Thursday, May 2, 2019

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

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

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

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

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

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

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

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

Algonquin Gas Transmission:

In order to maintain the operational integrity of the system, Algonquin Gas Transmission, LLC (AGT) is issuing an Operational Flow Order (OFO) pursuant to Section 26 of the General Terms and Conditions of AGT’s FERC Gas Tariff effective 9:00 AM CCT, May 2, 2019, to all parties, with the exception of those Operational Balancing Agreements required by FERC regulations, on the AGT system.

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

During the effectiveness of this OFO, all parties must be balanced such that actual deliveries of gas out of the system must be equal to or less than scheduled deliveries. The penalty shall apply to each dekatherm of actual delivery quantities that exceeds the greater of 4,000 Dth or 104% of scheduled delivery quantities. The penalty will be equal to three times the daily Platts Gas Daily “Daily Price Survey” posting for the High Common price for “Algonquin, city-gates” for the day on which such violation occurred as indicated in AGT’s General Terms and Conditions Section 26.8. In addition, AGT will not permit retroactive nominations to avoid an OFO penalty.

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

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

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

This OFO will remain in effect until further notice.

ANR Pipeline:

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

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

Bridgman Northbound (LOC #226632):

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

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

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

Colorado Interstate Gas (CIG):

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

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

Dominion Energy Transmission:

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

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

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

Gulf South Pipeline:

Hall Summit Expansion Compressor Station Maintenance: 

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

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

Natural Gas Pipeline Company of America (NGPL):

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

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

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

Southern Natural Gas:

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

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

We request that all Shippers/Poolers monitor the balance between actual receipts and deliveries to ensure that a daily out-of-balance situation does not occur.  Additionally, SNG requests all payback be nominated. 

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

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

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

Thursday, April 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.  

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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.

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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.”

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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.

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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.

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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 22, 2019

Happy Earth Day from GasNewsOnline.com!

April temperatures are starting to rise around the country as the annual springtime warm-up is underway.  Today, we’ll take a look at the latest energy news, scan the interstate natural gas pipeline grid, and bring you an update on the six-to-ten day temperature forecast from the National Weather Service

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From the US Energy Information Administration’s “Natural Gas Weekly Updatepublication:

Net natural gas injections into storage totaled 92 billion cubic feet (Bcf) for the week ending April 12. Working natural gas stocks are 1.247 Tcf, which is  25% 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 21¢/MMBtu, averaging $6.15/MMBtu for the week ending April 17. The price of ethane, propane, butane, isobutane, and natural gasoline all rose, by 7%, 4%, 2%, 2% and 1%, respectively.

According to Baker Hughes, for the week ending Tuesday, April 9, the natural gas rig count decreased by 5 to 189. The number of oil-directed rigs rose by 2 to 833. The total rig count decreased by 3, and it now stands at 1,022.

At the New York Mercantile Exchange (Nymex), the price of the May 2019 contract increased by a few cents on Monday to about $2.53/MMBtu. The price of the 12-month strip averaging May 2019 through April 2020 futures contracts is now about $2.75/MMBtu.

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ExxonMobil said today that it signed a sales and purchase agreement with Zhejiang Provincial Energy Group for liquefied natural gas (LNG) supply. Under the agreement, Zhejiang Energy is expected to receive 1 million metric tons per annum of LNG over 20 years as Zhejiang Energy will build a Wenzhou LNG receiving terminal.

“This sales and purchase agreement represents an important milestone and provides a solid foundation for our strategic partnership with Zhejiang Provincial Energy Group,” said Peter Clarke, senior vice president of LNG at ExxonMobil.

“ExxonMobil shares Zhejiang Energy’s vision in developing a major LNG gateway in the Ningbo-Zhoushan region,” Clarke said. “We look forward to continuing our support for Zhejiang Energy during the construction, commissioning and operation of its Wenzhou LNG receiving terminal.”

With a long-term commitment to China, ExxonMobil expects to help meet China’s energy needs through its products, technologies, partnerships and investments.

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American Electric Power today announced that its competitive renewable energy subsidiary, AEP Clean Energy Resources, has completed the purchase of Sempra Renewables LLC and its 724 megawatts (MW) of operating wind generation and battery assets for approximately $1.05 billion. AEP will pay Sempra $584 million in cash, which includes $33 million in working capital, and assume $470 million in existing project debt and tax equity obligations, subject to adjustments.

The purchase includes 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.

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 Power Purchase Agreements with two of the wind farms.

AEP Renewables also recently signed a separate agreement to purchase a 75 percent interest (227 MW) in the Santa Rita East Wind Project currently under construction west of San Angelo, Texas. AEP Renewables will acquire its share of the project upon completion, which is expected in June.

With this acquisition, AEP’s competitive renewable generation portfolio has grown to 1,075 MW of renewable generation in 11 states. It will increase to 1,302 megawatts upon completion of the Santa Rita project.

AEP plans to cut its carbon dioxide emissions 80 percent from 2000 emission levels by 2050. The company is developing a more balanced portfolio of power generation to help achieve this target. AEP’s generation capacity has gone from 70 percent coal-fueled in 2005 to 46 percent today. Its natural gas capacity increased from 19 percent in 2005 to 27 percent today, and its renewable generation capacity has increased from 4 percent in 2005 to 16 percent today. AEP’s nuclear generation capacity has increased from 6 percent in 2005 to 7 percent today.

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Late last week, Southern Power, a wholesale energy provider and subsidiary of Southern Company, announced that it has entered into an agreement to sell the Nacogdoches Generating Facility to Austin Energy for $460 million.

Southern Power began commercial operation of the Nacogdoches Generating Facility (located about 30 miles NW of Nacogdoches, Texas) in 2012. The 115-megawatt (MW) plant serves electricity needs in Austin, Texas under a long-term power purchase agreement with Austin Energy.  

“The Nacogdoches Generating Facility is one of the largest wood-fired biomass plants in the United States and has been a part of Southern Power’s generation fleet since 2012, demonstrating strong operating performance,” said Southern Power President and CEO, Mark Lantrip.

The $460 million purchase price is subject to customary closing adjustments. The transaction is expected to close in mid-2019, subject to customary closing conditions. Proceeds will be used to strengthen the balance sheet of Southern Company, help meet projected equity needs and further de-risk financing plans.

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After a busy Easter weekend of natural gas pipeline critical notices, there were noticably fewer postings on the pipeline grid to begin the week on Monday.

Dominion Energy Transmission:

Reminder: Limited Daily and Hourly Flexibility:

Due to forecasted temperatures and customer requirements, DETI has determined that daily and hourly flexibility is very limited. Excess takes – daily and hourly – may cause reduced pressures in various areas of the DETI system and jeopardize DETI’s ability to meet its firm service obligations.

Effective immediately, and until further notice, DETI hereby issues a reminder of the prior Alert (prior notice ID 213177) to request the following:

Buyers under DETI’s transportation rate schedules are requested to the extent possible to deliver to DETI and receive natural gas on a uniform hourly flow basis during the day (or 1/24th of the scheduled confirmed nominations for the applicable day or other pre-authorized hourly flow rates accepted by DETI). Any such requests shall be directed to your Interstate Marketing Manager.

In addition, Power Plant Operators are reminded that they must continue to provide information mandated by FERC Order No. 698, which includes the hourly consumption profile of power generation facilities served by DETI. DETI will continue to review and approve the Order No. 698 burn profiles pursuant to the procedures distributed to each agent/power generator and posted on DETI’s EBB. DETI will consider requests for hourly low flexibility on a not unduly discriminatory basis, subject to the projected availability of operational capability and provided further, that the additional flexibility will not impair Operator’s ability to render other nominated and scheduled firm services. Power Generators should direct their requests to the DETI Power Desk. Failure to comply with this Alert could result in the issuance of an OFO.

Southern Natural Gas:

Southern has experienced an unscheduled unit outage at the Muldon compressor station (Mississippi). As a result of this outage, Muldon storage injection capacity of 345 Mdth/d will be limited to 230 Mdth/d.  Return to service is unknown at this time.

We will continue to provide updates as more information is known.

Texas Gas Transmission:

Planned Maintenance – Harrison (Ohio) compressor station

Begins:  June 11, 2019            Ends: June 14, 2019

Texas Gas will be performing turbine inspection maintenance at the Harrison Compressor Station (Ohio). Capacity will be limited to 525,000 MMBtu south through the station for the duration of the maintenance.

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

TransColorado Gas Transmission:

Force Majeure Declared at Blanco Hub Compressor Station – Segment 310

TransColorado Gas Transmission Company, LLC (TC) has experienced a mechanical failure at its Blanco Hub Compressor Station that is affecting TD2 (North Bound) flow.  As such, TC is declaring an event of Force Majeure pursuant to TC’s FERC Gas Tariff, General Terms and Conditions, Section 14.

Effective Timely Cycle (Cycle 1), Gas Day Tuesday, April 23rd, 2019, capacity at Blanco Hub Compressor Station will be reduced from 250,000 Dth/day to 150,000 Dth/day in a backhaul direction (South to North).  This reduction will be in effect until further notice.

For scheduling questions, please contact the Nominations and Scheduling hotline at 1-800-238-3764 option 2.

Transcontinental Gas Pipe Line Company (Transco):

The Operational Flow Order – Imbalance (OFO) currently in effect on the Transco system in Zones 4, 5, & 6 was terminated effective with the start of gas day Monday, April 22, 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.

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The six-to-ten day temperature forecast from the National Weather Service is showing that the northern tier of states along the entire I-80 and I-90 corridors east to west will see cooler than average temperatures in early May.  Meanwhile, expectations are that warmer than seasonal temperatures can be expected across the Southeast, South Central, and desert Southwest early in 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 Podcasts.  Subscribe today – it’s FREE

Monday, April 1, 2019

Welcome to GasNewsOnline.com!  With today being the first day of April, it also marks the official end of the traditional natural gas pipeline winter season, too. 

The National Weather Service temperature forecast is also predicting a rise in springtime temperatures coming by next weekend, too!  We’ll cover the weather at the end of this post, so let’s get started with latest energy news: 

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Vanguard Natural Resources, Inc. (together with its wholly owned subsidiaries, collectively, “Vanguard” or the “Company”) today announced that the Company has voluntarily filed petitions for relief under chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the Southern District of Texas, Houston Division (the “Court”).

The Company has obtained a committed $130 million debtor-in-possession financing facility (the “DIP Facility”), which contemplates $65.0 million in new money, up to $20.0 million of which will become immediately available upon Bankruptcy Court approval and $65.0 million of which will roll up obligations in respect of revolving loans under the Company’s existing credit agreement.  The DIP Facility is underwritten by Citibank, N.A. Subject to Court approval, this DIP financing, combined with the Company’s cash from operations, is expected to provide sufficient liquidity during the chapter 11 cases to support its continuing business operations and minimize disruption.

Mr. R. Scott Sloan, President and CEO, commented, “The restructuring steps that we have announced today are necessary to attain a capital structure which is suitable for Vanguard’s assets and future business strategy.  We are now focused on expediting an efficient in-court restructuring, maintaining our operational momentum and upholding our obligations to our employees and vital vendors and stakeholders.”

Vanguard has filed a series of motions with the court that, when granted, are expected to generally enable the company to maintain its operations as usual throughout the restructuring process. Included in these first day motions are requests to continue to pay employee wages, honor existing employee benefit programs, continue to pay taxes, and pay royalties to mineral owners under the terms of the applicable agreements.

The Company has also filed motions seeking authority to pay expenses associated with its operations and drilling and completion activities, as well as costs associated with gathering, processing, transportation, marketing and those related to joint interest billing for non-operated properties.

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Over the weekend, Sempra Energy announced that its LNG subsidiary Energía Costa Azul (ECA) LNG received two authorizations from the U.S. Department of Energy (DOE) to export U.S. produced natural gas to Mexico and to re-export liquefied natural gas (LNG) to countries that do not have a free-trade agreement (non-FTA) with the U.S., from its Phase 1 and Phase 2 liquefaction-export facilities in development in Baja California, Mexico.

“The authorizations are another step forward in the development of this project that could bring many benefits for Mexico, U.S. natural gas producers and our customers and partners in greater Asia,” said Carlos Ruiz Sacristán, chairman and CEO of Sempra North American Infrastructure. “We are pleased to continue to advance the development of ECA LNG, which can uniquely meet the energy needs of isolated markets in Mexico and customers in Asia.”

ECA LNG Phase 1 development opportunity is a single train LNG facility to be located adjacent to the existing LNG receipt terminal. It is expected to utilize current LNG storage tanks, marine berth and associated facilities. Phase 2 of the project will include the addition of two trains and one LNG storage tank. The DOE authorizations allow the export of 636 billion cubic feet (Bcf) a year of U.S. sourced LNG from these infrastructure projects. Phase 2 of the project will require additional DOE approval in order to export its full expected capacity.

The existing ECA receipt terminal was the first LNG receipt terminal constructed on North America’s West Coast. Located about 15 miles north of Ensenada, Baja California, it began commercial operations in 2008 and is capable of processing up to 1 Bcf of natural gas per day.

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There were a variety of critical interstate natural gas pipeline postings for the week(s) ahead. Let’s check the latest from the interstate pipeline grid:

ANR Pipeline:

ANR is performing planned compressor maintenance at the Brownsville (Tennessee) Compressor Station located in the Southeast Southern Segment (Zone 2). The total Brownsville Southbound capacity will be reduced by the following:

Brownsville Southbound (LOC #1260569):

230-MMcf/d (leaving 900-MMcf/d available) 4/22 – 4/26

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

Colorado Interstate Gas (CIG):

Colorado Interstate Gas Company’s (CIG’s) Totem Storage Field will undergo scheduled reservoir maintenance commencing on May 2, 2019 and continuing through May 9, 2019. Pursuant to GT&C, Section 11.6 of CIG’s FERC Gas Tariff, no injections or withdrawals will be supported at the Kiowa Creek Meter Station (800338-KCS) during the reservoir maintenance period.

Dominion Energy Transmission:

Due to current and anticipated system conditions, customers are reminded to monitor contractual storage entitlements and take the necessary steps to manage deliveries within those firm entitlements. Transportation customers are also advised to equalize receipts and deliveries so as to minimize imbalances on DETI’s system. Capability for over-withdrawals, short-term loans, and park payback activity are expected to be very limited or possibly not available. They may be subject to allocation or potential penalties if warranted by an OFO, in accordance with the terms of DETI’s tariff.

Dominion Energy Questar Pipeline:

Dominion Energy Questar Pipeline, LLC (DEQP) has updated the 2019 Construction and Maintenance Schedule located on DEQP’s website.

Period: April
Category: Reservoir Test
Preliminary Dates: April 2 – 10
Location: Clay Basin
Project: Annual Withdrawal Test
Possible Customer Impact: April 2, constant 275 MMcf/d WD rate
April 3, constant 325 MMcf/d WD rate   and April 4-10, Reservoir shut-in
Duration: 9 days

Gulf South Pipeline:

Harrisville (Mississippi) Compressor Station Maintenance:  Begins April 15 – Ends April 20, 2019

Expansion Area 19 Delivery Scheduling Group

Based on current nominations, capacity could be impacted by up to 200,000 dth/d to all services other than primary firm for the duration of the maintenance. Please contact your customer service representative if you have any questions.

Southern Natural Gas:

The planned unit outages at the Thomaston (Georgia) compressor station that was scheduled for 3-27-19 and 3-28-19 has been rescheduled to 4-3-19 and 4-4-19.

Segment 490 (Thomaston C/S) capacity of 1,502 Mdth/d could be impacted up to 114 Mdth/d.  IT and Out of Path nominations could be impacted depending on demand.

Tennessee Gas Pipeline:

OFO DAILY CRITICAL DAY 1 FOR ALL AREAS SOUTH OF STA 1 EFFECTIVE 4-1-19

Due to upcoming scheduled maintenance, in order to protect system integrity and firm service obligations,for the Gas Day of Monday, April 1, 2019, Tennessee is implementing an OFO Daily Critical Day 1 for all areas south of STA 1 (South Texas) for all Balancing Parties (including LMS-PA, SA contracts acting as balancing parties, LMS-MA, and LMS-PL balancing parties).  This action is pursuant to Article X, Section 4 of the General Terms and Conditions of Tennessee’s FERC Gas Tariff.  

All delivery point operators in all areas south of STA 1 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 in all areas south of STA 1 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.

Also from Tennessee Gas:

TGP SUMMER MAINTENANCE/ WEBEX UPDATE 4-16-19

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 May, June and July 2019 on Tuesday, April 16, 2019, from 1:30 PM  CCT to 2:30 PM CCT via WebEx only.  There will be a question and answer segment immediately following.  Please review the Tennessee Gas Pipeline EBB posting dated April 1, 2019 for more details.

Texas Eastern Transmission:

Texas Eastern (TE) is providing the following update on its progress to return partial service to the 30 inch pipeline system following the incident that occurred on Line 10 on Monday, January 21, 2019 in Noble County, OH between its Berne and Athens compressor stations. The progress report is as follows:

Eastbound capacity through TE’s Uniontown compressor station remains at approximately 4,500,000 Dth/d and southbound capacity through Berne remains at approximately 1,600,000 Dth/d.

As previously posted, TE is currently evaluating the integrity of Line 15 immediately south of Berne (valve section 7) as well as Line 10 between Athens and Uniontown. There are various factors that could potentially change the projected return to full service date, such as but not limited to: weather conditions, receipt of any necessary regulatory approvals and any unforeseen existing pipeline conditions that could lengthen the work schedule.

Based on progress made to date, TE projects that:

Line 10 between Holbrook to Uniontown is targeted for returned to full service by the middle of May. At that time, eastbound capacity through Uniontown would be restored to full capacity.

Athens to Holbrook Line 10 and Athens to Berne Line 15 Valve Section 7 is targeted for return to service between April 3 and April 6.

Transcontinental Gas Pipe Line Company (Transco)

On March 26, 2019, the Commission approved the fuel percentages included in Transco’s annual fuel tracker filing proposed effective April 1, 2019. The revised fuel retention percentages can be found in the rates matrices contained in Transco’s 1Line Informational Postings –Regulatory section.

Transwestern Pipeline:

Thoreau Mainline West System Capacity – Station 4 (Arizona) – Unit 402 Compressor re-grout project.

Effective:  Gas Day April 9th thru April 30th, 2019 (22 Days)
Thoreau Mainline West System capacity will be reduced from 1,240,000 MMBtu/d to approximately 1,100,000 MMBtu/d.   Based on current scheduled volumes on the Thoreau Mainline West System, this maintenance may not impact any scheduled volumes during this timeframe.

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The updated National Weather Service six-to-ten day temperature forecast shows an April warm-up is on the way for next week.  Temperatures should rise above seasonal averages for all portions of the continental United States except for portions of the Pacific Northwest.  Get your lawn mower ready!

That’s all for this Monday edition of GasNewsOnline.com.  We’ll return Thursday to provide an update on the interstate gas pipeline conditions expected for the weekend. 

Please let your friends in the natural gas scheduling and transportation business know about us!  Also, our companion audio podcast is available via Apple Podcasts.  Subscribe today – it’s FREE

Monday, March 25, 2019

Welcome to GasNewsOnline.com!  As spring temperatures rise, some of the natural gas pipeline companies are ready to “spring” some increases in transportation fuel rates soon.  But first, let’s check the latest energy news for this Monday.

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Energy Transfer LP and Shell US LNG, LLC (Shell) today signed a Project Framework Agreement (PFA) that provides the framework to further develop a large-scale LNG export facility in Lake Charles, Louisiana toward a potential final investment decision (FID). In addition, the parties have started actively engaging with LNG Engineering, Procurement and Contracting (EPC) companies with a plan to issue an Invitation to Tender (ITT) in the weeks ahead.

 “Lake Charles presents a material, competitive liquefaction project with the potential to provide Shell with an operated LNG export position on the U.S. Gulf Coast by the time global supply is expected to tighten in the mid-2020’s,” said Frederic Phipps, Shell’s Vice President, Lake Charles LNG. “Our partnership with Energy Transfer plays to our respective strengths. Together, we are expertly positioned to advance a project that could provide customers in Asia, Europe and the Americas with cleaner, reliable energy for decades to come.”

The PFA defines the commercial terms by which the two companies will work toward delivering an LNG export facility on the U.S. Gulf Coast. Shell will act as the Project Lead prior to the companies reaching an FID, and if sanctioned, as construction manager and operator of the facility. Energy Transfer will act as Site Manager and Project Coordinator prior to FID. The decision to make an affirmative FID to proceed with construction of the project will be subject to both companies’ assessment of the outcome of the EPC bidding process, overall project competitiveness and global LNG market conditions at the time of such decision.

The Lake Charles project is a 50/50 venture between Energy Transfer and Shell. The project, if sanctioned through an affirmative FID, would convert Energy Transfer’s existing Lake Charles LNG import and regasification terminal to an LNG export facility with a liquefaction capacity of 16.45 million tonnes per annum to export U.S. natural gas to global customers. The project is fully permitted, uses existing infrastructure and benefits from abundant natural gas supply and proximity to major pipeline infrastructure, including Energy Transfer’s vast pipeline network. If built, the project is estimated to create up to 5,000 local jobs during construction and 200 full-time positions when fully operational.

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

At the New York Mercantile Exchange (NYMEX), the price of the April 2019 contract on Monday was up slightly at nearly $2.76/MMBtu. The price of the 12-month strip averaging April 2019 through March 2020 futures contracts is now down to about $2.94/MMBtu.

Net withdrawals from working gas in storage totaled 47 billion cubic feet (Bcf) for the week ending March 15. Working natural gas stocks are 1.143 Tcf, which is 33% lower than the five-year (2014–18) average for this week.

According to Baker Hughes, for the week ending Tuesday, March 12, the natural gas rig count remained flat at 193. The number of oil-directed rigs fell by 1 to 833. The total rig count decreased by 1, and it now stands at 1,026.

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Several interstate natural gas pipeline companies are saying “April Fuel’s!” as rates may be changing for some transporters beginning April 1:

ANR Pipeline:

Southeast Mainline Capacity Reduction (Lifted 3/25/19)

ANR has completed the planned pipeline maintenance north of its Celestine compressor station along its Southeast Mainline in the Southeast Southern Segment (Zone 2). Effective Gas Day March 26th at the Evening Nomination Cycle, the Cottage Grove Southbound (LOC #505614) restriction is lifted.

Also from ANR:

ANRPL Transporter’s Use (%) effective April 1, 2019

In anticipation of FERC’s approval and to provide customers with adequate time to plan April 2019’s business, ANR’s GEMS system has been updated with the annual 2019 Transporters Use (%) that was filed with FERC on February 28, 2019 and nominations for April 1, 2019 forward can now be submitted.

For customers who have already submitted nominations for April 2019, please review your nominations and if necessary make changes to ensure your receipt and delivery quantities align with your supplies and markets.

Dominion Energy Transmission:

Effective start of gas day Tuesday, March 26, 2019, and continuing until further notice, DETI will not schedule any IT or Non PL-1 firm transportation on its PL-1 system.

This includes deliveries at the following locations: Texas Eastern Perulack 40209; Columbia of Pennsylvania (Pleasant Gap) 21305; Texas Eastern Chambersburg (East Coast) 40201; Texas Eastern Chambersburg (PL-1) 40202; Texas Eastern Steckman Ridge 40224; Baltimore Gas and Electric 22000; Washington Gas and Light 23500; Dominion Cove Point Loudoun 40704; Transco Nokesville 40303; Virginia Natural Gas 22400; Doswell 22500; City of Richmond 22600; VA Electric & Power 22700; Columbia of Virginia 22800; VEPCO (Lady Smith) 22900; Genon Mid-Atlantic (Dickerson) 30016; Panda Stonewall 30230;

PL-1 customers with delivery points north of Leesburg compressor station may not effectuate deliveries to any PL-1 point south of Leesburg.

PL-1 customers with delivery points south of Leesburg compressor station may effectuate deliveries to PL-1 points both north and south of Leesburg. DETI can effectuate secondary and IT deliveries to points north of Leesburg compressor station if sourced from the receipt of DETI-Loudoun (40704) or Transco-Nokesville (40303) via displacement.

DETI can effectuate secondary and IT deliveries to points south of Leesburg compressor station if sourced from the receipt of Transco-Nokesville (40303) via displacement.

Please note that “Unauthorized Overrun Charges – Daily” rate of $10.00/dth will apply to deliveries made in excess of FT and FTNN entitlements while these restrictions are in place.

Egan Hub Storage:

Egan Hub Storage (Egan) will be conducting maintenance beginning Gas Day April 5, 2019 and continuing through Gas Day April 11, 2019, which will impact Kinder Morgan MR 45122.

During this outage Egan will be unable to accept withdrawals for delivery to Kinder Morgan however; injections from Kinder Morgan will not impacted. As a result, Egan may be required to restrict withdrawal nominations at MR45122 to a net zero withdrawal position.

Enable Gas Transmission:

This Operational Alert is being issued pursuant to Section 20, GT&C, of EGT’s Tariff, to notify shippers of unplanned maintenance at EGT s Chandler Compressor Station. 

Effective immediately, March 25, 2019, EGT will begin the unplanned maintenance on the Chandler Compressor Station, located in Latimer County, Oklahoma and in EGT’s Neutral Pooling Area.

EGT anticipates impacts to IT, Secondary services, and potentially Primary services.  During the unplanned maintenance, shippers with receipts West of Chandler should nominate point-to- point to maintain the highest priority level of service.

Should any of the details of this plan change, EGT will notify shippers by updating this posting.  EGT will schedule nominations on each impacted day in accordance with its Tariff.  This alert will remain in effect until further notice.

Florida Gas Transmission:

APRIL 2019 — FGT SUPPLY AREA MAINTENANCE IN ZONE 3

FGT will continue pipeline maintenance near FGT Compressor Station 10. This maintenance is expected to continue through the end of gas day April 30, 2019.  During this maintenance FGT will schedule up to 1,150,000 MMBtu/day through Station 10. During normal operations FGT schedules up to 1,300,000 MMBtu/day through Station 10.

Midwestern Gas Transmission:

On March 1, 2019, Midwestern Gas Transmission Company (Midwestern) filed a revised Statement of Rates to reflect an annual change to the Fuel Retention Percentage (FRP) Rate.  The Fuel Retention Percentage filed is 0.98 percent for rate schedules FT-A, FT-B, FT-C, FT-D, FPAL, and PAL. The proposed FRP filed is inclusive of a Loss Percentage of 0.16 percent.

The FRP filing is still pending with the Federal Energy Regulatory Commission (Commission) with a requested effective date of April 1, 2019. 

Midwestern is notifying customers of this rate for time critical planning activity.  If you have any questions, please contact a member of the IPL Marketing group at IPLMarketing@oneok.com.

Southern Natural Gas:

SESH pipeline’s operator notified Southern that it will be conducting maintenance at its Gwinville (MS) Compressor Station from 4-6-19 to 4-10-19 that will reduce the available SNG – SESH capacity (Segment 380). This maintenance will result in a service reduction of SNG – SESH capacity as follows:

4-6-19 to 4-10-19 – SNG capacity will be reduced to 382,000 Dth/d.  Points impacted in Segment 380 are listed below.

606400 SESH – CENTERPOINT TO SNG
606500 SESH – GULF SOUTH TO SNG
606700 SESH – ETC TIGER TO SNG

Texas Eastern Transmission:

Texas Eastern Transmission, LP (TETLP) is providing the following update on the status of its integrity program and the corresponding impacts to its planned outage schedule and operational system capacities.

As part of Enbridge’s ongoing integrity program, TETLP has been conducting a comprehensive assessment of its pipeline operations and is identifying locations along its entire system that may require additional integrity tests, inspections, and subsequent actions. These items include, but are not limited to: (1) aerial and direct assessment of the pipeline, (2) close interval surveys, (3) additional in-line inspection tool runs and analysis, (4) temporary pressure reductions at certain locations across the system and (5) hydrostatic tests. As data becomes available from each of these items, we will identify any corresponding impacts to capacity on TETLP’s regular planned maintenance posting. Details on each work stream is provided below:

(1) Aerial and Direct Assessment
TETLP continues to verify the integrity of the pipeline through aerial observation, ground patrol and other forms of direct assessment to identify potential geological threats such as, but not limited to, lateral earth movements, water flow, and other forces of nature in the area of the pipeline. To the extent TETLP identifies any sites requiring remedial action, TETLP will safely and promptly mitigate the threat and post any required outage on its LINK® Electronic Bulletin Board.

(2) Close Interval Surveys (CIS)

TETLP will conduct CIS along sections of its pipeline to verify its cathodic protection systems. TETLP does not anticipate any capacity losses during the CIS, however, potential outages may be required in the event the findings warrant further investigation of the cathodic protection system.

(3) ILI inspection and Analysis and (4) Pressure Reductions

TETLP will continue with its base in-line inspection (ILI) program and accelerate the use of additional in-line tools to verify the integrity of its system. Depending on the results of the ILI analysis, repairs or further investigations may be required. TETLP will take temporary pressure reductions when necessary at various locations along its system until such ILI results are completed, fully analyzed and any anomalies are remediated. These ILI tool runs and any capacity loss due to any pressure reduction will be scheduled and posted as part of TETLP’s regular planned maintenance updates on its LINK® EBB.

(5) Hydrostatic Testing

As part of TETLP’s ongoing system wide integrity program, TETLP will review various sets of data from tool runs and inspections and will determine if additional hydrostatic testing is required. Similar to the ILI Inspections, TETLP will post any required hydrostatic tests as part of its regular planned maintenance posting on its LINK® EBB.

TETLP believes the safety of its facilities and pipelines are of the utmost importance and integral to system reliability. TETLP understands the importance to minimize the impact of the outages to its customers where possible and the urgency to restore full capacity along its system. TETLP is committed to providing regular outage updates as soon as the information becomes available. Please contact your Marketing Account Manager if you have any questions.

Williston Basin Interstate (WBI) Energy Transmission:

Effective April 1, 2019, as set forth in WBI Energy Transmission’s March 1, 2019 filing in Docket No. RP19-767-000, the proposed new fuel reimbursement percentages are 4.558% for gathering, 0.909% for transportation and 0.045% for storage. The proposed new electric power rates are $.00788 for transportation and $.00077 for storage.

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The National Weather Service has posted expected temperature estimates for the nation for the upcoming month of April.  These projections show cooler-than-average conditions are expected in the Midwest.  Warmer-than-average April temperatures are forecast for areas east of the Mississippi River all the way to the Atlantic Coastal areas and also in the Pacific Northwest.

That’s all for this Monday edition of GasNewsOnline.com.  We’ll return Thursday to provide an update on the interstate gas pipeline conditions expected for the weekend. 

Please let your friends in the natural gas scheduling and transportation business know about us!  Also, our companion audio podcast is available via Apple Podcasts.  Subscribe today – it’s FREE! 

Friday, March 22, 2019

Welcome to GasNewsOnline.com!  While we search over fifty interstate natural gas pipeline companies for their critical postings, other news is happening this week.  At GasNewsOnline.com, we’ll update you on the publicly-released news from energy companies and will give you the latest National Weather Service temperature forecast, too.  

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From the US Energy Information Administration, working natural gas in storage decreased by 47 Bcf for the week ending Friday, March 15.  Natural gas stocks remaining in storage are now nearly 33% below the five-year historical range.

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Penn Virginia Corporation announced Thursday that it has mutually agreed with Denbury Resources Inc. to terminate their previously announced merger agreement.

“After careful consideration, the Penn Virginia board of directors decided that it is in the best interests of the Company and our shareholders to mutually agree to terminate our merger agreement with Denbury,” said John A. Brooks, President and Chief Executive Officer of Penn Virginia. “Given the caliber and dedication of our team, the high quality of our assets and the strength of our balance sheet, we believe we are well positioned to continue to execute our previously announced two rig development plan, which is expected to be fully funded from cash flow.  We remain focused on developing our assets and maximizing value for our shareholders as a standalone company.”

As a result, the special meeting of Penn Virginia’s shareholders, which was to be held on April 17, 2019, will not take place.  Under the terms of the merger agreement and the termination agreement, neither Penn Virginia nor Denbury will be responsible for any payments to the other party as a result of the termination of the merger agreement.

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Earlier this week, Williams announced a series of transactions that will establish a new platform for the optimization of its midstream operations in the western Marcellus and Utica basins through a long-term partnership with the Canada Pension Plan Investment Board.   

The $3.8 billion joint venture will include Williams’ 100 percent owned Ohio Valley Midstream system (“OVM”) and 100 percent of Utica East Ohio Midstream system (“UEO”).  The Canada Pension Plan Investment Board will invest $1.34 billion for a 35 percent ownership stake in the joint venture. Williams will retain 65 percent ownership, will operate the combined business, and will consolidate the financial results of the joint venture in Williams’ financial statements.

Concurrent with signing the agreement, Williams acquired the remaining 38 percent ownership stake in Utica East Ohio Midstream from Momentum Midstream and will take over operatorship.  UEO is involved primarily in the processing and fractionation of natural gas and natural gas liquids in the Utica Shale play in eastern Ohio.

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As winter transitions into spring, let’s review the latest postings from the interstate natural gas pipeline systems entering the weekend:

Algonquin Gas Transmission:

In order to maintain the operational integrity of the system, Algonquin Gas Transmission, LLC (AGT) is issuing an Operational Flow Order (OFO) pursuant to Section 26 of the General Terms and Conditions of AGT’s FERC Gas Tariff, effective immediately, to all parties, with the exception of those Operational Balancing Agreements required by FERC regulations, on the AGT system.

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

During the effectiveness of this OFO, all parties must be balanced such that actual deliveries of gas out of the system must be equal to or less than scheduled deliveries. The penalty shall apply to each dekatherm of actual delivery quantities as indicated below:

Effective Immediately – Gas Day March 24: The penalty shall apply to each dekatherm of actual delivery quantities exceeds the greater of 6,000 Dth or 106% of scheduled delivery quantities.

Gas Day March 25 and until further notice: The penalty shall apply to each dekatherm of actual delivery quantities exceeds the greater of 4,000 Dth or 104% of scheduled delivery quantities.

In each situation indicated above, the penalty will be equal to three times the daily Platts Gas Daily “Daily Price Survey” posting for the High Common price for “Algonquin, city-gates” for the day on which such violation occurred as indicated in AGT’s General Terms and Conditions Section 26.8. In addition, AGT will not permit retroactive nominations to avoid an OFO penalty.

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

ANR Pipeline:

ANR will begin planned pipeline maintenance near the St. John Compressor Station along its Michigan Leg South located in the Northern Area (Zone 7). The total St. John Eastbound, LOC #226633, capacity will be reduced by the following:

500-MMcf/d (leaving 767-MMcf/d available) 4/29 – 5/3

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

Columbia Gas Transmission:

In response to customer questions regarding its Leach XPress (LXP) and Mountaineer XPress (MXP) projects, Columbia Gas Transmission, LLC (TCO) has developed a schematic highlighting active project points and internal constraints for customers to reference.

https://navigates.cpg.com/infopost/webmethods/DownloadFile.aspx?Mode=V&S3FN=LXP_MXP+Project+Schematic.pdf&S3K=%2Ftco%2Fpermanentpostingsandfaqs%2FLXP_MXP+Project+Schematic.pdf

Although this schematic may serve as a useful tool for customers, TCO strongly recommends the continued utilization of the Internal Constraint Rights screen within Navigates when evaluating a specific contract’s rights for an input nomination.   

Columbia Gulf Transmission:

Columbia Gulf Transmission (CGT) would like to notify customers of an upcoming change in location numbers effective April 1, 2019, impacting the Gulf South – Delhi interconnect.

Currently, Gulf South Delhi nominations are entered at a single bi-directional location for receipts and deliveries. Currently shown as: GULF SOUTH DELHI – 4204

Starting April 1, 2019, all nominations for this location will move to two newly created location numbers:

Receipts from Gulf South Delhi:  Loc Prop 4204R
Deliveries to Gulf South Delhi:     Loc Prop 4204D

Loc Prop 4204 will become inactive on April 1, 2019. All receipts and deliveries for Gulf South Delhi should be nominated at the new 4204R and 4204D locations for Timely Cycle Gas Day April 1,2019. Any nominations at Loc Prop 4204 will be reduced to 0.

Dominion Energy Transmission:

As of Monday, April 1, 2019, Dominion Energy Transmission, Inc. will return to one (1) Operational Impact Area (OIA).

Also from Dominion:

Based on storage withdrawals during the 2018-2019 Winter Period, storage inventory levels are at near historic lows. As a result of the current inventory levels, DETI can handle only limited withdrawals from its storage pools until inventory levels increase.

To protect its storage pools and to minimize withdrawals, DETI will not require its GSS customers to meet their Minimum Turnover Obligations pursuant to Section 8.7 of Rate Schedule GSS for the period November 1, 2018 through April 15, 2019. As a result, no charges set forth in GT&C Section 35.3D will be assessed if the minimum turn obligation is not met during this period. Further, DETI requests that GSS customers voluntarily minimize withdrawals with the start of the injection season on April 1.

This voluntary action may allow the avoidance of the issuance of storage OFOs if inventory levels decline further. Customers are advised that DETI may be required to issue OFOs that limit storage withdrawals in April and possibly, require the use of all firm transportation capacity prior to the use of storage withdrawals.

Gulf South Pipeline:

Carthage Junction Compressor Station Maintenance:  Begins April 9, 2019 – Ends April 10, 2019

Area 8 to 16 Expansion Scheduling Group – Capacity could be impacted by as much as 150,000 dth/d for the duration of the maintenance for all services other than primary firm.

MidContinent Express Pipeline (MEP):

MEP will be performing a cleaning pig run on the entire portion of its pipeline system in Zone 2, segments 200 and 210, from Madison Parish, Louisiana to Choctaw County, Alabama.  This work will require MEP to restrict throughput capacity in Zone 2 of its system. 

As such, effective for gas day Wednesday, April 10, 2019, and continuing through gas day Thursday, April 11, 2019, MEP will schedule Primary Firm and Secondary-in-path Firm transports to no less than 71% of contract MDQ into Segment 200, assuming all such contracts are nominated at full applicable contract MDQ through the constrained segment.  Actual nomination levels, changes in pipeline conditions, and assistance MEP is seeking from connecting pipelines downstream of the outage could result in an increase to the percentage scheduled.

AOR/ITS and Secondary out-of-path Firm transports will not be available during this outage. Additionally, all park and loanservices under Rate Schedule PALS will not be available anywhere on the system.

Natural Gas Pipeline Company of America (NGPL):

As part of its required ongoing pipeline integrity Management Program, on gas day Tuesday, March 26, 2019, and continuing through gas day Thursday, April 11, 2019, Natural will perform an ILI tool run on the Gulf Coast #2 mainline between Compressor Station 300 located in Victoria County, Texas and Compressor Station 341 located in Nueces County, Texas (Segments 22 and 20 of Natural’s South Texas Zone).  This tool run will require Natural to schedule Primary Firm and Secondary in-path Firm transports, only, southbound into Segment 22 for the duration of this tool run.  AOR/ITS and Secondary out-of-path Firm transports will not be available.

On gas day Tuesday, March 26, 2019, and continuing through gas day Monday, April 1, 2019, Natural will be performing station maintenance at Compressor Station 303, located in Angelina County, Texas (Segment 26 of Natural’s Texok Zone). This work will require Natural to schedule Primary Firm and Secondary in-path Firm transports, only, southbound through Compressor Station 302 located in Montgomery County, Texas for the duration of this maintenance project.  AOR/ITS and Secondary out-of-path Firm transports will not be available during this work.  Additionally, Primary Firm and Secondary in-path Firm transports may also be at risk of not being fully scheduled.

Northwest Pipeline:

Effective immediately and until further notice, Northwest is increasing the available deliverability into the Jackson Prairie storage facility from 442,000 Dths to 550,000 Dths.

Northwest is able to support the increase above design capacity due to prevailing pressures and facility conditions, which it expects will continue into the summer.

Tennessee Gas Pipeline:

Pursuant to Article XII of the General Terms and Conditions of Tennessee’s FERC Gas Tariff, Tennessee posted a notice of an emergent repair issue on the 300-1 Line between STA 219 and MLV 301 located in Mercer County, PA effective for the Gas Day of Friday, March 15, 2019 (Notice Identifier 370784), due to an anomaly identified from results received from Tennessee’s ongoing integrity program.  Work continues on this section of the pipe. 

Anticipated return to service is projected to be April 7, 2019.  Tennessee continues to estimate the current impact to be up to 65,000 Dths. Based upon current and recent nominations, restrictions through a pro rata portion of Secondary Out of the Path nominations pathed through STA 307(Segment 307 BH) continue to be at risk. 

Texas Eastern Transmission:

Below is a link to Texas Eastern Transmission’s planned outage information for 2019: https://infopost.spectraenergy.com/GotoLINK/GetLINKdocument.asp?Pipe=10076&Environment=Production&DocumentType=Notice&FileName=TETLP+2019+Planned+Outage+Presentation.pdf&DocumentId=8aa1649f695385180169597ca33600ca

Texas Gas Transmission:

North Louisiana System Maintenance:

Start Date: March 25, 2019 – End Date: April 7, 2019

Texas Gas will be performing direct assessments on the North Louisiana Lateral. Capacity will be limited to 325,000 MMBtu for the Carthage East-West (CEW) segment.

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The National Weather Service temperature forecast for the last week of March shows a warming trend through the midsection of the United States.  Cooler-than-seasonal conditions will return to the Great Plains, the West Coast and much of the Southeast through March 31. 

That’s all for this edition of GasNewsOnline.com! Enjoy a weekend of watching the college basketball games, and we hope to see you again on Monday!

Thursday, March 7, 2019

It’s that time of year again!  The annual change to Daylight Savings Time begins this Sunday, March 10, 2019.  Please remember to set your clocks forward by one hour beginning Sunday morning.

Welcome to this Thursday edition of GasNewsOnline.com.  We’ll give you a few news stories from the energy business, a look at the gas pipeline companies’ critical notices, and take a look ahead at the temperature forecast from the National Weather Service.  It is all for FREE from GasNewsOnline.com.

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The US Energy Information Administration reports that working gas in storage decreased by 149 Bcf for the week ending Friday, March 1.  Natural gas stocks in storage were 464 Bcf (or 25%) below the five-year average of 1.85 Tcf for the same week.

The NYMEX April natural gas futures price was holding steady at about $2.84/MMBtu at the Henry Hub in Louisiana on Thursday.  The 12-month NYMEX price strip for natural gas from April, 2019 through March, 2020 has now climbed to around $2.98/MMBtu. 

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On Tuesday, the Electric Reliability Council of Texas (also known as “ERCOT”) predicted a record electric use this summer in Texas along with an increased chance of energy outage alerts.

“Prior to each season, we consider a range of potential risks to determine whether there will be sufficient capacity to meet the expected peak load forecast,” said ERCOT President and CEO Bill Magness. “In all of the scenarios studied, we identified a potential need to call an energy alert at various times this summer.”

When ERCOT declares an alert, it can then take advantage of additional resources that are only available during scarcity conditions. These resources include demand response products, resources that are normally set aside to provide operating reserves (including contracted load reduction from some industrial facilities), additional generation or imports from neighboring regions and voluntary calls for conservation by consumers.

ERCOT’s current planning reserve margin is a historically low 7.4% while electric demand in the ERCOT region continues to grow. Between 2016 and March 2019, ERCOT set 16 new monthly peak demand records and new all-time system-wide peak demand records in 2016 and 2018.

Total resource capacity for the upcoming summer is expected to be 78,154 MW. The preliminary summer SARA report includes a 74,853 MW summer peak load forecast based on normal summer peak weather conditions for 2003-2017.

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Georgia Power today announced, in collaboration with Georgia Tech, it will build a new 1.4 MW microgrid in Tech Square at Spring and 5th streets in Atlanta. Microgrids are self-contained power systems co-located with the facilities they serve that include generation resources, storage systems and energy management systems.

The Tech Square Microgrid, which was approved by the Georgia Public Service Commission and will begin operating this fall, will be used to evaluate how a microgrid can effectively integrate into and operate as part of the overall electrical grid. Additionally, it will serve as a living laboratory for Georgia Tech professors and students who will use the asset to gather data on controllers, cybersecurity devices and energy economics.

The microgrid will provide Georgia Power with insight on how smart energy management systems, such as the one being installed at the CODA data center that is currently under construction, can interact with the grid to achieve optimal utilization of energy. In addition, it will also provide teaching and learning opportunities for Georgia Tech professors and students.

“Georgia Tech and Georgia Power have partnered together on a number of important initiatives over the years, and we are very excited about our latest collaborative effort, the new microgrid in Tech Square,” said Georgia Tech President G. P. “Bud” Peterson. “In addition to actually delivering power, it will also serve as a ‘research microgrid,’ allowing Georgia Power, Southern Company, Georgia Tech and other partners to study the microgrid performance and conduct controlled experiments to develop and test new and innovative energy solutions for the future.”

The installation will include fuel cells, battery storage, diesel generators and a natural gas generator, but it is adaptive to new and additional distributed energy resources. It is designed to also accommodate microturbines, solar panels and electric vehicle chargers in the future. All components will be placed on a platform and obscured from view with seven-foot-high fencing and gate access along Williams Street in Atlanta.

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Many of the interstate natural gas pipeline companies are ending their recent critical operational notices as some of the coldest weather takes a breather. Here are a few of the latest postings:

ANR Pipeline:

Attn: All ANR Pipeline Storage Customers

Reminder – Effective until further notice, ANRPL will continue to only schedule Firm Withdrawal activity from Rate Schedule FSS. As a result, ANRPL will restrict all daily Interruptible Storage Withdrawal activity from Rate Schedules DDS & MBS along with Overrun Withdrawals from Rate Schedule FSS to zero. Overrun Withdrawals are those nominated quantities which are above the Current Maximum Daily Withdrawal Quantity (MDWQ) in effect.

For customers nominating withdrawals from their FSS accounts, please keep your nominated volumes at or below your Current MDWQ. FSS Current MDWQ levels can be viewed in GEMS under the Volumes menu under Contract Storage Balances and also the Storage Ratchet Summary.

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.



Dominion Energy Transmission:

Due to current and anticipated system conditions, customers are reminded to monitor contractual storage entitlements and take the necessary steps to manage deliveries within those firm entitlements. Transportation customers are also advised to equalize receipts and deliveries so as to minimize imbalances on DETI’s system. Capability for over-withdrawals, short-term loans, and park payback activity are expected to be very limited or possibly not available. They may be subject to allocation or potential penalties if warranted by an OFO, in accordance with the terms of DETI’s tariff.

Natural Gas Pipeline Company of America (NGPL):

SEGMENT 22 SOUTHBOUND – STA 300 VICTORIA – AT OPERATING CAPACITY 

Effective for gas day Thursday, March 7, 2019, and continuing until further notice, Natural is at operating capacity for southbound flow through Compressor Station 300 located in Victoria County, Texas (Natural’s South Texas Zone).  AOR/ITS and Secondary out-of-path Firm transports are at risk of not being fully scheduled.  For scheduling purposes, the South Texas Pool (LOC 25079) is located north of Compressor Station 300.

Northwest Pipeline:

Effective Gas Days Friday and Saturday, March 8-9, the Overrun Entitlement for Receiving Party locations north of the Plymouth South constraint point, including the Wenatchee and Spokane Laterals, will be revised from a Stage III (13%) Overrun Entitlement to a Stage II (8%) Entitlement.  Northwest needs to make this change to prepare for maintenance impacts associated with Enbridge’s pig runs.

Beginning Sunday, March 10, Northwest is lifting the Overrun Entitlement for its entire system.

Southern Natural Gas:

Fairburn Force Majeure – Update #4

As posted in Critical Notice 703087, SNG experienced an unscheduled station outage at the Fairburn Compressor Station.  Southern and the manufacturer have determined that Unit #2 can remain in-service while a permanent repair is completed.  SNG will now continue to be able to schedule approximately 210 Mdth/d from the TRNSCO/SNG FAIRBURN TO SNG FAYETTE – PIN 50069 until further notice.  

As a result of Unit #1 still being out of service, a reduction in IT and Out of Path service may be necessary depending on demand until the Fairburn Compressor Station is back to full operating capacity.

We will continue to work diligently to return the station to full service as soon as possible.

This unscheduled outage constitutes an event of Force Majeure under Section 8.3 of the General Terms and Conditions of SNG’s FERC Gas Tariff until further notice.

Texas Eastern Transmission:

Texas Eastern (TE) is providing the following update on its progress to return partial service to the 30 inch pipeline system following the incident that occurred on Line 10 on Monday, January 21, 2019 in Noble County, OH between its Berne and Athens compressor stations. The progress report is as follows:

Eastbound capacity through TE’s Uniontown compressor station remains at approximately 4,500,000 Dth/d and southbound capacity through Berne remains at approximately 1,600,000 Dth/d.

At this time, TE is currently evaluating the integrity of Line 15 immediately south of Berne as well as Line 10 between Athens and Uniontown. Depending on the results of the integrity investigations, TE anticipates the earliest Line 15 immediately south of the Berne compressor station could be placed back in service is approximately 2-3 weeks.

Furthermore, as previously mentioned, TE has determined that further investigations on Line 10 between its Athens and Uniontown compressor stations are required. TE is continuing these investigations along Line 10 and will post any changes to capacity resulting from these investigations. Due to the proximity of Line 10 to Line 15 and/or Line 25 in various locations along this section, additional isolations of Line 15 or Line 25 may be required to safely investigate Line 10. At this time there has not been any need for additional isolations. If additional isolations are required, it is anticipated to impact south bound capacity through the Berne compressor station and TE will post that information as soon as it is known.

Finally, there are various factors that could potentially change the projected return to full service date, such as but not limited to: weather conditions and any unforeseen existing pipeline conditions that could lengthen the work schedule. Based on progress made to date, TE projects that eastbound capacity through Uniontown could be restored to full capacity in approximately 4-6 weeks and southbound capacity through Berne could return to full capacity in approximately 6-8 weeks.

WBI Energy Transmission (Williston Basin Interstate)

WBI Energy Transmission, Inc. is holding an Open Season for the sale of firm natural gas transportation capacity for the expansion of deliveries to Northern Border Pipeline Company in northwestern North Dakota. The 2020 North Badlands Expansion Project will increase capacity for receipts of natural gas from new or existing receipt points on Line Section 27 for delivery to the NBPL-Spring Creek (D) location. The design of the 2020 North Badlands Expansion Project includes new pipeline, regulation and measurement facilities. The targeted in-service date is February 2020.

The Open Season will commence on March 7, 2019, and conclude at 4:00 PM Central Time on March 14, 2019. Interested parties must complete an Open Season Bid Sheet. Information on the Open Season and the Bid Sheet can be found under Other/Reference/2020 North Badlands Expansion Open Season on WBI Transmission’s Website at transmission.wbienergy.com.

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The National Weather Service six-to-ten day temperature forecast is really making Punxatawney Phil’s prediction of an early spring look pretty bad.  Significantly colder than average mid-March temperatures are being forecast for the West Coast, the Rockies, and most areas west of the Mississippi River.  By contrast, the Eastern US may see slightly warmer-than-seasonal temperatures for a few days through March 17. 

That’s a wrap for this Thursday, March 7, 2019 edition of GasNewsOnline.com.  We’ll return next week to provide an update on natural gas pipeline conditions and the latest energy news. 

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

Edition 42 – Monday, February 25, 2019

Welcome to GasNewsOnline.com!  This is where we bring you the latest publicly-sourced news and information about the natural gas business twice every week – all for FREE

Though Punxatawny Phil said we should only have a few more weeks of winter, another blast of cold weather will usher in the month of March for most of the country.  We’ll check the temperature forecast coming up at the end of this report.

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

Net withdrawals from working gas totaled 177 billion cubic feet (Bcf) for the week ending February 15. Working natural gas stocks are 1.705 Tcf, which is nearly 18% lower than the five-year (2014–18) average for this week.

The natural gas plant liquids composite price at Mont Belvieu, Texas, rose by 38¢/MMBtu, averaging $6.75/MMBtu for the week ending February 20. The price of ethane fell by 3%. The price of natural gasoline, propane, butane, and isobutane rose by 8%, 9%, 9%, and 13%, respectively.

According to Baker Hughes, for the week ending Tuesday, February 12, the natural gas rig count decreased by 1 to 194. The number of oil-directed rigs rose by 3 to 857. The total rig count now stands at 1,051.

At the New York Mercantile Exchange (NYMEX), the price of the March 2019 contract increased about 12 cents today on Monday to reach $2.84/MMBtu. The price of the 12-month strip averaging March 2019 through February 2020 futures contracts has climbed to reach about $2.94/MMBtu .

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Venture Global LNG, Inc. announced Friday that the Federal Energy Regulatory Commission (FERC) has issued the Order Granting Authorizations under Sections 3 and 7 of the Natural Gas Act for the company’s Venture Global Calcasieu Pass LNG export facility and associated TransCameron Pipeline in Cameron Parish, Louisiana.

“With our FERC order in hand and our project contracted with binding 20-year sale and purchase agreements (SPAs) with Shell, BP, Edison S.p.A., Galp, Repsol and PGNiG, we plan to immediately commence construction activities in Louisiana in close coordination with FERC and other agencies,” Co-CEOs Bob Pender and Mike Sabel jointly stated. “This milestone is the culmination of years of effort, and we are proud of the excellent work done by our regulatory, environmental, legal and engineering teams. We are excited to begin construction of our Calcasieu Pass project and deliver low-cost LNG to our global customers in 2022.”

The 10 MTPA nameplate Calcasieu Pass facility will employ a comprehensive process solution from GE Oil & Gas, LLC, part of Baker Hughes, a GE company (BHGE) that utilizes mid-scale, modular, factory-fabricated liquefaction trains. Venture Global has executed an integrated turnkey EPC contract with Kiewit to design, engineer, construct, commission, test and guarantee the Calcasieu Pass facility.

The company is also developing the 20 MTPA nameplate Plaquemines LNG export facility and associated Gator Express Pipeline in Plaquemines Parish, Louisiana. The Plaquemines LNG facility received its draft Environmental Impact Statement on November 13, 2018 and expects to receive its final Environmental Impact Statement on May 3, 2019, according to the Notice of Schedule for Environmental Review issued by FERC on August 31, 2018. FERC has established a 90-day Federal Authorization Decision Deadline of August 1, 2019. Plaquemines LNG has executed a binding 20-year SPA with PGNiG.

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A late February surge of cold weather will dominate the northern states to begin this week. Let’s review the latest critical notices from the natural gas pipeline companies’ electronic bulletin board systems:

ANR Pipeline:

Attention All ANR Shippers,

Effective gas day Monday 2/25/2019, Intraday 1 cycle and continuing thru gas day Wednesday 2/27/2019, 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.


Columbia Gas Transmission:

As an update to the Critical Days currently in effect in Operating Areas 1, 4, and 10, shippers are advised that due to forecasted colder temperatures, storage levels, and increased market demands beginning Wednesday, February 27, 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 Tuesday, February 26, 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 Wednesday, February 27, 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 Wednesday, February 27, 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.

Dominion Gas Transmission:

Due to current weather forecasts, effective with the start of gas day (10:00AM ECT) Tuesday, February 26, 2019,there will be no interruptible or secondary firm capacity available at systems north of Sabinsville Junction in Pennsylvania and Stateline facilities in the northern portion of the DETI operating area, including, but not limited to, the following delivery points until further notice:

Corning Natural Gas 21000; New York State Electric & Gas 20700; Arlington Storage (Seneca) 20720; Rochester Gas and Electric 20600; Allegany Generation 23632; Niagara Mohawk 20500 and 20550; Fillmore Gas 23600; National Fuel Gas Distribution 20900; Steuben Storage 90005; Alliance/Lower Leroy 30005; Woodhull 23700; Indeck Silver Springs 30001; Tioga UGI Storage 90002; Tioga R-Gate 90008; Cornell 30170; Bethlehem Energy Center 30200; Iroquois Canajoharie 41101; Empire Lysander 40801.

In addition, deliveries off DETI at the following locations will be limited to primary only:

Tennessee-Brookview 40103; Tennessee-North Sheldon 40115; Tennessee-Morrisville 40114; Tennessee-Marilla 40113; Tennessee-Sabinsville 40120.

Please note that “Unauthorized Overrun Charges – Daily” rate of $10.00/dth will apply to deliveries made in excess of FT and FTNN entitlements while these restrictions are in place.

Florida Gas Transmission:

MARCH 2019 — FGT SUPPLY AREA MAINTENANCE IN ZONE 3

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

FGT will perform pipeline maintenance near FGT Compressor Station 11 in southern Alabama. This maintenance is scheduled to begin March 1, 2019 and to continue through the end of gas day March 31, 2019.  During this maintenance FGT will schedule up to 3,050,000 MMBtu/day through Station 11. During normal operations FGT schedules up to 3,250,000 MMBtu/day through Station 11.

Natural Gas Pipeline Company of America (NGPL):

Natural has experienced a suspected leak on its Amarillo Mainline #3 in Hutchinson County, Texas in Natural’s Midcontinent Zone.  This is a Force Majeure event that requires Natural to temporarily reduce the maximum operating capacity northbound, thus limiting Natural’s throughput capacity from Segment 8 into the Midcontinent Zone as well as the Affected Area segments 5/6 flowing northbound into Segment 10 of the Midcontinent Zone.   

Additionally, transports associated with storage withdrawals will be impacted.  The Permian Pool (LOC 25077) and the Midcontinent Pool (LOC 25078) are located south (upstream) of the constraint. 

As such, effective for gas day Monday, February 25, 2019, Evening Cycle, and continuing until further notice, Natural will schedule Primary Firm and Secondary in-path Firm transports to no less than 87% of contract MDQ from the Permian Zone (Segment 8) flowing into the Midcontinent Zone.  Actual nomination levels and changes in pipeline conditions could result in changes to the percentages scheduled (lower or higher) on subsequent gas days.  AOR/ITS and Secondary out-of-path Firm transports continue to not be available for the duration of this restriction.  

For the Affected Area 5/6, effective for gas day Monday, February 25, 2019, Intraday 1 Cycle, and continuing until further notice (previously Monday, February 25, 2019, Evening Cycle), Natural will schedule a total receipt point capacity of 86,000 dth per day (formerly 186,000 dth per day) in the Affected Area.  AOR/ITS, Secondary out-of-path Firm transports and Secondary in-path Firm transports will not be available.Natural will be required to schedule down nominations for Primary Firm transports. 

Northern Natural Gas:

A System Overrun Limitation (SOL) has been called for all Market Area zones (ABC, D and EF) with 0% System Management Service (SMS) available for Gas Day Tuesday, February 16, 2019, due to lower than normal forecasted system weighted temperatures.

Sabine Pipeline:

Effective for nominations made for transport during the Gas Day Tuesday February 26, 2019, due to planned maintenance, Sabine Pipe Line LLC is limiting total receipt nominations to a maximum of 100,000 MMBtu/day at the following Henry Hub receipt point:

COLUMBIA GULF/HENRY HUB 11202

Please continue to monitor this website for updates.

Tennessee Gas Pipeline:

OFO DAILY CRITICAL DAY 1 FOR ALL AREAS EAST OF STA 245 AND STA 325 EFFECTIVE 2-26-19

Due to a forecast of colder temperatures moving into areas of the Northeast with associated higher demand,for the Gas Day of Tuesday, February 26, 2019, Tennessee is implementing an OFO Daily Critical Day 1 for all areas east of STA 245 on the 200 Line and all areas east of STA 325 on the 300 Line for all Balancing Parties (including LMS-PA, SA contracts acting as balancing parties, LMS-MA, and LMS-PL balancing parties).  This action is pursuant to Article X, Section 4 of the General Terms and Conditions of Tennessee’s FERC Gas Tariff.  

All delivery point operators in all areas east of STA 245 on the 200 Line and all areas east of STA 325 on the 300 Line 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 in all areas east of STA 245 on the 200 and all areas east of STA 325 on the 300 Line 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.

Transcontinental Gas Pipe Line Company:

Subject:Operational Flow Order – Imbalance

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

Beginning:  Tuesday, February 26, 2019 and until further notice

OFO Areas:  Zone 6

Tolerance %:  10% for gas Due from Shippers or Due to Shippers

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The National Weather Service six-to-ten day temperature forecast predicts another blast of artic cold weather beginning next weekend into the first few days of March as most of the lower 48 states will be at or below normal temperatures.  Only Florida and the desert Southwest will escape the cold temperatures through March 7. 

Thanks for checking out the Monday edition of GasNewsOnline.com.  We’ll return on Thursday to give you an update on pipeline conditions heading into the weekend. 

Remember that our companion audio podcast is available to you via Apple Podcasts.  Please tell a friend about us and subscribe today – it’s FREE

Edition 38 – Monday, February 11, 2019

Welcome to GasNewsOnline.com for Monday, February 11, 2019!

As the week begins, many northern states are receiving another reminder than winter is still in full control of the weather (at least for another five weeks according to Punxatawny Phil’s recent prediction).  Many of the natural gas pipelines, though, are relaxing weekend restrictions beginning Monday as the short-term forecast shows a little improvement during this week. 

However, another round of cold weather is on the horizon by this weekend.  We’ll cover the updated short-term temperature forecast at the end of this post.

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Let’s check some of the latest energy news…

At the New York Mercantile Exchange (NYMEX), the price of the March, 2019 contract on Monday was about $2.64/MMBtu, up six cents from Friday’s close.  The price of the 12-month strip averaging March, 2019 through February, 2020 futures contracts is now approximately $2.84/MMBtu.

Below is an update from the US Energy Information Administration’s “Natural Gas Weekly Update” publication last week.

Net withdrawals from working gas totaled 237 billion cubic feet (Bcf) for the week ending February 1. Working natural gas stocks are 1,960 Bcf, which is 17% 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 6¢/MMBtu, averaging $6.72/MMBtu for the week ending February 6. The price of natural gasoline, ethane, propane, butane, and isobutane all rose, by 8%, 2%, 3%, 2%, and 1%, respectively.

According to Baker Hughes, for the week ending Tuesday, January 29, the natural gas rig count increased by 1 to 198. The number of oil-directed rigs fell by 15 to 847. The total rig count decreased by 14, and it now stands at 1,045.

Five LNG vessels (three from Sabine Pass and two from Cove Point) with a combined LNG-carrying capacity of 17.3 Bcf departed the United States from January 31 to February 6.   Foggy weather conditions near the Sabine Pass LNG facility along the Texas and Louisiana border caused some delays in export volumes for the week.    

Cold weather and a polar vortex blanketed much of the Lower 48 states from January 29–31, resulting in record natural gas consumption in the United States. Estimated total natural gas demand posted a new single-day record on January 30, topping the previous record set on January 1, 2018. Total estimated consumption by the power, industrial, and residential/commercial sectors and total estimated natural gas exports—by pipeline and as feedstock to liquefied natural gas (LNG) facilities—reached 145.9 billion cubic feet (Bcf) on January 30, which was two Bcf higher than the previous record set in 2018.

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With warmer weather on tap for a few days this week, many of the interstate natural gas pipelines have dropped their operational flow orders and warnings to start the week. Here are the latest critical postings:

Columbia Gas Transmission:

Columbia Gas Transmission, LLC will be commencing service for an additional 320 MDth/d of its Mountaineer XPress (MXP) project capacity effective Gas Day Tuesday, February 12, 2019.   Nominations will be accepted beginning for the Timely Cycle for Gas Day Tuesday, February 12, 2019.  Please monitor the Daily Capacity Posting effective for Tuesday, February 12, 2019 for the new Internal Constraints related to Markwest – Sherwood B. 

Dominion Gas Transmission:

Effective start of gas day, Tuesday, February 12, 2019, PL-1 restrictions will be lifted (supersedes Notice ID: 211694).

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 Tuesday, February 12, 2019, due to lower than normal forecasted system weighted temperatures.

Transcontinental Gas Pipe Line Company:

The Operational Flow Order – Imbalance (OFO) currently in effect on the Transco system in Zones 4 and 5 will be terminated effective February 11, 2019 at 9:00 AM CST.

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. The current OFO in Zone 6 will continue until further notice.  Mild temperatures are forecast for portions of Transco’s market area that may require additional action. Please continue to monitor the 1Line system for updates.

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The National Weather Service six-to-ten day temperature forecast predicts another blast of artic cold weather beginning this coming weekend into early next week as most of the lower 48 states will be at or below normal temperatures.  Only Florida and portions of southern Texas will escape the cold temperatures through February 20.

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Edition 37 – Thursday, February 7, 2019

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

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

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

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

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

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

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

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

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

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With another blast of winter affecting the northern half of the US for a few more days, let’s check out the latest critical postings from the interstate natural gas pipeline companies’ electronic bulletin boards:

Algonquin Gas Transmission:

In order to maintain the operational integrity of the system, Algonquin Gas Transmission, LLC (AGT) is issuing an Operational Flow Order (OFO) pursuant to Section 26 of the General Terms and Conditions of AGT’s FERC Gas Tariff effective 9:00 AM CCT, February 8, 2019, to all parties, with the exception of those Operational Balancing Agreements required by FERC regulations, on the AGT system.

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

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

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

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

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

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

This OFO will remain in effect until further notice.

ANR Pipeline:

Attn: All ANR Shippers

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

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

Columbia Gas Transmission:

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

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

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

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

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

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

Applicable Penalties: 

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

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

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

Colorado Interstate Gas (CIG):

With significantly colder temperatures being forecast beginning Wednesday, February 6, 2019 through Friday, February 8, 2019, CIG is anticipating an increase in demand on its system which will limit its ability to manage imbalances associated with supply shortfalls. Therefore, when necessary to minimize imbalances and protect system integrity, underperformance caps may be placed on nonperforming receipt points effective until further notice.

Dominion Energy Transmission:

Effective start of gas day Friday, February 8, 2019, and continuing until further notice, DETI will not schedule any IT or Non PL-1 firm transportation on its PL-1 system. This includes deliveries at the following locations:

40209 Columbia of Pennsylvania (Pleasant Gap)

21305 Texas Eastern Chambersburg (East Coast)

40201 Texas Eastern Chambersburg (PL-1)

40202 Texas Eastern Steckman Ridge

40224 Baltimore Gas and Electric

22000 Washington Gas and Electric

23500 Dominion Cove Point Loudoun

40704 Transco Nokesville

40303 Virginia Natural Gas

22400 Doswell

22500 City of Richmond

22600 VA Electric & Power

22700 Columbia of Virginia

22800 VEPCO (Lady Smith)

22900 Genon Mid-Atlantic (Dickerson)

30016 Panda Stonewall

30230 PL-1 customers with delivery points north of Leesburg compressor station may not effectuate deliveries  to any PL-1 point south of Leesburg. PL-1 customers with delivery points south of Leesburg compressor station may effectuate deliveries to PL-1 points both north and south of Leesburg. DETI can effectuate secondary and IT deliveries to points north of Leesburg compressor station if sourced from the receipt of DETI-Loudoun (40704) or Transco-Nokesville (40303) via displacement. DETI can effectuate secondary and IT deliveries to points south of Leesburg compressor station if sourced from the receipt of Transco-Nokesville (40303) via displacement.

Please note that “Unauthorized Overrun Charges – Daily” rate of $10.00/dth will apply.

East Tennessee Natural Gas:

Due to impending colder weather, in order to maintain the operational integrity of the system, ETNG is issuing a Balancing Alert Operational Flow Order (OFO) pursuant to Section 14.7 of the General Terms and Conditions of ETNG’s FERC Gas Tariff effective 9:00 AM CCT, February 8, 2019 for all meters east of the Boyds Creek Compressor Station.

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

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

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

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

Gas Transmission Northwest:

GTN OFO Watch (Posted 2/6/19)

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

The OFO watch is in effect through gas day February 15th, in order to allow for GTN pipeline system to regain its operational integrity. GTN has limited flexibility to manage imbalances and strongly encourages all shippers manage their system requirements to ensure the matching of receipts and deliveries daily.

Absent voluntary imbalance management by shippers to ensure daily balancing, GTN may be required to take further action, including the immediate issuance of an imbalance Operational Flow Order. If further action is required, it may be necessary for that action to become effective immediately, with no additional prior notice available.

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

Kern River Transmission:

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

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

Mississippi River Transmission (MRT):

Due to the potential for maximum utilization of northbound firm Main Line capacity causing a potential supply deficiency in the Market Zone, MRT is issuing a System Protection Warning (SPW) effective 9:00 a.m. Thursday, February 7, 2019 and continuing until further notice.

 During this time:

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

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

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

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

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

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

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

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

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

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

Northern Border Pipeline:

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

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

The OFO watch is in effect through gas day February 16th, in order to allow for the Northern Border pipeline system to regain its operational integrity. Northern Border has limited flexibility to manage imbalances and strongly encourages all shippers manage their system requirements to ensure the matching of receipts and deliveries daily.

Absent voluntary imbalance management by shippers to ensure daily balancing, Northern Border may be required to take further action, including the immediate issuance of an imbalance Operational Flow Order. If further action is required, it may be necessary for that action to become effective immediately, with no additional prior notice available. This posting will be updated as more information becomes available

Northern Natural Gas:

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

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

Northwest Pipeline:

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

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

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

PG&E – California Gas Transmission:

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

Southern Star Central Gas Pipeline:

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

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

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

Incremental Loans will be available on a limited basis

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

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

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

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

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

Texas Eastern Transmission:

Due to impending colder weather, in order to maintain the operational integrity of the system, TE is issuing an Operational Flow Order (OFO) pursuant to Section 4.3 of the General Terms and Conditions of TE’s FERC Gas Tariff effective 9:00AM CCT February 8, 2019 to all delivery parties, with the exception of those governed by a FERC gas tariff, in Texas Eastern’s Market Area Zones M1-24, M2-24 and M3.

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

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

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

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

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