Edition 43 – Thursday, February 28, 2019

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

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

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

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

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On Tuesday, Dominion Energy provided the following statement:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

The Transaction consists of the following actions:

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

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

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

ANR Pipeline:

Attention All ANR Shippers and Storage Customers

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

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

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

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

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

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

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

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

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

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

Colorado Interstate Gas (CIG):

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

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

Columbia Gas Transmission:

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

Columbia Gulf Transmission:

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

East Tennessee Natural Gas:

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

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

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

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

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

Gulf South Pipeline:

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

Expansion Receipts Upstream Tallulah Scheduling Group.

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

Mississippi River Transmission (MRT):

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

 During this time:

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

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

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

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

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

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

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

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

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

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

Northern Natural Gas:

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

Northwest Pipeline:

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

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

Panhandle Eastern Pipe Line:

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

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

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

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

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

Rover Pipeline:

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

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

Southern Star Central Gas Pipeline:

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

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

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

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

ISS withdrawals and PLS withdrawals will be unavailable

Incremental Loans will not be available

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

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

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

Operational flexibility will not be available during this time.

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

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

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

Trunkline Gas Company:

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

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

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

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

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

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

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

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 39 – February 14, 2019

Happy Valentine’s Day from GasNewsOnline.com!  With winter about pounce again for much of the western and northern portions of the country this weekend, we will bring you several critical postings from some of the nation’s largest natural gas pipeline companies.

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It’s Thursday, February 14, 2019, and that also means it’s time for the weekly gas storage report from the Energy Information Administration:

Net withdrawals from working gas totaled 78 billion cubic feet (Bcf) for the week ending February 8. Working natural gas stocks are 1.882 Tcf, which is 15% lower than the five-year (2014–18) average for the same week.

The New York Mercantile Exchange March, 2019 natural gas futures price held steady at about $2.58/MMBtu on Thursday.  The 12-month strip from March, 2019 through February, 2020 held firm at about $2.80/MMBtu.

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In other energy news:

Encana Corporation and Newfield Exploration Company announced that their strategic combination has been approved after special shareholder meetings.

Newfield stockholders will receive 2.6719 Encana common shares for each share of Newfield common stock. Upon completion of the transaction, Encana shareholders prior to the merger will own approximately 63.5 percent and Newfield stockholders prior to the merger will own approximately 36.5 percent of the combined company.

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On Tuesday, Dominion Energy announced an initiative to reduce methane emissions from its natural gas infrastructure by 50 percent over the next decade, based on 2010 levels. The initiative will prevent more than 430,000 metric tons of methane from entering the atmosphere, the equivalent of taking 2.3 million cars off the road for a year or planting nearly 180 million new trees.

“We recognize we need to do more to reduce greenhouse gas emissions to further combat climate change,” said Diane Leopold, President and CEO of Dominion Energy’s Gas Infrastructure Group. “We’ve made significant progress, but we’re determined to go much further. With this initiative, we are transforming the way we do business to build a more sustainable future for the planet, our customers, and our industry.”

Dominion Energy will achieve the historic emissions reductions announced today in three primary ways – reducing or eliminating gas venting during planned maintenance and inspections, replacing older equipment across its system with new, low-emission equipment, and expanding leak detection and repair programs across its entire system.

Gas venting during planned maintenance and inspection is the largest source of methane emissions from Dominion Energy’s transmission and distribution pipeline system. In order to perform maintenance or inspection on pipelines and compressor stations, natural gas sometimes has to be removed from the system, which was historically done by venting it into the atmosphere. A primary focus of the company’s initiative will be dramatically reducing or even eliminating venting during maintenance activities.

While gas venting is the largest source of methane emissions, there are other minor sources that can add up to larger volumes. Dominion Energy is focused on reducing these sources by replacing older equipment with new low-emission equipment.

“A great example is our program to replace natural gas-powered pumps at our gas producing wells with solar-powered electric pumps, which reduces methane emissions at these facilities by more than 90 percent,” said Leopold.

The company is also replacing other aging equipment across its system, including bare-steel pipe, cast-iron pipe, valves, fittings, joints and seals to reduce or even eliminate these emissions sources.

Over the last decade, Dominion Energy has made significant progress finding even the smallest emissions using infrared cameras. This program will be dramatically expanded to detect and repair these minor emissions sources across every part of the company’s natural gas system – from production and storage to transmission and distribution.

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Earlier this week, American Electric Power announced that its competitive renewable energy subsidiary has signed an agreement to acquire Sempra Renewables LLC and its 724 megawatts (MW) of operating wind generation and battery assets for approximately $1.056 billion.  The final acquisition cost will be subject to closing and working capital adjustments.  

Sempra Renewables, a subsidiary of Sempra Energy, jointly owns all or part of seven wind farms and one battery installation in seven states. Five of the wind farms are jointly owned with BP Wind Energy. BP Wind Energy will retain its ownership share of those projects.  

“Our long-term strategy is focused on diversifying our generation portfolio including expanding our ownership of renewable generation. We targeted $2.2 billion of capital investment in competitive, contracted renewables by 2023. Adding these high-quality renewable assets to our portfolio will achieve a significant portion of that goal this year. The long-term contracts and attractive returns associated with these existing assets will be immediately accretive to earnings and solidify our projected 5 to 7 percent earnings growth rate. The business also includes a pipeline of development projects that could provide additional value,” said Nicholas K. Akins, AEP chairman, president and chief executive officer.

The seven operating wind farms have an average capacity factor of 37 percent. They are located in Colorado, Hawaii, Indiana, Kansas, Michigan, Minnesota and Pennsylvania. They all have long-term, power purchase agreements (PPAs) for 100 percent of the energy produced with investment-grade investor-owned utilities, municipal utilities and electric cooperatives. The project PPAs have an average remaining life of 16 years. AEP operating units AEP Ohio, Indiana Michigan Power and Southwestern Electric Power Company have PPAs with two of the wind farms.

AEP expects to finance the acquisition with a combination of debt, equity, and/or equity-linked securities. The transaction is expected to close in the second quarter of 2019 and is subject to approvals from the Federal Energy Regulatory Commission and Hart-Scott-Rodino clearance.

AEP has announced a plan to cut its carbon dioxide emissions 60 percent from 2000 emission levels by 2030 and 80 percent from 2000 emission levels by 2050.

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With cold weather still controlling much of the country, let’s review the latest critical postings from some of the nation’s interstate gas pipeline companies:

ANR Pipeline:

ANR Pipeline Company Notice of Force Majeure (Updated 2/11/19)

This is to notify all contracted parties of ANR Pipeline Company (“ANR”) that pursuant to Section 6.7 of ANR’s FERC Gas Tariff, ANR has declared a Force Majeure event in effect for natural gas transactions in its Southeast Southern Segment (Zone 2) to perform unexpected and uncontrollable compressor repairs at its Jena Compressor Station located in Louisiana.

The Force Majeure declaration during the outage will apply to services southbound through the Jena Compressor Station as listed below. The Reservation Charge Crediting Mechanism of Section 6.36.2 shall apply to this outage.

The total Jena Southbound capacity (LOC #9505489) will be reduced to the following:

320-MMcf/d (leaving 850-MMcf/d available) 2/12 through 2/18

Based on current nominations through the Jena Compressor Station, it is anticipated that this posting will result in the capacity allocation reduction of IT and Firm Secondary, and may impact a portion of the Firm Primary volumes.

Columbia Gas Transmission:

Shippers are advised that due to forecasted colder temperatures, lowered storage levels, and increased market demands beginning Saturday, February 16, 2019, Columbia Gas Transmission, LLC (TCO) may issue Transport Critical Days for deliveries to all Operating Areas and Storage Critical Days for withdrawals (MDWQ overruns) for all Operating Areas.  TCO will post the Critical Day notices, if warranted, on Friday, February 15, 2019.   

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

TRANSPORT CRITICAL DAY:  If a Transport Critical Day is called for Saturday, February 16, 2019 until further notice, the following daily Transport Critical Day penalty will apply:

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

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

STORAGE CRITICAL DAY:  If a Storage Critical day is called for Saturday, February 16, 2019 until further notice, all firm storage services will be fully available.  Interruptible storage withdrawals (SIT and ISS), excess FSS withdrawals, and PAL loans and unparks will not be available if delivered in the impacted operating areas.  

 Applicable Penalties: 

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

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

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

East Tennessee Natural Gas:

ETNG Operational Flow Order – Tracy City to Topside — LIFTED – Thursday February 14

Effective immediately, East Tennessee Natural Gas (ETNG) is lifting the Operational Flow Order for all meters located between Tracy City and Topside issued on February 8, 2019.

Gulf South Pipeline:

McComb (MS) Compressor Station Maintenance:  Began February 13, 2019  – Ends February 23, 2019

Capacity could be impacted by up to 100,000 dth/d for the duration of the maintenance. The following meters are in the Montpelier to McComb Index 130 Scheduling Group.

002424 GREENSBURG CITY GATE

002432 KENTWOOD CITY GATE

002549 MONTPELIER & PINE GROVE CITY GATE

002559 TANGIPAHOA CITY GATE

002583 KENTWOOD BRICK & TILE PLANT

002690 HOLMESVILLE (TO TRANSCO)

013087 TRANSFER @ MONTPELIER / ST HELENA

013456 TRANSFER @ HOLMESVILLE (TRANSCO)

022114 WALTHALL (TO TRANSCO)

022182 MONTPELIER/ST HELENA (TO FGT)

022573 TRANSFER @ WALTHALL (TO TRANSCO)

Kern River Gas Transmission:

Kern River reminds its customers of the colder than normal weather and high demand is forecast for Kern River’s market areas through February 21, 2019.   Kern River shippers and delivery point operators are requested to align daily scheduled nominations and physical receipts and deliveries to maintain line pack and system integrity.

Kinder Morgan – All Pipelines – DART Business and Training:

Kinder Morgan will be offering one-on-one meetings to discuss your DART related business and training needs for any of the interstate pipelines that Kinder Morgan operates.  These meetings will take place during select days the week of March 18th in our Houston office.

Please indicate the date that works for you, topics you are interested in discussing, and the pipeline(s) you do business on.   The individual meetings and times will be set up with the appropriate departments based on the pipeline and topics of interest provided.

Potential topics include:  Commercial, Confirmations (PDA’s), Contracts/Capacity Release, DART Set-up,  Imbalance Management, Invoicing, Nominations (Rankings), Operations (Gas Control), Park and Loans, Pipeline Scheduling, Rankings, Report Subscription(s), Scheduled Quantities, Segment Scheduling, Storage, and other topics proposed by shippers/customers.

Please return the form (posted on each company’s EBB) to DartTrainingReservations@kindermorgan.com by Friday, March 1st.  If you have any questions, please contact your Scheduling Representative.

Midwestern Gas Transmission:

Midwestern Gas Transmission Company (Midwestern) will hold a conference call on Wednesday, February 20, 2019 at 3:00 p.m. CCT to discuss its Fuel Retention Percentage Adjustment annual tariff filing, to be filed March 1, 2019, effective April 1, 2019.

The draft schedules will be posted on Midwestern’s website in advance of the call.  An updated posting will be made when the schedules have been posted for customer review.

Customers are invited to participate by calling toll free: 1.877.820.7831.

Participant Passcode: 125665

If you have any questions, please contact Aaron Wright, Regulatory Analyst, at 918.732.1418 or aaron.wright@oneok.com.

Mississippi River Transmission (MRT):

Due to the potential for maximum utilization of northbound firm Main Line capacity causing a potential supply deficiency in the Market Zone, MRT is issuing a System Protection Warning (SPW) effective 9:00 a.m. Friday, February 15, 2019 and continuing until further notice.

 During this time:

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

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

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

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

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

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

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

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

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

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

Northern Natural Gas:

A System Overrun Limitation (SOL) has been called for all Market Area zones (ABC, D and EF) with 50% System Management Service (SMS) available for Gas Day Friday, February 15, 2019, due to lower than normal forecasted system weighted temperatures.

Northwest Pipeline:

Northwest is revising its current Overrun Entitlement as follows:

Receiving Party points north of the Plymouth South constraint point will be revised from a Stage I (3%) Overrun Entitlement to a Stage II (8%) Overrun Entitlement; and  

Receiving Party points north of the Kemmerer compressor station to points south of the Plymouth South constraint point will be revised from a Stage II (8%) Overrun Entitlement to a Stage III (13%) Overrun Entitlement.

These changes are effective at the beginning of gas day Thursday, February 14, 2019, until further notice.  Northwest is requesting customers to continue to stay on rate to help mitigate the potential for tighter entitlement levels over the next few weeks. 

Southern Star Central Gas Pipeline:

With a colder weather forecast across the Southern Star system, Southern Star is issuing a winter weather watch beginning Friday, February 15, 2019 at 9:00 AM CST. Southern Star requests that shippers adhere to the following criteria:

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

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

Incremental Loans will be available on a limited basis

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

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

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

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

These conditions are expected to remain in effect through Wednesday, February 20, 2018.

Tennessee Gas Pipeline:

OFO DAILY CRITICAL DAY 1 FOR AREAS EAST OF STA 254 EFFECTIVE 2-17-19

Due to a forecast of colder weather and higher demand moving back into the northeast, for the Gas Day of Sunday, February 17, 2019, and until further notice, Tennessee is issuing an OFO Daily Critical Day 1 for all areas east of STA 254 on the 200 Line only for all Balancing Parties (including LMS-PA, SA contracts acting as balancing parties, LMS-MA, and LMS-PL balancing parties).  This action is pursuant to Article X, Section 4 of the General Terms and Conditions of Tennessee’s FERC Gas Tariff.  

All delivery point operators east of STA 254 on the 200 Line only are required to keep actual daily takes out of the system equal to or less than scheduled quantities regardless of their cumulative imbalance position.  All receipt point operators east of STA 254 on the 200 only are required to keep actual daily receipts into the system equal to or greater than scheduled quantities regardless of their cumulative imbalance position.  In addition, it is essential that delivery point operators schedule gas at meters commensurate with takes within the affected areas.  All LMS-PA, SA contracts acting as balancing parties, LMS-MA and LMS-PL Balancing Parties are required to maintain an actual daily flow rate not exceeding 2% of scheduled quantities or 500 dths, whichever is greater for under-deliveries into the system and over-takes from the system. Customers will be assessed a rate of $5.00 plus the applicable Regional Daily Spot Price per dekatherm for that portion of physical quantities related to under-deliveries by receipt point operators and over-takes by delivery point operators which exceed this tolerance. 

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

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The latest six-to-ten day temperature forecast from the National Weather Service continues to show the Western US receiving the brunt of the colder than average temperatures.  Meanwhile, the Midwest, Great Lakes, and Northeast should see normal to slightly below average temperatures while the Southeast stays at or a little above normal for the third week of February.

That wraps up this special Valentine’s Day edition of GasNewsOnline.com.  With President’s Day celebrated on Monday, please look for our next update on Tuesday for the coming week.  Remember that our audio podcast is available to you via Apple Podcasts.  Subscribe today – it’s FREE!

Edition 36 – Monday, February 4, 2019

Welcome back to GasNewsOnline.com!  On Saturday’s Groundhog Day, Punxatawny Phil prognosticated only six more weeks of winter. 

Will Phil be correct this year?

The bitterly cold weather for the Midwest and East Coast has taken a temporary break (for now).  With it, many interstate natural gas pipeline companies have relaxed operational restrictions which were commonplace last week.

We will also update you on the latest publicly-released energy news and the temperature forecast for the next ten days in this edition of GasNewsOnline.com!

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From last week’s US Energy Information AdministrationNatural Gas Weekly Update”:

At the NY Mercantile Exchange (Nymex), the February 2019 contract expired last Tuesday at $2.950/MMBtu.   The March, 2019 contract was down about seven cents on Monday to about $2.67/MMBtu.  The price of the 12-month gas futures strip from March, 2019 through February, 2010 is approximately $2.90/MMBtu.

Net natural gas withdrawals from storage totaled 173 Bcf for the week ending January 25. Working natural gas stocks are 2.197 Tcf, which is 13% lower than the five-year (2014–18) average for the same week.

The natural gas plant liquids composite price at Mont Belvieu, Texas, rose by 16¢/MMBtu, averaging $6.67/MMBtu for the week ending January 30. The price of propane fell by 2%. The price of natural gasoline, ethane, butane, and isobutane rose by 1%, 8%, 4%, and 5%, respectively.

According to Baker Hughes, for the week ending Tuesday, January 22, the natural gas rig count decreased by 1 to 197. The number of oil-directed rigs rose by 10 to 862. The total rig count increased by 9, and it now stands at 1,059.

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Dominion Energy has provided cost and schedule updates on the Atlantic Coast Pipeline project.  The company currently expects that construction (which is currently delayed for a portion of the route) could recommence during the third quarter of 2019 with partial in-service now expected in late 2020 and full in-service in early 2021.  Based on that schedule, the company now expects the project cost to be between $7.0 and $7.5 billion, excluding financing costs.  Similarly, the company currently expects the Supply Header project to enter commercial service in late 2020 at a project cost of $650 to $700 million.

Thomas F. Farrell, II, chairman, president and chief executive officer, said: “We remain highly confident in the successful and timely resolution of all outstanding permit issues as well as the ultimate completion of the entire project.  We are actively pursuing multiple paths to resolve all outstanding permit issues including judicial, legislative, and administrative avenues.  We will continue to accrue AFUDC equity earnings and expect ACP to contribute to our operating earnings in 2019, 2020 and for decades to come.”

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On Friday, CenterPoint Energy, Inc. and Vectren Corporation announced the successful completion of their merger. The combined company, which is named CenterPoint Energy and headquartered in Houston, has regulated electric and natural gas utility businesses in eight states that serve more than 7 million metered customers and a competitive energy businesses’ footprint in nearly 40 states.

With the merger, CenterPoint Energy has assets totaling approximately $29 billion, an enterprise value of $27 billion and approximately 14,000 employees. CenterPoint Energy’s businesses include:

CenterPoint Energy will continue to trade under the ticker symbol “CNP” on the New York Stock Exchange (NYSE) and the Chicago Stock Exchange.

Under the terms of the merger agreement, which was announced on April 23, 2018, Vectren shareholders will receive $72.00, along with a prorated dividend of $0.41145, in cash for each share of Vectren common stock owned as of the close of business on Feb. 1, 2019. Additionally, Vectren common stock, which previously traded under the ticker symbol “VVC,” has ceased trading on and was delisted from the NYSE effective today.

“I look forward to watching the newly combined company thrive in this evolving industry,” said Carl Chapman, outgoing Vectren chairman, president and chief executive officer. “CenterPoint Energy was the right partner for Vectren and I am confident this merger will have a positive impact on all stakeholders. I sincerely thank the employees and shareholders who have been part of the Vectren journey.”

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On Friday, Chesapeake Energy Corporation announced that it has completed its acquisition of WildHorse Resource Development Corporation. The merger was previously approved by Chesapeake shareholders and WildHorse stockholders at special meetings held on January 31, 2019.

At the election of each WildHorse common stockholder, the consideration consisted of either 5.989 shares of Chesapeake common stock (the “share consideration”) or a combination of 5.336 shares of Chesapeake common stock and $3.00 in cash (the “mixed consideration”), in exchange for each share of WildHorse common stock. 

As a result of the merger, WildHorse common stock will no longer be listed for trading on the New York Stock Exchange.

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With most interstate pipelines removing cold weather-related operational flow order notices over the weekend, Monday’s review of the interstate gas pipeline bulletin boards promises a calmer week ahead:

ANR Pipeline:

Update: ANR continues the unplanned compressor maintenance at its Mooreland Compressor Station located in Woodward County, Oklahoma, in the Southwest Area (Zone 4). During the period of Feb 1- 9, ANR Shippers can expect higher than normal pressures in the pipeline segment upstream of the Mooreland Compressor Station.

Since the last posting, ANR has made the following changes. The outage was extended from Feb 5 to Feb 9. This posting will be updated as more information becomes available.

Also on ANR:

Due to compressor repairs at the Eunice Compressor Station located in the Southeast Area Segment (Zone 1), ANR will limit the Eunice Eastbound (LOC #226641) capacity to the following.

Eunice Eastbound capacity restriction (LOC #226641):

By 40-MMcf/d (leaving 548-MMcf/d available) 2/1 – 3/31

ANR has made the following changes since the last posting. Updated the operationally available capacity from 400-MMcf/d to 548-MMcf/d. There is no further capacity impact required for the Patterson Compressor Station planned maintenance. The RIVERWAY(TO BRIDGELINE) (LOC #42593) 100-MMcf/d limitation has been lifted. The ST. MARTINVILLE TO LRC (Loc #218192) and WEEKS ISLAND (LOC #233620) firm primary only restrictions have been lifted.

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

Dominion Energy Transmission:

Subject: TL-400 Restrictions Lifted Effective ID1

Due to warmer weather forecast, effective ID1 of Gas Day, Monday, February 04, 2019, DETI will accept Secondary and IT transport for deliveries west of Gilmore Compressor Station (Ohio). 

Kern River Transmission:

Colder weather and higher demand are forecasted in Kern River’s market areas through Friday, February 8, 2019. Therefore, Kern River requires all shippers and receipt and delivery point operators align their daily scheduled nominations with physical receipts and deliveries to ensure Kern River’s line pack is maintained at current operating levels.

Customers should visit Kern River’s Daily Operational Report (DOR) at http://services.kernrivergas.com to monitor system conditions and other important information.

Natural Gas Pipeline Company of America (NGPL):

SEGMENTS 33/36 – MARKET AREA –OPERATIONAL CAPACITY AVAILABLE 

Effective for gas day Tuesday, February 5, 2019, and continuing until further notice, Natural has operational capacity available for gas delivered into the Market Area on Segment 33, downstream of Compressor Station 113, and on Segment 36, downstream of Compressor Station 201.  AOR/ITS, Secondary in-path and Secondary out-of-path transport services are available for deliveries to Segment 33 and Segment 36.

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The National Weather Service temperature forecast for the next week to ten days shows that the Northwest, Rockies, and Upper Great Lakes are expected to see below average temperatures while the above-normal temperatures may linger across the South and Mid-Atlantic regions through the middle of February.  The Northeast and New England are expected to return to normal temperatures for this time of year.

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

Edition 27 – Thursday, January 3, 2019

Happy New Year!  Welcome into 2019 with GasNewsOnline.com!   We review the latest natural gas pipeline and energy news from publicly available sources and summarize it here. 

Over the holidays, the weather has been less than frigid across much of the country.  Unfortunately, natural gas prices are starting to feel the pinch as the NYMEX natural gas futures price for February has dived below $3/MMBtu already. Caveat emptor!

We’ll take a look at the upcoming weather forecast just a bit later, but let’s start with a few large corporate deals consummated as we begin 2019. 

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On Wednesday, Dominion Energy, Inc. and SCANA Corporation announced that they have completed their proposed merger, benefiting customers and communities in Georgia, North Carolina and South Carolina.

“Dominion Energy is pleased to add SCANA’s fast-growing, high-performing Southeastern businesses to our 18-state footprint,” said Thomas Farrell, Dominion’s chairman, president, and chief executive officer. He added, “Together, we are committed to providing safe, dependable, affordable and clean energy to the communities served by SCANA and to maintaining its excellent record of reliability and customer service.”

The combination expands Dominion Energy’s operations in Georgia and the Carolinas, where the company had already operated an electric utility serving 120,000 customer accounts in northeastern North Carolina, a 1,500-mile interstate pipeline principally in South Carolina, and nearly 1,000 megawatts of gas, hydro and solar generating capacity in all three states.

SCANA Corporation will be a first-tier, wholly owned subsidiary of Dominion Energy. Its operating companies – including South Carolina Electric & Gas Company (SCE&G), Public Service Company of North Carolina, Incorporated (PSNC Energy), and SCANA Energy Marketing, Inc. (SEMI) – and its services company will be managed by a new operating segment, the Southeast Energy Group.

At the merger’s completion, each SCANA share was converted into 0.6690 shares of newly issued Dominion Energy common stock. The conversion resulted in a transaction value of approximately $6.8 billion, in addition to the assumption of approximately $6.6 billion in existing consolidated SCANA net debt.

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Also on Wednesday, Sempra Energy announced that its subsidiary has entered into an agreement to sell its non-utility U.S. natural gas storage facilities to an affiliate of ArcLight Capital Partners (ArcLight) for $332 million in cash, subject to adjustments for working capital. The facilities will become part of the Enstor natural gas storage platform, which ArcLight acquired in 2018.

The gas storage assets included in the sale to ArcLight are the Mississippi Hub storage facility in Simpson County, Miss., with a working capacity of 22.3 billion cubic feet (Bcf) of natural gas, and the Bay Gas storage facility in Southwest Alabama, which comprises five underground caverns with a working capacity of 20.4 Bcf of natural gas.

The sale of the non-utility natural gas assets to ArcLight is expected to be completed in the first quarter 2019, subject to customary closing conditions. At closing, ArcLight will own 100 percent of the Mississippi Hub and Bay Gas storage facilities. 

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With much of the United States getting a brief respite from the cold weather, there are fewer critical notices from the interstate gas pipeline companies posted on their electronic bulletin boards.  Let’s check out a few:

Algonquin Gas Transmission:

AGT Operational Flow Order

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, January 6, 2019, to all parties, with the exception of those Operational Balancing Agreements required by FERC regulations, on the AGT system. 

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

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

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

Dominion Energy Questar Pipeline

Beginning Gas Day January 4, 2019 total withdrawal capacity from Clay Basin will be 540 Mdth/d. Northwest Pipeline withdrawal capacity will be 320 Mdth/d. Injection capacity will be 200 Mdth/d plus 25 Mdth/d Park and Loan for a total of 225 Mdth/d. 

Please contact your Marketing and Contracting representative or the Customer Services hotline at 801-324-5200 should you have questions.

El Paso Natural Gas:

WARNING OF STRAINED OPERATING CONDITION (SOC) – DRAFT

Currently the EPNG system is experiencing a high draft condition. Linepack currently is at 7,650 MMcf to start the morning but falling due to significant deliveries in excess of scheduled quantities.  The continued draft of the EPNG system could lead to a low linepack condition.

Washington Ranch is on maximum operational withdrawal given the pipeline constraints through Guadalupe.

Delivery point operators are encouraged to review their transport to ensure that their takes are in balance with their supplies and to ensure their scheduled supplies are performing as expected.  If the situation fails to improve, EPNG will declare an SOC for a DRAFT condition.

Underperformance caps have been placed and will continue to be placed on underperforming supplies.

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

For scheduling questions, please call your scheduling representative at (800) 238-3764.

Northern Border Pipeline:

Northern Border OFO Watch (Posted 1/02/19)

Due to cumulative operational imbalance issues, Northern Border Pipeline is posting an OFO Watch for the following locations: Aberdeen (DRN# 19589) Grundy Ctr (DRN# 120859) Hazel (DRN# 1395646) Ivanhoe (DRN# 92252) Ledyard (DRN# 98993) Marshall (DRN# 11936) Ventura (DRN# 4680) Webster (DRN# 92254) Welcome (DRN# 11958) Westbrook (DRN# 112525)

The issuance is per Northern Border Tariff Section 6.10.6 Interruption of Service.

The OFO Watch is effective immediately and extends through gas day January 8th, in order to allow the interconnecting parties to remediate the cumulative operational imbalance issue. If an interconnect operator is unable to remediate the issue within the given timeframe, Northern Border will, pursuant to Northern Border Tariff Section 6.10.6 Interruption of Service, issue an OFO requiring curtailment of interruptible services and/or forced balancing of nominations and actual flows at these interconnects.

Interconnecting parties should contact Gas Control with to arrange payback on OBA imbalances: Loren Charbonneau 832-320-5674

Southern Natural Gas:

January 2, 2019

To All Southern Natural Gas Company Shippers

RE: Open Season Announced for Firm Transportation (FT)/Expansion 

Southern Natural Gas Company, L.L.C. (“SNG”) has placed into service its Fairburn expansion project and new interconnection with Transcontinental Gas Pipe Line (“Transco”) in Fayette County, GA (receipt pin 50069, Transco/SNG, Fayette County, GA). As a result, approximately 15,000 dth/day of incremental firm transportation capacity is available from this new interconnect to delivery locations on (i) SNG’s North Main Line as far west as the AGL-SNG Atlanta Suburbs Area (pin 940018), and (ii) along SNG’s South Main Line, west of SNG’s Thomaston compressor station, including limited deliveries to the South Georgia Lateral. Of this quantity, approximately 5,000 dth/day is also available as far east as the AGL-SNG West Macon Area Point (pin 940055), east of the Thomaston Compressor Station.

This open season is being made to solicit short term bids for the aforementioned 15,000 dth/day which will be operationally available for the remainder of the winter season (a period ending April 30, 2019). The capacity available to be awarded may not be available in the same increments to all locations along SNG’s South Main Line. SNG reserves the right to reject any bids at less than maximum tariff rate.  Any shippers interested in a term longer than April 30, 2019 should contact their Account Manager or Darryl Outlaw.

This open season will commence as of the date and time this notice is posted and end at 10:00 a.m. CCT on January 8, 2019.

Transwestern Pipeline:

1/02/19 – Pipeline Conditions – Low Line Pack – Cold Weather

Transwestern is working to maintain and/or increase current line pack. This notice is due to cold weather in the Permian and the San Juan basins this week.

Customers are encouraged to review their transport to ensure that their flowing quantities are aligned with their scheduled supplies and to ensure their scheduled supplies are performing as expected.

Correspondingly, Transwestern plans to issue Under Performance Cut Notices to Receipt Point Operators that are flowing less gas into Transwestern than scheduled.

Any such UPR cuts will be handled by separate notices.

No Make-Up Deliveries or over burns due to operational concerns related to maintaining adequate line pack.

If you have any questions, please contact Gas Control or your Marketing Representative.

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If the six-to-ten day temperature forecast holds, then January’s typical cold weather will have to wait a bit longer.  The National Weather Service map shows warmer than seasonal weather for nearly all of the US through mid-month.  Golf, anyone???

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