Thursday, May 16, 2019

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

Plus, we will update you on the latest publicly released news from major energy companies and 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 gas in storage was estimated at 1,653 Bcf as of Friday, May 10, 2019. This represents a net increase of 106 Bcf from the previous week.

Stocks were 130 Bcf higher than last year at this time and 286 Bcf below the five-year average of 1,939 Bcf. At 1,653 Bcf, total working gas is within the five-year historical range.

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OG& E Chairman, President and CEO Sean Trauschke today told the company’s shareholders that the company is “strong and built for the long term.” Speaking at the company’s annual meeting, Trauschke said he was pleased with the performance of OG&E, Oklahoma’s largest investor-owned utility, and Enable Midstream, in which the company owns interest, as both had contributed to the company’s ability to invest in its customers, and maintain utility rates that are 31 percent below the national average.

“2018 will be the benchmark the company uses to gauge future performance. OG&E completed its largest ever investment program, wrapping up more than $6 billion of infrastructure investment since 2011, on time, under budget and while receiving recognition as the safest utility in the Southeastern Electric Exchange,” Trauschke said. “At Enable, we’re seeing continued solid operational and financial results, while volumes are increasing across all of their business segments.”

Looking ahead, he said the company will continue to focus on growing the business through an enhanced customer experience at affordable rates. “The new assets we’ve put into operation have increased fleet resiliency for customer benefit. We will continue to leverage our smart meters and technology that increases reliability and reduces outage response and restoration times.”

OGE Energy is the parent company of Oklahoma Gas and Electric Company, a regulated electric utility serving approximately 852,000 customers in Oklahoma and western Arkansas. In addition, OGE holds a 25.5 percent limited partner interest and a 50 percent general partner interest of Enable Midstream Partners, LP.

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On Tuesday, Sempra Energy celebrated the completion of construction of Train 1 of the Cameron LNG export project in Hackberry, La., with a group of international, federal, state and local officials, including the U.S. president and members of the U.S. administration. The celebratory visit coincided with today’s announcement that Cameron LNG is producing liquefied natural gas (LNG) from the first liquefaction train of the three-train facility, a major commissioning milestone.

Sempra Energy set a goal in 2018 to become the largest developer of North American LNG export infrastructure, targeting 45 million tonnes per annum of LNG export capacity to serve global markets. 

“With a renaissance in domestic energy production, Sempra Energy is pleased to advance America as one of the world’s largest exporters of LNG,” said Jeffrey W. Martin, chairman and CEO of Sempra Energy.  “We are committed to providing a cleaner fuel source to the global markets while supporting job creation right here at home.”

Cameron LNG Phase 1 is one of five LNG projects Sempra Energy is developing in North America. Other projects under development include Cameron LNG Phase 2, previously authorized by the Federal Energy Regulatory Commission (FERC), which could include up to two additional liquefaction trains and up to two additional LNG storage tanks; Port Arthur LNG in Texas, which recently was approved by FERC; and Energía Costa Azul LNG Phase 1 and Phase 2 in Mexico.

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Several interstate natural gas pipeline companies have posted notices warning customers that there isn’t much room left for excess gas supplies heading into the weekend. Let’s review the latest EBB postings:

ANR Pipeline:

ANR will begin planned maintenance at the Brownsville (Tennessee) Compressor Station located in the Southeast Southern Segment (Zone 2). The total Brownsville Southbound (LOC #1260569) capacity will be reduced by the following:

230-MMcf/d (leaving 900-MMcf/d available) 5/20-5/22

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

The estimated impact to Firm Primary is as follows:

17% – Based on the Current Net Southbound Shipper Nominations
20% – Based on the Current Southbound Contracted MDQ

Columbia Gas Transmission:

Columbia Gas Transmission, LLC (TCO) reminds customers of upcoming pigging on MXP Line 100 (previously posted on the Construction and Maintenance Schedule) beginning Tuesday, May 21, 2019 through Friday, May 24, 2019.   Due to the pigging, the below impact is anticipated for the following Gas Days: 

643131 – Corral:

May 21, 2019 – 0 Non-Firm

SHERWODB – Sherwood B MA42:

May 21, 2019 – 940,000 Total Capacity

MXPSEG – MXPSEG MA42:

May 22, 2019 – 1,720,000 Total Capacity

May 23, 2019 – 1,600,000 Total Capacity

May 24, 2019 – 1,600,000 Total Capacity 

Based on current scheduled volumes, there are no anticipated reductions to firm service. As a reminder, the impacted capacities will not be reinstated until the work is complete, which may impact Timely and Evening Cycle nominations for Gas Day May 25, 2019. 

Reservation charge credits will be determined per the process set forth in the General Terms and Conditions, Section 38 of TCO’s FERC Gas Tariff.  Any shipper eligible for reservation charge credits should review this section and comply with the described process to ensure receipt of any credits.  

Dominion Energy Questar Pipeline:

Effective Gas Day May 16, 2019, Timely Cycle and continuing until further notice, Dominion Energy Questar Pipeline (DEQP) will not allow in-kind imbalance payback to the pipeline and is requiring shippers and point operators to have production volumes aligned with scheduled nominations.

This notice is due to the high inventory in DEQP’s Clay Basin balancing account and current pipeline conditions resulting in minimal line pack available for balancing.

Customers with questions should contact their DEQP representative or call the Customer Service Hotline at (801)324-5200.

Gas Transmission Northwest (GTN):

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

The OFO watch is in effect through gas day Tuesday May 21st, in order to allow for GTN pipeline system to regain its operational integrity. GTN has limited flexibility to manage imbalances and strongly encourages all shippers manage their system requirements to ensure the matching of receipts and deliveries daily.

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

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

Gulf South Pipeline:

Index 818 – ILI Pigging         Begins:  June 19, 2019              Ends:  June 21, 2019

Expansion Area 19 (Central Mississippi) Delivery Scheduling Group – Capacity could be impacted by up to 500,000 dth/d for the duration of the maintenance. Please contact your customer service representative if you have any questions.

Mississippi River Transmission (MRT): 

This System Protection Warning (SPW) is being issued to notify shippers of unplanned maintenance at MRT’s Fountain Hill Compressor Station located in Ashley County, Arkansas, effective May 17, 2019.

The unplanned maintenance on the Fountain Hill Compressor Station will begin May 17, 2019 and is anticipated to continue through September 30, 2019.  During this time, nominations and allocations to delivery points located south of MRT s Fountain Hill compressor station will be subject to the following criteria:

Nominations and allocations will need to be within their primary path and primary direction of flow. Nominations and allocations will not be allowed to exceed their Line Priority, Rate Zone Capacity or Line Capacity.

It may become necessary for MRT to schedule down primary firm nominations during this period of unplanned maintenance.  This System Protection Warning (SPW) will remain in effect until further notice and will be updated as more information becomes available.  If you have any questions concerning this Alert, please contact your Scheduling Representative.

Natural Gas Pipeline Company of America (NGPL):

Effective for gas day Thursday, May 16, 2019, and continuing until further notice, Natural is at operating capacity for gas going southbound through Compressor Station 302 located in Montgomery County, Texas (Segment 26 of Natural’s Texok Zone) for deliveries eastbound into Segment 25 or southbound into Segment 22.   AOR/ITS and Secondary out-of-path Firm transports are at risk of not being fully scheduled. 

Tennessee Gas Pipeline:

Effective Timely Cycle (9:00 AM CCT), for the Gas Day of Saturday, May 18, 2019, Tennessee Gas Pipeline, L.L.C. (“Tennessee”) will not accept nominations for Interruptible Storage Injection Services (IS-PA) at the Bear Creek (460017) or Portland (460025) storage fields.   

Tennessee will continue to not approve any transfers from accounts at TGP Bear Creek Storage to SNG Bear Creek Storage (460017)(IS-PA, FS-PA) until further notice.  Transfers into TGP Bear Creek Storage (460017) from SNG Bear Creek Storage will be allowed under the FS-PA storage service only with partner approvals. 

Texas Gas Transmission:

Effective today (May 16), based on current operating conditions on the Youngsville East Lateral (YVE) in Louisiana, capacity will be limited to 300,000 MMBtu.

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

Transcontinental Gas Pipe Line Company (Transco):

Transco has been advised that third party gas processing (North Terrebonne Gas Processing Plant) straddling the Southeast Louisiana Lateral (SELA) is currently not available. This condition is expected to continue until early next week.

Currently, Transco is able to manage gas quality for volumes received upstream of Station 62. However, the situation may require management of scheduled quantities upstream of Station 62 if increases are realized from current scheduled quantities.

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The latest six-to-ten day temperature forecast from the National Weather Service continues to project that above average temperatures will dominate the eastern US through May 26.  The West Coast and Rockies will continue to see below normal weather conditions through late this 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 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!

Edition 43 – Thursday, February 28, 2019

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

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

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

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

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On Tuesday, Dominion Energy provided the following statement:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

The Transaction consists of the following actions:

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

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

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

ANR Pipeline:

Attention All ANR Shippers and Storage Customers

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

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

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

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

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

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

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

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

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

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

Colorado Interstate Gas (CIG):

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

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

Columbia Gas Transmission:

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

Columbia Gulf Transmission:

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

East Tennessee Natural Gas:

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

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

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

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

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

Gulf South Pipeline:

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

Expansion Receipts Upstream Tallulah Scheduling Group.

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

Mississippi River Transmission (MRT):

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

 During this time:

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

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

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

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

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

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

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

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

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

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

Northern Natural Gas:

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

Northwest Pipeline:

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

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

Panhandle Eastern Pipe Line:

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

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

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

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

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

Rover Pipeline:

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

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

Southern Star Central Gas Pipeline:

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

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

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

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

ISS withdrawals and PLS withdrawals will be unavailable

Incremental Loans will not be available

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

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

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

Operational flexibility will not be available during this time.

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

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

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

Trunkline Gas Company:

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

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

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

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

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

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

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

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

Edition 39 – February 14, 2019

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

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

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

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

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In other energy news:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

ANR Pipeline:

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

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

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

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

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

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

Columbia Gas Transmission:

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

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

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

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

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

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

 Applicable Penalties: 

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

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

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

East Tennessee Natural Gas:

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

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

Gulf South Pipeline:

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

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

002424 GREENSBURG CITY GATE

002432 KENTWOOD CITY GATE

002549 MONTPELIER & PINE GROVE CITY GATE

002559 TANGIPAHOA CITY GATE

002583 KENTWOOD BRICK & TILE PLANT

002690 HOLMESVILLE (TO TRANSCO)

013087 TRANSFER @ MONTPELIER / ST HELENA

013456 TRANSFER @ HOLMESVILLE (TRANSCO)

022114 WALTHALL (TO TRANSCO)

022182 MONTPELIER/ST HELENA (TO FGT)

022573 TRANSFER @ WALTHALL (TO TRANSCO)

Kern River Gas Transmission:

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

Kinder Morgan – All Pipelines – DART Business and Training:

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

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

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

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

Midwestern Gas Transmission:

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

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

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

Participant Passcode: 125665

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

Mississippi River Transmission (MRT):

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

 During this time:

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

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

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

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

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

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

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

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

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

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

Northern Natural Gas:

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

Northwest Pipeline:

Northwest is revising its current Overrun Entitlement as follows:

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

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

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

Southern Star Central Gas Pipeline:

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

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

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

Incremental Loans will be available on a limited basis

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

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

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

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

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

Tennessee Gas Pipeline:

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

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

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

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

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

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

Edition 37 – Thursday, February 7, 2019

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

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

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

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

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

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

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

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

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

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

Algonquin Gas Transmission:

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

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

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

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

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

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

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

This OFO will remain in effect until further notice.

ANR Pipeline:

Attn: All ANR Shippers

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

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

Columbia Gas Transmission:

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

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

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

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

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

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

Applicable Penalties: 

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

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

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

Colorado Interstate Gas (CIG):

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

Dominion Energy Transmission:

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

40209 Columbia of Pennsylvania (Pleasant Gap)

21305 Texas Eastern Chambersburg (East Coast)

40201 Texas Eastern Chambersburg (PL-1)

40202 Texas Eastern Steckman Ridge

40224 Baltimore Gas and Electric

22000 Washington Gas and Electric

23500 Dominion Cove Point Loudoun

40704 Transco Nokesville

40303 Virginia Natural Gas

22400 Doswell

22500 City of Richmond

22600 VA Electric & Power

22700 Columbia of Virginia

22800 VEPCO (Lady Smith)

22900 Genon Mid-Atlantic (Dickerson)

30016 Panda Stonewall

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

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

East Tennessee Natural Gas:

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

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

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

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

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

Gas Transmission Northwest:

GTN OFO Watch (Posted 2/6/19)

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

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

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

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

Kern River Transmission:

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

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

Mississippi River Transmission (MRT):

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

 During this time:

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

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

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

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

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

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

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

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

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

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

Northern Border Pipeline:

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

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

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

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

Northern Natural Gas:

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

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

Northwest Pipeline:

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

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

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

PG&E – California Gas Transmission:

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

Southern Star Central Gas Pipeline:

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

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

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

Incremental Loans will be available on a limited basis

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

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

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

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

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

Texas Eastern Transmission:

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

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

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

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

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

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

Edition 31 – Thursday, January 17, 2019

If you like cold weather, you’ll LOVE this edition of GasNewsOnline.com!  With another winter storm bearing down on the midsection of the country and, this weekend, along a large portion of the East Coast, the gas pipelines are busy writing critical notices.  GasNewsOnline.com brings you all of the publicly released gas pipeline news and the updated temperature forecasts.  All for FREE!

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As a follow up to its EBB notice dated June 29, 2018, Gas Transmission Northwest LLC (GTN), indirectly and partially owned by TransCanada PipeLines Limited (TransCanada), is informing interested parties that a chemical substance, Dithiazine, continues to appear at facilities on the GTN System, and those of some upstream and downstream connecting pipelines.

Dithiazine is a sulphur compound by-product created through the use of Triazine, a liquid chemical scavenger used by producers to remove hydrogen sulfide (H2S) from gas streams. TransCanada has become aware that Dithiazine may drop out of the gas stream, under certain conditions, in the form of a white powder, and further chemically change to an adhesive, putty-like substance at some points of pressure reduction (for example, at a regulator) due to a temperature drop that accompanies the pressure reduction. If a sufficient quantity of the material is accumulated in certain appurtenances, it could cause them not to function properly.

As TransCanada has previously advised, multi-stage pressure regulation and/or heating of the gas stream prior to the pressure cut can mitigate against Dithiazine dropping out of the natural gas stream. In addition, periodic equipment inspections and cleaning to remove any observed solid deposits may help prevent operational issues with facility equipment.

However, due to the potential for Dithiazine to interfere with equipment functionality, TransCanada is considering disallowing the receipt of gas that has interacted with Triazine into the GTN System if the factors contributing to the presence of Dithiazine do not change. In the event Dithiazine continues to appear at facilities on the GTN System, GTN may decide to issue an Operational Flow Order by April 1, 2019 in accordance with Section 6.30 of its FERC Gas Tariff, as amended from time to time, to maintain or restore the operational integrity of its system.

To provide additional clarity and address any questions, TransCanada invites all parties to attend a working session to be held the second week of February 2019 in Calgary, Alberta.

TransCanada will continue to provide stakeholders with updates as appropriate. In the meantime, GTN commercial and operations representatives are available to meet with any affected parties at their convenience, or to address any questions.

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BlueMountain Capital Management has delivered an open letter to the Board of Directors of PG&E Corporation. 

The investment firm, which owns several million shares of PGE stock, said that the company’s plan to file bankruptcy soon is “damaging, avoidable, and unnecessary” for the company’s stockholders.    

According to the letter, BlueMountain Capital Management asserts that PG&E “has ample liquidity to operate its business; the amount of liabilities remains uncertain and contestable; there are meaningful probabilities of offsets from settlements and cost recovery; and any potential liabilities are payable in the future”.

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From the US Energy Information Administration, the weekly natural gas storage report showed a net decrease of 81 Bcf pulled from storage for the week ending January 11.  Remaining natural gas stocks in storage are now 2.5 Tcf.  That volume is 11.4% below the five-year average for the same week.

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Due to another winter storm moving across the MidWest and, for this weekend, into the Northeast, this is an extremely busy week of gas pipeline company critical notices.

ANR Pipeline:

Attn: All ANR Market Area Shippers

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

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

Columbia Gas Transmission:

Pursuant to the General Terms & Conditions of TCO’s FERC Gas Tariff, Section 19.7, shippers are advised that due to sustained colder temperatures, storage levels, and increased market demand extending several days beginning Friday, January 18, 2019, Transport and Storage Critical Days are necessary in all Market Areas across the TCO system.  Please note the following: 

Transport and Storage Critical Days:  Friday, January 18, 2019 and until further notice.  TCO will monitor conditions and provide updates as necessary. 

Applicable Market Areas:  All Market Areas and All Storage Withdrawals delivered to all Market Areas. 

Applicable Transport Penalty:  TFE – If Shipper’s takes on any Day exceed the greater of 103 percent of 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.  (Notice ID 25678425 posted on December 1, 2015 explains in detail) 

Columbia will be evaluating whether shippers have exceeded their TFE within the specific Market Areas affected by the Critical Day. Firm entitlements in other Market Areas will not be included in determining whether a shipper’s flows are within their TFE in any Market Area subject to the Critical Day.

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

– FSS MMWQ – Monthly Withdrawal Quantities that exceed 40% (November Limit) of SCQ will be assessed a penalty of $5.00 per Dth. 

NOTE:  Transporter projects no availability of interruptible storage withdrawal services (SIT and ISS) and excess FSS withdrawals with delivery to one of the affected Market Areas.  PAL loans or unparks with a delivery within the affected Market Areas will not be available.  Due ship nominations will be scheduled to zero.

East Tennessee Natural Gas:

ETNG Operational Flow Order – East of Boyds Creek

In order to maintain the operational integrity of the system, ETNG is issuing a Balancing Alert Operational Flow Order (OFO) pursuant to Section 14.7 of the General Terms and Conditions of ETNG’s FERC Gas Tariff effective 9:00 AM CCT, January 17, 2019 for all meters east of the Boyds Creek Compressor Station.

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

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

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

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

Enable Gas Transmission:

BALANCING OPERATIONAL ALERT

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 THURSDAY, JANUARY 17,  2019 AT 9:00 A.M. AND CONTINUING UNTIL FURTHER NOTICE. 

DUE TO FORECASTED HIGH DEMANDS, 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.

DURING THIS TIME, EGT ANTICIPATES HIGH STORAGE DEMAND AND MAY, IF NECESSARY, SCHEDULE ACCORDINGLY IN ORDER TO GET THE WITHDRAWALS THROUGH ITS ALLEN AND CHANDLER  COMPRESSOR STATIONS.  IT AND SECONDARY SHIPPERS IN THE WEST 1, WEST 2 AND FLEX (WEST OF  CHANDLER) POOLING AREAS MAY BE IMPACTED.

THE AVAILABILITY OF BALANCING AND NON-RATABLE SERVICES WILL BE LIMITED.  HOURLY NON- RATABLE NOMINATIONS 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).  SHIPPERS WHOSE TAKES EXCEED THEIR APPLICABLE SCHEDULED VOLUMES WILL BE SUBJECT TO EXCESS CONTRACT QUANTITIES CHARGES PURSUANT TO EGT’S TARIFF.

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.

Florida Gas Transmission:

Overage Alert Day 25% Tolerance

FGT line-pack is below target levels.  Near freezing temperatures are forecasted in Florida this weekend; therefore, for the gas day of January 17, 2019, FGT would like to notify their customers in FGTs Market Area that it is issuing an Overage Alert Day at 25% (twenty five percent) tolerance.

For the gas day of January 17, 2019, FGT will not interrupt previously scheduled Market Area ITS-1 service below the elapsed prorated scheduled quantity.

FGT will continue to monitor hourly and daily takes. Please closely monitor your scheduled point quantities versus actual burn point quantities.

Gulf Crossing Pipeline:

Below normal temperatures are expected to move across the Gulf Crossing service area over the next few days.

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

Interruptible

Additionally, Gulf Crossing is requesting all shippers to balance their transportation and storage contracts by conforming receipts into the system with the deliveries being taken from the system, and to receive and deliver quantities at a uniform hourly rate of flow, pursuant to Section 6.7[1.] and 6.7[2.] of Gulf Crossing’s FERC Gas Tariff.

If shippers do not voluntarily comply with these provisions, Gulf Crossing may be forced to declare a Critical Period or issue an Operational Flow Order, which could result in penalties for shippers.

Gulf South Pipeline:

Below normal temperatures are expected to move across the Gulf South service area over the next few days.

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 and ISS-P Withdrawal

FSS-P Overrun Withdrawal

Interruptible, Firm Secondary Service, Firm Supplemental Service and Firm Out-of-Path Service

Additionally, Gulf South is requesting all shippers to balance their transportation and storage contracts by conforming receipts into the system with the deliveries being taken from the system, and to receive and deliver quantities at a uniform hourly rate of flow “as practicable”, pursuant to Section 6.7[2.] and 6.7[3.] of Gulf South’s FERC Gas Tariff (Tariff).

If shippers do not voluntarily comply with these provisions, Gulf South may be forced to declare a Critical Period or issue an Operational Flow Order, which could result in penalties for shippers.

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. Wednesday, January 16, 2019, and continuing until further notice.

During this time:

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

 2)           It may be necessary for MRT to limit firm volumes to their primary direction of flow on the system north of Glendale.

 3)           MRT may not be able to schedule volumes that result in a daily short position in either the Market or Field Zones, and Shippers must ensure that they remain in balance.

 4)           MRT may not be able to schedule the use of imbalance positions, and Shippers must ensure physical receipts sufficient to cover scheduled deliveries.

 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.

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):

OPERATIONAL FLOW ORDER ISSUED – MARKET DELIVERY ZONE 

Based on current market demand, anticipated maximum peaking withdrawals from storage facilities, and current system operating conditions, Natural is issuing an Operational Flow Order (OFO) in the Market Delivery Zone effective 9:00 am., Central Clock Time, Saturday, January 19, 2019, and continuing until further notice.  Additionally, Natural continues to monitor operating conditions system wide.  If necessary, Natural will issue additional OFOs to address Shipper actions that are detrimental to such operating conditions outside the Market Delivery Zone.  See below for specific actions Natural is requiring shippers follow and the applicable timing requirements (daily and hourly) for compliance with the OFO.  Additionally, if conditions warrant, a Critical Time will be issued in the near future.  Please monitor Natural’s Interactive Website for updates. 

DAILY 

For the gas day, each Shipper (including Point Operators) is prohibited from taking any volume in excess of those equal to confirmed transportation nominations plus no-notice rights at delivery points in the Market Delivery Zone.  Excess daily takes will be subject to applicable Unauthorized Overrun charges, OFO charges and/or OFO balancing charges (as described below).  Natural is reminding Shippers and Point Operators that as part of this OFO, tolerances under POA agreements are limited to 2% (instead of 5%) of confirmed nominations or 1,000 Dth/d; whichever is greater, at the point.  Daily Balancing Charges and overrun charges associated with Shippers and Point Operators under taking volumes (long position) will be waived during this OFO in accordance with Natural’s FERC Gas Tariff. 

HOURLY 

Additionally, as provided in Section 7.4 of Natural’s FERC Gas Tariff, at each point in the Market Delivery Zone, Point Operators and Shippers (where no point operator exists) are required to limit hourly takes.  The hourly rights for each Shipper and Point Operator will be limited by service priority and nomination cycle, based on hours remaining in the gas day.  Shippers and Point Operators are responsible for calculating and monitoring their hourly usage so as not to exceed the limits described herein.  Excess hourly takes will be subject to OFO charges (as described below).

Hourly Rights for Firm Service – 120%

Includes Primary and Secondary Confirmed Nominations and Unused No-Notice firm service rights

Timely/Evening Cycles

Limited to 5.00% (120% / 24 hours) of Firm Service. 

Intra-Day 1 Cycle

Limited to the hourly rights computed in the previous cycle for Firm Service; plus 6.316% (120% / 19 hours) of the difference of current cycle Firm Service minus prior cycle Firm Service. 

Intra-Day 2 Cycle

Limited to the hourly rights computed in the previous cycle for Firm Service; plus 8.00% (120% / 15 hours) of the difference of current cycle Firm Service minus prior cycle Firm Service. 

Intra-Day 3 Cycle

Limited to the hourly rights computed in the previous cycle for Firm Service; plus 10.91% (120% / 11 hours) of the difference of current cycle Firm Service minus prior cycle Firm Service.

Hourly Rights for Interruptible Service – 105%

Includes Interruptible and AOR nominations, as well as POA tolerances

Timely/Evening Cycles

Limited to 4.375% (105% / 24 hours) of Interruptible Service. 

Intra-Day 1 Cycle

Limited to the hourly rights computed in the previous cycle for Interruptible Service; plus 5.53% (105% / 19 hours) of the difference of current cycle Interruptible Service minus prior cycle Interruptible Service. 

Intra-Day 2 Cycle

Limited to the hourly rights computed in the previous cycle for Interruptible Service; plus 7.00% (105% / 15 hours) of the difference of current cycle Interruptible Service minus prior cycle Interruptible Service. 

Intra-Day 3 Cycle

Limited to the hourly rights computed in the previous cycle for Interruptible Service; plus 9.55% (105% / 11 hours) of the difference of current cycle Interruptible Service minus prior cycle Interruptible Service. 

Limitation on Nominations in All Cycles for Firm and Interruptible Service

Shippers are advised that nominations should be received by Timely/Evening Cycle in order to utilize full rights over 24 hours, to avoid exceeding the 24 hour ratable hourly takes calculation.  In all cases, any first time nominations received on Non-Timely Cycles for full MDQ utilization rights, plus any scheduled ITS nominations, are subject to penalty on any hourly takes overages if the hourly takes rate exceeds the 24 hour ratable calculation.  Shipper’s hourly rights based on firm MDQ, plus interruptible nominations, must be sufficient to accommodate the calculated hourly rights for the remaining hours of the gas day.  Specifically, hourly rights cannot exceed 120% / 24 hours of Shipper’s MDQ on the nominated contract, plus 105% / 24 hours of Shipper’s interruptible nominations.

CHARGES FOR VIOLATIONS OF OFOs  

HOURLY

Section 23.6 of the General Terms and Conditions of Natural’s FERC Gas Tariff sets forth the provisions, including applicable penalties, for failure to comply with an OFO.

DAILY 

UNATHORIZED OVERRUN

Point Operators are on notice that any volumes taken in excess of the confirmed nominations and no-notice rights plus the greater of 2% of all confirmed nominations, or one thousand (1,000) Dth/day, will be treated as Unauthorized Overrun subject to any applicable charges (Section 12), penalties for violating the OFO (Section 23.6), and any Balancing Service Charges (as referenced below). This OFO overrides any prior predetermined allocation included in Section 11 of the General Terms and Conditions of Natural’s FERC Gas Tariff to the extent the overtake would be treated differently. 

BALANCING SERVICE CHARGES

Section 12.3 of the General Terms and Conditions of Natural’s FERC Gas Tariff sets forth the provisions when Balancing Service Charges shall apply when an OFO is in effect, if actual deliveries allocated to a Shipper at any point or under any Agreement do not conform to the sum of such Shipper’s confirmed nominations and no-notice rights applicable to such point. 

Daily Balancing Charges and overrun charges associated with Shippers and Point Operators under taking volumes (long position) will be waived during this OFO in accordance with Natural’s FERC Gas Tariff.

Northern Natural Gas:

Effective Gas Day 01/18/2019 09:00:00 AM until further notice, the Carlton Resolution flow obligation will be at 100%.

Operational Alert – 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, January 18, 2019, due to lower than normal system weighted temperatures.

Northwest Pipeline:

Northwest Pipeline’s current account balance at the Jackson Prairie Storage Facility is currently under 1 Bcf.  This is due to cooler weather experienced over the last several days and subsequent drafting of the system North of the Kemmerer Compressor station.  In addition, with the change of gas flows due the Westcoast incident in early October, Northwest has significantly under recovered fuel for the last several months.  With cooler weather anticipated early next week, intermittent volumes from Westcoast based on planned in-line inspections and declining deliverability from Jackson Prairie; Northwest will be implementing a Stage III (13%) Entitlement North of the Kemmerer Compressor station pursuant to Section 14.6 of the Northwest Gas Pipeline Tariff effective January 18, 2019.

In addition, Northwest is preparing to file an Emergency Fuel Filing with the Federal Energy Regulatory Commission seeking approval, to be effective February 1, 2019, to change the current system fuel rate from 1% to 1.61%.  

Panhandle Eastern Pipe Line Corporation:

Weather Alert 

Based on current cold weather forecasts, Panhandle is preparing for increased pipeline utilization and reduced operational flexibility. Effective Gas Day January 19, 2019, until further notice, Panhandle is requesting all delivery point operators to minimize over-takes and all receipt point operators to minimize their under-deliveries into the system. 

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

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

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

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

Southern Natural Gas:

Based on the latest weather forecast predicting colder weather with a significant drop in temperatures as well as the corresponding increase in projected demand on Southern’s system, we are notifying Shippers on the North and South systems will be subject to an OFO Type 3 Level 2 effective the start of the gas day, Sunday, January 20, 2019 until further notice.

OFO Type 3 Level 2: Daily Demand Exceeds Capacity
TARIFF SECTION 41.2
EFFECTIVE DATE: January 20, 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

This is to notify all customers who are allocated gas at any delivery point in the North and South system segments listed by SNG 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) exceed both 102% of their daily entitlement and 200 dth at such delivery point(s) within an OFO Group.

Southern Star Central Gas Pipeline:

Due to severe weather conditions expected, Southern Star is issuing a Winter Weather Warning effective Saturday, January 19, 2019.

The following actions will be taken to preserve system integrity:

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

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

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

ISS withdrawals and PLS withdrawals will be unavailable.

Incremental Loans will not be available.

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

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

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

Operational flexibility will not be available during this time.

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

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

These conditions are expected to remain in effect through Monday, January 21, 2019. Southern Star will review and provide any changes or updates on the status of its system for the period of this posting.

Tennessee Gas Pipeline:

OFO DAILY CRITICAL DAY 1 FOR ALL AREAS EAST OF STA 245 EFFECTIVE 1-17-19

Due to forecasted colder weather and higher demand moving back into the northeast, effective for the Gas Day of Thursday, January 17, 2019, and until further notice, Tennessee Gas Pipeline, L.L.C.  (“Tennessee”) is issuing an OFO Daily Critical Day 1 for all areas east of STA 245 on the 200 Line for all Balancing Parties (including LMS-PA, SA contracts acting as balancing parties, LMS-MA, and LMS-PL balancing parties).  This action is pursuant to Article X, Section 4 of the General Terms and Conditions of Tennessee’s FERC Gas Tariff. 

All delivery point operators east of STA 245 on the 200 Line are required to keep actual daily takes out of the system equal to or less than scheduled quantities regardless of their cumulative imbalance position.  All receipt point operators east of STA 245 on the 200 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.

In the event this OFO is not sufficient to maintain the operational integrity of the system, Tennessee may escalate to a Critical Day II, an OFO Balancing Alert, Meter Specific OFO(s) or Hourly OFO(s). Tennessee cannot accept unscheduled imbalances and requires all customers to nominate and schedule all payback requests.

Tennessee will deem all affected Shippers to be in compliance with the actions specified in these Daily Critical Day 1 OFOs if after the measurement close the actual system conditions were opposite to the conditions for which the OFOs were issued.

Texas Gas Transmission:

Below normal temperatures are expected to move across the Texas Gas service area over the next few days.

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:  Sunday, January 20, 2019 until further notice

OFO Areas:  Zones 4, 5, and 6

Delivery Tolerance %:  5%

Trunkline Gas Company:

Weather Alert 

Based on current cold weather forecasts, Trunkline is preparing for increased pipeline utilization and reduced operational flexibility. Effective Gas Day January 19, 2019, until further notice, Trunkline is requesting all delivery point operators to minimize over-takes and all receipt point operators to minimize their under-deliveries into the system. 

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

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

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

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

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As you can tell based on today’s gas pipeline report, the weather forecast through the end of January is for colder than average temperatures.  The National Weather Service temperature forecast through the end of the month is now showing only the West Coast of the US with above average weather.

Bundle up, and enjoy the football games this weekend!  Remember to subscribe to our audio podcasts via iTunes!

Edition 28 – Monday, January 7, 2019

Though you wouldn’t know it was January in the deep South today, we know that colder weather is right around the corner again soon.

Welcome back to GasNewsOnline.com! Even with the warmer temperatures, we will give you an update on several gas pipeline critical notice postings along with an update on the latest energy and weather news. All for FREE!

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According to the US Energy Information Administration, the estimated working gas in storage was 2.705 Tcf as of Friday, December 28, 2018. This represented a net storage decrease of just 20 Bcf from the previous week.

With a few weeks of warmer weather, the South Central region injected 20 Bcf of gas back into storage as the rest of the country drew down 40 Bcf for the reporting week. 

Natural gas stocks in storage were still 560 Bcf (or 17.2%) below the five-year average.

Meanwhile, the natural gas futures price for the upcoming month of February lagged below $3 per MMBtu and finished the day on Monday at about $2.96/MMBtu. 

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On January 3, American Midstream Partners announced that the Board of Directors received a revised non-binding proposal from an affiliate of ArcLight Energy Partners Fund V, L.P. (“ArcLight”) pursuant to which ArcLight would acquire all common units of the American Midstream (that ArcLight and its affiliates do not already own) in exchange for a revised offer price of $4.50 per common share.  The other proposed terms of the potential transaction remain as set forth in the original non-binding proposal announced on September 28, 2018.

The proposed transaction remains subject to a number of contingencies.  The company indicated that there is no assurance that definitive documentation will be executed or that any transaction will materialize.

American Midstream’s gas pipeline assets include Destin Pipeline Company and the MidLa, AlaTenn, and Trans-Union Interstate Pipeline systems. 

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Shell Chemical LP (Shell) today announced the start of production of the fourth alpha olefins unit at its Geismar, Louisiana, USA chemical manufacturing site.  Alpha olefins are key ingredients in many finished products including laundry detergents, motor oils, and hand soaps.

“Our team delivered this world-class expansion project safely, on time and within budget,” said Graham van’t Hoff, Executive Vice President for Shell’s global chemicals business. “This is a key growth project for Shell’s global chemicals business. Geismar will continue to play a leading role in providing the materials for products that an increasing number of people need and enjoy.”

The new unit strengthens Shell’s position in the US Gulf Coast. The Geismar site is supported with advantaged ethylene feedstock from Shell’s nearby Norco, Louisiana and Deer Park, Texas manufacturing sites, enabling the site to respond to market conditions.

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Let’s take a look at the latest critical postings from around the interstate gas pipeline grid for this Monday, January 7:

Enable Gas Transmission:

Posting dated January 5 – BYARS LAKE UNPLANNED MAINT

This Operational Alert is being issued pursuant to Section 20, GT&C, of EGT s Tariff and shall constitute notice of Force Majeure under Section 8, GT&C of EGT s Tariff to notify all parties of unplanned maintenance at EGT s Byars Lake Compressor station located in McClain County, Oklahoma.

During this period, nominations through EGT s Allen Compressor Station will be limited to approximately 700,000 Dth.

EGT will schedule nominations on each impacted day in accordance with its tariff. This alert will remain in effect until further notice.

Florida Gas Transmission:

JANUARY 2019 — FGT SUPPLY AREA MAINTENANCE IN ZONE 3

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

Gulf South Pipeline:

Hall Summit (Louisiana) Compressor Maintenance

Begins: January 14, 2019      Ends:  January 18, 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.

Mississippi River Transmission (MRT):

MAINLINE 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. Wednesday, January 9,  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 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.

Tennessee Gas Pipeline:

ANTICIPATED RESTRICTIONS AT MLV 3, STA 17 AND STA 25 EFFECTIVE 1-8-19

Due to the current high volume of nominations from the north going south on the Mainline, effective Timely Cycle for the Gas Day of January 8, 2019, and going forward, Tennessee may be required to restrict nominations pathed through MLV 3 (Segment 101 BH), Station 17 (Segment 117 BH) and/or Station 25 (Segment 125 BH).  

Texas Eastern Transmission:

Heidlersburg Compressor Station: January 8-9, 2019

TE will be conducting a compressor station outage at its Heidlersburg Compressor Station (in south central Pennsylvania). During this outage, capacity through Heidlersburg on the 36 inch line, for deliveries up to Lambertville on TE’s 36 inch line will be approximately 1,740,000 Dth /d. Based on historical nominations TE anticipates restrictions for interruptible and secondary out of path nominations.

Transcontinental Gas Pipe Line Company (Transco):

Subject: Terminate Operational Flow Order – Imbalance

The Operational Flow Order – Imbalance (OFO) currently in effect on the Transco system in Zones 4, 5 & 6 will be terminated effective January 7, 2019 at 9:00 AM.

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

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Taking a look at the temperature forecast for the middle week of January, the National Weather Service is showing that normal (cold) weather patterns will govern the eastern portions of the US, while warmer than seasonal weather will remain in place west of the Mississippi River during the period.

2019 looks to be off to a toasty start! Thanks for visiting GasNewsOnline.com! We check out the publicly sourced information twice weekly to keep you informed about the natural gas business. For 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 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.

 

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