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!

Monday, May 6, 2019

Welcome to GasNewsOnline.com! The battle for control of Anadarko Petroleum has taken another step as one of the suitors has sweetened the pot on Sunday! 

Meanwhile, a variety of springtime temperatures (some cool and others quite warm) have continued to depress the natural gas prices again as we start the week.    

We’ll check the latest interstate pipeline company critical notices plus an update on latest energy news and temperature forecasts into the middle of May, too.

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At the NYMEX, the June 2019 contract closed at about $2.53/MMBtu, down 4¢ from Friday. The price of the 12-month strip averaging June 2019 through May 2020 futures contracts has dropped 6¢ over the past week to about $2.67/MMBtu on Monday.

From the US Energy Information Administration’s “Natural Gas Weekly Update” publication, net injections to working gas in storage totaled 123 billion cubic feet (Bcf) for the week ending April 26. Volumes in storage are currently 1.462 Tcf, which is 18% lower than the five-year (2014–18) average for this week.

The natural gas plant liquids composite price at Mont Belvieu, Texas, fell by 1¢, averaging $6.11/MMBtu for the week ending May 1. The price of isobutane, natural gasoline, and butane fell by 1%, 2%, and 3% respectively. The price of propane rose by 2%. The price of ethane remained flat week over week.

According to Baker Hughes, for the week ending Tuesday, April 23, the natural gas rig count decreased by 1 to 186. The number of oil-directed rigs fell by 20 to 805. The total rig count decreased by 21, and it now stands at 991.

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On Sunday, Occidental Petroleum Corporation delivered a letter to the Board of Directors of Anadarko Petroleum Corporation setting forth the terms of a revised and significantly enhanced superior proposal to acquire Anadarko for $76.00 per share comprised of $59.00 in cash and 0.2934 shares of Occidental common stock per share of Anadarko common stock.

The revised proposal, which has been unanimously approved by the Occidental Board of Directors, represents a premium of approximately 23.3% to the $61.62 per share value of Chevron’s pending offer as of market close on May 3, 2019.

On April 29, 2019, Anadarko announced its Board of Directors had determined that Occidental’s prior proposal, made on April 24, could reasonably be expected to result in a “Superior Proposal”, and the two companies have engaged since that determination.

Occidental’s President and CEO, Vicki Hollub, said, “We firmly believe that Occidental is uniquely positioned to drive significant value and growth from Anadarko’s highly complementary asset portfolio. This combination will create a global energy leader with the scale and geographic diversification to drive compelling returns to the shareholders of both companies,” she added.

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Williams reported Friday that the Federal Energy Regulatory Commission (FERC) has issued a certificate of public convenience and necessity authorizing the Northeast Supply Enhancement project – an expansion of the existing Transco natural gas pipeline designed to serve New York markets in time for the 2020/2021 winter heating season.

The Northeast Supply Enhancement project will provide 400,000 dekatherms per day of additional natural gas supply to National Grid – the largest distributor of natural gas in the northeastern United States. National Grid is converting about 8,000 customers per year from heating oil to natural gas in New York City and Long Island. The Northeast Supply Enhancement Project is critical to make these conversions possible, as well as keep up with new development in the area.

“Natural gas is a critical component of the mix of energy sources necessary to meet the region’s growing energy needs and to help meet its aggressive clean air goals,” said Williams Chief Operating Officer Micheal Dunn. “We appreciate the Commission’s thorough review of this important infrastructure enhancement project, which will help ultimately advance New York City toward meeting the statewide carbon emissions goals outlined in the New York State Energy Plan.”

Following the receipt of all necessary regulatory approvals, Williams anticipates beginning construction on the Northeast Supply Enhancement project facilities in the fall of 2019.

Transco is a major provider of cost-effective natural gas services that reach U.S. markets in 12 Southeast and Atlantic Seaboard states, including major metropolitan areas in New York, New Jersey and Pennsylvania.

Additional information about the Northeast Supply Enhancement project can be found at www.northeastsupplyenhancement.com.

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Late last week, U.S. Secretary of Energy Rick Perry signed the Department of Energy’s authorization allowing Sempra Energy‘s Port Arthur LNG to export approximately 13.5 million tonnes per annum of U.S.-produced liquefied natural gas (LNG) to countries that do not have a free-trade agreement (FTA) with the U.S. during the first U.S.-EU Energy Council High-Level Energy Forum in Brussels, Belgium.

“I am pleased to announce the order signed authorizing Port Arthur LNG to export up to 1.91 billion cubic feet per day of LNG, to any country that does not have an FTA with the United States,” said Perry. “The United States is in its third consecutive year as a net exporter of natural gas, now exporting domestic LNG to 35 countries. I applaud the American private sector for continuing to reach new milestones and look forward to continued growth in this sector.”

The Port Arthur LNG export project in development in Jefferson County, Texas is expected to include two liquefaction trains, up to three LNG storage tanks and associated facilities.  

Port Arthur LNG is expected to create approximately 3,500 on-site engineering and construction jobs, as well as several hundred jobs in Texas in support of the project, including fabrication and operational jobs. Nearly 200 full-time jobs will be created to operate and maintain Port Arthur LNG facility.

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Now, let’s review the latest critical postings from the electronic bulletin boards of the interstate natural gas pipeline companies:

Dominion Energy Questar Pipeline:

The revised injection capacity at Clay Basin Storage is now 300 Mdth/d plus 25 Mdth/d Park and Loan for a total of 325 Mdth/d.  Storage withdrawal capacity will be 175 Mdth/d.

Enable Gas Transmission:

Effective Tuesday, May 7, 2019, EGT will begin planned maintenance at EGT’s Round Mountain Compressor Station, located in Conway County, Arkansas and in EGT’s North Pooling Area, with an anticipated completion date of May 10, 2019.         

During this period delivery locations East of EGT s Round Mountain Compressor Station should nominate from their MRO locations.  The availability of non-ratable services including EFT will be limited.  Shippers with EFT services should continue to submit their proposed non-ratable burn schedules in line with the normal scheduling process. Such schedules will be approved and scheduled daily, based on EGT s operating conditions for that day.

Delivery meters located East of EGT s Dunn Compressor Station will be limited to primary firm nominations only.

Also on Enable Gas Transmission:

This Operational Alert is being issued pursuant to Section 20, GT&C, of EGT s Tariff to notify its Shippers of upcoming pigging activity on EGT’s Line S system.  Pigging activity will begin May 14, 2019 at 9:00 a.m., with an anticipated completion date of May 18, 2019.

During this time nominations to delivery meters located in EGT’s South Pooling Area could be impacted.  EGT anticipates impacts to IT Services and possible impacts to Firm Services.

Kern River Gas Transmission:

The force majeure and associated pipe repair at Kern River’s Fillmore compressor station continues. Kern River requires that all customers match their scheduled nominations with physical receipts and deliveries to maintain system integrity.

Kern River does not currently have an estimated return to service date for the entire compressor station facility; however, beginning gas day May 6, 2019 Intraday 1 cycle the operating capacity at the Fillmore compressor station will be increased from 1,995,000 Dth to 2,308,000 Dth.  Kern River will provide updates as new information becomes available.

Natural Gas Pipeline Company of America (NGPL)

STORAGE – Changes/Restrictions

Injections  – Effective for gas day Tuesday, May 7, 2019, Timely Cycle and continuing until further notice, injections above MDQ for DSS and NSS in all zones on the Gulf Coast System will not be scheduled.

Texas Gas Transmission:

Texas Gas will be preforming maintenance at the Youngsville/Henry Hub meter (#2790) beginning May 7 through June 1, 2019. Deliveries to the meter will be unavailable for the duration of the maintenance.  If you have any questions, please contact your customer service representative.

Transwestern Pipeline:

East Mainline Receipts – Capacity reduction

May 7th thru May 11th, 2019 (5 Days) – Total capacity for East Mainline receipt volumes (West flow) will be reduced from 750,000 MMBtu/d to approximately 550,000 MMBtu/d. Perform verification digs to confirm pipe anomalies that were detected from an ILI Smart Tool run in the Section 9 – Mainline system from Roswell, NM to Station 8 (Corona, NM). 

This maintenance could affect receipt volumes from the West Texas & Panhandle Laterals flowing through the East Mainline system.

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The National Weather Service six-to-ten day temperature outlook continues to show that Pacific Northwest and parts of the Southeastern US should see warmer than seasonal temperatures through May 16.  In between, normal to cooler than average weather patterns should dominate most regions from West Texas into New England. 

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

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

Monday, April 1, 2019

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

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

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

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

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

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

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

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

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

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

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

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

ANR Pipeline:

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

Brownsville Southbound (LOC #1260569):

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

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

Colorado Interstate Gas (CIG):

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

Dominion Energy Transmission:

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

Dominion Energy Questar Pipeline:

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

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

Gulf South Pipeline:

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

Expansion Area 19 Delivery Scheduling Group

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

Southern Natural Gas:

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

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

Tennessee Gas Pipeline:

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

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

All delivery point operators in all areas south of STA 1 are required to keep actual daily takes out of the system equal to or less than scheduled quantities regardless of their cumulative imbalance position.  All receipt point operators in all areas south of STA 1 are required to keep actual daily receipts into the system equal to or greater than scheduled quantities regardless of their cumulative imbalance position.  In addition, it is essential that delivery point operators schedule gas at meters commensurate with takes within the affected areas.  All LMS-PA, SA contracts acting as balancing parties, LMS-MA and LMS-PL Balancing Parties are required to maintain an actual daily flow rate not exceeding 2% of scheduled quantities or 500 dths, whichever is greater for under-deliveries into the system and over-takes from the system. Customers will be assessed a rate of $5.00 plus the applicable Regional Daily Spot Price per dekatherm for that portion of physical quantities related to under-deliveries by receipt point operators and over-takes by delivery point operators which exceed this tolerance.

Also from Tennessee Gas:

TGP SUMMER MAINTENANCE/ WEBEX UPDATE 4-16-19

Tennessee Gas Pipeline Company, LLC (“Tennessee”) will be hosting a WebEx meeting to provide customers and other interested parties an overview of Tennessee’s upcoming Summer Scheduled Maintenance for the months of May, June and July 2019 on Tuesday, April 16, 2019, from 1:30 PM  CCT to 2:30 PM CCT via WebEx only.  There will be a question and answer segment immediately following.  Please review the Tennessee Gas Pipeline EBB posting dated April 1, 2019 for more details.

Texas Eastern Transmission:

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

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

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

Based on progress made to date, TE projects that:

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

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

Transcontinental Gas Pipe Line Company (Transco)

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

Transwestern Pipeline:

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

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

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

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

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

Edition 27 – Thursday, January 3, 2019

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

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

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

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

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

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

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

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

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

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

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

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

Algonquin Gas Transmission:

AGT Operational Flow Order

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

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

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

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

Dominion Energy Questar Pipeline

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

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

El Paso Natural Gas:

WARNING OF STRAINED OPERATING CONDITION (SOC) – DRAFT

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

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

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

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

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

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

Northern Border Pipeline:

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

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

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

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

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

Southern Natural Gas:

January 2, 2019

To All Southern Natural Gas Company Shippers

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

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

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

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

Transwestern Pipeline:

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

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

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

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

Any such UPR cuts will be handled by separate notices.

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

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

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

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Edition 14 – Monday, November 5, 2018

With Election Day coming on Tuesday, we are glad you have “elected” to choose GasNewsOnline.com for your FREE compilation of natural gas business information and weather news from public sources to start the new month!

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Let’s take a look at some of the energy companies making news on this Monday, November 5th:

On its electronic bulletin board, Rover Pipeline (an affiliate of Energy Transfer) posted that it has commenced natural gas service on the final laterals needed to complete the Rover Pipeline project.

Effective November 2, the Sherwood Lateral, the Columbia Gas Transmission Lateral and the associated compression and metering facilities located in West Virginia are now in service. The full 713-mile pipeline can transport up to 3.25 billion cubic feet per day of natural gas from the Marcellus and Utica Shale production areas.

Rover transports natural gas from processing plants in West Virginia, Eastern Ohio and Western Pennsylvania to the Midwest Hub near Defiance, Ohio, for delivery to markets across the U.S., as well as to the Union Gas Dawn Storage Hub in Ontario, Canada.

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SandRidge Energy of Oklahoma City announced Monday it has closed two separate transactions.

On November 1, the company sold substantially all of its oil and gas properties, rights and related assets in the Central Basin Platform (“CBP”) region of the Permian Basin, together with 13,125,000 Common Units of the SandRidge Permian Trust (the “Trust”), to an unaffiliated party for net proceeds of $14.5 million. The divestiture of almost 1,500 wells eliminates approximately 32% of the Company’s total asset retirement obligations.

On November 2, SandRidge  acquired certain oil and gas properties, rights and related assets in the Mississippi Lime and NW STACK areas of Oklahoma and Kansas for $25.1 million. The acquired interests in these assets are additive to existing SandRidge ownership positions. The Company operates approximately 80% of the subject wells and holds an existing working interest in most of the remaining wells operated by others.

“Both transactions will have a positive impact on the Company’s operating efficiency,” said Bill Griffin, President and CEO. “The CBP properties accounted for more than 12% of our total operating expenses, while contributing only 4% of the production during the first half of 2018.”

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Sempra Energy said Friday that Cameron LNG has initiated the commissioning process for the support facilities and first liquefaction train of Phase 1 of its Hackberry, La., liquefaction-export project.

“All major construction activities have been completed to begin the commissioning and start-up process to produce LNG from the first liquefaction train,” said Joseph A. Householder, president and chief operating officer of Sempra Energy.

Phase 1 of the Cameron LNG liquefaction-export project, which includes the first three liquefaction trains, is a $10 billion facility with a projected export capability approximately 1.7 billion cubic feet per day of natural gas. All three trains are expected to be producing LNG in 2019.

The commissioning process includes testing of all support systems, combustion turbines and compressors, as well as the delivery of feed gas from the transmission pipeline and production of the first LNG. Once all of the steps of the commissioning process are approved by the Federal Energy Regulatory Commission (FERC) and successfully completed for the first liquefaction train, LNG production will start up, and then ramp up to full production for delivery to global markets.

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The natural gas pipeline company electronic bulletin boards are busy with postings to start this week:

Columbia Gas Transmission:

As previously posted in the Construction and Maintenance Schedule in Navigates, Columbia Gas Transmission, LLC (TCO) reminds customers of an outage at Huff Creek Compressor Station in Wyoming County, WV scheduled November 7 through November 8, 2018.  Production at the following meters will be shut in with the exception of nominal quantities to serve local markets.  Nominations at the impacted points will not be scheduled until the station is returned to service.

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.

Capacities at the receipt points listed below will be set to Zero Total Capacity during this outage:

833517  CNX – Cline

833682  Isaban A

834416  Kinzer – Beech Creek

CNR11  CHK – Stafford

CNR13  CHK – Briar Mtn

CNR14 CHK – Huff Creek

 

Florida Gas Transmission:

FGT will be performing maintenance at its FGT Sabine Pass/Vinton Interconnect (POI 282 and POI 408). This maintenance is scheduled to begin on November 12, 2018 and is to be completed by the end of gas day November 13, 2018. During this maintenance zero volumes will be available to be scheduled for receipt. During normal operations FGT schedules up to 135,000 MMBtu/day at the FGT Sabine Pass/Vinton Interconnect.

FGT will be performing maintenance on its FGT Compressor Station 75. This maintenance is scheduled to begin on November 12, 2018 and is to be completed by the end of gas day November 16, 2018. During this maintenance FGT will schedule up to 700,000 MMBtu/day through Station 75. During normal operations FGT schedules up to 980,000 MMBtu/day through Station 75.

 

Gulf South Pipeline:

Effective 11/02/18 – 12/02/18:

Enterprise Burns Plant in South Louisiana will be shutdown for the duration of the maintenance.

The plant will not process any gas during this time.

Gulf South will operate in plant by-pass mode for the duration of the outage. As long as Gulf South is able to blend volumes to meet our tariff specifications the locations upstream of the plant will be allowed to remain on line.

If blending is not possible, the following locations will be required to shut in until plant processing resumes. Gulf South Shippers should adjust their nominations accordingly including associated PTR locations:

– SLN 21947 POINT CHEVREUIL SL-18350 #1

– SLN 289 E.I.BLK 32 PLTFM A

– SLN 20841 BELLE ISLE

– SLN 20801 RABBIT ISLAND PRODUCTION

– SLN 23081 BURNS POINT PROCESSING PLANT RESIDUE

 

Gulf Crossing Pipeline:

Mira Compressor Maintenance – 11/12/18 – 11/14/18

Gulf Crossing Receipts – Capacity could be impacted by as much as 100,000 dth/d for the duration of the maintenance.

 

Natural Gas Pipeline Company of America (NGPL):

Natural will be performing an ESD test and electrical inspections at Compressor Station 300 (CS 300) located in Victoria County, Texas (Segment 22 of Natural’s South Texas Zone).

The scheduling constraint is at Compressor Station 302 (CS 302), located in Montgomery County, Texas.  Any gas received north of CS 302 or east of CS 302, included storage withdrawals, for delivery into Segment 22 will be impacted.

As such, on gas day Monday, November 12, 2018, and continuing through gas day Thursday, November 15, 2018, Natural will schedule Primary Firm and Secondary in-path Firm transports only southbound into Segment 22.  AOR/ITS and Secondary out-of-path Firm transports will not be available.

 

Northwest Pipeline:

Northwest is hosting a conference call on Friday, Nov. 9 at 10:00 a.m. MST to discuss proposed tariff changes to its OFO provisions in the event Northwest’s shippers are unable to comply with its OFO obligations due to lack of supplies as a result of the Enbridge incident on October 9.

Northwest will provide red-lined tariff sheets early next week for customers review prior to Friday’s call.  The call in number is 1-385-355-3006. The conference code is 5655198.

If you like, you can pre-submit questions and comments via email to Mike Rasmuson (Michael.D.Rasmuson@Williams.com)

 

Southern Natural Gas:

Southeast Supply Header, LLC (SESH) pipeline’s operator notified Southern that it will be conducting maintenance at its Gwinville Compressor Station November 10 – November 11,  2018 that will reduce the available SNG – SESH capacity of 506,841 DTH/d to 395,000 Dth/d.

Points impacted are listed below.

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

 

Southern Star Central Pipeline Company:

Southern Star Central Gas Pipeline posted a Force Majeure Update on Line Segment 130, which began Tuesday, June 19, 2018.

Work has been completed ahead of schedule.  Effective ID1 Cycle Gas Day November 5, 2018, Southern Star will increase capacity at the Kansas Hugoton Receipt constraint to 343,000 Dth/d.

Southern Star also posted some general guidelines to assist shippers during the upcoming winter season at:

https://csimain.sscgp.com/EBBPostingDocs/Miscellaneous/49135.pdf

 

Tennessee Gas Pipeline:

OFO DAILY CRITICAL DAY 1 SOUTH OF STA 9 – LIFTED EFFECTIVE 11-6-18

Effective for the Gas Day of Tuesday, November 6, 2018, and until further notice, Tennessee Gas Pipeline, LLC (“Tennessee”) is lifting the Daily Critical Day 1 OFO for South of STA 9.  However, it is imperative that customers continue to match physical flows with scheduled volumes in this area in order to avoid the issuance of any additional actions in these zones.

 

Transcontinental Gas Pipe Line Company (Transco):

Transco will be performing facility modifications associated with Job No. 567 on the 2018 Planned Outage and Maintenance Summary on its Mainline near M.P. 713.0 in Covington County, Mississippi from November 14, 2018 through November 22, 2018. The location listed below will be isolated and unable to flow during this time.

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The tropics are still quiet as the “official” hurricane season starts to come to a close this month.

The National Weather Service six-to-ten day temperature forecast is showing a large part of the United States will expect to receive a few days of early season cooler temperatures through the second week of November.

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