Monday, May 20, 2019

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Train 4 operations are anticipated to commence in 2023.

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

Columbia Gas Transmission:

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

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

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

***Previous Posting***

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

642452 – CMG Majorsville

643053 – Gibraltar III

643106 – Majorsville-LXP

642645 – Sherwood1

642824 – Smithfield-Mobley

643185 – Sherwood-MXP

842867 – Braxton 

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

El Paso Natural Gas:

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

Washington Ranch is on maximum injection. 

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

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

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

Also from El Paso:

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

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

Northern Natural Gas:

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

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

Northwest Pipeline:

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

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

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

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

Southern Natural Gas:

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

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

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

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

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

Thursday, May 2, 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, with golf weather covering most of the country, provide the extended temperature forecast for the next few weeks from the National Weather Service, too.  

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According to the US Energy Information Administration, working gas in storage was 1.462 Tcf as of Friday, April 26, 2019. This represents a net increase of 123 Bcf from the previous week.

Natural gas in storage is now 316 Bcf (approximately 18%) below the five-year average.

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NRG Energy, Inc. expects to return to service its inactive 385 MW Gregory natural gas plant in Corpus Christi, Texas. The Gregory plant ceased operations in late 2016 when its cogeneration partner, Sherwin Alumina, filed for bankruptcy and discontinued operations. Following resolution of certain issues resulting from the Sherwin Alumina bankruptcy, the Gregory plant is expected to return to service as a combined cycle facility in early June 2019.

“I am pleased to announce the return to service of this highly efficient natural gas plant,” said Mauricio Gutierrez, President and CEO of NRG. “The Public Utility Commission of Texas’ recent actions to further strengthen the ERCOT market reinforced our decision to return Gregory to service ahead of summer, providing additional reliability to our customers and Texas’ growing economy.”

At full power, the Gregory plant can meet the needs of approximately 77,000 homes on the hottest days of the year.

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Despite warmer weather across much of the United States, there are still several critical postings coming from the electronic bulletin boards of the major interstate natural gas pipeline transporters. Let’s review the latest news:

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, May 2, 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.

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

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

This OFO will remain in effect until further notice.

ANR Pipeline:

Bridgman Northbound Capacity Reduction (Updated 05/01/19)

ANR will continue 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):

375-MMcf/d – (leaving 1,226 – MMcf/d available) 5/1 – 5/3
65-MMcf/d – (leaving 1,536 – MMcf/d available) 5/4 – 5/6
375-MMcf/d – (leaving 1,226 – MMcf/d available) 5/7 – 5/20
40-MMcf/d – (leaving 1,561 – MMcf/d available) 5/21 – 6/2
325-MMcf/d – (leaving 1,276 – MMcf/d available) 6/3 – 8/12

Since the last posting, the end date of the first maintenance period has been extended from 5/2 to 5/3, and each subsequent outage period has been adjusted accordingly.

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. This posting will be updated as more information becomes available.

Colorado Interstate Gas (CIG):

Effective May 5, 2019, Colorado Interstate Gas Company, L.L.C. (CIG) is removing the limitation on Transportation Service (NNT) requests for NNT authorized withdrawals declared in Notice Number 118466.

No limit is currently placed on requests for NNT authorized injections or withdrawals. 

Dominion Energy Transmission:

Due to integrity issues affecting LN-24 and LN-541 (Notice ID 213991), effective ID1 cycle for gas day May 2, 2019, Dominion Energy Transmission, Inc (DETI) will not accept any increases in Secondary or IT transport for delivery to the following meters:

Location Names: 20600 ROCHESTER GAS AND ELECTRIC; 20900 NATIONAL FUEL; 30005 SITHE ENERGIES (LOWER LEROY-SENECA); 23600 FILLMORE

Effective gas day May 3, 2019 the above meters will be limited to Primary Only deliveries until further notice. Please note that “Unauthorized Overrun Charges – Daily” rate of $10.00/dth will apply to deliveries made in excess of FT and FTNN entitlements while these restrictions are in place.

Gulf South Pipeline:

Hall Summit Expansion Compressor Station Maintenance: 

Begins:  May 19, 2019            Ends:  May 27, 2019

Expansion Receipts Upstream Vixen Scheduling Group – Capacity could be impacted by up to 300,000 dth/d for the duration of the maintenance.  Please contact your customer service representative if you have any questions.

Natural Gas Pipeline Company of America (NGPL):

Natural has experienced horsepower issues at Compressor Station 167 (CS 167), located in Lea County, New Mexico that require Natural to shut-in CS 167 for the duration of this restriction.  This is a Force Majeure event that will limit Natural’s throughput capacity from receipts south of CS 167 and just north of CS 167 (from LOC 908135 Targa Saunders Plt). 

The scheduling constraint will be north of CS 167; therefore, any gas received south of CS 167 from either Segment 7 or Segment 9 receipt points for delivery north of CS 167 will be impacted for the duration of the restriction.  Additionally, transports associated with storage injections will be impacted.  The Permian Pool (LOC 25077) is located south of the constraint. 

As such, effective for gas day Thursday, May 2, 2019, Intraday 1 Cycle, and continuing until further notice, Natural will schedule Primary Firm and Secondary in-path Firm transports to no less than 74% of contract MDQ through CS 167.  Actual nomination levels and changes in pipeline conditions could result in changes to the percentages scheduled (lower or higher) on subsequent gas days.  AOR/ITS and Secondary out-of-path Firm transports continue to not be available for the duration of this restriction.

Southern Natural Gas:

Based on current milder temperatures and resulting lower demand on Southern’s system, SNG is currently experiencing high line pack on the system.  SNG encourages all shippers to manage their system requirements to maintain balance between actual receipts and deliveries.  An Operational Flow Order for long imbalances could be required to help ensure system integrity as Southern’s Tariff provides that a Type 6 OFO can be implemented on four hours’ notice or less prior to the start of the gas day.

Deliveries with actual flows less than scheduled daily volumes are subject to reductions of nominations to demonstrated daily volumes.  Receipts should not exceed scheduled daily volumes.

We request that all Shippers/Poolers monitor the balance between actual receipts and deliveries to ensure that a daily out-of-balance situation does not occur.  Additionally, SNG requests all payback be nominated. 

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The latest six-to-ten day temperature forecast from the National Weather Service for May 8 – 12 reveals that warmer than average May temperatures will be seen along both the East and West coasts of the US.  For the midsection of the country, though, cooler than average temperatures will prevail from Texas northward into the Northern Plains during the second week of the 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!    You may also listen to every show via Apple Podcasts. It’s free – try it today!

Monday, April 29, 2019

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

ANR Pipeline:

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

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

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

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

El Paso Natural Gas:

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

Gulf South Pipeline:

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

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

Southern Natural Gas:

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

Tennessee Gas Pipeline:

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

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

Transcontinental Gas Pipe Line Company (Transco):

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

Vinton – FGT             Loc. #:  1006304         Meter 4381      Delivery

Vinton – Starks           Loc. #:  1006349         Meter 4374      Delivery

Also on Transco: 

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

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

Vector Pipeline:

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

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

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

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

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

Monday, April 22, 2019

Happy Earth Day from GasNewsOnline.com!

April temperatures are starting to rise around the country as the annual springtime warm-up is underway.  Today, we’ll take a look at the latest energy news, scan the interstate natural gas pipeline grid, and bring you an update on the six-to-ten day temperature forecast from the National Weather Service

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

Net natural gas injections into storage totaled 92 billion cubic feet (Bcf) for the week ending April 12. Working natural gas stocks are 1.247 Tcf, which is  25% lower than the five-year (2014–18) average for the same week.

The natural gas plant liquids composite price at Mont Belvieu, Texas, rose by 21¢/MMBtu, averaging $6.15/MMBtu for the week ending April 17. The price of ethane, propane, butane, isobutane, and natural gasoline all rose, by 7%, 4%, 2%, 2% and 1%, respectively.

According to Baker Hughes, for the week ending Tuesday, April 9, the natural gas rig count decreased by 5 to 189. The number of oil-directed rigs rose by 2 to 833. The total rig count decreased by 3, and it now stands at 1,022.

At the New York Mercantile Exchange (Nymex), the price of the May 2019 contract increased by a few cents on Monday to about $2.53/MMBtu. The price of the 12-month strip averaging May 2019 through April 2020 futures contracts is now about $2.75/MMBtu.

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ExxonMobil said today that it signed a sales and purchase agreement with Zhejiang Provincial Energy Group for liquefied natural gas (LNG) supply. Under the agreement, Zhejiang Energy is expected to receive 1 million metric tons per annum of LNG over 20 years as Zhejiang Energy will build a Wenzhou LNG receiving terminal.

“This sales and purchase agreement represents an important milestone and provides a solid foundation for our strategic partnership with Zhejiang Provincial Energy Group,” said Peter Clarke, senior vice president of LNG at ExxonMobil.

“ExxonMobil shares Zhejiang Energy’s vision in developing a major LNG gateway in the Ningbo-Zhoushan region,” Clarke said. “We look forward to continuing our support for Zhejiang Energy during the construction, commissioning and operation of its Wenzhou LNG receiving terminal.”

With a long-term commitment to China, ExxonMobil expects to help meet China’s energy needs through its products, technologies, partnerships and investments.

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American Electric Power today announced that its competitive renewable energy subsidiary, AEP Clean Energy Resources, has completed the purchase of Sempra Renewables LLC and its 724 megawatts (MW) of operating wind generation and battery assets for approximately $1.05 billion. AEP will pay Sempra $584 million in cash, which includes $33 million in working capital, and assume $470 million in existing project debt and tax equity obligations, subject to adjustments.

The purchase includes all or part of seven wind farms and one battery installation in seven states. Five of the wind farms are jointly owned with BP Wind Energy. BP Wind Energy will retain its ownership share of those projects.

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

AEP Renewables also recently signed a separate agreement to purchase a 75 percent interest (227 MW) in the Santa Rita East Wind Project currently under construction west of San Angelo, Texas. AEP Renewables will acquire its share of the project upon completion, which is expected in June.

With this acquisition, AEP’s competitive renewable generation portfolio has grown to 1,075 MW of renewable generation in 11 states. It will increase to 1,302 megawatts upon completion of the Santa Rita project.

AEP plans to cut its carbon dioxide emissions 80 percent from 2000 emission levels by 2050. The company is developing a more balanced portfolio of power generation to help achieve this target. AEP’s generation capacity has gone from 70 percent coal-fueled in 2005 to 46 percent today. Its natural gas capacity increased from 19 percent in 2005 to 27 percent today, and its renewable generation capacity has increased from 4 percent in 2005 to 16 percent today. AEP’s nuclear generation capacity has increased from 6 percent in 2005 to 7 percent today.

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Late last week, Southern Power, a wholesale energy provider and subsidiary of Southern Company, announced that it has entered into an agreement to sell the Nacogdoches Generating Facility to Austin Energy for $460 million.

Southern Power began commercial operation of the Nacogdoches Generating Facility (located about 30 miles NW of Nacogdoches, Texas) in 2012. The 115-megawatt (MW) plant serves electricity needs in Austin, Texas under a long-term power purchase agreement with Austin Energy.  

“The Nacogdoches Generating Facility is one of the largest wood-fired biomass plants in the United States and has been a part of Southern Power’s generation fleet since 2012, demonstrating strong operating performance,” said Southern Power President and CEO, Mark Lantrip.

The $460 million purchase price is subject to customary closing adjustments. The transaction is expected to close in mid-2019, subject to customary closing conditions. Proceeds will be used to strengthen the balance sheet of Southern Company, help meet projected equity needs and further de-risk financing plans.

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After a busy Easter weekend of natural gas pipeline critical notices, there were noticably fewer postings on the pipeline grid to begin the week on Monday.

Dominion Energy Transmission:

Reminder: Limited Daily and Hourly Flexibility:

Due to forecasted temperatures and customer requirements, DETI has determined that daily and hourly flexibility is very limited. Excess takes – daily and hourly – may cause reduced pressures in various areas of the DETI system and jeopardize DETI’s ability to meet its firm service obligations.

Effective immediately, and until further notice, DETI hereby issues a reminder of the prior Alert (prior notice ID 213177) to request the following:

Buyers under DETI’s transportation rate schedules are requested to the extent possible to deliver to DETI and receive natural gas on a uniform hourly flow basis during the day (or 1/24th of the scheduled confirmed nominations for the applicable day or other pre-authorized hourly flow rates accepted by DETI). Any such requests shall be directed to your Interstate Marketing Manager.

In addition, Power Plant Operators are reminded that they must continue to provide information mandated by FERC Order No. 698, which includes the hourly consumption profile of power generation facilities served by DETI. DETI will continue to review and approve the Order No. 698 burn profiles pursuant to the procedures distributed to each agent/power generator and posted on DETI’s EBB. DETI will consider requests for hourly low flexibility on a not unduly discriminatory basis, subject to the projected availability of operational capability and provided further, that the additional flexibility will not impair Operator’s ability to render other nominated and scheduled firm services. Power Generators should direct their requests to the DETI Power Desk. Failure to comply with this Alert could result in the issuance of an OFO.

Southern Natural Gas:

Southern has experienced an unscheduled unit outage at the Muldon compressor station (Mississippi). As a result of this outage, Muldon storage injection capacity of 345 Mdth/d will be limited to 230 Mdth/d.  Return to service is unknown at this time.

We will continue to provide updates as more information is known.

Texas Gas Transmission:

Planned Maintenance – Harrison (Ohio) compressor station

Begins:  June 11, 2019            Ends: June 14, 2019

Texas Gas will be performing turbine inspection maintenance at the Harrison Compressor Station (Ohio). Capacity will be limited to 525,000 MMBtu south through the station for the duration of the maintenance.

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

TransColorado Gas Transmission:

Force Majeure Declared at Blanco Hub Compressor Station – Segment 310

TransColorado Gas Transmission Company, LLC (TC) has experienced a mechanical failure at its Blanco Hub Compressor Station that is affecting TD2 (North Bound) flow.  As such, TC is declaring an event of Force Majeure pursuant to TC’s FERC Gas Tariff, General Terms and Conditions, Section 14.

Effective Timely Cycle (Cycle 1), Gas Day Tuesday, April 23rd, 2019, capacity at Blanco Hub Compressor Station will be reduced from 250,000 Dth/day to 150,000 Dth/day in a backhaul direction (South to North).  This reduction will be in effect until further notice.

For scheduling questions, please contact the Nominations and Scheduling hotline at 1-800-238-3764 option 2.

Transcontinental Gas Pipe Line Company (Transco):

The Operational Flow Order – Imbalance (OFO) currently in effect on the Transco system in Zones 4, 5, & 6 was terminated effective with the start of gas day Monday, April 22, 2019 at 9:00 AM CDT.

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

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The six-to-ten day temperature forecast from the National Weather Service is showing that the northern tier of states along the entire I-80 and I-90 corridors east to west will see cooler than average temperatures in early May.  Meanwhile, expectations are that warmer than seasonal temperatures can be expected across the Southeast, South Central, and desert Southwest early in May.

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

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

Thursday, April 18, 2019

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Algonquin Gas Transmission:

Algonquin Gas Transmission (AGT) has limited operational flexibility to manage imbalances. Effective 9:00 AM CCT, Friday, April 19, 2019, AGT requires all delivery point operators keep actual daily takes out of the system equal to or greater than scheduled quantities regardless of their cumulative imbalance position unless otherwise coordinated with your operations account representative.

All receipt point operators are required to keep actual daily receipts into the system equal to or less than scheduled quantities regardless of their cumulative imbalance position unless otherwise coordinated with your operations account representative.

ANR Pipeline:

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

ANR will begin planned maintenance at the Havensville compressor station between April 29 and May 2.  The total SWML Northbound (LOC#226630) capacity will be reduced by the following:

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

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

Also from ANR:

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

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

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

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

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

Colorado Interstate Gas (CIG):

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

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

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

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

Columbia Gas Transmission:

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

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

Cobb South MA18 (A03SOUTH)

Cobb Northeast MA18 (A03NORTH)

Cobb Northwest MA18 (A03LOW)

Cobb Line H (A03LINEH)

Cobb CS MA18 (COBBA03) 

East Tennessee Natural Gas:

Boyds Creek Compressor Station Outage – April 23 – 24

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

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

Enable Gas Transmission:

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

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

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

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

Gas Transmission Northwest (GTN):

May 2019- GTN Fuel and Line Loss Percentage

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

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

Gulf South Pipeline:

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

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

Kinder Morgan Louisiana Pipeline (KMLP):

SEGMENT 140 – MLV #7 – AT OPERATING CAPACITY 

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

Mississippi River Transmission (MRT):

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

During this time:

1) Shippers should avoid daily long imbalance positions

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

3) MRT may not accept any makeup of short positions

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

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

Southern Natural Gas:

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

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

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

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

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

Tennessee Gas Pipeline:

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

Due to forecasted milder weather, storage fields on test and anticipated lower demand for the holiday weekend, effective for the Gas Day of Friday, April 19, 2019, and until further notice, Tennessee Gas Pipeline, L.L.C.  (“Tennessee”) is implementing an OFO Daily Critical Day 1 for all of Zones L, 1, 2, 3, 4, 5 and 6 for all Balancing Parties (including LMS-PA, SA contracts acting as balancing parties, LMS-MA, and LMS-PL balancing parties).  This action is pursuant to Article X, Section 4 of the General Terms and Conditions of Tennessee’s FERC Gas Tariff.  

All delivery point operators in all of Zones L, 1, 2, 3, 4, 5 and 6 are required to keep actual daily takes out of the system equal to or greater than scheduled quantities regardless of their cumulative imbalance position.  All receipt point operators in all of Zones L, 1, 2, 3, 4, 5 and 6 are required to keep actual daily receipts into the system equal to or less than scheduled quantities regardless of their cumulative imbalance position.  In addition, it is essential that delivery point operators schedule gas at meters commensurate with takes within the affected areas.  All LMS-PA, SA contracts acting as balancing parties, LMS-MA and LMS-PL Balancing Parties are required to maintain an actual daily flow rate not exceeding 2% of scheduled quantities or 500 dths, whichever is greater for over-deliveries into the system and under-takes from the system. Customers will be assessed a rate of $5.00 plus the applicable Regional Daily Spot Price per dekatherm for that portion of physical quantities related to over-deliveries by receipt point operators and under-takes by delivery point operators which exceed this tolerance. 

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

Trailblazer Pipeline Company:

TRAILBLAZER MECHANICAL ISSUE–COMPRESSOR STATION 603–UPDATE #1

Trailblazer Pipeline Company LLC (“Trailblazer”) identified a mechanical issue with one of the two compressor units at Compressor Station 603. The unit is currently unavailable and is not expected to be available until late May, 2019. 

At this time, secondary firm quantities, as well as ITS/AOR are at risk of not being scheduled. Trailblazer will post updates as additional information becomes available.  For questions, please call your Account Director or Scheduling Representative.

Transcontinental Gas Pipe Line Company (Transco):

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

Effective:        Friday, April 19, 2018

Ends:               Until Further Notice

Transactions:  Deliveries

Type:               Due to Shipper

OFO Area(s):  Zones 4, 5, and 6

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

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

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

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

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

Happy Easter!

Monday, April 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 11, 2019

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

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

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

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

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

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

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

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

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

ANR Pipeline:

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

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

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

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

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

Colorado Interstate Gas (CIG):

With significantly colder temperatures, moisture and potential blizzard conditions being forecast beginning the afternoon of Wednesday, April 10, 2019, CIG is anticipating an increase in demand on its system which will limit its ability to manage imbalances associated with supply shortfalls. Therefore, when necessary to minimize imbalances and protect system integrity, underperformance caps may be placed on nonperforming receipt points effective the next available nomination cycle until further notice. In addition the following actions will be taken:

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

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

Egan Hub Storage:

Egan Hub Storage (Egan) will be conducting maintenance beginning Gas Day April 5, 2019 and continuing through Gas Day April 17, 2019, which will impact Kinder Morgan MR 45122.

During this outage Egan will be unable to accept withdrawals for delivery to Kinder Morgan however; injections from Kinder Morgan will not impacted. As a result, Egan may be required to restrict withdrawal nominations at MR45122 to a net zero withdrawal position.

El Paso Natural Gas:

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

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

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

Great Lakes Gas Transmission:

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

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

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

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

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

Gulf South Pipeline:

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

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

Natural Gas Pipeline Company of America (NGPL):

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

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

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

PIN                  Name                                                  

3251                EPNG MOORE

46856              SOUTHERN STAR BEAVER

901429            CAMERICK PLT BEAVER

905207            COLORADO INTERSTATE GAS FORGAN

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

Southern Natural Gas:

Type 6 OFO Warning

Based on the current mild temperatures forecasted for the weekend and projected demand on Southern’s system, SNG encourages all shippers to manage their system requirements to maintain balance between actual receipts and deliveries.  An Operational Flow Order for long imbalances could be required to help ensure system integrity as Southern’s Tariff provides that a Type 6 OFO can be implemented on four hours’ notice or less prior to the start of the gas day.

Deliveries with actual flows less than scheduled daily volumes are subject to reductions of nominations to demonstrated daily volumes.  Receipts should not exceed scheduled daily volumes.

We request that all Shippers/Poolers monitor the balance between actual receipts and deliveries to ensure that a daily out-of-balance situation does not occur.

Texas Eastern Transmission:

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

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

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

This notice will remain in effect until further notice.

Texas Gas Transmission:

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

Wyoming Interstate Gas:

With significantly colder temperatures, moisture and potential blizzard conditions being forecast, WIC is anticipating an increase in demand on its system which will limit its ability to manage imbalances associated with supply shortfalls. Therefore, when necessary to minimize imbalances and protect system integrity, underperformance caps may be placed on nonperforming receipt points effective the next available nomination cycle until further notice. In addition the following actions will be taken:

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

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

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

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

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!

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

Thursday, March 28, 2019

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

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

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According to the US Energy Information Administration, working gas in storage for the week ending Friday, March 22, 2019 registered a net decrease of 36 Bcf.  This was close to the analysts’ estimates of a 40 Bcf weekly gas storage draw. 

Natural gas stocks were 285 Bcf less than last year at this time and 551 Bcf (or 33.2%) below the five-year average.

The May, 2019 natural gas futures price on the NYMEX responded by adding a little over one cent to finish Thursday at around $2.73/MMBtu.

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Southern California Gas (SoCalGas) announced on Tuesday that the company will lower the price of compressed natural gas at all of its 13 public access natural gas vehicle fueling stations by $0.26 per gallon beginning April 1st. Through a California Public Utilities Commission approved program, the utility is able to offer a reduced price by returning revenue generated from the sale of Low Carbon Fuel Standard (LCFS) credits to customers.

The LCFS program is administered by the California Air Resources Board and seeks to reduce greenhouse gas emissions from transportation fuels by 20 percent through 2030. Under the program, fuels that help lower GHG emissions, such as natural gas, generate LCFS credits.

Natural gas costs significantly less than gasoline or diesel per gallon. For example, the average pump price at utility compressed natural gas stations was $2.37 per gallon in February, whereas the average cost of gasoline in California was $3.24 per gallon, and the average cost of diesel was $3.73 per gallon, according to the Energy Information Administration.

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Florida Power & Light Company today announced a plan to build the world’s largest solar-powered battery system – four times the capacity of the largest battery system in operation – as part of an innovative modernization plan that will accelerate the retirement of two natural gas power generation units.

The future FPL Manatee Energy Storage Center will have 409 megawatts of capacity – the equivalent of approximately 100 million iPhone batteries – when it begins serving customers in late 2021 and will be charged by an existing FPL solar power plant in Manatee County. By deploying energy from the batteries when there is higher demand for electricity, FPL will offset the need to run other power plants – further reducing emissions and saving customers money through avoided fuel costs.

The FPL Manatee Energy Storage Center is part of an innovative modernization plan to accelerate the retirement of two, 1970s-era natural gas generating units at FPL’s neighboring power plant, and replace them with clean and renewable energy.

In addition to the energy storage system in Manatee County, FPL is planning smaller battery installations across the state, numerous solar power plants and efficiency upgrades to existing combustion turbines at other power plants to replace the 1,638 megawatts of generating capacity. The project will save customers more than $100 million and could eliminate more than 1 million tons of carbon dioxide emissions.

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Let’s now check the latest critical information postings from the interstate natural gas pipeline systems around the United States:

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 1, 2019, to all parties, with the exception of those Operational Balancing Agreements required by FERC regulations, on the AGT system.

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

During the effectiveness of this OFO, all parties must be balanced such that actual deliveries of gas out of the system must be equal to or less than scheduled deliveries. The penalty shall apply to each dekatherm of actual delivery quantities that exceeds the greater of 6,000 Dth or 106% of scheduled delivery quantities. The penalty will be equal to three times the daily Platts Gas Daily “Daily Price Survey” posting for the High Common price for “Algonquin, city-gates” for the day on which such violation occurred as indicated in AGT’s General Terms and Conditions Section 26.8. In addition, AGT will not permit retroactive nominations to avoid an OFO penalty.

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

This OFO will remain in effect until further notice.

ANR Pipeline:

Attn: All ANRPL FSS Customers

Reminder – FSS Customers with contracts expiring effective gas day 3/31/19 will need to transfer the ending balance from the terminating contract to another contract effective gas day 4/1/19. Customers are able to submit Infield Storage Transfers in Gems for gas day 4/1/19 prior to 9:00 a.m. CST on 4/2/19.
For any questions please contact the ANR Noms Team at 1-800-827-5267 or email to: ANR_Noms_Scheduling@Transcanada.com

Also from ANR:

SW Area Capacity Restriction (Posted 3/26/19)

Due to planned pipeline maintenance at the Transok Compressor Station, ANR will not schedule nominations at the Custer City /Transok (LOC #16842) location from April 22nd – 30th.

Based on current nominations, it is anticipated that this posting will result in the capacity allocation reduction of IT, Firm Secondary and Firm Primary volumes. Since ANR anticipates that this restriction will impact its ability to deliver nominated Firm Primary services, ANR will apply the Reservation Charge Crediting Mechanism of Section 6.36.4 as necessary.

Dominion Energy Questar Pipeline:

Dominion Energy Questar Pipeline, LLC (DEQP) is updating the Clay Basin Conditioning Reimbursement Factor (CRF). Effective May 1, 2019 the CRF applied to all injections and withdrawals from Clay Basin will be 1.5%. The CRF is calculated annually as required by Part 3 General Terms and Conditions §16.4(b) of DEQP’s FERC Gas Tariff and is posted in DEQP’s Informational Postings, Other, Storage, Clay Basin Stipulation.

East Tennessee Natural Gas:

East Tennessee Natural Gas, LLC (“ETNG”) will be hosting a WebEx meeting to provide customers and other interested parties an overview of ETNG’s upcoming 2019 planned outages on Wednesday, April 3, from 1:00PM CDT to 2:30PM CDT via WebEx. A copy of the presentation will be posted on ETNG’s bulletin board approximately one hour before the event. There will be a question and answer segment immediately following the presentation.

Enable Gas Transmission:

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

EGT anticipates impacts to IT, Secondary services, and potentially Primary services.  During the unplanned maintenance, shippers with receipts West of Allen should nominate point-to-point to maintain the highest priority level of service.

Great Lakes Gas Transmission:

Due to planned compressor and pipeline maintenance at various compressor stations, the Emerson Eastbound capacity will be reduced as follows:

1,187-MMcf/d (leaving 1,251-MMcf/d available)  3/26 – 3/31
1,050-MMcf/d (leaving 1,251-MMcf/d available)  4/1 – 4/15
805-MMcf/d (leaving 1,496-MMcf/d available)  4/16 – 5/5

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

For any questions regarding nominations or scheduling, please call the GLGT Noms and Scheduling Hotline at 1-866-454-7572.

Gulf Crossing Pipeline:

Below normal temperatures are expected to move across the Gulf Crossing service area over the next few days. While it is fully expected that all primary firm service obligations will be met, the following services/activities are subject to scheduling reductions until further notice:

Imbalance Payback from Transportation Service Provider

Park Withdrawal

Loan

Interruptible

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

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

MidContinent Express Pipeline (MEP):

MEP has been notified that the Fuel Reimbursement percentage for its Enable Leased Capacity (Segment 10) will change effective for gas day April 1, 2019, for all transports using the Leased Capacity.  Please check the company’s EBB for a link to the new Fuel Reimbursement percentages. 

Natural Gas Pipeline Company of America (NGPL):

SEGMENT 2/15 – OE#1 M/L (CS 156/801) – PIPELINE INTEGRITY

Natural will be inspecting and, if necessary, performing pipeline remediation work per its pipeline Integrity Management Program standards on the OE#1 mainline between Compressor Station 156 (CS 156) located in Kiowa County, Oklahoma and Compressor Station 801 (CS 801) located in Carter County, Oklahoma (Segment 2 of Natural’s Midcontinent Zone/Segment 15 of Natural’s Texok Zone).  Natural anticipates that this inspection and possible remediation work will continue through the end of May 2019.

Northwest Pipeline:

Effective Gas Day Friday, March 29, 2019 and until further notice, Northwest is issuing an OFO Recall Advisory and Operational Flow Order (OFO) through the Roosevelt compressor and the Plymouth South constraint location pursuant to Section 14.15(d) of its Tariff.

Under the OFO Recall Advisory, Shippers are required to: (1) recall capacity that is subject to an OFO recall provision; or (2) take other action that is acceptable to Northwest, to satisfy its OFO obligation.

If the northbound scheduled quantities exceed the greater of Northwest’s design capacity of 546,000 Dth/d at Roosevelt or 536,300 Dth/d at Plymouth South or the operational available capacity at Plymouth South, which is currently 575,000 Dth/d, Northwest will provide Shippers with their specific OFO obligations by 4:00 p.m. MST. Shippers must comply with their OFO obligations no later than the Evening nomination deadline (5:00 p.m. MST).

Northwest would like to remind customers that the Rangely OFO remains in effect.

Southern Natural Gas:

Southern is posting the following information in order to provide customers with additional operational data to assist in planning your business for the upcoming week.

The Muldon storage shut-in test will begin on Tuesday, April 2, 2019 and continue to Tuesday, April 9, 2019 at 9 AM.

As a result of the shut-in test, Southern will reduce each CSS customer’s DIQ and DWQ on a pro-rata basis. Each CSS customer will be allocated thirty- six percent (36%) of its currently effective DIQ and DWQ posted on the EBB during the Muldon shut-in test.

Based on current supplies and anticipated demand, we expect storage injection requirements to be near Southern’s maximum storage injection capabilities. We request that all Shippers/Poolers monitor the balance between actual receipts and deliveries to ensure that a daily out-of-balance situation does not occur.

Texas Eastern Transmission:

On March 25, 2019, Texas Eastern Transmission, LP submitted an OFO Penalty Disbursement Report.

https://infopost.spectraenergy.com/GotoLINK/GetLINKdocument.asp?Pipe=10076&Environment=Production&DocumentType=Notice&FileName=Report.pdf&DocumentId=8aa1649f699ac30d0169b64231f702b2

Transcontinental Gas Pipe Line Company (Transco):

The Operational Flow Order – Imbalance (OFO) currently in effect on the Transco system in Zones 4, 5, & 6 will be terminated effective Monday, April 01, 2019 at 9:00 AM CDT.

Effective April 1, 2019 and continuing until further notice, Transco may issue a Shipper and/or Location specific OFO(s) to Shippers and/or Locations that exceed 10 percent daily or 5 percent cumulative imbalance. These Shippers and/or Locations could be subject to a 10 percent daily “Due From” and/or “Due To” Operational Flow Order. The OFO could become effective immediately and continue until further notice or for the remainder of the month in which it was issued. Shippers that create imbalances in excess of the tolerance are subject to being included in the OFO.

Transco reminds all parties that it may also be required to issue system-wide or zonal OFOs regardless of the daily or cumulative imbalance percentage.

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Looking at the six-to-ten day temperature forecast for early April from the National Weather Service, normal temperatures are expected for most of the country.  Warmer than seasonal conditions are expected for New England, most of the desert Southwest, the Rockies, and along the West Coast. 

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

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