Monday, May 20, 2019

Welcome to GasNewsOnline.com!  As severe weather pounds the plains of Oklahoma and Texas again today, spot natural gas prices are rebounding slightly in advance of June’s NYMEX close. 

Today, we’ll also review the latest interstate pipeline company critical notices plus provide an update on latest energy news and give you the latest National Weather Service temperature forecast for the month of June, too.

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At the New York Mercantile Exchange (Nymex) today, the price of the June 2019 contract increased by nearly four cents to about $2.67/MMBtu on Monday.  The price of the 12-month strip averaging June 2019 through May 2020 futures contracts has gained about six cents the past week to nearly $2.81/MMBtu. 

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

Net injections to working gas totaled 106 billion cubic feet (Bcf) for the week ending May 10. Working natural gas stocks are 1.653 Tcf, which is 15% lower than the five-year (2014–18) average for this week.

The natural gas plant liquids composite price at Mont Belvieu, Texas, rose by five cents, averaging $5.73/MMBtu for the week ending May 15. The price of ethane and natural gasoline fell by 2% and 1%, respectively. The price of propane, isobutane, and butane rose by 3%, 2%, and 1%, respectively.

According to Baker Hughes, for the week ending Tuesday, May 7, the natural gas rig count remained flat at 183. The number of oil-directed rigs fell by 2 to 805. The total rig count decreased by 2, and it now stands at 988.

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Global investment firm KKR and Western Natural Resources, LLC (“Western”) today announced a new partnership to acquire producing and undeveloped oil and gas assets in the Williston Basin.

Western’s CEO Heath Mireles and his team bring extensive operating experience to the partnership, having drilled, completed and operated thousands of wells over the Williston Basin’s long history. The Western team will leverage their collective experiences from time spent at large public operators as well as other private companies to acquire, manage and develop producing wells and drilling locations throughout the play.

Ben Conner, Director on KKR’s Energy Real Assets team, said, “The Williston continues to be a core area of focus for us as we see a significant opportunity to acquire high quality producing assets with attractive long-term value creation opportunities to be delivered through superior technical and operational execution. We have known Heath and members of his team for years and believe our partnership is well positioned to acquire and manage assets in the Williston for the long run.”

Western is a private company focused on the acquisition and exploitation of upstream oil and gas assets. Headquartered in Oklahoma City, Oklahoma, its primary objective is to build and operate a large-scale portfolio of producing oil and gas wells and drilling locations in the Williston Basin.

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Today, NRG Energy, Inc. agreed to acquire Dallas-based Stream Energy’s retail electricity and natural gas business for $300 million plus working capital in an all-cash transaction.

“This transaction will strengthen NRG’s position as a growing, customer-driven energy company. It represents another step in perfecting our integrated business model,” said Mauricio Gutierrez, president and chief executive officer, NRG Energy. “Stream Energy’s retail energy business provides NRG an attractive opportunity to increase our national retail leadership position and potential for growth.”

Stream Energy, one of the largest direct selling companies in the energy market and one of the nation’s fastest growing retailers, serves more than 600,000 Residential Customer Equivalents (RCEs) in nine states and the District of Columbia. The transaction is expected to increase NRG’s market share in Texas, Pennsylvania and a number of other markets in the Eastern U.S., accelerating the pace of growth in these markets. The combination will also enhance NRG’s multi-brand strategy.

The transaction is expected to close in the third quarter of 2019 and is subject to various customary closing conditions, approvals and consents, including the Federal Energy Regulatory Commission (FERC), Georgia Public Service Commission, and antitrust review under Hart-Scott-Rodino.

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Late last week, Freeport LNG announced that it has received approval from the U.S. Federal Energy Regulatory Commission (FERC) to site, construct and operate its fourth natural gas liquefaction train, to be integrated into its existing natural gas liquefaction and LNG export facility on Quintana Island near Freeport, Texas. Approval from the U.S. Department of Energy for the export of Train 4 volumes to non-Free Trade Agreement countries is anticipated later this quarter.

Freeport LNG’s Train 4 is expected to add over 5 million tonnes per annum (mtpa) of LNG production to its existing project, increasing the total export capability of the 4-train facility to over 20 mtpa. Approximately 13.5 mtpa of this capacity has been contracted under 20-year tolling agreements to Osaka Gas Trading & Export, LLC, JERA Energy America, LLC, BP Energy Company, Toshiba America LNG Corporation, and SK E&S LNG, LLC, and approximately 0.5 mtpa has been contracted to Trafigura PTE LTD under a 3-year sale and purchase agreement commencing in 2020.

Train 4 operations are anticipated to commence in 2023.

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Now, let’s check the latest critical notices from the interstate natural gas pipeline grid:

Columbia Gas Transmission:

Columbia Gas Transmission, LLC (TCO) continues to work with upstream operators due to the operational event experienced by Markwest at the originally referenced Salem Plant.  Markwest has since clarified that the outage was on a line feeding the Hopedale Fractionation Plant in Salem, WV. 

TCO encourages customers to coordinate with its upstream operator regarding scheduled volumes for Gas Days Monday, May 20, 2019 and Tuesday, May 21, 2019. 

At this time, the operational event is anticipated to be resolved later today, May 20, 2019.  TCO will provide an update as soon as information becomes available.  Please contact your Customer Services Representative with any questions.

***Previous Posting***

Columbia Gas Transmission, LLC (TCO) has been notified of an operational event at the Markwest Salem Plant that is impacting scheduled deliveries into TCO.  TCO is working closely with Markwest and upstream operators to assess the impact, as well as a timeline for repairs. The Markwest Salem Plant impacts deliveries into TCO at the following points: 

642452 – CMG Majorsville

643053 – Gibraltar III

643106 – Majorsville-LXP

642645 – Sherwood1

642824 – Smithfield-Mobley

643185 – Sherwood-MXP

842867 – Braxton 

The current estimated impact is a reduction in supply on the TCO system of approximately 2.1 MMDth, necessitating a curtailment of scheduled volumes by the upstream point operators effective ID1 Cycle for Gas Day Sunday, May 19, 2019 and Timely Cycle for Gas Day Monday, May 20, 2019.  

El Paso Natural Gas:

EPNG remains concerned about delivery point operators taking their gas according to their scheduled quantities as a result of the forecast below average temperatures in the Desert Southwest. The SOC Warning for a high linepack condition issued on May 17, 2019 (Notice No. 605375) remains in effect.  

Washington Ranch is on maximum injection. 

Delivery point operators are encouraged to continue to take gas according to their scheduled quantities.  If the situation fails to improve EPNG will declare an SOC for a PACK condition. 

Supply operators are encouraged to reduce and/or maintain their deliveries into the EPNG system at their scheduled rates.   

Payback to the system, such as Payback (Imbalance Payback to TSP), may be limited or denied due to operational concerns related to the potential for a high linepack condition.  For scheduling questions, please call your scheduling representative at (800) 238-3764.

Also from El Paso:

EPNG will be conducting bottom hole surveys at the Washington Ranch Storage Facility starting Monday, June 10, through Friday, June 14. During this scheduled maintenance, operational flexibility will be extremely limited as no injection or withdrawal from the storage facility will be possible.   

Shippers are strongly encouraged to closely monitor their receipts and deliveries to ensure that their transportation is balanced during this time frame. If significant and persistent imbalances are experienced, EPNG may need to issue an SOC or COC, and/or take the necessary action to limit excess receipts into the system. 

Northern Natural Gas:

The results of the recent in-line inspections for sections of Northern’s pipeline system between the Beaver, Oklahoma and Mullinville, Kansas compressor stations have come back favorable and no additional reduction in operating capacity for Beaver North (Group 1025) is necessary.

The outage capacity will remain at 820,000 Dth for the group. As a result, Northern is willing to sell incremental capacity up to 62,259 Dth through Beaver North for Gas Day May 21, 2019.

Northwest Pipeline:

Due to high inventory levels at the Jackson Prairie storage facility (JP), Northwest is no longer accepting IT storage injections at JP beginning gas day Wednesday, May 22, 2019.

Northwest is not currently requesting SGS-2I storage customers vacate the facility.  Northwest will provide notice to begin the interruptible service vacate process when the Jackson Prairie facility balance is approximately 90 percent full. Discretion will be used to determine the percentage each interruptible storage customer will be required to vacate allowing Northwest to meet its firm obligations at the facility. Upon said notice, SGS-2I shippers will have seven (7) days to comply.

Northwest would also like to remind its shippers that the storage inventory levels as well as Park and Loan availability is posted each morning on Northwest’s website at www.northwest.williams.com.

Please contact your Marketing Services Representative or the Northwest Pipeline Hotline at (801) 584-7301 if you have any questions.

Southern Natural Gas:

On Tuesday May 21, 2019, Southern will post the May/June/July and other 2019 Maintenance projects.

On Wednesday, May 22, 2019 at 1:30 PM (Central Time) Southern will conduct a conference call/WebEx meeting and review the posted information.  For more information on how to participate in the conference call/WebEx, please review the Southern Natural Gas EBB posting dated May 20, 2019.

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The National Weather Service has published their initial temperature forecast for the upcoming month of June.  Temperatures are expected to be warmer than average along the Atlantic coast as well as along the Pacific coast.   Meanwhile, several states in the midsection of the country from the Dakotas and Nebraska down to Texas are shown with cooler than seasonal weather for June. 

That’s all for this Monday edition of GasNewsOnline.com.  Please let your friends in the natural gas scheduling and transportation business know about us! 

Also, our companion audio podcast is available via Apple PodcastsSubscribe today – it’s FREE! 

Monday, April 29, 2019

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

ANR Pipeline:

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

The total SWML Northbound (LOC#226630) capacity will be reduced by the following:

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

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

El Paso Natural Gas:

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

Gulf South Pipeline:

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

West 30″ North from Clarence Scheduling Group – Capacity could be impacted by up to 100,000 dth/d for the duration of the maintenance.  Please contact your customer service representative for questions.

Southern Natural Gas:

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

Tennessee Gas Pipeline:

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

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

Transcontinental Gas Pipe Line Company (Transco):

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

Vinton – FGT             Loc. #:  1006304         Meter 4381      Delivery

Vinton – Starks           Loc. #:  1006349         Meter 4374      Delivery

Also on Transco: 

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

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

Vector Pipeline:

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

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

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

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

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

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!  

Thursday, April 11, 2019

Welcome to GasNewsOnline.com!  We review the electronic bulletin boards for over sixty interstate natural gas pipeline companies to obtain their most recent critical postings about changes in operating conditions. 

Today, we’ll also update you on the latest publicly-released news from major energy companies and provide the extended National Weather Service extended temperature forecast, too.  

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Equitrans Midstream Corporation and EQM Midstream Partners, LP today announced that EQM has completed the acquisition of a 60% interest in Eureka Midstream Holdings, LLC (Eureka Midstream) and a 100% interest in Hornet Midstream Holdings, LLC (Hornet Midstream) for total consideration of $1.03 Billion, comprised of approximately $860 million in cash and approximately $170 million of assumed pro-rata debt. Concurrently, EQM closed the private placement of $1.2 billion of newly issued Series A Perpetual Convertible Preferred Units (Convertible Preferred Units). A portion of the net proceeds from the private placement was allocated to the cash purchase price of the acquisition, with the remaining net proceeds to be used for general purposes.

“We are pleased to have completed this important acquisition and our team is excited to begin integrating the Eureka and Hornet systems and leveraging our existing assets and core operating capabilities,” said Diana M. Charletta, chief operating officer of EQM. “These value-enhancing assets will diversify our producer customer mix and increase exposure to wet Marcellus acreage; expand our supply hub and create additional commercial opportunities; reduce unit operating costs through increased scale; and accelerate opportunities for our water services business.”

Eureka Midstream is a 190-mile gathering header pipeline system in Ohio and West Virginia that services both dry Utica and wet Marcellus production. Hornet Midstream is a 15-mile, high-pressure gathering system in West Virginia that connects to the Eureka system.

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Williams and Crestwood Equity Partners LP (“Crestwood”) announced on Wednesday that Williams has sold its 50 percent interest in Jackalope Gas Gathering Services, L.L.C. (“Jackalope”) to an affiliate of Crestwood for $484.6 million in cash.

Prior to the transaction, Crestwood was Williams’ 50% joint venture partner in Jackalope where Williams acted as operator, responsible for managing construction and operations and Crestwood served as marketer, responsible for commercial services. Following the transaction, Crestwood has assumed operatorship of Jackalope.

Williams plans to use the cash proceeds from the transaction plus approximately $90 million in avoided 2019 Jackalope capital spending to help fund its extensive portfolio of attractive growth capital and debt reduction. The Jackalope holdings are in Converse County, Wyoming, and provide gathering, compression and processing services and include the Jackalope Gas Gathering System and the Bucking Horse Processing Plant.

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Depending on which area of the country you live in, the natural gas pipelines are dealing with cold weather conditions or warmer-than-average conditions which are affecting system operations for the weekend:

ANR Pipeline:

Update: Due to planned compressor maintenance at the Eunice (Louisiana) Compressor Station located in the Southeast Area Segment (Zone 1), ANR will limit deliveries at the Eunice Total Location (LOC #505592) and the Jena Southbound location (LOC #9505489) to the following:

Eunice Total (LOC #505592)
1,000-MMcf/d 4/10 – 4/11
875-MMcf/d 4/12
1,000-MMcf/d 4/13 – 4/30

Jena Southbound (LOC #9505489)
1,000-MMcf/d 4/12

Since the last posting, ANR has made the following change. Added a capacity reduction for Jena Southbound for 4/12, leaving 1,000-MMcf/d available.

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):

With significantly colder temperatures, moisture and potential blizzard conditions being forecast beginning the afternoon of Wednesday, April 10, 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 the next available nomination cycle until further notice. In addition the following actions will be taken:

NNT overrun withdrawal requests will continue being allocated to 100,000 dth (notice #118466).

Payback OFF the CIG system may not be accepted; payback ONTO the system will be approved, absent other capacity concerns. Interruptible services may be at risk.

Egan Hub Storage:

Egan Hub Storage (Egan) will be conducting maintenance beginning Gas Day April 5, 2019 and continuing through Gas Day April 17, 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.

El Paso Natural Gas:

El Paso Natural Gas Company, L.L.C. (EPNG) has identified anomalies on Line 1103 downstream of the Guadalupe Compressor Stationwhich will require pipe replacement. EPNG will isolate Line 1103 from the Guadalupe compressor station to MLV 15 starting April 13, 2019. Accordingly, the operational capacity through the GUADLUP constraint of 1,182,500 dekatherms (Dth) per day will be reduced by 438,800 Dth per day yielding an operational capacity of 743,700 Dth per day effective Gas Day April 13, 2019, Timely Cycle (Cycle 1) thru Gas Day April 18, 2019.  EPNG will provide updates on the progress of this work as information becomes available.

This incident constitutes an event of force majeure under EPNG’s FERC Gas Tariff, General Terms and Conditions, Section 11.3. 

Based on current nominations through the GUADLUP constraint, EPNG does not anticipate any impact to shippers at this time.

Great Lakes Gas Transmission:

(Updated 4/10/19)  Due to planned compressor and pipeline maintenance at various compressor stations, the Iron River Eastbound capacity will be reduced as follows:

1,050-MMcf/d (leaving 1,101-MMcf/d available)  4/10 – 4/11

995-MMcf/d (leaving 1,156-MMcf/d available)  4/12 – 4/15

908-MMcf/d (leaving 1,243-MMcf/d available)  4/16 – 5/5

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

Gulf South Pipeline:

Vixen (Louisiana) Compressor Station Maintenance:  Begins: April 22, 2019    Ends:  April 26, 2019

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

Natural Gas Pipeline Company of America (NGPL):

Pursuant to Section 23.5 of the General Terms and Conditions of its Tariff, Natural is continuing an Advisory Action to all shippers receiving gas in Segment 10 of the Midcontinent Zone (Affected Area).  Due to the large quantity of gas nominated for receipt in the Affected Area utilizing secondary or interruptible point rights, Natural is at capacity for receipts in the Affected Area. 

Effective for gas day Friday, April 12, 2019, Timely Cycle, and continuing until further notice, Natural has removed the Primary Firm and Secondary in-path Firm only restriction.  AOR/ITS and Secondary out-of-path Firm transports will be available at the receipt points listed below up to the total receipt point capacity.  Natural will schedule a total receipt point capacity of 340,000 dth per day in the Affected Area.Receipt points flowing less than 1,000 Dth per day will not be affected unless nominations increase to above 1,000 Dth per day.

Receipt Points in the Affected Area (Segment 10) are:

PIN                  Name                                                  

3251                EPNG MOORE

46856              SOUTHERN STAR BEAVER

901429            CAMERICK PLT BEAVER

905207            COLORADO INTERSTATE GAS FORGAN

Because of the number of restricted points and the number of transactions from these points that use the MidContinent Pooling Point (PIN 25078), shippers nominating Primary firm or secondary in-path firm transport under Rate Schedule FTS from these points should ensure that any gas going to the Pooling Point is clearly identified to the proper FTS contract.  Natural recommends that shippers nominate their FTS contracts directly to the Pooling Point from the specific receipt location.  Any transactions whose downstream contract is not identified when nominated to the Pooling Point sourced from a restricted point will be scheduled as Out-of-path Secondary (prorated based upon nominations, if required).

Southern Natural Gas:

Type 6 OFO Warning

Based on the current mild temperatures forecasted for the weekend and projected demand on Southern’s 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.

Texas Eastern Transmission:

As previously posted, Texas Eastern (TE) has limited operational flexibility to manage imbalances. As result, effective 9:00 AM CCT, April 12, 2019, TE requires all delivery point operators in Access Area Zones STX, ETX, WLA, ELA, Market Area Zones M1-30, M2-30 and M3 to keep actual daily takes out of the system equal to or greater than scheduled quantities regardless of their cumulative imbalance position unless otherwise coordinated with your operations account representative. All receipt point operators in Access Area Zones STX, ETX, WLA, ELA, Market Area Zones M1-30, M2- 30 and M3 are required to keep actual daily receipts into the system equal to or less than scheduled quantities regardless of their cumulative imbalance position unless otherwise coordinated with your operations account representative.

Additionally, TE requires all shippers and point operators in Market Area Zones M1-24 and M2-24 to carefully review demand for gas and schedule gas consistent with daily needs and to tender and receive gas consistent with confirmed nominations regardless of their cumulative imbalance position unless otherwise coordinated with your operations account representative.

Correspondingly, the previously posted imbalance notice issued April 6, 2019 will remain in effect until 9:00 AM CCT, April 12, 2019.

This notice will remain in effect until further notice.

Texas Gas Transmission:

Texas Gas will be performing maintenance at the Henry Hub location (#2790) beginning April 11 through April 25.  Deliveries at the location will be unavailable for the duration of the maintenance.

Wyoming Interstate Gas:

With significantly colder temperatures, moisture and potential blizzard conditions being forecast, WIC 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 the next available nomination cycle until further notice. In addition the following actions will be taken:

Payback OFF the WIC system may not be accepted; payback ONTO the WIC system will be approved, absent other capacity concerns.

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The National Weather Service six-to-ten day extended temperature forecast now calls for cooler than average temperatures up and down the Mississippi River basin from Minnesota to Louisiana.  The East and West coastal areas will see warmer than seasonal weather through next weekend.

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

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

Monday, March 18, 2019

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

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

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

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

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

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

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

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

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

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

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

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

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

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

ANR Pipeline:

Janesville NNG Capacity Reduction

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

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

Columbia Gas Transmission:

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

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

The dial-in details are provided below: 

Participant dial-in: (888) 455-0683

Participant passcode: 2730221 

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

El Paso Natural Gas:

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

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

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

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

Gulf South Pipeline:

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

Kiln to Mobile Scheduling Group

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

Mobile Bay Delivery Scheduling Group

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

Moss Point System Scheduling Group

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

Southeast Supply Header (SESH):

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

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

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

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

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

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

Southern Natural Gas:

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

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

WebEx meeting number:  991 986 350 – Password:  SNG

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

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

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

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

Edition 44 – Monday, March 4, 2019

Welcome to this busy Monday edition of GasNewsOnline.com.  With cold weather gripping much of the United States, we will cover the latest critical postings from the interstate gas pipeline grid along with a few news stories from the energy business, and, of course, take a look ahead at the temperature forecast from the National Weather Service.  It is all FREE from GasNewsOnline.com.

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Cheniere Energy, Inc. and Bechtel Oil, Gas and Chemicals, Inc. announced today that Substantial Completion of Train 1 of the Corpus Christi liquefaction project was achieved on Thursday, February 28, 2019. Commissioning is complete and Bechtel has turned over care, custody, and control of Train 1 to Cheniere.

“Train 1 at Corpus Christi has achieved Substantial Completion, becoming the first liquefaction train placed into operation at a greenfield liquefaction facility in the lower 48 states,” said Jack Fusco, President and CEO of Cheniere. “This momentous achievement was made possible by Cheniere’s professionals and our EPC partner, Bechtel, who worked diligently together to ensure a seamless transition from construction to operations. I’d like to thank the Cheniere team and Bechtel for their world class execution, which has enabled us to continue our impeccable record of bringing trains online safely, ahead of schedule, and within budget.”

“The entire Bechtel team is very proud of our contribution to Cheniere’s success on the U.S. Gulf Coast, as we hand over custody of this historic first Texas LNG train,” said Brendan Bechtel, Chairman and Chief Executive Officer of Bechtel. “It was three years ago that we were able to support Cheniere’s entry into the LNG export market with Train 1 at the Sabine Pass Liquefaction project. With five trains now completed and operating well ahead of schedule, we are excited to continue working alongside Cheniere to deliver their next wave of trains with the reliability of outcome that Cheniere and Bechtel have become known for delivering. This program is a great example of how a one-team approach can bring world-class results, and I want to congratulate Jack and the Cheniere team for fostering this environment of collaboration and mutual success.”

Under sale and purchase agreements (“SPAs”) with Endesa S.A. and PT Pertamina (Persero), the date of first commercial delivery is expected to occur in June 2019, upon which the term of each of these SPAs commences. Additionally, bridging volumes are expected to begin in June 2019 under an SPA with Iberdrola, S.A.

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Last Friday, Cheniere announced that Midship Pipeline Company, LLC has issued Notice to Proceed to Strike, LLC, M.G. Dyess, Inc., TRC Pipeline Services, LLC, and Cenergy, LLC to construct the Midship natural gas pipeline and related compression and interconnect facilities (the “Midship Project”). The Midship Project received final Notice to Proceed from the Federal Energy Regulatory Commission in February 2019 and is expected to be placed in service by the end of 2019. Midship Pipeline is indirectly and jointly owned by Cheniere and EIG.

To complete financing of the Midship Project, Midship Pipeline entered into senior secured credit facilities with total commitments of up to approximately $680 million. The credit facilities consist of an approximate $615 million construction loan facility and a $65 million revolving credit facility. Proceeds from these credit facilities will be used to fund a portion of the costs of developing, constructing, and placing into service the Midship Project, to fund working capital requirements, and for related general corporate purposes.

The Midship Project is being developed to create pipeline capacity of up to 1,440,000 Dekatherms per day of firm transportation to connect production from the emerging STACK and SCOOP resource plays in the Anadarko Basin in Oklahoma to growing Gulf Coast and Southeast markets. The Midship Project is expected to consist of approximately 200 miles of 36 inch diameter new mainline pipeline, several laterals, compressor stations and interconnects that will provide receipts from STACK and SCOOP processing plants and provide deliveries to Bennington, Oklahoma, as well as access to downstream markets including the TexOk hub near Atlanta, Texas, and the Perryville Hub near Tallulah, Louisiana. Midship Pipeline has secured commitments from subsidiaries and/or affiliates of Cheniere, Devon Energy Corporation, Marathon Oil Corporation, and Gulfport Energy Corporation.

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Also on Friday, TransCanada Corporation announced the Federal Energy Regulatory Commission (FERC) had approved the full in-service of its Mountaineer XPress (MXP) project, allowing the company to increase the flow of gas on MXP and begin operating its Gulf XPress (GXP) project. The projects are a vital link between Appalachian natural gas supplies and growing markets in the U.S. and beyond.

“Mountaineer XPress and Gulf XPress are extremely important to TransCanada as they provide much-needed takeaway capacity for our customers, while also growing our extensive footprint in the Appalachian Basin,” said TransCanada President and Chief Executive Officer Russ Girling. “Both projects will also deliver attractive long-term returns and stable cash flow for our shareholders.”
                                                         
Designed to deliver clean, affordable, domestically produced natural gas, MXP is comprised of 170 miles of 36-inch-diameter pipeline, three new compressor stations, and modifications to three existing compressor stations – representing an investment of approximately US$3.2 billion. The pipeline is capable of transporting 2.7 billion cubic feet of natural gas per day to the TCO Pool and Leach markets on the Columbia Gas Transmission System. MXP is underpinned by long-term contracts with customers.

Partial in-service of the approximately US $600-million GXP project includes placing into service four new compressor stations located in Kentucky, Tennessee and Mississippi. Together, these facilities will provide additional capacity of 530,000 million cubic feet of natural gas per day on the Columbia Gulf Transmission System, which equates to approximately 60 percent of the project’s total capacity. GXP is also underpinned by long-term contracts with customers and is expected to be placed into full service in the coming weeks.

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With cold weather gripping the majority of the nation on Monday, several interstate gas pipelines posted operational notices on their electronic bulletin board systems to start the new week:

ANR Pipeline:

ANR is performing planned maintenance at its LaGrange Compressor Station on its Tie-Line located in Indiana in the Northern Fuel Segment (Zone 7). ANR will reduce the LaGrange Westbound location (LOC #314515) capacity by the following:

175-MMcf/d (leaving 525-MMcf/d available) 3/12 – 3/15

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

El Paso Natural Gas:

Pipeline Conditions – Permian Basin Weather Concerns 

The Permian supply basin is experiencing significant underperformance issues related to the winter weather that moved in overnight. Actual receipts into the system are approximately 545 MM below scheduled quantities for Gas Day March 4 (79% of schedule). A combination of freeze-offs and power outages coupled with road closures are impacting the ability of receipt point operators to restore supply to the system.  The Permian Basin overnight lows tomorrow morning are forecast again to be significantly below the seasonal average and additional supply underperformance is anticipated. 

Delivery point operators are encouraged to review their scheduled supplies to ensure that they are aligned with their flowing quantities.  Supply operators are encouraged to maintain their deliveries into the EPNG system at their scheduled rates.  Underperformance caps will be placed on underperforming supplies and if necessary EPNG will declare an SOC for DRAFT condition. 

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

Washington Ranch is fully operational.

Gulf South Pipeline:

Index 300 Maintenance Pig Run:  March 20 – March 21, 2019 and again beginning March 27 – March 28, 2019

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

Mobile Bay Delivery Scheduling Group – Capacity could be impacted by up to 150,000 dth/d for the duration of the maintenance.

Moss Point System Scheduling Group – Capacity could be impacted up to100,000 dth/d for the duration of the maintenance.

Northern Border Pipeline:

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 March 8th, 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.

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 and Wednesday, March 5 and 6, 2019, due to lower than normal forecasted system weighted temperatures.

Northwest Pipeline:

Effective for gas day Wednesday, March 6, 2019 and until further notice, Northwest is revising its current Overrun Entitlement as follows:

Receiving Party locations north of the Plymouth South constraint point, including the Spokane and Wenatchee laterals, will be revised from a Stage I (3%) Overrun Entitlement to a Stage III (13%) Overrun Entitlement.    

For Receiving Party locations between the Kemmerer compressor and the Plymouth South constraint the Stage II (8%) Overrun Entitlement will be lifted.

Even though the Entitlements are being changed or lifted, Northwest is not allowing balancing off the system. Customers can avoid future Entitlements by procuring sufficient supply for their market needs.

Panhandle Eastern Pipe Line:

On Sunday, March 3, Panhandle Eastern Pipe Line experienced a rupture downstream of the Centralia Compressor Station. This outage will require a section of the 400 Line to be shut-in for repairs, reducing mainline capacity.

Effective immediately, until further notice, Panhandle will be limiting nominations through Haven to 1,125,000 MMBtu/day, with gas scheduled in accordance with Section 8.8 (c) of Panhandle’s FERC Gas Tariff. This outage will be considered a Force Majeure event pursuant to Section 20 of Panhandle’s FERC Gas Tariff. 

Shippers are encouraged to bring in physical flowing gas from their Primary receipt point, or physical market area receipt meters downstream of this outage in order to avoid the constraint, and potential scheduling reductions of their nominated activity.  

The cold weather restrictions outlined in Critical Notice ID 8196 will remain in effect. Panhandle will be requiring all Enhanced Firm Transportation (EFT) shippers to limit their physical deliveries (takes) to a one-sixteenth hourly rate of the nominated volume. 

Updates on the impact to shipper nominations will be posted as they become available.

Southern Natural Gas:

Based on the weather forecast predicting colder temperatures as well as the corresponding increase in projected demand on Southern’s north and south systems, we are notifying all Shippers that the existing Type 3 Level 1 OFO is being upgraded to a Type 3 Level 2 OFO and is also being expanded to include all of the following groups listed below effective the start of the gas day, Tuesday, March 5, 2019 until further notice.
OFO Type 3 Level 2: Daily Demand Exceeds Capacity

TARIFF SECTION 41.2
EFFECTIVE DATE: March 5, 2019
EFFECTIVE TIME of OFO: 9:00 AM (CCT)

PENALTY: $15.00 + Highest Regional Daily Price* per Dth for quantities taken in excess of the tolerance

TOLERANCE:  Greater of 102% of the Daily Entitlement or 200 dth

Southern Star Central Pipeline:

System Advisory Notice:

Southern Star Central Gas Pipeline is issuing a Storage notice to protect the integrity of SSCGP’s storage facilities. A number of storage customers have inventory levels at or below five percent (5%). This issuance requires all TSS, STS, and FSS customers to have inventories at or above zero (0 %) and asks TSS and STS customers to also ensure they have at least one (1) day of inventory available. Failure to voluntarily comply could result in the issuance of an Operational Flow Order (OFO).

Tennessee Gas Pipeline:

EMERGENT REPAIR AT STATION 323A – SEGMENT 324 – EFFECTIVE 3-05-19 

Pursuant to Article XII of the General Terms and Conditions of Tennessee’s FERC Gas Tariff, Tennessee is posting notice of an emergent repair issue impacting a unit at Station 323A in Pike County, PA. Tennessee has personnel on site and repairs are underway. Tennessee is estimating the current impact to be up to 200,000 Dths at Segment 324 (FH). Based on current nominations, Secondary Out of the Path nominations and Secondary In Path nominations pathed through Segment 324 (FH) are at risk as early as Timely Cycle for the Gas Day of Tuesday, March 5, 2019.

Also on Tennessee Gas…

Due to a forecast of colder weather and higher demand moving across most of the system, effective for the Gas Day of Monday, March 4, 2019, and until further notice, Tennessee Gas Pipeline, L.L.C.  (“Tennessee”) is implementing an  OFO Daily Critical Day 1 for all of Zones 2, 3, 4, 5 and 6 for all Balancing Parties (including LMS-PA, SA contracts acting as balancing parties, LMS-MA, and LMS-PL balancing parties).  This action is pursuant to Article X, Section 4 of the General Terms and Conditions of Tennessee’s FERC Gas Tariff.  

All delivery point operators in all of Zones 2, 3, 4, 5 and 6 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 of Zones 2, 3, 4, 5 and 6 are required to keep actual daily receipts into the system equal to or greater than scheduled quantities regardless of their cumulative imbalance position.  In addition, it is essential that delivery point operators schedule gas at meters commensurate with takes within the affected areas.  All LMS-PA, SA contracts acting as balancing parties, LMS-MA and LMS-PL Balancing Parties are required to maintain an actual daily flow rate not exceeding 2% of scheduled quantities or 500 dths, whichever is greater for under-deliveries into the system and over-takes from the system. Customers will be assessed a rate of $5.00 plus the applicable Regional Daily Spot Price per dekatherm for that portion of physical quantities related to under-deliveries by receipt point operators and over-takes by delivery point operators which exceed this tolerance. 

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

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 Tuesday, March 5, 2019 to all parties, with the exception of those governed by a FERC gas tariff, in Texas Eastern’s Market Area Zone M2-30.

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.

During the effectiveness of this OFO, all parties must be balanced such that actual receipts of gas into the system must be equal to or greater than scheduled receipts into the system. The penalty shall apply to each dekatherm of actual receipt quantities that are less than scheduled quantities minus 2,000 Dth or 98% of scheduled receipt 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.

Texas Gas Transmission:

Below normal temperatures have moved into the Texas Gas service area for the first part of this week. While it is fully expected that all primary firm service obligations will be met, the following services/activities are subject to scheduling reductions until further notice:

Imbalance Payback from Transportation Service Provider

Park Withdrawal

Loan

ISS Withdrawal

FSS Overrun Withdrawal

Interruptible and out-of-path Firm Transportation

Additionally, Texas Gas is requesting all shippers take deliveries within their contractual hourly rights so that receipts and Deliveries match their associated scheduled quantities. 

If shippers do not voluntarily comply with these provisions, Texas Gas may be forced to issue an Operational Flow Order, which could result in penalties for shippers.

Transcontinental Gas Pipe Line Company:

Subject:Operational Flow Order – Imbalance

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

Effective:    Tuesday, March 5, 2019 and until further notice

OFO Areas:  Zone 6

Tolerance %:  5% for gas Due from Shippers

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The National Weather Service six-to-ten day forecast into March 14 is showing that Texas and most areas east of the Mississippi River will show a warming trend while temperatures remain below normal over the Upper Midwest, the Rockies, and the West Coast regions. 

That’s all for this chilly Monday edition of GasNewsOnline.com.  Please come back on Thursday for an update on the interstate gas pipeline conditions expected for the weekend. 

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

Edition 27 – Thursday, January 3, 2019

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

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

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

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

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

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

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

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

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

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

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

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

Algonquin Gas Transmission:

AGT Operational Flow Order

In order to maintain the operational integrity of the system, Algonquin Gas Transmission, LLC (AGT) is issuing an Operational Flow Order (OFO) pursuant to Section 26 of the General Terms and Conditions of AGT’s FERC Gas Tariff effective 9:00 AM CCT, January 6, 2019, to all parties, with the exception of those Operational Balancing Agreements required by FERC regulations, on the AGT system. 

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

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

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

Dominion Energy Questar Pipeline

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

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

El Paso Natural Gas:

WARNING OF STRAINED OPERATING CONDITION (SOC) – DRAFT

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

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

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

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

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

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

Northern Border Pipeline:

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

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

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

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

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

Southern Natural Gas:

January 2, 2019

To All Southern Natural Gas Company Shippers

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

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

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

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

Transwestern Pipeline:

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

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

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

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

Any such UPR cuts will be handled by separate notices.

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

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

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

Thanks for joining us at GasNewsOnline.com.  Please let your friends in the natural gas transportation business know about us.  Our information and services, as always, are FREE!

Edition 26 – Thursday, December 27, 2018

Welcome back to GasNewsOnline.com for Thursday, December 27, 2018.  The New Year is right around the corner, so we will check out the latest natural gas news and gas pipeline information which may affect your business through early next week.  All for FREE!

January’s natural gas futures contract looks to be up ten cents today and near $3.64/MMBtu for the new month at the Henry Hub in Louisiana.

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

The natural gas plant liquids composite price at Mont Belvieu, Texas, fell by 52¢/MMBtu, averaging $6.21/MMBtu for the week ending December 19. The price of natural gasoline, ethane, propane, butane, and isobutane all fell for that reporting week.

According to Baker Hughes, for the week ending Tuesday, December 11, the natural gas rig count remained flat at 198. The number of oil-directed rigs fell by 4 to 873. The total rig count decreased by 4, and it now stands at 1,071.

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Let’s check out the latest postings from the electronic bulletin boards of the major interstate gas pipeline companies around the United States:

Algonquin Gas Transmission:

AGT Operational Flow Order


In order to maintain the operational integrity of the system, Algonquin Gas Transmission, LLC (AGT) is issuing an Operational Flow Order (OFO) pursuant to Section 26 of the General Terms and Conditions of AGT’s FERC Gas Tariff effective 9:00 AM CCT, December 29, 2018, 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.

East Tennessee Natural Gas:

Line 3100 Outage Update (5)

East Tennessee Natural Gas, LLC (ETNG) is providing the following update on its progress in returning to service the 3100 Line near its Dixon Spring compressor station. As posted on December 21, 2018, ETNG is working diligently to return the capacity thru Dixon Springs to approximately 300,000 Dth/d. The updated progress report is as follows: 

Progress Report: ETNG continues to be diligent on the three major construction activity work streams required to return the pipeline back to service. The three major work streams are: (1) Testing and installing new section of pipeline, (2) Installing temporary pig launchers/receivers and cleaning of the pipeline around incident location and (3) Removing temporary pig launcher/receivers and returning pipeline to service. 

As of December 26, 2018, the testing and installation of the new section of pipeline has been completed. As previously posted, ETNG has commenced and continues its pigging operations to clean the pipeline around the incident location. ETNG is projecting the final pig runs and other commissioning activities, such as the purging and packing of the system, to be completed on December 29th. There are various factors that could potentially change the projected return to service date, such as, but not limited to: weather conditions and unforeseen events due to existing pipeline conditions that could lengthen the work schedule. Based on the current schedule and progress made to date, ETNG is now projecting returning to service approximately 300,000 Dth/d of capacity thru Dixon Spring on DECEMBER 30, 2018.

Looking Ahead: ETNG will continue to provide updates on its progress until the 3100 line has been restored to full capacity. ETNG is committed to prioritizing the work in a safe and efficient manner in order to increase system capacity as quickly as feasible. 

El Paso Natural Gas:

Pipeline Conditions – Increasing Linepack in Advance of Weather

EPNG is concerned about the winter weather forecast to move into the Permian and San Juan basins Friday afternoon into Saturday morning and the potential for a loss of supply due to freeze offs. EPNG will be maintaining higher linepack until the winter weather moves out of the supply basins. Drafting of the system will undermine EPNG’s ability to increase and maintain linepack in advance of the potential supply underperformance.

Delivery point operators are encouraged to review their scheduled supplies to ensure that they are aligned with their flowing quantities.

Supply operators are encouraged to maintain their deliveries into the EPNG system at their scheduled rates.

Underperformance caps will be placed on non-performing supplies.

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

Kinder Morgan Louisiana Pipeline (KMLP):

FORCE MAJEURE – COMPRESSOR STATION 760 – LIFTED

KMLP has completed repairs at Compressor Station 760 in Acadia Parish, Louisiana (CS 760).  Therefore, effective for gas day Thursday, December 27, 2018, Intraday 1 Cycle and continuing thereafter, the force majeure will be lifted and flow will resume to normal operations.  All transport services are available.

Mississippi River Transmission (MRT):

MAIN LINE UTILIZATION SPW

Due to the potential for maximum utilization of northbound firm Main Line capacity causing a potential supply deficiency in the Market Zone, MRT is issuing a System Protection Warning (SPW) effective 9:00 a.m. Saturday, December 29, 2018 and continuing until further notice.

 During this time:

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

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

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

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

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

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

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

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

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

Natural Gas Pipeline Company of America (NGPL):

SEGMENT 11 – CS 104 – FORCE MAJEURE

Natural is experiencing electrical issues at Compressor Station 104 (CS 104), located in Barton County, Kansas (Segment 11 of Natural’s Midcontinent Zone).  As a result, Natural is required to reduce the maximum operating capacity through CS 104.  This is a Force Majeure event that limits Natural’s throughput capacity northbound through CS 104. 

The scheduling constraint will be at CS 104; therefore, any gas received south of CS 104 for delivery north of CS 104 will be impacted for the duration of this outage.  For scheduling purposes, the Midcontinent Pool (LOC 25078) is located south (upstream) of the constraint.  Additionally, firm transportation nominated from receipt points south of CS 104 (including the Midcontinent Pool) and transports associated with withdrawals from all Amarillo Storage points will be impacted.  Receipt points north of CS 104 will not be impacted.    

As such, effective for gas day, Friday, December 28, 2018, Timely Cycle and anticipated to continue until further notice,Natural will schedule Primary Firm and Secondary in-path Firm transports to no less than 75% of contract MDQ through CS 104.  Actual nomination levels and changes in pipeline conditions could result in changes to the percentages scheduled (lower or higher) on subsequent gas days.  AOR/ITS and Secondary out-of-path Firm transports continue to not be available.

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

Southern Star Central Gas Pipeline:

Winter Weather Advisory – Effective December 28, 2018 Cold weather is being forecasted across much of the Southern Star system beginning Friday, December 28, 2018, through Sunday, December 30, 2018. Southern Star is issuing a weather advisory effective gas day Friday, December 28, 2018, and requests that operators and shippers monitor weather conditions and ensure their business plans consider the temperatures forecasted. 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.

Transwestern Pipeline Company:

12/26/18

Pipeline Conditions – Low Line Pack – Cold Weather

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

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

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

Any such UPR cuts will be handled by separate notices.

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

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

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Taking a look ahead to temperatures in the first week of January, the National Weather Service six-to-ten day forecast shows below average temperatures across much of the Midwest and Mid-continent regions with normal temperatures across the Great Lakes and Northeast.   The West Coast and Southeast may see slightly warmer temperatures than average.

Thank you for reading GasNewsOnline.com! Have a safe weekend, and a HAPPY NEW YEAR!

Edition 25 – Thursday, December 20, 2018

Like George Bailey on the bridge in It’s A Wonderful Life, the natural gas business is hoping for a wintertime miracle to give another boost to natural gas prices for the coming year.

Welcome back to GasNewsOnline.com!   We take care of wrapping up the packages of natural gas news and gas pipeline bulletin board postings for you – all for FREEHo, Ho, Ho!

Before we take a look at a large number of critical notices from the interstate pipeline companies, let’s check out some of the latest natural gas news today:

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From the US Energy Information Administration‘s “Weekly Natural Gas Storage Report“, working gas in storage decreased by 141 Bcf from the previous week.   Natural gas stocks were 720 Bcf or 20.6% below the five-year average.

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Oklahoma Gas & Electric, the utility subsidiary of OGE Energy Corp., announced today that it will acquire two existing power plants to meet customers’ energy needs. The plants will replace capacity currently provided by power purchase contracts set to expire in 2019.

The company announced it will acquire the Shady Point plant near Poteau, Oklahoma, and the Oklahoma Cogeneration plant in Oklahoma City.

The Shady Point facility is a 360 MW coal- and natural gas-fired plant utilizing circulating fluidized bed boilers that produce lower emissions due to their design features and emissions controls.

The Oklahoma Cogeneration facility is a 146 MW natural gas-fired combined-cycle plant.

The company will pay approximately $53 million for the two plants, which currently serve OG&E customers.

“In the past five years, we’ve completed several critical projects that advance our commitment to deliver energy reliably and affordably to customers in an environmentally responsible way.  Today’s announcement builds on that commitment,” said OGE Energy Corp. Chairman, President and CEO Sean Trauschke. “Our diverse energy portfolio of natural gas, wind, solar and coal gives us the versatility to meet a variety of economic and environmental needs. The result is our electric rates are 29 percent below the national average, which is a driver of economic development, and OGE is among industry leaders in emissions reduction performance.

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ENGIE Resources today announced the acquisition of Plymouth Rock Energy based in Woodmere, NY. The transaction, which has received approval from the Federal Energy Regulatory Commission and became effective December 19, 2018, will enable ENGIE Resources to expand its natural gas and electricity presence in seven states and by more than 20,000 customers.

The combined organization expects to benefit from complementary products, geographies, and systems in addition to shared information technology and billing and service economies.

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The interstate gas pipeline network is getting ready for the long Christmas break by posting a number of critical notices to shippers and customers.  Let’s take a look:

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, December 24, 2018, 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.

This OFO will remain in effect until further notice.

Columbia Gulf Transmission:

Effective December 20, 2018 for the ID1 cycle, the Kinder Morgan La. interconnect, Meter 4206 is now designated as bidirectional and available for delivery nominations on Columbia Gulf Transmission, LLC (CGT).  This meter is located in Evangeline Parish, LA on CGT’s Mainline.  

Dominion Energy Questar Pipeline

Dominion Energy Questar Pipeline’s fuel reimbursement rate is changed for January 1,2019 from 1.87% to 1.57% pending FERC approval by the end of December. If there are any changes to the rate, the approved rate will be reposted.

East Tennessee Natural Gas:

Line 3100 Outage Update

Enbridge is working with PHMSA towards a timely in-service of East Tennessee Natural Gas’ (ETNG) 22-inch natural gas pipeline impacted by the incident that occurred in Pleasant Shade, Tennessee, on December 15, 2018.

Safety is a fundamental principle in everything we do and we are ensuring all construction and restoration operations are completed safely.  We continue to refine our return to service plan, and currently do not have an estimated time of restoration. 

Enbridge is committed to bringing the affected section of its East Tennessee Natural Gas system back to operation in a safe manner.  We will provide further updates as future milestones are achieved or as circumstances warrant.

El Paso Natural Gas: 

Pipeline Conditions – Weekend Linepack Concerns 

Currently EPNG linepack is within acceptable limits going into the holiday weekend. However, EPNG is concerned that the forecasted milder weather across our service area could result in a high linepack situation. 

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

Delivery point operators are encouraged to take gas according to their scheduled quantities. If the situation warrants, EPNG will declare an SOC for a PACK condition. 

Supply operators are encouraged to maintain their deliveries into the EPNG system at their scheduled rates. 

Washington Ranch is on maximum injection. 

Payback to the system, such as Make-Up Receipt (MR) transactions, may be limited or denied due to operational concerns related to the potential for a high linepack condition. 

Enable Gas Transmission:

REVISED PLND BYARS LAKE MAIN

New Information Posted December 19th, 2018

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

Effective February 6, 2019, at 9:00 a.m. and continuing through February 7, 2019 (previously January 9 through 10), EGT will conduct planned maintenance on its Byars Lake Compressor Station, located in McClain County, Oklahoma and in EGTs West 2 Pooling Area.  During this maintenance, capacity through EGT’s Allen Compressor Station will be limited to approximately 780,000 Dth/d; point operators will experience higher pressure.

Based on current nominations, EGT expects impacts to its services, including potential impacts to firm service.  During the planned maintenance, shippers whose receipts are in the West 1 and West 2 pooling areas West of the Allen Compressor Station should nominate point to point in order to maintain the highest priority level of service.

Gulf South Pipeline:

Olla (Louisiana) Compressor Station Maintenance – Update

Effective date:  December 20, 2018               End Date:  December 28, 2018

For the Marksville Deliveries Scheduling Group, capacity could be impacted by as much as 100,000 dth/d for the duration of the maintenance.

Northern Natural Gas:

In an effort to provide timely and useful information that may impact customers’ decisions regarding nominated volumes, and to assist shippers in scheduling their transportation and storage services, Northern is providing advance notice of the Carlton Sourcing Obligation, System Underrun Limitation (SUL), and System Overrun Limitation (SOL) for the holiday weekend.

Based on temperatures that are currently forecast for the Market Area throughout the holiday weekend, the following system conditions will be in effect to ensure adequate line pack and delivery pressures.

The Carlton Sourcing Obligation will be as follows:

Gas Day Saturday, December 22, 2018, will be 0%

Gas Day Sunday, December 23, 2018, will be 0%

Gas Day Monday, December 24, 2018, will be 0%

Gas Day Tuesday, December 25, 2018, will be 0%

Gas Day Wednesday, December 26, 2018, will be 0% 

SUL and SOL status for both the Market and Field Areas will be as follows:  No SUL or SOL 

Holiday Weekend Temperatures Projected to be Warmer-Than-Normal

The likelihood of storage injection allocations is at a higher probability for the extended holiday weekend due to the forecast of warmer than normal temperatures. These conditions could lead to the allocation of interruptible storage injections, including firm deferred delivery overrun injections.

Although Northern does not anticipate calling an SUL, Northern may be required to allocate overperforming receipt points and/or underperforming delivery points located in the Permian basin to actual flowing volumes during an intraday nomination cycle in order to maintain adequate supply/market balance. As performance improves at these receipt and delivery points, allocations would be lifted.

Northwest Pipeline:

Effective December 21-23, 2018, Jackson Prairie will be undergoing maintenance. Nominations that net to an injection or withdrawal of 50,000 Dth/d will be accepted. Northwest requests that customers stay on rate to avoid the issuance of an Entitlement.

Northwest will schedule up to 10,000 Dth at $0.10 for both Park and Loan at JP for December 21-23. 

Northwest is NOT allowing interruptible in or out of JP December 21-23.

Northwest is asking Shippers to voluntarily reduce nomination through the Rangely compressor station to avoid the issuance of an OFO over the holidays. Operational capacity is 370,000 Dth/d. If nominations exceed 370,000 Dth/d Northwest could issue an OFO.

Northwest encourages you to continue scheduling your supply so that sufficient gas is being delivered to Northwest to cover your market.

Northwest Pipeline reserves the right to cut secondary gas to protect the operational integrity of its pipeline. This includes cutting secondary gas at any compressor in a constrained corridor; moving balancing gas to and from Clay Basin and Jackson Prairie; or to minimize OFOs for primary irm shippers.

PG&E – California Gas Transmission:

Due to the completion of maintenance on Line 300 A/B, pipeline inventory limits will be restored to the following ranges starting on today’s gas day, December  20, 2018:

Total System Demand above 2,800 MMcf will change back to 4,350-4,000 MMcf from 4,200-3,850 MMcf

Total System Demand at 2,800 MMcf or below will change back to 4,300-3,900 MMcf from 4,150-3,750 MMcf.

Southern Star Central Pipeline:

Line Segment 130 Force Majeure (UPDATE #13):

Southern Star Central Gas Pipeline (Southern Star) posted a Force Majeure Update on Line Segment 130 Tuesday, June 19, 2018. Southern Star continues working to fully restore service for Line Segment 130.

Additional work has been completed, Effective TIM Cycle Gas Day December 20, 2018, and Southern Star will increase capacity at the Kansas Hugoton Receipt constraint to 383,000 Dth/d.

Texas Eastern Transmission:

TE Imbalance Notice – UPDATE

As previously posted, Texas Eastern (TE) has limited operational flexibility to manage imbalances. As result, effective immediately, TE requires all delivery point operators in Market Area Zones M1-24 and M2-24 to keep actual daily takes out of the system equal to or less than scheduled quantities regardless of their cumulative imbalance position unless otherwise coordinated with your operations account representative. All receipt point operators in Market Area Zones M1-24 and M2-24 are required to keep actual daily receipts into the system equal to or greater than scheduled quantities regardless of their cumulative imbalance position unless otherwise coordinated with your operations account representative.

Additionally, TE requires all shippers and point operators in Access Area Zones STX, ETX, WLA and ELA and Market Area Zone M1-30, M2-30 and M3 to carefully review demand for gas and schedule gas consistent with daily needs and to tender and receive gas consistent with confirmed nominations regardless of their cumulative imbalance position unless otherwise coordinated with your operations account representative.

Correspondingly, effective immediately, the previously posted imbalance notice is no longer in effect.

This notice will remain in effect until further notice.

Trailblazer Pipeline:

TRAILBLAZER MECHANICAL ISSUE–COMPRESSOR STATION 603

Trailblazer Pipeline Company LLC (“Trailblazer”) has recently identified a mechanical issue with one of the two compressor units at Compressor Station 603. The unit is currently unavailable and is not expected to be available until early April 2019.  At this time, secondary firm quantities, as well as ITS/AOR are at risk of not being scheduled.

Trailblazer will post updates as additional information becomes available.

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:  Friday, December 21, 2018 and until further notice

OFO Areas:  Zones 4, 5, and 6

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

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The National Weather Service has posted its January, 2019 temperature forecast.  The picture shows average to slightly colder than average temperatures across the central and eastern portions of the United States.  The Rockies and West Coast will again see warmer than average weather.

Have a very MERRY CHRISTMAS and enjoy the holiday season!   Please tell a friend in the natural gas transportation business about GasNewsOnline.com!   Subscribe to our FREE audio podcasts on iTunes.

Edition 23 – Thursday, December 13, 2018

Welcome back to GasNewsOnline.com!   We hope to give you a little holiday cheer with publicly available news and information about the natural gas business and a glimpse of warmer weather in the extended forecast for the week of Christmas.

First, let’s take a look at what is making news in the energy business:

The US Energy Information Administration published their weekly natural gas storage report today.  Below is a summary of the report:

EIA Natural Gas Storage Data
Total (12/07/18): 2,914 Bcf
Total (11/30/18): 2,991 Bcf
Net change: -77 Bcf
Year ago stocks: 3,636 Bcf
% change from year ago: -19.9
% 5-year avg stocks: 3,637 Bcf
% change from 5-year avg: -19.9 %

Cheniere Energy, Inc. announced Wednesday that the first commissioning cargo of liquefied natural gas (LNG) has loaded and departed from its Corpus Christi liquefaction facility in Texas, marking the first export of LNG from the state and from a greenfield liquefaction facility in the lower 48 states. The LNG was loaded on the LNG carrier Maria Energy, chartered by Cheniere Marketing, LLP.

“Exporting the first commissioning cargo of LNG from Texas demonstrates Cheniere’s ability to deliver projects safely and ahead of schedule, including the first greenfield LNG export facility in the lower 48 states,” said Jack Fusco, Cheniere’s President and CEO. “This milestone further reinforces Cheniere’s position as the leader in U.S. LNG, with a world-scale liquefaction platform that provides significant competitive advantages as we continue to execute on our growth strategy.” 

The Corpus Christi liquefaction facility consists of three large-scale LNG production units — or trains — and supporting infrastructure, with an additional seven smaller trains proposed.  The facility’s first train produced first LNG in November and is expected to reach substantial completion in the first quarter of 2019.  Train 2 is expected to reach substantial completion in the second half of 2019, and Train 3 in the second half of 2021. The facility will also feature three LNG storage tanks with capacity of approximately 10.1 billion cubic feet equivalent and two marine berths.

In other energy news:

Houston-based Parker Drilling Company announced Wednesday that it has entered into a restructuring support agreement (“RSA”) with holders of the Company’s securities.  To implement that agreement, Parker has voluntarily filed for Chapter 11 protection in the U.S. Bankruptcy Court for the Southern District of Texas.

The existing management team is expected to remain in place, and the Company expects to complete the restructuring process in the first quarter of 2019.

The Company anticipates that its cash flow and existing liquidity will be sufficient to support global operations during this period.   The proposed Plan, which is subject to Court approval, reduces approximately two-thirds of funded debt and injects $95 million of new equity capital.

“Our operational results have continued to improve this year, and we anticipate new opportunities for profitable growth across our drilling and rental tools businesses. The steps we are announcing today will ensure that we have the appropriate capital structure to take advantage of these opportunities to strategically grow our assets, our global footprint, and our suite of products and services,” said Gary Rich, Chairman, President and Chief Executive Officer.

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The interstate gas pipeline grid is shifting from an early winter mode of operation and providing the industry a brief chance to replenish storage levels as some warmer weather is upon us.  Let’s take a look at some of the critical postings:

ANR Pipeline:

SW Area Capacity Restriction

New: ANR will begin unplanned compressor maintenance at its Mooreland Compressor Station located in Woodward County, Oklahoma, in the Southwest Area (Zone 4).  During the period of December 13th, 2018 through January 13th, 2019, ANR Shippers can expect higher than normal pressures in the pipeline segment upstream of the Mooreland Compressor Station.

Dominion Energy Transmission:

Effective start of gas day, Friday, December 14, 2018, PL-1 restrictions will be lifted (supersedes Notice ID: 209910).

Additionally, Dominion is lifting capacity restrictions on its Northern, TL-400, and Oakford operating areas on Friday, December 14.

Dominion Energy Questar Pipeline:

In-line inspection results for JL47 indicate that remediation is necessary on a portion of the pipeline.  Dominion Energy Questar Pipeline (DEQP) has scheduled the repair for December 18, 2018.  To facilitate the work, Altamont MAP 145, Randlett Tap MAP 419, Pleasant Valley Tap MAP 413 and Brundage Mtn Tap MAP 144 will all need to be shut-in and nominations will not be accepted for cycles Timely through ID2 with volumes, returning to normal in cycle ID3.

East Tennessee Natural Gas:

ETNG Operational Flow Order – East of Boyds Creek — LIFTED

Effective today (Thursday, December 13), East Tennessee Natural Gas (ETNG) is lifting the Operational Flow Order for meters east of Boyds Creek issued on December 5, 2018.

ETNG has limited operational flexibility to manage imbalances. ETNG requires all delivery points located east of Boyds Creek to carefully review demand for gas and schedule gas consistent with daily needs and to tender and receive gas consistent with confirmed nominations regardless of their cumulative imbalance position unless otherwise coordinated with your operations account representative.

Additionally, ETNG requires all delivery points on its 3200 line located between Tracy City to Topside and on the 3500 line 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 on the 3200 Line between Tracy City to Topside and on the 3500 line are required to keep actual receipts into the system equal to or greater than scheduled quantities regardless of their cumulative imbalance position.

El Paso Natural Gas:

The Force Majeure event that was declared on December 7, 2018 (Reference Critical Notice 603991) at Dimmitt Compressor Station will be lifted effective for Gas Day December 13, 2018 Cycle 3 (Intraday 1). The net capacity at AMAR N returns to 283,100 dekatherms consistent with El Paso Natural Gas Company’s December Maintenance Report (Reference latest Maintenance Notice 603975).

Enable Gas Transmission:

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

Effective January 9, 2019, at 9:00 a.m. and continuing through January 10, 2019, EGT will conduct planned maintenance on its Byars Lake Compressor Station, located in McClain County, Oklahoma and in EGT’s West 2 Pooling Area.  During this maintenance, capacity through EGT’s Allen Compressor Station will be limited to approximately 780,000 Dth/d.  Point operators will experience higherpressure.

Based on current nominations, EGT expects impacts to its services, including potential impacts to firm service. During the planned maintenance, shippers whose receipts are in the West1 and West 2 pooling areas West of the Allen Compressor Station should nominate point to point in order to maintain the highest priority level of service.

Florida Gas Transmission:

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

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

Kinder Morgan Louisiana Pipeline (KMLP):

Compression associated with the Sabine Pass Expansion Project, (Docket No. CP 17-22-00), is expected to go into service on December 13, 2018.  KMLP will begin assessing fuel gas on the “North to South Transportation Path” as defined in Section 1.30 of KMLP’s General Terms and Conditions. 

Effective December 13, 2018, the Fuel Gas Total Reimbursement Percentage will increase from 0.00% to 0.72%.  This percentage was approved by FERC on November 27,2018 in KMLP’s filing in Docket No. RP19-197-000.  The Unaccounted For Gas Total Reimbursement Percentage remains at 0.00%.  Shippers are advised to schedule quantities with the revised percentages. 

Natural Gas Pipeline Company of America (NGPL):

Natural has experienced horsepower issues on the Amarillo mainline at Compressor Station 103 (CS 103),located in Ford County, Kansas (Segment 11 of Natural’s Midcontinent Zone).  This is a Force Majeure event that will require Natural to reduce temporarily the maximum operating capacity northbound through CS 103 during this restriction. 

The scheduling constraint will be at CS 103; therefore, any gas received south of CS 103 for delivery north of CS 103 will be impacted. The Midcontinent Pool (PIN 25078) is located south (upstream) of the constraint.  Additionally,transports associated with storage withdrawals will be impacted. 

As such, effective for gas day Thursday, December 13, 2018, Timely Cycle, and anticipated to continue until further notice, Natural will schedule Primary Firm and Secondary in-path Firm transports to no less than 82% of contract MDQ through CS 103.  Actual nomination levels and changes in pipeline conditions could result in changes to the percentages scheduled (lower or higher).  AOR/ITS and Secondary out-of-path Firm transports continue to not be available during this event.   

Tennessee Gas Pipeline:

Effective for the Gas Day of Friday, December 14, 2018, and until further notice, Tennessee Gas Pipeline, LLC (“Tennessee”) is lifting the Daily Critical Day 1 OFO for all areas east of STA 219 on the 200 Line (including the Niagara Spur) and on the 300 Line.  However, it is imperative that customers continue to match physical flows with scheduled volumes in this area in order to avoid the issuance of any additional actions in these zones. 

Texas Eastern Transmission:

Texas Eastern Transmission (TE) has experienced an outage impacting capacity through its Bernville compressor station in Pennsylvania. This outage results in a capacity of approximately 2,947,000 Dth/d through the Bernville compressor station beginning on Gas Day December 14, 2018.  TE anticipates the outage will last for approximately 2-3days.

In addition…

Effective today (Thursday,December 13), Texas Eastern (TE) is lifting the Market Area Zone M3 Operational Flow Order effective on December 4, 2018.

As previously posted, TE has limited operational flexibility to manage imbalances. TE requires all delivery point operators in Market Area Zones M1-24, M2-24 and M3 to keep actual daily takes out of the system equal to or less than scheduled quantities regardless of their cumulative imbalance position unless otherwise coordinated with your operations account representative. All receipt point operators in Market Area Zones M1-24, M2-24 and M3 are required to keep actual daily receipts into the system equal to or greater than scheduled quantities regardless of their cumulative imbalance position unless otherwise coordinated with your operations account representative.

Additionally, TE requires all shippers and point operators in Access Area Zones STX, ETX, WLA and ELA and Market Area Zone M1-30 and M2-30 to carefully review demand for gas and schedule gas consistent with daily needs and to tender and receive gas consistent with confirmed nominations regardless of their cumulative imbalance position unless otherwise coordinated with your operations account representative.

Furthermore, 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 Monday, December 17, 2018 to all delivery parties, with the exception of those governed by a FERC gas tariff, in Texas Eastern’s Market Area Zone 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 arithmetic average of 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.

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According to Santa’s friends at the National Weather Service, the eight-to-ten day temperature forecast is showing that most of the United States may see normal to above-average readings heading into Christmas!  Ho, Ho, Ho, indeed!

Enjoy a weekend of fewer operational flow orders on the pipelines for a change! 

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