Thursday, April 25, 2019

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

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

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From the US Energy Information Administration, working natural gas in storage increased by 92 Bcf for the period ending Friday, April 19.   Natural gas volumes in storage are 369 Bcf or 22% below the five-year average for the same week. 

On the New York Mercantile Exchange, the May, 2019 natural gas futures price climbed nearly five cents on Thursday to close at nearly $2.51/MMBtu.

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Will there be a bidding war for Anadarko Petroleum?   After last week’s bid by Chevron to acquire Anadarko, Occidental Petroleum Corporation submitted a competing bid for the company on Tuesday.

Occidental delivered a letter to the Anadarko Board of Directors setting forth the terms of a superior proposal by Oxy to acquire Anadarko for $76.00 per share, in which Anadarko shareholders would receive $38.00 in cash and 0.6094 shares of Occidental common stock for each share of Anadarko common stock. The Occidental proposal represents a premium of approximately 20% to the value of Anadarko’s pending transaction from Chevron.

Occidental believes its proposal is superior both financially and strategically for Anadarko’s shareholders, creating a global energy leader with the scale and geographic diversification to drive growth and deliver compelling value and returns to the shareholders of both companies. The combined company will be uniquely positioned to leverage Occidental’s demonstrated operational and technical expertise, producing greater anticipated synergies than Anadarko’s pending transaction. The 50-50 cash and stock transaction is valued at $57 billion, based on Occidental’s closing price on April 23, 2019, including the assumption of net debt and book value of non-controlling interest.

“Occidental is a leader in using technological innovation to create value, and we will deploy our expertise to enhance the performance and productivity of Anadarko’s assets not only in the Permian, but globally,” said Vicki Hollub, Oxy’s President and Chief Executive Officer said, “Occidental and Anadarko have a highly complementary asset portfolio, providing us with a unique opportunity to realize significant operating, cost, and capital allocation synergies and achieve near-term cash flow accretion.”

Vicki Hollub continued, “We have been focused on Anadarko for several years because we have long believed that we are ideally positioned to generate compelling value from a combination with them. We look forward to engaging immediately with Anadarko’s Board and stakeholders to deliver this superior transaction.”

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Murphy Oil Corporation announced Tuesday that its wholly owned subsidiary, Murphy Exploration & Production Company – USA (“Murphy”), has entered into a definitive agreement to acquire deep water Gulf of Mexico assets from LLOG Exploration Offshore, L.L.C. and LLOG Bluewater Holdings, L.L.C.. The accretive, cash flow providing Gulf of Mexico assets currently produce approximately 38,000 barrels of oil equivalent per day net (Boepd) and are expected to add approximately 66 million barrels of oil equivalent net (Mmboe) of Proven (1P) reserves and 122 Mmboe of Proven and Probable (2P) reserves1.

Murphy will pay a cash consideration of $1.375 billion. Additional contingent consideration payments are based on the following: up to $200 million in the event that revenue from certain properties exceeds certain contractual thresholds between 2019 and 2022; and $50 million following first oil from certain development projects. The transaction will have an effective date of January 1, 2019 and is expected to close in the second quarter, subject to normal closing adjustments.

The acquisition will be funded by a combination of cash on hand and availability under the company’s $1.6 billion revolving credit facility. Total outstanding borrowings under the revolving credit facility, including the current balance of $325 million, are expected to be fully repaid immediately following the closing of the previously announced $2.127 billion divestiture of Murphy’s Malaysian assets.

“This immediately accretive transaction continues to strengthen our Gulf of Mexico portfolio by adding quality assets at a very attractive price. We expect these newly acquired assets to generate meaningful cash flow over the next several years that will provide us with additional flexibility for future capital allocation,” stated Roger W. Jenkins, President and Chief Executive Officer.

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There are several changes in the major interstate natural gas pipeline companies’ operating conditions to be aware of heading into the weekend. Let’s take a look:

ANR Pipeline:

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

Bridgman Northbound (LOC #226632):

65-MMcf/d – (leaving 1,536 – MMcf/d available) 5/2 – 5/7
40-MMcf/d – (leaving 1,561 – MMcf/d available) 5/9 – 6/9
325-MMcf/d – (leaving 1,276 – MMcf/d available) 6/10 – 8/12

Based on current nominations through Bridgman Northbound, it is anticipated that this posting may result in the capacity allocation reduction of IT and Firm Secondary.

Also on ANR:

Willow Run Capacity Reduction (Updated 4/25/19)

ANR will continue planned pipeline maintenance between its Defiance Compressor Station and Willow Run Meter Station located in the Northern Area (Zone 7), which will result in the following capacity reduction:

Wilow Run Delivery (DRN #42078)

80-MMcf/d (leaving 777-MMcf/d available) 4/25
172-MMcf/d (leaving 685-MMcf/d available) 4/26 – 5/2
167-MMcf/d (leaving 690-MMcf/d available) 5/3 -5/11

Based on current nominations, it is anticipated that the above reductions may impact interruptible and firm secondary services.

Columbia Gas Transmission:

Columbia Gas Transmission, LLC (TCO) reminds customers of upcoming pigging on Line LEX (LXP) that will impact scheduled volumes for certain hours in the gas day between Lone Oak Compressor Station and Summerfield Compressor Station (May 1, 3) and between Summerfield Compressor Station and Rockbridge Regulator Station (May 4, 6).  

TCO is working with operators for hourly operational assistance during the pigging. As a result of this work, the following impact is anticipated at this time: 

Gas Day May 1: 

743093 – Stagecoach-LXP – 55,000 Total Capacity

743103 – Eureka – 200,000 Total Capacity

LONEOAKA – Lone Oak A MA41 – 100,000 Total Capacity

LONEOAKB – Lone Oak B MA41 – 565,000 Total Capacity

Gas Day May 3: 

743093 – Stagecoach-LXP – 55,000 Total Capacity

743103 – Eureka – 200,000 Total Capacity

LONEOAKA – Lone Oak A MA41 – 125,000 Total Capacity

LONEOAKB – Lone Oak B MA41 – 690,000 Total Capacity

Gas Day May 4: 

LXPSEG – LXPSEG MA41 – 550,000 Total Capacity

Gas Day May 6: 

LXPSEG – LXPSEG MA41 – 750,000 Total Capacity

Dominion Energy Transmission:

Dominion Energy Transmission, Inc. (DETI)’s Cornwell Station (West Virginia) will be out of service for planned maintenance from Friday, April 26, 2019 to Friday, May 3, 2019.

During this outage, all production flowing on the Dominion Gathering and Processing (DGP) system to the DETI facilities listed below, must be shut in. DETI will make another posting when production can be turned back in line.

The facility shut in dates and requirements are as follows:

All gathering wet system production flowing to Cornwell Station 7 and 8 will need to be shut in by 7:00 am EDT on Friday, April 26. Direct Taps on TL-585 will need to be shut in by 7:00 a.m. EDT on Monday, April 29. DGP Production Bubbles to be shut in: 2206, 2303, 2304, 2305, and 9912. Producers in bubbles 2301, 2306 and 9913 that can physically flow off system via H-18155 can do so. This includes production behind Oscar Nelson Station, Searls Station, Shadd Station, Panther Station, Oozley Station, and Hardman Station.

DETI will make another posting if allocations become necessary. Delivery nominations during this period from 10, 12 and 13 will be kept whole by DETI. Delivery nominations during this period from EB005, EB045, EB145, EB335, EB460, EB620 and EB635 will be kept whole by DETI. Please monitor these postings for further updates.

El Paso Natural Gas:

El Paso Natural Gas is pleased to announce the new Graphical Pipe screen in the iDART system.  This new screen will enable shippers to view nominations, priorities, and entitlements based on segment for a given gas day and cycle. The new Graphical Pipe screen is located in the Scheduled Quantity folder under the Nominations folder in the iDART system. 

Please contact the scheduling hotline at 1-800-238-3764 Option 1 if you have any questions about this new screen.

Enable Gas Transmission:

This Operational Alert is being issued pursuant to Section 20, GT&C of EGT s Tariff to notify all parties of planned maintenance on EGT s Line BT-1 in the North Pooling Area beginning April 27, 2019, with an expected completion date of May 13th, 2019.

During this maintenance, a series of integrity digs will be conducted along EGT s Line BT-1. Be advised, there is no capacity impact associated with the integrity digs, but should a determination be made that a repair is necessary, there could be a capacity reduction associated with the repair.  Depending upon the nature of any required repair, the announcement of a capacity reduction could come at short notice.

This alert will remain in effect until further notice and will be updated as more information becomes available.

Gas Transmission Northwest (GTN):

Effective Gas Day April 26th at the Timely Nomination Cycle, GTN is lifting the Force Majeure related to the repairs at the Ione Compressor Station 9 (Oregon).

The operationally available capacity for the Flow Past Kingsgate location has been increased to 2126-MMcf/d.

The operationally available capacity for the Flow Past Station 8 Location is 1865-MMcf/d.

As a reminder to customers, planned maintenance at Compressor Station 8 continues until May 10th. 

Natural Gas Pipeline Company of America (NGPL):

SEGMENT 11 – SOUTH OF STA 106 – AT OPERATING CAPACITY 

Effective for gas day Friday, April 26, 2019, and continuing until further notice, Natural is at operating capacity for northbound flow through Compressor Station 106 located in Gage County, Nebraska (Segment 11 of Natural’s Midcontinent Zone).  AOR/ITS and Secondary out-of-path Firm transports are at risk of not being fully scheduled.

Also from NGPL:

SEGMENT 13 – STA 107– AT OPERATING CAPACITY

Effective for gas day Friday, April 26, 2019, and continuing until further notice, Natural is at operating capacity for northbound flow through Compressor Station 107 located in Mills County, Iowa (Segment 13 of Natural’s Amarillo Mainline Zone).  AOR/ITS and Secondary out-of-path Firm transports are at risk of not being fully scheduled. 

Rockies Express Pipeline (REX):

CHANDLERSVILLECOMPRESSOR STATION MAINTENANCE

On Gas Day Wednesday, May 1, 2019 through Gas Day Friday, May 3, 2019, REX will be performing maintenance at its Chandlersville (Ohio) Compressor Station. Operating capacity will be limited to 2.935 Bcf/d through pipeline Segment 380. At this capacity level, primary and secondary firm quantities, as well as ITS/AOR are at risk of not being scheduled.

TransColorado Gas Transmission:

The Force Majeure (FMJ) declared at Blanco Hub Compressor Station, Segment 310, in notice #118680 has been lifted. 

TransColorado Gas Transmission Company, L.L.C. (TC) has repaired the compressor station and, as such, is lifting the Force Majeure that was in effect. The capacity will return to 250,000 Dth effective Gas Day April 25, Cycle 4 (Intraday 2) and Gas Day April 26, Cycle 1 (Timely).

Transcontinental Gas Pipe Line Company (Transco):

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

Effective:        Saturday, April 27, 2019

Ends:               Until Further Notice

Transactions:  Deliveries

Type:               Due to Shipper

OFO Area(s):  Zones 4, 5, and 6

Tolerance:        10% (or 1000 dth, whichever is greater)

This OFO is directed to shippers consistent with Section 52 of Transco’s FERC Gas Tariff General Terms and Conditions with a minimum of $50 per dth per day penalty.  This OFO will continue until further notice.  Buyers with imbalances greater than allowed tolerance will be subject to penalties specified in Section 52 of Transco’s FERC Gas Tariff General Terms and Conditions.

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The National Weather Service six-to-ten day forecast for the first few days of May is showing some cooler weather on the way for the northern plains states as well as New England.  Otherwise, May will be ushered in with average temperatures across much of the nation.  In the South, though, temperatures may be slightly above average for the first week of the new month.

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

Please tell a friend in the natural gas scheduling and transportation business about us. Have a great weekend!  

Monday, April 15, 2019

Welcome to GasNewsOnline.com!  April continues to show a springtime warm-up in many parts of the country, while Chicago recorded a five inch snowfall on Sunday. Yes, it is spring!

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

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Working natural gas in storage in the Lower 48 states as of March 31, which is the traditional end of the heating season (November 1–March 31), totaled 1.137 Trillion cubic feet (Tcf) according to EIA’s Weekly Natural Gas Storage Report released last week

As of March 31, working natural gas stocks were 491 Bcf (30%) lower than the five-year (2014–18) average for the end of the heating season. This winter’s heating season ended at the lowest level for working natural gas stocks since 2014.

At the New York Mercantile Exchange (Nymex), the price of the May 2019 contract decreased 7 cents on Monday to approximately $2.59/MMBtu. The price of the 12-month strip averaging May 2019 through April 2020 futures contracts fell to about $2.79/MMBtu.

According to Baker Hughes, for the week ending Tuesday, April 2, the natural gas rig count increased by 4 to 194. The number of oil-directed rigs rose by 15 to 831. The total rig count increased by 19, and it now stands at 1,025.

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Chevron Corporation announced Friday that it has entered into a definitive agreement with Anadarko Petroleum Corporation to acquire all of the outstanding shares of Anadarko in a stock and cash transaction valued at $33 billion, or $65 per share. Based on Chevron’s closing price on April 11th, 2019 and under the terms of the agreement, Anadarko shareholders will receive 0.3869 shares of Chevron and $16.25 in cash for each Anadarko share. The total enterprise value of the transaction is $50 billion.

The acquisition of Anadarko will significantly enhance Chevron’s already advantaged Upstream portfolio and further strengthen its leading positions in large, attractive shale, deepwater and natural gas resource basins. Furthermore, Western Midstream Partners, LP is a successful midstream company whose assets are well aligned with the combined companies’ upstream positions, which should further enhance their economics and execution capabilities.

“This transaction builds strength on strength for Chevron,” said Chevron’s Chairman and CEO Michael Wirth. “The combination of Anadarko’s premier, high-quality assets with our advantaged portfolio strengthens our leading position in the Permian, builds on our deepwater Gulf of Mexico capabilities and will grow our LNG business. It creates attractive growth opportunities in areas that play to Chevron’s operational strengths and underscores our commitment to short-cycle, higher-return investments.” “This transaction will unlock significant value for shareholders, generating anticipated annual run-rate synergies of approximately $2 billion and will be accretive to free cash flow and earnings one year after close,” Wirth concluded.

“The strategic combination of Chevron and Anadarko will form a stronger and better company with world-class assets, people and opportunities,” said Anadarko Chairman and CEO Al Walker. “I have tremendous respect for Mike and his leadership team and believe Chevron’s strategy, scale and operational capabilities will further accelerate the value of Anadarko’s assets.”

Transaction Details

The acquisition consideration is structured as 75 percent stock and 25 percent cash, providing an overall value of $65 per share based on the closing price of Chevron stock on April 11th, 2019.  In aggregate, upon closing of the transaction, Chevron will issue approximately 200 million shares of stock and pay approximately $8 billion in cash. Chevron will also assume estimated net debt of $15 billion. Total enterprise value of $50 billion includes the assumption of net debt and book value of non-controlling interest. 

The transaction has been approved by the Boards of Directors of both companies and is expected to close in the second half of the year. The acquisition is subject to Anadarko shareholder approval. It is also subject to regulatory approvals and other customary closing conditions. 

Upon closing, the Company will continue be led by Michael Wirth as Chairman and CEO. Chevron will remain headquartered in San Ramon, California.

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It was a fairly quiet day on Monday along the interstate natural gas pipeline grid. Let’s check the latest postings:

Algonquin Gas Transmission:

In order to maintain the operational integrity of the system, Algonquin Gas Transmission, LLC (AGT) is issuing an Operational Flow Order (OFO) pursuant to Section 26 of the General Terms and Conditions of AGT’s FERC Gas Tariff effective 9:00 AM CCT, April 16, 2019, to all parties, with the exception of those Operational Balancing Agreements required by FERC regulations, on the AGT system.

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

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

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

This OFO will remain in effect until further notice.

Northern Natural Gas:

To Our Valued Customers:

After 38 years at Northern Natural Gas, Kent Miller, Vice President, Customer Service and Business Development, has decided to retire in April, 2020. With his guidance, Northern has risen from the bottom to the top in customer satisfaction. Kent’s commitment to the company’s success is evident in his actions and we appreciate the many contributions he has made over the course of his career. Please join me in congratulating Kent.

While we personally hate to see Kent transition into retirement, I am excited about the prospects the following changes will bring to Northern. Effective May 1, 2019, the following organizational changes will be made:

Kent will assume the role of Senior Vice President reporting to me, and will focus his efforts on the 2019 rate case, completing large transactions currently in negotiation, employee development and ensuring a successful transition.

Laura Demman will accept the role of Vice President, Customer Service and Business Development at Northern. Laura has been with BHE Pipeline Group for five years, starting as director of rates and tariffs. She was promoted to Vice President of Regulatory and Government Affairs in 2014, and became Vice President, General Counsel and Regulatory Affairs in 2017. She has played a key role in completing two innovative rate settlements at Kern River, and she supported efforts to advance Kern River’s successful strategy to remarket turned-back capacity in 2018.

Prior to joining BHE Pipeline Group, Laura was the director of the natural gas department at the Nebraska Public Service Commission for over ten years; she also worked at the Nebraska Legislature. Laura’s experience as a regulator provides an understanding of the issues facing our local distribution utility customers, and she will bring a unique perspective to her new commercial role.

Kirk Lavengood will be promoted to the role of Vice President, General Counsel and Regulatory Affairs for BHE Pipeline Group. Kirk joined Northern in 2003, working as the Vice President, Marketing. In 2010, Kirk was named Vice President, Business Development. Prior to joining Northern, Kirk worked at MidAmerican Energy Company as the director of short-term trading and as the director of gas supply planning. Kirk also practiced law in Detroit with the law firm Kerr, Russell and Weber, PLC, before joining MidAmerican Energy Company. Prior to practicing law, Kirk spent nine years in various marketing and financial capacities with ANR Pipeline Company and ANR Storage Company.

I look forward to the contributions Laura and Kirk will make in their new roles and am excited about what the future holds for Northern. Kent and Laura will be completing the transition in leadership of the commercial group over the next year. As this transition occurs, we commit to not missing a step regarding the quality of service that you have come to expect from Northern. Please feel free to contact either Kent or Laura regarding any question you may have about any aspect of your business with Northern.

Mark Hewett, President and CEO

Rockies Express Pipeline (REX):

The availability of the REX SRO program in Zone 1 will be limited to a net zero scheduled quantity effective Timely cycle for Gas Day April 16, 2019 and until further notice.

Zone 1 includes the following SRO locations:

REX/REX MEEKER HUB POOL RIO BLANCO (Location 43493)

OPAL HUB POOL (Location 43495)

WAMSUTTER HUB POOL (Location 43494)

REX/REX CHEYENNE HUB POOL WELD (Location 43492)

In addition, other PALS activity may be at risk of not being scheduled in Zone 1.

Southern Natural Gas:

On Tuesday April 16, 2019 Southern will post the April/May/June and other 2019 Maintenance projects. On Wednesday, April 17, 2019 at 1:30 PM (Central Time) Southern will conduct a con call/WebEx meeting and review the posted information. 

Please visit the Southern Natural Gas electronic bulletin board for information about how to join Wednesday’s WebEx or the conference call. 

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The National Weather Service six-to-ten day temperature outlook through April 25 now shows much of the continental United States with warmer than seasonal average temperatures.  Only the Pacific Northwest will be cooler than average beginning late next week. 

That’s all for this Tax Day Monday April 15, 2019 edition of GasNewsOnline.com.  We’ll return Thursday to provide an update on the interstate gas pipeline conditions expected for the weekend. 

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

Thursday, April 4, 2019

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

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

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According to the US Energy Information Administration, working natural gas in storage was 1.13 Tcf as of Friday, March 29, 2019. This represents a net increase of 23 Bcf versus analyst estimates of adding just 10 Bcf for the week. 

Natural gas stocks remaining in storage are nearly 31% below the five-year average for the same week.

On the NYMEX, the price for May, 2019 natural gas futures dropped by over 3 cents on Thursday to finish the day at approximately $2.64/MMBtu. 

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An Austin, Texas oil and gas producing company, Jones Energy, Inc. today announced that, after engaging in extensive good-faith negotiations, it and holders of approximately 84% in principal of the First Lien Notes and approximately 84% in principal of the Unsecured Notes have entered into a restructuring support agreement (the “RSA”) on Tuesday, April 2, 2019 that contemplates a comprehensive balance sheet restructuring to be implemented through a prepackaged chapter 11 plan of reorganization. The Chapter 11 Plan will fully equitize the Company’s outstanding funded debt and include fully committed exit financing, strengthening its balance sheet and enhancing financial flexibility going forward. 

The parties to the RSA include, among others: (i) Jones Energy, represented by Kirkland & Ellis LLP and Jackson Walker LLP, (ii) an ad hoc group of holders of First Lien Notes, represented by Milbank LLP (the “First Lien Ad Hoc Group”), and (iii) an ad hoc group of holders of First Lien Notes and Unsecured Notes, represented by Davis Polk & Wardwell LLP (the “Crossover Group”).

Jones Energy, whose primary operations are located in the Mid-Continent and Anadarko Basins of Oklahoma and the Texas Panhandle, will continue to operate in the normal course and its business operations will not be disrupted by the restructuring process.  The Plan provides for the satisfaction of all trade, customer, employee, and other non-funded debt claims in full, in the ordinary course of business, other than general unsecured claims against JEI and/or Jones Energy Intermediate, LLC (“JEI, LLC”).  Jones Energy continues to have adequate liquidity to meet its financial obligations to vendors, suppliers, royalty owners and employees, and expects to continue making payments to these parties without interruption. 

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PG&E Corporation today announced the appointment of William “Bill” Johnson as Chief Executive Officer and President and the appointment of 10 new directors to its Board of Directors. The Board appointments will be effective as of the next in-person Board meeting, which will be held as soon as practicable. The significant changes in leadership reflect PG&E’s focus on strengthening its safety culture and operational effectiveness and successfully navigating the Company’s Chapter 11 process.

Bill Johnson is concluding a more than six-year tenure as President and CEO of the Tennessee Valley Authority (TVA), with responsibility for leading the nation’s largest publicly owned utility in its mission of providing energy, environmental stewardship and economic development across a seven-state region.

Prior to his tenure at TVA, Mr. Johnson was the Chairman, President and CEO of Progress Energy.

The Board expects Mr. Johnson to begin his role in late April 2019.

In addition to the appointment of Bill Johnson as CEO and President, the Company today announced a refreshed Board that includes 13 highly accomplished individuals committed to further enhancing PG&E’s safety culture, understanding and properly responding to customer concerns and fairly treating wildfire victims, employees, retirees and other interested parties. Mr. Johnson, the management team and the Board are also committed to working constructively with regulators, policymakers and other stakeholders in an open and transparent fashion in support of California’s policy goals.

The PG&E Board stated: “We have heard the calls for change and have taken action today to ensure that PG&E has the right leadership to bring about real and dynamic change that reinforces our commitment to safety, continuous improvement and operational excellence. We believe our new CEO and the newly constituted Board will help PG&E address California’s evolving energy challenges and deliver what our customers expect from their energy company.”

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There are many interstate natural gas pipeline issues to be aware of heading into the weekend. Let’s check those out:

ANR Pipeline:

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 pipeline repairs north of its Celestine (Indiana) Compressor Station.

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

The total Cottage Grove Southbound capacity (LOC #505614) will be reduced by the following:

249 mmcf/d (leaving 900 mmcf/d available) 4/5 – 4/14

Based on current nominations through the Cottage Grove 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. This posting will be updated as more information becomes available.

East Tennessee Natural Gas:

ETNG posted its “2019 Planned Outages Presentation”.  Below is a link to that presentation. 

https://infopost.spectraenergy.com/GotoLINK/GetLINKdocument.asp?Pipe=10076&Environment=Production&DocumentType=Notice&FileName=ETNG+and+SGSC+Planned+Outage+Presentation_FINAL.pdf&DocumentId=8aa164a269da3c500169e3c1e2920153

Natural Gas Pipeline Company of America:

As part of its ongoing pipeline Integrity Management Program and the results of an ILI tool run on Natural’s OE #1 line between Compressor Station 156 (CS 156) and Compressor Station 801 (CS 801), Segment 2 of the Midcontinent Zone, Natural has identified anomalies at various locations that require pipeline remediation (see notice posted on March 28, 2019 entitled “SEGMENT 2/15 – OE #1 M/L (CS 156/801) – PIPELINE INTEGRITY)”. 

As a result, Natural is required to shut-in sections of the OE #1 line.  This is a Force Majeure event that limits Natural’s capacity eastbound through Segment 2, which is anticipated to continue through gas day Friday, May 31, 2019. 

For the duration of this Force Majeure event, transportation from receipt points west of CS 156 to delivery points east of  CS 801 will not be available.  Initially, the Segment 2 scheduling constraint will be at CS156 just east of mainline valve 16 (MLV 16).  Natural will complete this remediation in multiple phases impacting portions of the OE #1 Line beginning at CS156 and progressing eastward. 

Effective for gas day Friday, April 5, 2019, Timely Cycle, Natural will schedule Primary Firm and Secondary in-path Firm transports to 0% of contract MDQ eastbound through the Phase 1 scheduling constraint (CS 156).  AOR/ITS and Secondary out-of-path Firm transports will not be available for eastbound flow.

*Please review the NGPL electronic bulletin board for a complete listing of receipt points affected during this force majeure.

Northern Natural Gas:

On April 1, 2019, Northern filed its cost and revenue study as required by the FERC Section 5 order. The study reflects Northern’s cost of service and billing units through the test period that ends June 30, 2019.

Through this period, Northern’s filing demonstrates support for rate increases of 25% in the Market Area, 15% in the Field Area and 62% for storage services.

These rate increases are driven primarily by the increased investment for modernization and integrity work that occurred during the period from the last rate case in 2004 through June 30, 2019. The Section 4 general rate increases that will be filed as early as July 1, 2019, will be higher, reflecting increased depreciation rates and the 2019 modernization and integrity investments. The Section 5 rate increases will not be effectuated since the Section 4 filing will supplant the Section 5 cost and revenue study with Section 4 rate increases to be effective January 1, 2020.

Rockies Express Pipeline:

REX will be performing work at Cheyenne and receipts at WIC/REX SITTING BULL WELD (location 42722) will be limited to primary only effective for the ID1Cycle, Gas Day April 3, 2019 and until further notice.

At this capacity level, secondary firm quantities, as well as ITS/AOR are at risk of not being scheduled.

Southern Natural Gas:

As a reminder, SESH pipeline’s operator notified Southern that it will be conducting maintenance at its Gwinville Compressor Station from Saturday, April 6 to Wednesday, April 10 which will reduce the available SNG – SESH capacity (Segment 380).

During this maintenance, SNG capacity will be reduced from 507,151 Dth/d to 382,000 Dth/d. This reduction in available capacity constitutes an event of Force Majeure under Section 8.3 of the General Terms and Conditions of the Southern Natural Gas Tariff.

Points impacted in Segment 380 are listed below.

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

Texas Eastern Transmission:

As posted on January 21, 2019, Texas Eastern Transmission, LP (TE) experienced an unplanned outage on its 30″ system south of the Berne Compressor Station (Berne) in Berne, Ohio. As a result of lines 10 and 15 south of Berne being returned to service, all restrictions related with this Force Majeure have been lifted.

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The National Weather Service has updated its six-to-ten day temperature forecast.  In a dramatic reversal from Monday’s report, the weather service now shows that the northern half of the US will have cooler than seasonal temperatures coming up for late next week.  Temperatures along the Gulf Coast and much of the South will be at or slightly above normal during the period.

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

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

Enjoy the basketball this weekend!

Edition 41 – Thursday, February 21, 2019

Welcome back to GasNewsOnline.com!   Count on us to bring you the latest publicly-sourced news and information about the natural gas business twice every week – for FREE

Though a relatively mild weekend awaits, Ol’ Man Winter will be returning to visit us again beginning around March 1. Stay tuned for the latest long-term temperature forecast!

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From the US Energy Information Administration, working gas in storage for the week ending Friday, February 15 decreased by 177 Bcf from the previous week.  The storage draw was 10% higher than the 162 Bcf estimate made by industry analysts. 

Natural gas volumes in storage are now 362 Bcf (or 17.5%) below the five-year average for the same week. 

In related news, the NYMEX natural gas futures price for March, 2019 rose 6 cents to about $2.70/MMBtu on Thursday. 

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Devon Energy Corp. announced yesterday that the board of directors has authorized the company to pursue the separation of its Canadian and Barnett Shale assets to complete its transformation to a high-return U.S. oil growth business. Devon will evaluate multiple methods of separating the assets, including a potential sale or spin-off. The separation will allow the company to focus on its top-tier, high-return U.S. oil assets and is aligned with Devon’s previously announced long-term strategic plan.

“With our world-class U.S. oil resource plays rapidly building momentum and achieving operating scale, the final step in our multi-year transformation is an aggressive, transformational move that will accelerate value creation for our shareholders by further simplifying our resource-rich asset portfolio,” said Dave Hager, president and CEO. “New Devon will emerge with a highly focused U.S. asset portfolio and has the ability to substantially increase returns and profitability as we aggressively align our cost structure to expand margins with this top-tier oil business. The New Devon will be able to grow oil volumes at a mid-teens rate while generating free cash flow at pricing above $46 per barrel.”

The company expects to complete the separation of its Canadian and Barnett Shale assets by the end of 2019. Devon has hired advisors for each asset, and data rooms for Canada and the Barnett are expected to be open by the second quarter of 2019.

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QEP Resources, Inc. Wednesday announced that its Board of Directors has commenced a comprehensive review of strategic alternatives to maximize shareholder value, which could result in a merger or sale of the Company or other transaction involving the Company or its assets. QEP intends to engage in discussions with a variety of parties that have expressed interest in a potential transaction, including Elliott Management Corporation.

QEP cautions that there can be no assurance that any transaction will be approved or consummated. The Company does not intend to disclose developments relating to its strategic review unless and until the Board of Directors has approved a specific agreement or transaction or has terminated its review of strategic alternatives.

The Company also announced that, given the deterioration in commodity prices and that it was unlikely that the conditions to closing would be satisfied, the Company has agreed with Vantage Acquisition Operating Company, LLC, a wholly owned subsidiary of Vantage Energy Acquisition Corp. to terminate the definitive agreement to sell its assets in the Williston Basin to Vantage. QEP will continue to operate and develop its assets in the Williston Basin, including the Company’s South Antelope and Fort Berthold leaseholds.

Additionally, QEP has reassessed its organizational needs and intends to significantly reduce its general and administrative expense by approximately 45%, when comparing 2018 to 2020, to ensure its cost structure is competitive with industry peers. The Company expects the majority of these reductions will be implemented during the first half of 2019.

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Now let’s take a look at the latest notices from the electronic bulletin boards of the major interstate natural gas pipeline companies:

Algonquin Gas Transmission:

Algonquin posted its planned outages presentation from Wednesday, February 20, 2019  to its Electronic Bulletin Board.  See below:

https://infopost.spectraenergy.com/GotoLINK/GetLINKdocument.asp?Pipe=10076&Environment=Production&DocumentType=Notice&FileName=AGT+2019+Planned+Outage+Presentation.pdf&DocumentId=8aa1649f68e6c87f01690bf272270bea

ANR Pipeline:

ANR is performing planned compressor maintenance at its Jena Compressor Station located in the Southeast Southern Segment (Zone 2).

The capacity restriction is as follows:

Jena Southbound (DRN# 9505489):
320-MMcf/d (leaving 850-MMcf/d available) 2/25 – 2/26

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

Columbia Gas Transmission:

Columbia posted its monthly customer update conference call as shown below:

http://www.columbiapipeinfo.com/cpginfopost/webmethods/DownloadFile.aspx?Mode=V&S3FN=Columbia%20Pipelines%20Monthly%20Customer%20Update%2002_20_19.pdf&S3K=%5ctco%5cpresentations%5cColumbia+Pipelines+Monthly+Customer+Update+02_20_19.pdf

Gulf South Pipeline:

McComb (MS) Compressor Station Maintenance #2:  Start date:  February 27, 2019   End Date:  March 2, 2019

Montpelier to McComb Index 130 Scheduling Group:

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

Contact your customer service representative if you have any questions/concerns.

Natural Gas Pipeline Company of America (NGPL):

Effective for gas day Friday, February 22, 2019, and continuing until further notice, Natural is at operating capacity for southbound flow into Segment 22 through Compressor Station 300 located in Victoria County, Texas (Natural’s South Texas Zone).  AOR/ITS and Secondary out-of-path Firm transports are at risk of not being fully scheduled.   

Rockies Express Pipeline (REX):

SENECA COMPRESSOR STATION MAINTENANCE

On Gas Day Wednesday, March 6, 2019 through Gas Day Thursday, March 7, 2019, REX will be performing maintenance at its Seneca Compressor Station. Operating capacity will be limited to 0 MDth/d through Segment 400.

At this capacity level, primary and secondary firm quantities, as well as ITS/AOR are at risk of not being scheduled.

Southern Natural Gas:

Fairburn Force Majeure – Update #1

As posted in Critical Notice 703048, SNG has experienced an unscheduled station outage at the Fairburn Compressor Station.  Effective February 8, 2019, SNG is not accepting nominations at the TRNSCO/SNG FAIRBURN TO SNG FAYETTE – PIN 50069 until further notice.

Based on its investigation of Units 1 and 2 at the Fairburn Compressor Station, SNG has determined that Unit 1 has experienced damage that will delay its return to service for several months, with the in-service date to be determined. 

With regard to Unit 2, SNG is actively performing work and tests, and we believe, based on what we know right now, that completion of this work will allow us to return the unit to service in the near future. A further update will be provided once we have more information on the return to service timeline.

This unscheduled station outage constitutes an event of Force Majeure under Section 8.3 of the General Terms and Conditions of SNG’s FERC Gas Tariff until further notice.  SNG is working diligently to return both units to service.

Trailblazer Pipeline:

SUMMIT INTERCONNECT (SEG 10)

On Gas Day Tuesday, March 5, 2019, Trailblazer will be performing a hot tap on Segment 10. Capacity will be limited to 781 MDth/d through Segment 10. 

At this capacity level, primary and secondary firm quantities as well as ITS/AOR are at risk of not being scheduled.

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From the National Weather Service, the 8-to-14 day temperature forecast beginning March 1 shows that winter will return with a vengeance for almost the entire US.  Only portions of southern Florida and the desert Southwest are expected to see temperatures at or above normal for the first week of the new month. 

That’s a wrap for this 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 tell a friend in the natural gas scheduling and transportation business about us! Remember that our companion audio podcast is available via Apple Podcasts.  Subscribe today – it’s FREE

Edition 35 – Thursday, January 31, 2019

Welcome to another “Polar Vortex” edition of GasNewsOnline.com!  While we search over fifty interstate natural gas pipeline companies for their critical postings, a lot of other news is happening this week.  Here at GasNewsOnline.com, we’ll update you on the publicly released news from energy companies and will give you the latest National Weather Service temperature forecast, too.    All for FREE!

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The US Energy Information Administration released its weekly update on natural gas in storage today.

Working gas in storage decreased by 173 Bcf from the previous week (versus an estimate of 189 Bcf by industry analysts).  Stocks were still 328 Bcf (or 13%) below the five-year average for the same week. 

On the NYMEX, the March, 2019 natural gas futures price has decreased by about 4 cents on Thursday at approximately $2.82/MMBtu.

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Consumers Energy greatly appreciates conservation efforts by all its natural gas customers across Lower Michigan to assist with a supply issue on the company’s gas distribution network. Conservation, even by gas customers served by other utilities than Consumers Energy, is making a difference.

Thursday morning, the company is cautiously optimistic that public requests to reduce gas use are having a positive effect.

However, with Thursday’s continued historically cold weather, the company asks that conservation measures continue through the end of the day Friday, Feb. 1.

Repairs at the Ray Compressor Station are ongoing and the station is partially in service, providing natural gas to our distribution system. However, customers are requested to continue to conserve energy until the end of the day Friday, Feb. 1, to allow for temperatures to moderate and additional repairs to the Ray Station.

“As a result of an unexpected incident at a Gas Compressor station on Wednesday January 30 in Southeast Michigan, we are asking customers to temporarily reduce gas usage at this time while we continue to contain the incident and help keep Michigan residents warm during this cold spell,” said Garrick Rochow, Senior Vice President of Operations for Consumers Energy.

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Tallgrass Energy, LP (NYSE: TGE) and Blackstone (NYSE: BX) today announced that affiliates of Blackstone Infrastructure Partners (“BIP”) have entered into a definitive agreement with affiliates of Kelso & Co., The Energy & Minerals Group, and Tallgrass KC, LLC, an entity owned by certain members of TGE’s management, to acquire 100% of the membership interests in TGE’s general partner, as well as an approximately 44% economic interest in Tallgrass, for total cash consideration of approximately $3.3 billion. Affiliates of GIC, Singapore’s sovereign wealth fund, will be a minority investor in the transaction.

“Blackstone’s scale, long-term capital, and investment expertise across the energy industry make it an ideal partner for our business as we continue to create value and invest capital in accretive growth opportunities,” said Tallgrass President and CEO David G. Dehaemers Jr. “We appreciate the successful partnership we have had with Kelso and EMG since 2012 and thank them for their significant support. We look forward to working with Blackstone to continue maximizing value for all stakeholders.”

“Tallgrass is managed by an exceptional team that has an outstanding track record of commercial, operational and financial success,” said Sean Klimczak, Global Head of Infrastructure at Blackstone. “This transaction represents a rare opportunity to invest in a large-scale U.S. midstream infrastructure platform that connects high-production supply basins to key markets and is underpinned by long-term contracts. We are excited to partner with and to support the established Tallgrass management team over the long term as they execute on their robust backlog of attractive growth projects.”

Closing of the transaction remains subject to customary closing conditions and is expected within the first quarter of 2019.

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On January 29, 2019, PG&E moved forward with its previously announced plan to file for Chapter 11 with the following press release.

We are continuing to provide safe and reliable electric and natural gas service. We are not “going out of business,” and we expect that there will be no disruption to the services you expect from us as a result of the Chapter 11 process.

Our extensive restoration and rebuilding efforts to help communities recover from the devastating wildfires are continuing. We are committed to these efforts and safety remains our most important responsibility.

PG&E is also working very hard to address future wildfire risks and continuing to make critical investments in our systems and infrastructure to further improve safety. Our Community Wildfire Safety Program includes:

  • Conducting detailed and enhanced safety inspections of more than 50,000 transmission poles and towers and 5,500 miles of transmission lines in the highest wildfire-threat areas;
  • Aggressively removing vegetation in areas of high wildfire risk, including trees and branches near power lines and trees at risk of damaging our lines;
  • Investing in more real-time monitoring and intelligence like 1,300 new weather stations and nearly 600 new, high definition cameras to enhance weather forecasting and modeling;
  • Installing stronger and more resilient poles and covered power lines in the highest fire risk areas; and
  • Replacing equipment to further reduce wildfire risks and tailoring upgrades based on terrain and weather conditions using more granular analysis of fire-prone regions.

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ExxonMobil said Wednesday that it has reached a final investment decision and started construction on a new unit at its Beaumont, Texas refinery that will increase crude refining capacity by more than 65 percent, or 250,000 barrels per day. The third crude unit within the facility’s existing footprint will expand light crude oil refining, supported by the increased crude oil production in the Permian Basin area.

 “With access to terminals, railways, pipelines and waterways nearby, the Beaumont refinery is strategically positioned to benefit from Permian production growth,” said Bryan Milton, president of ExxonMobil Fuels and Lubricants Company. “The addition of a third crude unit in Beaumont will enhance the refinery’s competitive position and truly establish it as a leader in the U.S. refining industry.”

Startup of the new unit is anticipated by 2022. The project is expected to create up to 1,850 jobs during construction and between 40 and 60 permanent jobs once completed.

ExxonMobil’s integrated operations in Beaumont include a 366,000 barrel-per-day capacity refinery, as well as chemical, lubricants and polyethylene plants. ExxonMobil has approximately 2,100 employees in the Beaumont area and its operations account for approximately one in every seven jobs in the region.

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With much of the country still dealing with extremely cold weather, let’s take a look at the latest critical postings from the interstate natural gas pipeline companies around the lower 48 states:

Algonquin Gas Transmission:

With the impending colder weather beginning Wednesday January 30, 2019 and in order to maintain the operational integrity of the “G” system, Algonquin Gas Transmission, LLC (AGT) is requesting all customers/point operators on the “G” system to fully nominate their 6% “G” system contracts to the appropriate “G” system meter station. In the event customers do not properly nominate in such a manner, point operators will be limited in their ability to take non-ratable/accelerated deliveries above scheduled volumes to these meters for 6 consecutive hours.

Furthermore, AGT requires that customers/point operators on the “G” lateral be aware of the impact non-ratable hourly takes from the system and the impact it could have on system operations. Delivery pressures could reach lower than desire levels to the extent point operators’ hourly takes exceed their maximum hourly transportation quantity (MHTQ) based on their scheduled quantities. AGT’s “G” lateral is not designed to sustain delivery pressures above contractual pressure obligations if:
1)Point operators’ hourly rates are exceeding their MHTQ levels based on nominated quantities or
2)Point operators’ hourly rates are exceeding 1/24th of the daily nominated quantity for more than 6 consecutive hours (or greater than 6 hours on any gas day)

Furthermore, if customers/point operators do not manage hourly takes from the system within their scheduled MHTQ limits AGT may be required to impose further restrictions or courses of action in order to maintain the operational integrity of the system including the issuance of an hourly OFO pursuant to General Terms and Conditions Section 26.7(d).

ANR Pipeline:

Attention All ANR Shippers (Lifted 2/1/19 Timely Cycle)
This posting supersedes CN ID #9059

Update: Effective February 1 at the Timely Nomination Cycle, ANR is lifting the restriction limiting customers delivering north of the Woodstock compressor station to their contractual primary delivery points.

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

Columbia Gas Transmission:

Pursuant to Section 15 of the General Terms and Conditions of Columbia Gas Transmission LLC’s (TCO’s) FERC Gas Tariff, TCO is declaring a Force Majeure effective immediately for the ID-1 cycle for Gas Day 31.

The Force Majeure will impact volumes flowing through the MXP (Markwest) Sherwood Plant (Loc Prop 643185) receipt location only at this time.

A need for an investigative dig has been discovered that necessitates further action. TCO will keep shippers apprised of any changes in operational restrictions for this outage.   

For the Timely cycle for Gas Day Friday, February 1st and until further notice, the MXP Sherwood receipt location will be set to zero Total Capacity. 

TCO will continue to provide updates as information becomes available.

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.

Florida Gas Transmission:

FEBRUARY 2019 — FGT SUPPLY AREA MAINTENANCE IN ZONE 3

FGT will continue pipeline maintenance near FGT Compressor Station 10. This maintenance is expected to continue through the end of gas day February 28, 2019.  During this maintenance FGT will schedule up to 1,150,000 MMBtu/day through Station 10. During normal operations FGT schedules up to 1,300,000 MMBtu/day through Station 10.

FGT will perform pipeline maintenance near FGT Compressor Station 11. This maintenance is scheduled to begin February 1, 2019 and to continue through the end of gas day February 28, 2019.  During this maintenance FGT will schedule up to 3,050,000 MMBtu/day through Station 11. During normal operations FGT schedules up to 3,250,000 MMBtu/day through Station 11.

Gulf South Pipeline:

Vixen Compressor Station Maintenance

Begins: February 4, 2019  –  Ends: February 8, 2019

Expansion Receipts Upstream Vixen Scheduling Group.

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

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

Mojave Pipeline Company:

Force Majeure Lifted – Mojave-Topock Unit #2 

The Force Majeure event that was declared on January 18, 2019 (Reference Critical Notice #604348) at Topock Compressor Station with Unit 2 has been resolved.  

The available capacity through the Segment 3000 constraint will be increased to 463,000 dekatherms (Dth) per day effective Cycle 1 (Timely) for February 1, 2019

Northern Natural Gas:

Effective Gas Day 02/01 and 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 0% System Management Service (SMS) available for Gas Day Friday, February 1, 2019, due to lower than normal system weighted temperatures.

Northwest Pipeline:

Notice ID:  19-014

Subject:  Overrun Entitlement north of Kemmerer for all Receiving Parties

Due to a forecast of colder than normal weather, Northwest is declaring a Stage III (13%) Overrun Entitlement for all Receiving Parties north of the Kemmerer compressor station beginning gas day Saturday, February 02, 2019 until further notice.

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

Rockies Express Pipeline (REX):

Effective for the ID 1 Cycle, Gas Day Thursday, January 31, 2019 and until further notice, REX is partially lifting the capacity constraint at Markwest – Seneca (Loc 56116) and accepting receipts up to 200 MDth/d. 

Sabine Pipeline Company:

Sabine Pipe Line LLC (“Sabine”) plans to perform maintenance to one of the units at its Henry Compressor Station (the “Compressor Station”) which will reduce overall available compression capacity at the Henry Hub.

Maintenance is scheduled to occur February 4 through February 8. 

While we do not expect capacity in this area to be affected, we encourage shippers to closely monitor the website for capacity updates.

Southern Star Central Gas Pipeline:

Winter Weather Warning will terminate effective 1/31/2019 ID1 cycle due to elevated temperatures.

Thank you all for working with Southern Star during this weather event.

Texas Eastern Transmission:

Texas Eastern Transmission, LP (TE) hereby declares a Force Majeure in accordance with Section 17 of the General Terms and Conditions of its FERC Gas Tariff. The Force Majeure event is due to an unplanned outage on its 36″ system at the Marietta Compressor Station (Marietta) in Marietta, Pennsylvania which occurred on January 31, 2019. While efforts to repair the compressor station to full capacity are underway, the estimated time of restoration is unclear at this time.

TE will post updates to the status of repairs as they are known.

Transcontinental Gas Pipe Line Company (Transco):

Subject:Operational Flow Order – Imbalance

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

Beginning:  Friday, February 1, 2019 and until further notice

OFO Areas:  Zone 6

Tolerance %:  10% for gas Due from Shippers

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With the Midwest, Great Lakes, Middle Atlantic, and New England still dealing with another day of the latest Polar Vortex cold weather outbreak, the National Weather Service six-to-ten day temperature outlook paints a brighter picture for those regions by this time next week. 

The forecast for February 6 – 10 is now calling for warmer than seasonal temperatures generally east of the Mississippi River to the East Coast while the West Coast and Rockies get their first winter cold blast of this new year. 

That wraps up an eventful January here at GasNewsOnline.com!  Please let your friends in the natural gas scheduling and transportation business know about us.  Our companion audio podcast is FREE and available via iTunes.  Check it out!