018, entitled “SEGMENT 26 SOUTHBOUND – GULF COAST #3 M/L (CS 304) – INSTALL LAUNCHER & RECEIVER – UPDATE #3”.

On gas day Thursday, November 1, 2018, and continuing through gas day Thursday, November 22, 2018, (previously Thursday, October 18, 2018 thru Saturday, October 27, 2018), Natural will be performing pipeline maintenance to install pigging facilities on the Gulf Coast #3 mainline near Compressor Station 304, located in Harrison County, Texas (Segment 26 of Natural’s Texok Zone).  AOR/ITS and Secondary out-of-path Firm transports may not be available during this work.  Primary Firm and Secondary in-path Firm transports may also be at risk of not being fully scheduled.

 

Also from NGPL:

SEGMENT 27 – GULF COAST #3 (CS 305) – INSTALL LAUNCHER & RECEIVER – UPD#2 

The project dates has been changed, as noted below.  This notice was last posted on October 2, 2018, entitled “SEG 27 GC#3(CS 305) INSTALL LAUNCH-UPD#1”.

On gas day Friday, November 23, 2018, and continuing through gas day Friday, December 14, 2018(previously Monday, October 22, 2018 thru Saturday, November 10,2018), Natural will be performing pipeline maintenance to install pigging facilities on the Gulf Coast #3 mainline near Compressor Station 305, located in Miller County, Arkansas (Segment 27 of Natural’s Gulf Coast Mainline Zone).  AOR/ITS and Secondary out-of-path Firm transports may not be available during this work. Primary Firm and Secondary in-path Firm transports may also be at risk of not being fully scheduled.

Enable Gas Transmission:

October 16, 2018
EGT is hereby notifying its shippers of three new meters that will soon be available for nominations on its system:

Iron Horse  REC 290209  West 2 Pool  Grady County OK
Rockcliff  Z 290706  CP Pool  Panola TX
Blue Mountain  CRP 290564  West 1 Pool  Grady County OK

Once these points have been activated, a notice will be posted on EGT’s Operationally Available Capacity report.

***********************************

No tropical storms are reportedly moving toward the U.S. this weekend, according to the National Hurricane Center.

Meanwhile, the National Weather Service has posted their November, 2018 temperature forecast.   Based on the above normal temperatures being forecast for the entire United States in November, maybe it’s not time to put away the golf clubs just yet!

Thanks for reading GasNewsOnline.com.  We try hard to bring you the latest news and information about the natural gas business every week – for FREE.  Please tell a friend!