Thursday, April 18, 2019

Welcome to a very busy Easter weekend edition of GasNewsOnline.com!  There are a host of critical notices from several of the country’s interstate natural gas pipeline companies about issues relating to changes in pipeline operating conditions. 

Plus, we’ll also update you on the latest publicly released news of the day and provide the first glimpse of May’s expected temperatures from the National Weather Service, too.  

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Working natural gas in storage was 1.247 Tcf as of Friday, April 12, 2019, according to US Energy Information Administration estimates. This represents a net increase of 92 Bcf (which was 5 Bcf greater than analyst estimates). 

Natural gas stocks were 414 Bcf (or 26%) below the five-year average for the same week. 

On the NYMEX, the May, 2019 natural gas futures price reacted to the news and was down about three cents on Thursday at approximately $2.49/MMBtu.   Natural gas prices declined to their lowest level in nearly three years due to a seasonal lull in heating and cooling demand combined with surging gas supplies. 

It is interesting to note that not a single month of today’s NYMEX natural gas futures strip (through April, 2021) showed a natural gas price above $3.00/MMBtu.

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During today’s quarterly earnings release and conference call, Kinder Morgan provided an update on a few natural gas pipeline projects currently in progress:

In the Permian area, construction continues on the Gulf Coast Express Pipeline (GCX) project. The remaining 40 miles of the 36-inch Midland lateral was placed in service at the beginning of April 2019. Construction is progressing well on the 42-inch mainline and compressor stations associated with the project, which remains on schedule for a full in-service date of October 2019.

The approximately $1.75 billion project is designed to transport about 2.0 Bcf/d of natural gas from the Permian Basin to the Agua Dulce, Texas area, and is fully subscribed under long-term, binding agreements.

Progress also continues on the Permian Highway Pipeline (PHP) project . The civil and environmental surveys are substantially complete, and the land acquisition process is underway.

The approximately $2 billion PHP Project is designed to transport up to 2.1 Bcf/d of natural gas through approximately 430 miles of 42-inch pipeline from the Waha, Texas area to the U.S. Gulf Coast and Mexico markets and is expected to be in service in October 2020, pending regulatory approvals.

On the East Coast, the first of ten liquefaction units of the nearly $2 billion Elba Liquefaction Project is expected to be placed in service by approximately May 1, 2019. The remaining nine units are expected to be placed in service sequentially, one per month thereafter.

The federally approved project at the existing Southern LNG Company facility at Elba Island near Savannah, Georgia, will have a total liquefaction capacity of approximately 2.5 million tonnes per year of LNG, equivalent to approximately 350 million cubic feet per day of natural gas.

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In summary, many interstate natural gas pipelines have posted critical notices to shippers requiring that they do not create pipeline imbalances caused by lack of market demand during the upcoming Easter holiday weekend.  Let’s review… 

Algonquin Gas Transmission:

Algonquin Gas Transmission (AGT) has limited operational flexibility to manage imbalances. Effective 9:00 AM CCT, Friday, April 19, 2019, AGT requires all delivery point operators 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 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.

ANR Pipeline:

Southwest Mainline Capacity Reduction (Posted 4/18/19)

ANR will begin planned maintenance at the Havensville compressor station between April 29 and May 2.  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 through the SWML, it is anticipated that this posting will result in the capacity allocation reduction of IT and Firm Secondary volumes.

Also from ANR:

SW Area Capacity Restriction (Posted 4/18/19)

From April 29th through May 4th, ANR will perform planned pipeline maintenance between its E.G. Hill and Gageby Compressor Stations in the Southwest Area (Zone 4). As a result, ANR will shut-in the Beaver-CIG (REC FR CIG) receipt point, DRN #16435.

The total E.G. Hill from Gageby (LOC #226643) capacity will be reduced by the following:

50-MMcf/d (leaving 175-MMcf/d available) 4/29 – 5/4

Based on current nominations, it is anticipated the above reductions will result in the curtailment of nominations associated with IT and Firm Catalog Receipt points in the affected area.  Also, interconnects along this segment may experience higher line pressures.

Colorado Interstate Gas (CIG):

In response to continuing and prolific natural gas production growth in the Denver-Julesburg Basin – and the mounting market need for timely transportation capacity – Colorado Interstate Gas Company, L.L.C. (CIG) is conducting a binding Open Season for additional firm capacity to be made available by approximately November 1, 2019.  The additional transportation capacity offered in this Open Season will have primary receipt rights into CIG’s 5C Line north of a proposed new interconnection (“High Five Meter Station”) with CIG’s High Plains Lateral to be constructed at approximately milepost 29, and will have primary delivery rights at the High Five Meter Station of the CIG 5C Line and the Wyoming Interstate Company, L.L.C. (“WIC”) facilities at Bowie. 

For more details, please check the CIG Electronic Bulletin Board.  The posting is dated April 18, 2019.

This binding Open Season will commence today (April 18, 2019) and is scheduled to close at 10:00 a.m. Mountain Time on May 8, 2019.  CIG intends to provide notification of capacity awards by 5:00 p.m. Mountain Time on May 9, 2019.

Questions concerning this Open Season should be directed to:  Greg Ruben (713-520-4870) or Laine Lobban (719-520-4344). 

Columbia Gas Transmission:

Columbia Gas Transmission, LLC (TCO) reminds customers of a station power outage at the Cobb Compressor Station scheduled for Saturday, April 27, 2019 through Sunday, April 28, 2019.   

Due to this maintenance, the below internal constraints will be set to Zero Total Capacity.  All production will be shut-in with the exception of a limited quantity that may be needed to serve localized markets. 

Cobb South MA18 (A03SOUTH)

Cobb Northeast MA18 (A03NORTH)

Cobb Northwest MA18 (A03LOW)

Cobb Line H (A03LINEH)

Cobb CS MA18 (COBBA03) 

East Tennessee Natural Gas:

Boyds Creek Compressor Station Outage – April 23 – 24

ETNG will be conducting a compressor station outage at its Boyds Creek Compressor Station (Boyds) on the 3300 line. During this outage, west to east capacity through Boyds will be reduced to approximately 80,000 Dth per day.

Based on historical nominations, restrictions may be required for interruptible and secondary services and potentially primary firm services.

Enable Gas Transmission:

This Operational Alert is being issued pursuant to Section 20, GT&C, of EGT’s Tariff to advise shippers system wide that they will be required to maintain actual receipts and deliveries commensurate with scheduled volumes, beginning on Friday, April 19, 2019 at 9:00 A.M. and continuing until further notice.

Due to limited storage capacity, EGT anticipates it may be unable to support imbalance positions and may reduce scheduled quantities intraday to balance actual receipts and deliveries necessary to maintain system deliverability and operational integrity.

The availability of balancing and non-ratable services will be limited.  Hourly non-ratable nominations, as well as the use of imbalance positions must be pre-approved or within the posted limits on EGT s Daily Operating Plan. EGT will continue to monitor the pipeline s pressure and imbalances and will, if necessary, take further actions, including the issuance of one or more Operational Flow Orders (OFO).

EGT will schedule receipts and deliveries in accordance with EGT s Tariff.  This Operational Alert will remain in effect until further notice and will be updated as more information becomes available.

Gas Transmission Northwest (GTN):

May 2019- GTN Fuel and Line Loss Percentage

Pursuant to Gas Transmission Northwest’s (GTN) Tariffed Fuel Adjustments Provision, for the period of May 01, 2019 through May 31, 2019, a fuel usage rate of 0.0021% per Dth/mile will be in effect.

This percentage is inclusive of GTN’s current fuel and line loss surcharge of 0.0000% per Dth per pipeline mile, which is in effect through December 31, 2019, in accordance with GTN’s approved tariff provision, “Adjustment Mechanism for Fuel, Line Loss, and Other Unaccounted For Gas.”

Gulf South Pipeline:

Index 818 I.L.I. Pig Run – Begins April 23, 2019 – Ends April 24, 2019

Expansion Area 19 (Mississippi) Delivery Scheduling Group.- Capacity could be impacted by as much as 300,000 dth/d for the duration of the maintenance.  Please contact your customer service representative if you have any questions.

Kinder Morgan Louisiana Pipeline (KMLP):

SEGMENT 140 – MLV #7 – AT OPERATING CAPACITY 

Effective for gas day Friday, April 19, 2019, Timely Cycle, and continuing until further notice, KMLP is at operating capacity for gas going southbound through Segment 140, located in Jefferson Davis Parish, Louisiana.  AOR/ITS and Secondary out-of-path Firm transports are at risk of not being fully scheduled. 

Mississippi River Transmission (MRT):

Due to the potential negative impact of significant shipper long imbalance positions on MRT storage withdrawal operations, MRT is issuing a System Protection Warning (SPW) effective 9:00 a.m. Thursday, April 18, 2019, and continuing until further notice.

During this time:

1) Shippers should avoid daily long imbalance positions

2) MRT may not schedule any nominations that result in a daily long position.

3) MRT may not accept any makeup of short positions

4) MRT may not schedule nominations that result in counter-seasonal injection.

Failure to comply with this SPW may result in the issuance of an OFO.  Nominations will be confirmed and scheduled in accordance with MRT s Tariff.

Southern Natural Gas:

Based on the current milder weather forecast and projected demand on Southern’s system for the Holiday weekend, we are implementing an OFO Type 6 for long imbalances on Southern’s contiguous pipeline system effective for the start of the gas day, Friday, April 19, 2019, and until further notice. In order to maintain the operational integrity of Southern’s system, it is essential that Shippers and Poolers remain in balance (including their available no-notice injection entitlements).

The OFO Type 6 order will subject each Shipper/Pooler to the following tiered imbalance penalties:

Daily Imbalance Penalty
(Percent of Allocated Deliveries ) ( Per Dth )

0 – 2% or < 200 dth No Penalty
> 2 – 5% $1.00
> 5 – 8% $ 5.00
> 8% $15.00

Since the projected operational conditions are affected by receipts exceeding deliveries, the penalty will apply only to each Shipper/Pooler that has a net long imbalance (i.e., the party’s total allocated receipts exceed total allocated deliveries including available no-notice storage injections).

Tennessee Gas Pipeline:

OFO DAILY CRITICAL DAY 1 FOR ALL OF ZONES L, 1, 2, 3, 4, 5 AND 6 EFFECTIVE 4-19-19 

Due to forecasted milder weather, storage fields on test and anticipated lower demand for the holiday weekend, effective for the Gas Day of Friday, April 19, 2019, and until further notice, Tennessee Gas Pipeline, L.L.C.  (“Tennessee”) is implementing an OFO Daily Critical Day 1 for all of Zones L, 1, 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 L, 1, 2, 3, 4, 5 and 6 are required to keep actual daily takes out of the system equal to or greater than scheduled quantities regardless of their cumulative imbalance position.  All receipt point operators in all of Zones L, 1, 2, 3, 4, 5 and 6 are required to keep actual daily receipts into the system equal to or less 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 over-deliveries into the system and under-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 over-deliveries by receipt point operators and under-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.

Trailblazer Pipeline Company:

TRAILBLAZER MECHANICAL ISSUE–COMPRESSOR STATION 603–UPDATE #1

Trailblazer Pipeline Company LLC (“Trailblazer”) 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 late May, 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.  For questions, please call your Account Director or Scheduling Representative.

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:        Friday, April 19, 2018

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 has published their first glimpse at the temperature forecast from the month of May.  It shows that the East and West coast areas could see above normal temperatures next month, while the majority of the midsection of the US is predicted to have normal to slightly below seasonal temperatures during the month of May.

That’s a wrap for this Thursday edition of GasNewsOnline.com.  We’ll return on Monday to provide 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

Happy Easter!

Monday, April 8, 2019

Welcome to GasNewsOnline.com!  April is upon us with springtime weather causing a severe weather outbreak in the South early this week, while an early spring heavy snowfall is expected in the upper Midwest by later this week! 

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

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

Net natural gas storage injections totaled 23 billion cubic feet (Bcf) for the week ending March 29. Working natural gas stocks are now 1.13 Tcf, which is 31% lower than the five-year (2014–18) average for the same week.

According to Baker Hughes, for the week ending Tuesday, March 26, the natural gas rig count decreased by 2 to 190. The number of oil-directed rigs fell by 8 to 816. The total rig count decreased by 10, and it now stands at 1,006.

According to the EIA, U.S. LNG exports totaled 4.1 Bcf/d in January 2019, marking the third consecutive month where a new record high was reached. The volume of U.S. LNG exports rose steadily during 2018 as three new liquefaction units, called trains, totaling 1.9 Bcf/d capacity, began service:   

A single train at the Cove Point (Maryland) terminal in March 2018;

Train 5 at the Sabine Pass (Louisiana) terminal in November 2018;

Train 1 at the Corpus Christi (Texas) terminal in December 2018.

LNG export volumes are expected to continue to rise in 2019 as an additional 4 Bcf/d of liquefaction capacity is brought online by the end of this year.

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Today, Kinder Morgan, Inc. announced that Tennessee Gas Pipeline (TGP) and El Paso Natural Gas (EPNG) have agreed to settlements with their shippers to address issues raised by the Federal Energy Regulatory Commission’s (FERC) 501-G process.

Rate adjustments set forth in the agreements by TGP and EPNG will have a combined approximately $50 million EBITDA impact for 2019; and when fully implemented, will have an approximately $100 million combined annual impact on EBITDA. KMI expects that these two agreements, pending approval by FERC, should resolve the vast majority of KMI’s 501-G exposure.

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Now, let’s check out the latest critical postings from the interstate natural gas pipeline companies’ Electronic Bulletin Boards:

Algonquin Gas Transmission:

In order to maintain the operational integrity of the system, Algonquin Gas Transmission, LLC (AGT) is issuing an Operational Flow Order (OFO) pursuant to Section 26 of the General Terms and Conditions of AGT’s FERC Gas Tariff effective 9:00 AM CCT, April 9, 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 6,000 Dth or 106% of scheduled delivery quantities. The penalty will be equal to three times the daily Platts Gas Daily “Daily Price Survey” posting for the High Common price for “Algonquin, city-gates” for the day on which such violation occurred as indicated in AGT’s General Terms and Conditions Section 26.8. In addition, AGT will not permit retroactive nominations to avoid an OFO penalty.

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

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

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

This OFO will remain in effect until further notice.

ANR Pipeline:

ANR Pipeline Company Notice of Force Majeure (Lifted 04/08/19)

Effective today, ANR has lifted the Force Majeure event on its Southeast Southern Segment (Zone 2) related to the unexpected pipeline repairs north of its Celestine Compressor Station. The associated capacity restrictions for Cottage Grove compressor station have been lifted.

East Tennessee Natural Gas:

East Tennessee Natural Gas (ETNG) has experienced an unplanned outage at its Glade Spring Compressor Station (Glade Spring) on the 3300 Line. Repair efforts to restore this compressor station to full capacity are underway. As a consequence of this outage, ETNG estimates that west to east capacity will be as follows:

Glade Spring Compressor Station – 105,000 Dth/d
Rural Retreat Compressor Station – 200,000 Dth/d
Deliveries on the Roanoke Line – 57,000 Dth/d

Based on current pipeline conditions ETNG doesn’t anticipate any restrictions associated with this outage; however if nominations change, restrictions may be required.

Gulf South Pipeline:

Carthage Junction compressor station maintenance:  Begins April 8, 2019 – Ends April 11, 2019

Hall Summit Scheduling Group – Locations will experience higher than normal operating pressures. Capacity could be impacted by up to 300,000 dth/d for the duration of the maintenance for all services other than primary firm.

MidContinent Express Pipeline (MEP):

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

As such, effective for gas day Wednesday, April 10, 2019, and continuing through gas day Thursday, April 11, 2019, MEP estimates the impact to be up to 360,000 into Segment 200.  Actual nomination levels, changes in pipeline conditions, and assistance MEP is seeking from connecting pipelines upstream and downstream of the outage could result in a decrease to the capacity reduction.  AOR/ITS and Secondary out-of-path Firm transports will not be available during this outage.  Primary Firm and Secondary-in-path Firm transports are at risk of not being fully scheduled into Segment 200, assuming all such contracts are nominated at full applicable contract MDQ through the constrained segment. 

LOC 44450 AMID/DESTIN will be unavailable for all transport services for the duration of this outage. 

Additionally, all park and loanservices under Rate Schedule PALS will not be available anywhere on the system.

Natural Gas Pipeline Company of America (NGPL):

Announces: TRANSPORTATION RESTRICTIONS – NSS STORAGE SERVICES

AMARILLO SYSTEM

“IN-PATH” TRANSPORT FOR INJECTIONS”

Effective for gas day Tuesday, April 9, 2019, Timely Cycle, and continuing until further notice, Natural will require “in-path” transportation for NSS storage injections on the Amarillo System.  AOR/ITS and Secondary out-of-path firm transportation associated with NSS injections will not be scheduled.  Any receipt gas nominated from Rex Moultrie (LOC 44413) and pathed to the Amarillo System for storage injections will be available and scheduled on all transport services (subject to any posted constraints).

“IN-PATH” TRANSPORT FOR WITHDRAWALS TO THE MARKET AREA”

Effective for gas day Tuesday, April 9, 2018, Timely Cycle, and continuing until further notice, Natural will not require “in-path” transportation for NSS storage withdrawals on the Amarillo System to the Market Delivery Zone.  AOR/ITS and Secondary out-of-path firm transportation associated with NSS withdrawals will be scheduled.  

Northwest Pipeline:

Jackson Prairie storage customers are required to forward in writing an estimate of the volumes to be injected into their accounts during the period May 1 through September 30, 2019.  Please e-mail this information to your Marketing Services representative by May 1, 2019.

The suggested fill percentages are listed below in order to meet deliverability demands anticipated in the upcoming heating season.  In order to have full use of your working gas quantity, it is recommended the three benchmark percentages be met to avoid the standard reduction of usage based on meeting the minimum fill percentages as outlined in Section 8.3 of Rate Schedule SGS-2F.

 Jun 30 – minimum of 35% of total working gas quantity 

 Aug 31 – minimum of 80% of total working gas quantity

 Sep 30 – 100% full

Texas Eastern Transmission:

Texas Eastern (TE) has experienced an unplanned outage at its Athens, Ohio compressor station and efforts to restore the compressor station to full capacity are underway.

This outage results in the following capacity north to south through compressor stations on the 30 inch:

Approximately
Berne 2,103,000 Dth/d
Wheelersburg 2,025,000 Dth/d
Tompkinsville 1,796,000 Dth/d

TE will take into consideration the reduced capacity during the timely cycles for future gas days.

TE will post updates to the status of its Athens compressor station as soon as it is known.

Texas Gas Transmission:

Texas Gas will be performing valve maintenance at location #9490 – Regency Riverton (Caldwell Parish, Louisiana) beginning Wednesday, April 10 and ending Thursday, April 11, 2019.

This location will be shut-in during this maintenance.  If you have any questions please contact your Customer Service Representative.

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The extended National Weather Service six-to-ten day temperature outlook shows that warmer than seasonal weather will continue in the Southeastern US.  Expect normal April temperatures from New England, the Great Lakes and most of the Midwest.  Cooler than seasonal weather will prevail in the Rockies into the Pacific Northwest through April 18. 

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

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

Edition 39 – February 14, 2019

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

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

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

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

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In other energy news:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

ANR Pipeline:

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

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

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

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

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

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

Columbia Gas Transmission:

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

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

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

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

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

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

 Applicable Penalties: 

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

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

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

East Tennessee Natural Gas:

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

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

Gulf South Pipeline:

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

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

002424 GREENSBURG CITY GATE

002432 KENTWOOD CITY GATE

002549 MONTPELIER & PINE GROVE CITY GATE

002559 TANGIPAHOA CITY GATE

002583 KENTWOOD BRICK & TILE PLANT

002690 HOLMESVILLE (TO TRANSCO)

013087 TRANSFER @ MONTPELIER / ST HELENA

013456 TRANSFER @ HOLMESVILLE (TRANSCO)

022114 WALTHALL (TO TRANSCO)

022182 MONTPELIER/ST HELENA (TO FGT)

022573 TRANSFER @ WALTHALL (TO TRANSCO)

Kern River Gas Transmission:

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

Kinder Morgan – All Pipelines – DART Business and Training:

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

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

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

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

Midwestern Gas Transmission:

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

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

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

Participant Passcode: 125665

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

Mississippi River Transmission (MRT):

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

 During this time:

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

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

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

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

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

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

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

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

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

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

Northern Natural Gas:

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

Northwest Pipeline:

Northwest is revising its current Overrun Entitlement as follows:

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

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

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

Southern Star Central Gas Pipeline:

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

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

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

Incremental Loans will be available on a limited basis

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

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

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

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

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

Tennessee Gas Pipeline:

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

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

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

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

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

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

Edition 20 – Monday, December 3, 2018

Winter has made an impressive early entrance in 2018 with the forecast showing the cold weather has made plans to stick around for awhile.

Welcome back to GasNewsOnline.com!   We’re keeping an eye on the latest happenings in the natural gas business (with our hands on a warm beverage) so that you will be up-to-date – for FREE!

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There are several critical notices being posted by the interstate gas pipeline companies for this week due to the cold weather.  Let’s jump right in…

Dominion Energy Transmission:

Subject:  PL-1 Restrictions South of Leesburg Effective December 4, 2018

Due to the forecasted weather and requirements on the PL-1 system, effective start of gas day Tuesday, December 4, 2018 and continuing until further notice, DETI will not accept any IT or Non PL-1 firm transportation south of Leesburg Compressor Station in northern Virginia. This will include the following meters:

Location Name Location

Transco Nokesville 40303

Virginia Natural Gas 22400

Doswell 22500

City of Richmond 22600

VA Electric & Power 22700

Columbia of Virginia 22800

VEPCO (Lady Smith) 22900

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

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

 

East Tennessee Natural Gas:

Force Majeure Declaration — LIFTED

As posted on November 28, 2018, East Tennessee Natural Gas (ETNG) experienced an unplanned outage at its Boyds Creek Compressor Station (Boyds Creek) in Boyds Creek, Tennessee. Effective immediately, Boyds Creek has returned to normal operation on December 1st.  As a result of the Boyds Creek return to service, all restrictions related with this Force Majeure have been lifted.

 

Florida Gas Transmission:

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

 

Gulf South Pipeline Company: 

Subject:  Vixen Compressor Station Maintenance

Effective Date:  December 4, 2018 through December 7, 2018

Expansion Receipts Upstream Vixen Scheduling Group:

Capacity could be impacted by up to 200,000 Dth/d for the duration of the maintenance. Possible scheduling to all services other than Primary Firm may occur.  Please contact your customer service representative if you have any questions.

 

 

Kern River Gas Transmission: 

Subject:  Kern River – Cold Weather and High Demand Forecasted through December 5

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

 

 

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. Tuesday, December 4, 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.

This SPW will be updated as more information becomes available.

 

Natural Gas Pipeline Company of America (NGPL):

FORCE MAJEURE – COMPRESSOR STATION 801

Natural experienced horsepower issues at Compressor Station 801 on its OE #1 Line in Grady County, Oklahoma (CS 801), in Segment 15 of Natural’s Texok A/G Zone, resulting in a need to make emergent repairs.  This is a Force Majeure event that will require Natural to temporarily reduce the maximum operating capacity eastbound through CS 801 during this event.

The scheduling constraint will be at CS 801; therefore, any gas received west of CS 801 for delivery east of CS 801 will be impacted. The Midcontinent Pool (PIN 25078) is located west (upstream) of the constraint.  Additionally, transports associated with storage injections or withdrawals will be impacted.

As such, effective for gas day Sunday, December 02, 2018, Intraday 2 Cycle, and continuing until further notice, Natural will schedule Primary Firm and Secondary in-path Firm transports to no less than 83% of contract MDQ through CS 801.  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.

Continue to monitor Natural’s interactive website for any updates during this outage.

 

Northwest Pipeline:

Subject:  Entitlement changes and system info

Due to Westcoast’s notice to reduce the T-South flow and the weather forecasted to be below normal, the Stage III (13%) overrun Entitlement north/west of Roosevelt will remain in effect until further notice.

In addition, the following changes will be implemented on Northwest Pipeline to maintain integrity on its system:

-Stage III (13%) overrun Entitlement in the Kemmerer to Roosevelt corridor including the Spokane and Wenatchee laterals.

-Jackson Prairie Loan will be increased to 100,000 Dth

-Jackson Prairie Loan rate will be increased to the maximum Tariff rate

These changes are effective at the beginning of gas day December 4, 2018.

The Entitlement level will be evaluated on a daily basis based on system line pack, storage levels, weather forecasts and upstream pipeline notices.

If you have any questions, please contact your Marketing Services Representative or the Scheduling Hotline at 801-584-7301.

 

Rover Pipeline:

Pipeline Inspections – Majorsville and Sherwood Laterals

Rover will be performing pipeline inspections (pigging) on its Majorsville and Sherwood Laterals beginning Gas Day December 10, 2018, requiring limitations to scheduled quantities as specified below:

December 10 – 70004/Majorsville  – Operational capacity limited to 170 mmcf/d

December 11 – 70004/Majorsville  – Operational capacity limited to 250 mmcf/d

December 13 – 70001/Sherwood  – Operational capacity limited to 430 mmcf/d

December 18 – 70001/Sherwood  – Operational capacity limited to 500 mmcf/d

 

Southern Natural Gas:

Subject:  OFO Type 3 Level 1 South System 12-4-18
Based on the latest weather forecast predicting cooler temperatures moving into the area and the corresponding increase in projected demand on Southern’s system, we are notifying all Shippers that the groups listed below will be subject to an OFO Type 3 Level 1 effective the start of the gas day, Tuesday, December 4, 2018 until further notice.

OFO Type 3 Level 1: Daily Demand Exceeds Capacity
TARIFF SECTION 41.2
EFFECTIVE DATE: December 4, 2018

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

PENALTY: $10.00/Dth

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

 

Southern Star Central Gas Pipeline:

Subject: Update — Winter Weather Advisory — Effective December 04, 2018

The Winter Weather Advisory going into effect December 4, 2018 is being extended through December 7, 2018 based upon the updated forecast.

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.

Southern Star will review the status of its system throughout this period and will provide any changes or updates to this posting as necessary.

 

TallGrass Interstate Gas Transmission:

TIGT  STORAGE  ADVISORY

Based on current storage inventory levels, anticipated deliverability from storage, and current operating conditions, TIGT is hereby notifying shippers that, effective for the Timely Cycle, Gas Day Tuesday, December 4th, 2018, and until further notice, interruptible withdrawal activity at Huntsman locations 994000 and 994500 will not be scheduled.  If you have any questions, please contact your Account Director or Scheduling Representative.

 

Texas Eastern Transmission:

TE M3 Operational Flow Order – Notice Text

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, December 4, 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.

TE will inform customers via EBB when this OFO will be lifted.

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In other energy news on this Monday, December 3rd:

Kinder Morgan announces 2019 financial projections and growth plans

On Monday, Kinder Morgan, Inc. announced its preliminary 2019 financial projections.

“This year has been a very good one for Kinder Morgan and we expect to nicely exceed our budget. In 2019, with our market fundamentals remaining very strong, the Elba Liquefaction Project coming online and Gulf Coast Express entering service, we project continued growth,” said Steve Kean, KMI chief executive officer. “We expect to generate $5.0 billion of distributable cash flow (DCF) which is approximately a 10 percent increase over our 2018 budgeted DCF. Our growth will continue to be supported by an approximately $6.5 billion backlog of high probability energy infrastructure expansion opportunities,” continued Kean.

KMI expects to increase the declared dividend per common share for 2019 to $1.00 per share (annualized), beginning with $0.25 per share for the Q1 2019 dividend (which is paid in Q2 2019).   KMI also continues to expect to increase the dividend to $1.25 per share (annualized) for 2020.

The company plans to invest $3.1 billion in expansion projects and contributions to joint ventures in 2019.  It expects to use internally generated cash flow to fully fund its 2019 dividend payment as well as the vast majority of its 2019 discretionary spending, with no need to access equity markets.

The company also wants to end 2019 with a Net Debt-to-Adjusted EBITDA ratio of 4.5 times. According to Steve Kean, “We continue to be well positioned for an upgrade to our credit ratings and are on positive outlook at all three rating agencies”.

KMI’s expectations assume average annual prices for West Texas Intermediate (WTI) crude oil and Henry Hub natural gas of $60.00 per barrel and $3.15 per MMBtu, respectively, consistent with forward pricing during the budget process. For more information, please visit www.kindermorgan.com.

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SemGroup and DCP Midstream Announce Open Season for Light Crude Transportation Solution from Cushing to Gulf Coast Markets

SemGroup® Corporation and DCP Midstream, LP have announced the commencement of an open season process to solicit binding commitments for the development of a new pipeline system to transport segregated, light batches of crude oil originating in Cushing, Okla. and terminating in Houston, Texas. All potential shippers must submit binding commitments by 5 p.m. Central Time on January 31, 2019.

The proposed Gladiator Pipeline would originate at SemGroup’s Cushing terminal and provide crude oil service to Gulf Coast markets. The Cushing origin would provide potential shippers the connectivity to source barrels from key pipelines that converge in Cushing, including the White Cliffs Pipeline, which serves Colorado’s DJ Basin.

At the pipeline’s destination, potential shippers would have many options for connecting barrels to a variety of demand centers, including refineries in the Houston area or to crude oil storage and export facilities, such as SemGroup’s HFOTCO Terminal. If sufficient commitments are obtained, subject to the receipt of all of the necessary approvals, permits and force majeure, the proposed Gladiator Pipeline may be operational by the third quarter of 2020, following the potential construction of new NGL capacity by DCP.

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Finally, the colder weather has decided to stick around another week or more, according to the National Weather Service.  The six-to-ten day temperature forecast through the second week of December shows below average temperatures for the eastern half of the country.  A warming trend begins from the Great Plains to the desert Southwest during the period.

 

Bundle up!  Thanks for checking us out at GasNewsOnline.com!  Please spread the word and tell a friend in the natural gas scheduling and transportation business about us.  Our companion audio podcasts are available on iTunes.  Yes, it’s FREE!