Edition 44 – Monday, March 4, 2019

Welcome to this busy Monday edition of GasNewsOnline.com.  With cold weather gripping much of the United States, we will cover the latest critical postings from the interstate gas pipeline grid along with a few news stories from the energy business, and, of course, take a look ahead at the temperature forecast from the National Weather Service.  It is all FREE from GasNewsOnline.com.

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Cheniere Energy, Inc. and Bechtel Oil, Gas and Chemicals, Inc. announced today that Substantial Completion of Train 1 of the Corpus Christi liquefaction project was achieved on Thursday, February 28, 2019. Commissioning is complete and Bechtel has turned over care, custody, and control of Train 1 to Cheniere.

“Train 1 at Corpus Christi has achieved Substantial Completion, becoming the first liquefaction train placed into operation at a greenfield liquefaction facility in the lower 48 states,” said Jack Fusco, President and CEO of Cheniere. “This momentous achievement was made possible by Cheniere’s professionals and our EPC partner, Bechtel, who worked diligently together to ensure a seamless transition from construction to operations. I’d like to thank the Cheniere team and Bechtel for their world class execution, which has enabled us to continue our impeccable record of bringing trains online safely, ahead of schedule, and within budget.”

“The entire Bechtel team is very proud of our contribution to Cheniere’s success on the U.S. Gulf Coast, as we hand over custody of this historic first Texas LNG train,” said Brendan Bechtel, Chairman and Chief Executive Officer of Bechtel. “It was three years ago that we were able to support Cheniere’s entry into the LNG export market with Train 1 at the Sabine Pass Liquefaction project. With five trains now completed and operating well ahead of schedule, we are excited to continue working alongside Cheniere to deliver their next wave of trains with the reliability of outcome that Cheniere and Bechtel have become known for delivering. This program is a great example of how a one-team approach can bring world-class results, and I want to congratulate Jack and the Cheniere team for fostering this environment of collaboration and mutual success.”

Under sale and purchase agreements (“SPAs”) with Endesa S.A. and PT Pertamina (Persero), the date of first commercial delivery is expected to occur in June 2019, upon which the term of each of these SPAs commences. Additionally, bridging volumes are expected to begin in June 2019 under an SPA with Iberdrola, S.A.

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Last Friday, Cheniere announced that Midship Pipeline Company, LLC has issued Notice to Proceed to Strike, LLC, M.G. Dyess, Inc., TRC Pipeline Services, LLC, and Cenergy, LLC to construct the Midship natural gas pipeline and related compression and interconnect facilities (the “Midship Project”). The Midship Project received final Notice to Proceed from the Federal Energy Regulatory Commission in February 2019 and is expected to be placed in service by the end of 2019. Midship Pipeline is indirectly and jointly owned by Cheniere and EIG.

To complete financing of the Midship Project, Midship Pipeline entered into senior secured credit facilities with total commitments of up to approximately $680 million. The credit facilities consist of an approximate $615 million construction loan facility and a $65 million revolving credit facility. Proceeds from these credit facilities will be used to fund a portion of the costs of developing, constructing, and placing into service the Midship Project, to fund working capital requirements, and for related general corporate purposes.

The Midship Project is being developed to create pipeline capacity of up to 1,440,000 Dekatherms per day of firm transportation to connect production from the emerging STACK and SCOOP resource plays in the Anadarko Basin in Oklahoma to growing Gulf Coast and Southeast markets. The Midship Project is expected to consist of approximately 200 miles of 36 inch diameter new mainline pipeline, several laterals, compressor stations and interconnects that will provide receipts from STACK and SCOOP processing plants and provide deliveries to Bennington, Oklahoma, as well as access to downstream markets including the TexOk hub near Atlanta, Texas, and the Perryville Hub near Tallulah, Louisiana. Midship Pipeline has secured commitments from subsidiaries and/or affiliates of Cheniere, Devon Energy Corporation, Marathon Oil Corporation, and Gulfport Energy Corporation.

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Also on Friday, TransCanada Corporation announced the Federal Energy Regulatory Commission (FERC) had approved the full in-service of its Mountaineer XPress (MXP) project, allowing the company to increase the flow of gas on MXP and begin operating its Gulf XPress (GXP) project. The projects are a vital link between Appalachian natural gas supplies and growing markets in the U.S. and beyond.

“Mountaineer XPress and Gulf XPress are extremely important to TransCanada as they provide much-needed takeaway capacity for our customers, while also growing our extensive footprint in the Appalachian Basin,” said TransCanada President and Chief Executive Officer Russ Girling. “Both projects will also deliver attractive long-term returns and stable cash flow for our shareholders.”
                                                         
Designed to deliver clean, affordable, domestically produced natural gas, MXP is comprised of 170 miles of 36-inch-diameter pipeline, three new compressor stations, and modifications to three existing compressor stations – representing an investment of approximately US$3.2 billion. The pipeline is capable of transporting 2.7 billion cubic feet of natural gas per day to the TCO Pool and Leach markets on the Columbia Gas Transmission System. MXP is underpinned by long-term contracts with customers.

Partial in-service of the approximately US $600-million GXP project includes placing into service four new compressor stations located in Kentucky, Tennessee and Mississippi. Together, these facilities will provide additional capacity of 530,000 million cubic feet of natural gas per day on the Columbia Gulf Transmission System, which equates to approximately 60 percent of the project’s total capacity. GXP is also underpinned by long-term contracts with customers and is expected to be placed into full service in the coming weeks.

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With cold weather gripping the majority of the nation on Monday, several interstate gas pipelines posted operational notices on their electronic bulletin board systems to start the new week:

ANR Pipeline:

ANR is performing planned maintenance at its LaGrange Compressor Station on its Tie-Line located in Indiana in the Northern Fuel Segment (Zone 7). ANR will reduce the LaGrange Westbound location (LOC #314515) capacity by the following:

175-MMcf/d (leaving 525-MMcf/d available) 3/12 – 3/15

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

El Paso Natural Gas:

Pipeline Conditions – Permian Basin Weather Concerns 

The Permian supply basin is experiencing significant underperformance issues related to the winter weather that moved in overnight. Actual receipts into the system are approximately 545 MM below scheduled quantities for Gas Day March 4 (79% of schedule). A combination of freeze-offs and power outages coupled with road closures are impacting the ability of receipt point operators to restore supply to the system.  The Permian Basin overnight lows tomorrow morning are forecast again to be significantly below the seasonal average and additional supply underperformance is anticipated. 

Delivery point operators are encouraged to review their scheduled supplies to ensure that they are aligned with their flowing quantities.  Supply operators are encouraged to maintain their deliveries into the EPNG system at their scheduled rates.  Underperformance caps will be placed on underperforming supplies and if necessary EPNG will declare an SOC for DRAFT condition. 

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

Washington Ranch is fully operational.

Gulf South Pipeline:

Index 300 Maintenance Pig Run:  March 20 – March 21, 2019 and again beginning March 27 – March 28, 2019

Capacity could be impacted by up to 25,000 dth/d for the duration of the maintenance. Based on current nominations and operational conditions Gulf South does not anticipate any customer impact.

Mobile Bay Delivery Scheduling Group – Capacity could be impacted by up to 150,000 dth/d for the duration of the maintenance.

Moss Point System Scheduling Group – Capacity could be impacted up to100,000 dth/d for the duration of the maintenance.

Northern Border Pipeline:

Effective immediately, Northern Border Pipeline is issuing an OFO watch.

Northern Border is concerned about the operational integrity of its system as a result of extremely cold weather. The OFO watch is in effect through gas day March 8th, in order to allow for the Northern Border pipeline system to regain its operational integrity. Northern Border has limited flexibility to manage imbalances and strongly encourages all shippers manage their system requirements to ensure the matching of receipts and deliveries daily. Absent voluntary imbalance management by shippers to ensure daily balancing, Northern Border may be required to take further action, including the immediate issuance of an imbalance Operational Flow Order.

If further action is required, it may be necessary for that action to become effective immediately, with no additional prior notice available.

Northern Natural Gas:

A System Overrun Limitation (SOL) has been called for all Market Area zones (ABC, D and EF) with 0% System Management Service (SMS) available for Gas Day Tuesday and Wednesday, March 5 and 6, 2019, due to lower than normal forecasted system weighted temperatures.

Northwest Pipeline:

Effective for gas day Wednesday, March 6, 2019 and until further notice, Northwest is revising its current Overrun Entitlement as follows:

Receiving Party locations north of the Plymouth South constraint point, including the Spokane and Wenatchee laterals, will be revised from a Stage I (3%) Overrun Entitlement to a Stage III (13%) Overrun Entitlement.    

For Receiving Party locations between the Kemmerer compressor and the Plymouth South constraint the Stage II (8%) Overrun Entitlement will be lifted.

Even though the Entitlements are being changed or lifted, Northwest is not allowing balancing off the system. Customers can avoid future Entitlements by procuring sufficient supply for their market needs.

Panhandle Eastern Pipe Line:

On Sunday, March 3, Panhandle Eastern Pipe Line experienced a rupture downstream of the Centralia Compressor Station. This outage will require a section of the 400 Line to be shut-in for repairs, reducing mainline capacity.

Effective immediately, until further notice, Panhandle will be limiting nominations through Haven to 1,125,000 MMBtu/day, with gas scheduled in accordance with Section 8.8 (c) of Panhandle’s FERC Gas Tariff. This outage will be considered a Force Majeure event pursuant to Section 20 of Panhandle’s FERC Gas Tariff. 

Shippers are encouraged to bring in physical flowing gas from their Primary receipt point, or physical market area receipt meters downstream of this outage in order to avoid the constraint, and potential scheduling reductions of their nominated activity.  

The cold weather restrictions outlined in Critical Notice ID 8196 will remain in effect. Panhandle will be requiring all Enhanced Firm Transportation (EFT) shippers to limit their physical deliveries (takes) to a one-sixteenth hourly rate of the nominated volume. 

Updates on the impact to shipper nominations will be posted as they become available.

Southern Natural Gas:

Based on the weather forecast predicting colder temperatures as well as the corresponding increase in projected demand on Southern’s north and south systems, we are notifying all Shippers that the existing Type 3 Level 1 OFO is being upgraded to a Type 3 Level 2 OFO and is also being expanded to include all of the following groups listed below effective the start of the gas day, Tuesday, March 5, 2019 until further notice.
OFO Type 3 Level 2: Daily Demand Exceeds Capacity

TARIFF SECTION 41.2
EFFECTIVE DATE: March 5, 2019
EFFECTIVE TIME of OFO: 9:00 AM (CCT)

PENALTY: $15.00 + Highest Regional Daily Price* per Dth for quantities taken in excess of the tolerance

TOLERANCE:  Greater of 102% of the Daily Entitlement or 200 dth

Southern Star Central Pipeline:

System Advisory Notice:

Southern Star Central Gas Pipeline is issuing a Storage notice to protect the integrity of SSCGP’s storage facilities. A number of storage customers have inventory levels at or below five percent (5%). This issuance requires all TSS, STS, and FSS customers to have inventories at or above zero (0 %) and asks TSS and STS customers to also ensure they have at least one (1) day of inventory available. Failure to voluntarily comply could result in the issuance of an Operational Flow Order (OFO).

Tennessee Gas Pipeline:

EMERGENT REPAIR AT STATION 323A – SEGMENT 324 – EFFECTIVE 3-05-19 

Pursuant to Article XII of the General Terms and Conditions of Tennessee’s FERC Gas Tariff, Tennessee is posting notice of an emergent repair issue impacting a unit at Station 323A in Pike County, PA. Tennessee has personnel on site and repairs are underway. Tennessee is estimating the current impact to be up to 200,000 Dths at Segment 324 (FH). Based on current nominations, Secondary Out of the Path nominations and Secondary In Path nominations pathed through Segment 324 (FH) are at risk as early as Timely Cycle for the Gas Day of Tuesday, March 5, 2019.

Also on Tennessee Gas…

Due to a forecast of colder weather and higher demand moving across most of the system, effective for the Gas Day of Monday, March 4, 2019, and until further notice, Tennessee Gas Pipeline, L.L.C.  (“Tennessee”) is implementing an  OFO Daily Critical Day 1 for all of Zones 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 2, 3, 4, 5 and 6 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 of Zones 2, 3, 4, 5 and 6 are required to keep actual daily receipts into the system equal to or greater than scheduled quantities regardless of their cumulative imbalance position.  In addition, it is essential that delivery point operators schedule gas at meters commensurate with takes within the affected areas.  All LMS-PA, SA contracts acting as balancing parties, LMS-MA and LMS-PL Balancing Parties are required to maintain an actual daily flow rate not exceeding 2% of scheduled quantities or 500 dths, whichever is greater for under-deliveries into the system and over-takes from the system. Customers will be assessed a rate of $5.00 plus the applicable Regional Daily Spot Price per dekatherm for that portion of physical quantities related to under-deliveries by receipt point operators and over-takes by delivery point operators which exceed this tolerance. 

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

Texas Eastern Transmission:

Due to impending colder weather, in order to maintain the operational integrity of the system, TE is issuing an Operational Flow Order (OFO) pursuant to Section 4.3 of the General Terms and Conditions of TE’s FERC Gas Tariff effective 9:00AM CCT Tuesday, March 5, 2019 to all parties, with the exception of those governed by a FERC gas tariff, in Texas Eastern’s Market Area Zone M2-30.

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

During the effectiveness of this OFO, all parties must be balanced such that actual deliveries of gas out of the system must be equal to or less than scheduled deliveries out of the system. The penalty shall apply to each dekatherm of actual delivery quantities that exceeds the greater of 2,000 Dth or 102% of scheduled delivery quantities.

During the effectiveness of this OFO, all parties must be balanced such that actual receipts of gas into the system must be equal to or greater than scheduled receipts into the system. The penalty shall apply to each dekatherm of actual receipt quantities that are less than scheduled quantities minus 2,000 Dth or 98% of scheduled receipt quantities.

The penalty will be equal to three times the daily Platts Gas Daily “Daily Price Survey” posting for the High Common price for the geographical region, as defined in Section 8.5(a) of the General Terms and Conditions of TE’s FERC Gas Tariff for the day on which such violation occurred. In addition, TE will not permit retroactive nominations to avoid an OFO penalty.

TE may be required to issue an hourly OFO pursuant to General Terms and Conditions Section 4.3(H) to impose further restrictions in order to maintain the operational integrity of the system.

Texas Gas Transmission:

Below normal temperatures have moved into the Texas Gas service area for the first part of this week. While it is fully expected that all primary firm service obligations will be met, the following services/activities are subject to scheduling reductions until further notice:

Imbalance Payback from Transportation Service Provider

Park Withdrawal

Loan

ISS Withdrawal

FSS Overrun Withdrawal

Interruptible and out-of-path Firm Transportation

Additionally, Texas Gas is requesting all shippers take deliveries within their contractual hourly rights so that receipts and Deliveries match their associated scheduled quantities. 

If shippers do not voluntarily comply with these provisions, Texas Gas may be forced to issue an Operational Flow Order, which could result in penalties for shippers.

Transcontinental Gas Pipe Line Company:

Subject:Operational Flow Order – Imbalance

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

Effective:    Tuesday, March 5, 2019 and until further notice

OFO Areas:  Zone 6

Tolerance %:  5% for gas Due from Shippers

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The National Weather Service six-to-ten day forecast into March 14 is showing that Texas and most areas east of the Mississippi River will show a warming trend while temperatures remain below normal over the Upper Midwest, the Rockies, and the West Coast regions. 

That’s all for this chilly Monday edition of GasNewsOnline.com.  Please come back on Thursday for an update on the interstate gas pipeline conditions expected for the weekend. 

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

Edition 43 – Thursday, February 28, 2019

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

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

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

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

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On Tuesday, Dominion Energy provided the following statement:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

The Transaction consists of the following actions:

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

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

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

ANR Pipeline:

Attention All ANR Shippers and Storage Customers

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

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

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

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

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

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

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

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

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

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

Colorado Interstate Gas (CIG):

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

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

Columbia Gas Transmission:

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

Columbia Gulf Transmission:

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

East Tennessee Natural Gas:

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

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

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

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

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

Gulf South Pipeline:

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

Expansion Receipts Upstream Tallulah Scheduling Group.

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

Mississippi River Transmission (MRT):

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

 During this time:

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

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

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

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

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

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

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

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

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

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

Northern Natural Gas:

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

Northwest Pipeline:

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

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

Panhandle Eastern Pipe Line:

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

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

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

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

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

Rover Pipeline:

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

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

Southern Star Central Gas Pipeline:

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

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

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

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

ISS withdrawals and PLS withdrawals will be unavailable

Incremental Loans will not be available

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

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

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

Operational flexibility will not be available during this time.

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

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

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

Trunkline Gas Company:

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

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

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

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

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

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

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

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

Edition 40 – Tuesday, February 19, 2019

Welcome to GasNewsOnline.com!  We bring you the latest publicly-sourced news and information about the natural gas transportation business every week – for FREE

Though winter is still with us, temperatures for the East Coast may receive a brief reprieve later this week.  First, let’s check the latest energy news:

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

Natural gas spot price movements were mixed this reporting week, Henry Hub spot prices rose from $2.56/MMBtu last week to about $2.66/MMBtu at the close today on Tuesday.   At the New York Mercantile Exchange (NYMEX), the price of the 12-month strip averaging March 2019 through February 2020 futures contracts is averaging about $2.82/MMBtu.

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

The natural gas plant liquids composite price at Mont Belvieu, Texas, fell by 62¢/MMBtu, averaging $6.24/MMBtu for the week ending February 13. The price of ethane, propane, butane, natural gasoline, and isobutane all fell, by 9%, 9%, 7%, 3%, and 1%, respectively.

According to Baker Hughes, for the week ending Tuesday, February 5, the natural gas rig count decreased by 3 to 195. The number of oil-directed rigs rose by 7 to 854. The total rig count increased by 4, and it now stands at 1,049.

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Targa Resources Corp. announced today that it has entered into definitive agreements to sell a 45 percent interest in Targa Badlands LLC (“Badlands”), the entity that holds all of Targa’s assets in North Dakota, to funds managed by GSO Capital Partners and Blackstone Tactical Opportunities for $1.6 billion in cash.  Under the terms of the agreements, Targa will continue to be the operator.

The Badlands assets and operations are located in the Bakken and Three Forks Shale plays of the Williston Basin in North Dakota and include approximately 480 miles of crude oil gathering pipelines, 125,000 barrels of operational crude oil storage, approximately 260 miles of natural gas gathering pipelines and the Little Missouri natural gas processing plant with a current gross processing capacity of approximately 90 million cubic feet per day (“MMcf/d”). Additionally, Badlands owns a 50% interest in the 200 MMcf/d Little Missouri 4 (“LM4”) Plant that is anticipated to be completed in the second quarter of 2019.

Targa expects to use the net cash proceeds to pay down debt and for general corporate purposes including funding its growth capital program. The Transaction is expected to close in the second quarter of 2019 and is subject to customary regulatory approvals and closing conditions.

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It’s time to review the latest critical postings from the interstate natural gas pipeline companies’ electronic bulletin boards:

Columbia Gas Transmission:

Section 4(c) of the FSS Rate Schedule in Columbia Gas Transmission, LLCs FERC Gas Tariff   requiring Shippers to withdraw a minimum of 10% of its Storage Contract Quantity (SCQ) for the months of February and March 2019 is waived.

Section 4(d) of the FSS Rate Schedule in Columbia Gas Transmission, LLCs FERC Gas Tariff limits shippers storage inventory on April 1 to a maximum of 25% of its SCQ.

Due to current storage levels, Columbia hereby notifies shippers that the maximum storage inventory on April 1, 2019 is being raised to 35% of shippers SCQ.  This increase applies to 2019 only.  The normal tariff limit of 25% remains in effect going forward.

Columbia is providing the additional flexibility to shippers as they plan their supply purchases for the remainder of the winter season.

Enable Gas Transmission:

This Operational Alert is being issued pursuant to Section 20, GT&C, of EGT s Tariff, to notify its shippers of planned maintenance at EGT s Chandler Compressor Station.  Effective March 4, 2019, EGT will begin planned annual maintenance on each of the engines at the Chandler Compressor Station, located in Latimer County Oklahoma and in EGT s Neutral Pooling Area.

The maintenance will impact one engine at a time and is expected to be completed on or before May 24, 2019.

The expected date ranges for each unit and the corresponding capacities through the station are:

               March 4, 2019 to March 9, 2019                     Approximately 975,000

               April 2, 2019 to April 18, 2019                           To be determined

               May 6, 2019 to May 24, 2019                             To be determined  

During each period, EGT anticipates impacts to transportation services, including firm transport.

Shippers whose receipts are in the West 1, West 2, and the western portion of the Neutral pooling area should nominate point to point in order to maintain the highest priority level of service.

Should any of the details of this plan change, EGT will notify its shippers by updating this posting.  EGT will schedule nominations on each impacted day in accordance with its Tariff. This alert will remain in effect until further notice.

Gulf South Pipeline:

Tallulah Compressor Station Maintenance:  Start date:  February 25, 2019    End Date:  March 2, 2019

Expansion Receipts Upstream Tallulah Scheduling Group.

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

Natural Gas Pipeline Company of America (NGPL):

FORCE MAJEURE – COMPRESSOR STATION 102

Natural has experienced horsepower issues at Compressor Station 102 in Natural’s Midcontinent Zone (CS 102), that will require this Compressor Station to be shut down for repairs.  This is a Force Majeure event that will require Natural to temporarily reduce the maximum operating capacity northbound, thus limiting Natural’s throughput capacity through CS 102 and CS 103 during this event.

The scheduling constraint will be at Compressor Station 103 located in Ford County, Kansas. Any gas received south of Station 103 for delivery north of Station 103 will be impacted for the duration of the event.  Additionally, transports associated with storage withdrawals will be impacted. 

As such, effective for gas day Monday, February 18, 2019, Intraday 1 Cycle, and continuing until further notice, Natural will schedule Primary Firm and Secondary in-path Firm transports to no less than 69% of contract MDQ through Compressor Station 103.  Actual nomination levels and changes in pipeline conditions could result in changes to the percentages scheduled (lower or higher).  For scheduling purposes, the Midcontinent Pool (PIN 25078) is located south (upstream) of the constraint.  AOR/ITS and Secondary out-of-path Firm transports continue to not be available. 

The stated scheduling percentage is based upon the current level of firm capacity contracted for during this event and is subject to change based upon operational conditions and Shipper utilization.  Permian Zone delivery points will be available as an alternative.  Any supply points downstream (north) of CS 103 will not be impacted by this constraint.

Continue to monitor Natural’s interactive website for any updates to the end date and/or scheduling percentages during this event. 

SoCalGas:

Due to forecasted low temperatures and expected high customer demand, SoCalGas is issuing a curtailment for electric generation customers on the SoCalGas and SDG&E system, in accordance with Rule 23, effective 12:00 AM PCT, February 20, 2019.

During this curtailment, electric generation customers will be curtailed based on current day‐ahead demand forecasts and weather conditions in coordination with the Balancing Authorities. This curtailment will continue until further notice. System conditions remain dynamic and are subject to change. Until further notice, a system‐wide curtailment watch for both SoCalGas and SDG&E will remain in effect for all other noncore customers. Customers are advised that they may be receiving a notice to curtail service.

Southern Star Central Gas Pipeline:

Line Segment 130 Force Majeure (UPDATE #15)

Southern Star will perform a shutout Friday, February 22 through Monday, February 25.

During that time, capacity will be reduced as follows:

0 Dth/d at the Kansas Hugoton Receipt Constraint

0 Dth/d Kansas Hugoton Delivery Constraint

0 Dth/d Cheyenne Plains Sand Dunes Location 16813

0 Dth/d KGST Ark River Location 14971

10,000 Dth/d NGPL Barton Location 121415

75,000 Dth/d KGST Alden Interconnect Location 208

Other locations on LS 130 are available, please see the Operationally Available report in CSI.

Capacity will return to 383,000 Dth/d effective gas day February 26, 2019, 9:00 AM CCT.

Transcontinental Gas Pipe Line Company (Transco):

Transco is performing facility modifications associated with Job No. 37 and 38 on the 2019 Planned Outage and Maintenance Summary on the Southeast Louisiana Lateral. 

The maintenance is scheduled from March 4, 2019 through April 10, 2019. The following locations listed below will be unable to flow during this time.

St. James – LIG          9002670          2888/4635       Receipt/Delivery

Thibodeaux                 1007206          3533                Receipt

St. James Faustina       1006268          3328/4362       Receipt/Delivery

LaRose                        9002040          3590                Receipt

Transco will provide notice of any changes to the current schedule. If you have any questions, please contact your Transportation or Customer Services Representative.

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For the next six-to-ten days until the end of February, the National Weather Service is predicting cold winter temperatures will continue in full force for areas west of the Mississippi River, the Rockies, and to the West coast.  Along the Gulf Coast and up the Atlantic seaboard, temperatures may climb a little above normal for all locations except New England. 

That wraps up this Tuesday edition of GasNewsOnline.com.  Please look for our next update on Thursday afternoon for the coming weekend.  Remember that our audio podcast is available to you via Apple Podcasts.  Subscribe today – it’s FREE!

Edition 39 – February 14, 2019

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

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

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

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

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In other energy news:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

ANR Pipeline:

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

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

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

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

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

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

Columbia Gas Transmission:

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

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

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

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

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

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

 Applicable Penalties: 

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

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

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

East Tennessee Natural Gas:

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

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

Gulf South Pipeline:

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

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

002424 GREENSBURG CITY GATE

002432 KENTWOOD CITY GATE

002549 MONTPELIER & PINE GROVE CITY GATE

002559 TANGIPAHOA CITY GATE

002583 KENTWOOD BRICK & TILE PLANT

002690 HOLMESVILLE (TO TRANSCO)

013087 TRANSFER @ MONTPELIER / ST HELENA

013456 TRANSFER @ HOLMESVILLE (TRANSCO)

022114 WALTHALL (TO TRANSCO)

022182 MONTPELIER/ST HELENA (TO FGT)

022573 TRANSFER @ WALTHALL (TO TRANSCO)

Kern River Gas Transmission:

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

Kinder Morgan – All Pipelines – DART Business and Training:

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

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

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

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

Midwestern Gas Transmission:

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

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

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

Participant Passcode: 125665

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

Mississippi River Transmission (MRT):

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

 During this time:

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

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

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

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

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

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

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

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

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

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

Northern Natural Gas:

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

Northwest Pipeline:

Northwest is revising its current Overrun Entitlement as follows:

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

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

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

Southern Star Central Gas Pipeline:

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

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

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

Incremental Loans will be available on a limited basis

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

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

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

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

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

Tennessee Gas Pipeline:

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

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

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

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

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

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

Edition 37 – Thursday, February 7, 2019

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

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

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

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

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

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

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

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

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

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

Algonquin Gas Transmission:

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

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

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

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

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

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

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

This OFO will remain in effect until further notice.

ANR Pipeline:

Attn: All ANR Shippers

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

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

Columbia Gas Transmission:

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

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

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

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

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

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

Applicable Penalties: 

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

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

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

Colorado Interstate Gas (CIG):

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

Dominion Energy Transmission:

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

40209 Columbia of Pennsylvania (Pleasant Gap)

21305 Texas Eastern Chambersburg (East Coast)

40201 Texas Eastern Chambersburg (PL-1)

40202 Texas Eastern Steckman Ridge

40224 Baltimore Gas and Electric

22000 Washington Gas and Electric

23500 Dominion Cove Point Loudoun

40704 Transco Nokesville

40303 Virginia Natural Gas

22400 Doswell

22500 City of Richmond

22600 VA Electric & Power

22700 Columbia of Virginia

22800 VEPCO (Lady Smith)

22900 Genon Mid-Atlantic (Dickerson)

30016 Panda Stonewall

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

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

East Tennessee Natural Gas:

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

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

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

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

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

Gas Transmission Northwest:

GTN OFO Watch (Posted 2/6/19)

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

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

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

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

Kern River Transmission:

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

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

Mississippi River Transmission (MRT):

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

 During this time:

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

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

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

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

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

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

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

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

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

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

Northern Border Pipeline:

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

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

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

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

Northern Natural Gas:

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

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

Northwest Pipeline:

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

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

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

PG&E – California Gas Transmission:

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

Southern Star Central Gas Pipeline:

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

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

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

Incremental Loans will be available on a limited basis

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

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

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

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

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

Texas Eastern Transmission:

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

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

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

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

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

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

Edition 35 – Thursday, January 31, 2019

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Algonquin Gas Transmission:

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

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

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

ANR Pipeline:

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

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

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

Columbia Gas Transmission:

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

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

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

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

TCO will continue to provide updates as information becomes available.

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

Florida Gas Transmission:

FEBRUARY 2019 — FGT SUPPLY AREA MAINTENANCE IN ZONE 3

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

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

Gulf South Pipeline:

Vixen Compressor Station Maintenance

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

Expansion Receipts Upstream Vixen Scheduling Group.

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

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

Mojave Pipeline Company:

Force Majeure Lifted – Mojave-Topock Unit #2 

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

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

Northern Natural Gas:

Effective Gas Day 02/01 and until further notice, the Carlton Resolution flow obligation will be at 100%.

Operational Alert – A System Overrun Limitation (SOL) has been called for all Market Area zones (ABC, D and EF) with 0% System Management Service (SMS) available for Gas Day Friday, February 1, 2019, due to lower than normal system weighted temperatures.

Northwest Pipeline:

Notice ID:  19-014

Subject:  Overrun Entitlement north of Kemmerer for all Receiving Parties

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

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

Rockies Express Pipeline (REX):

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

Sabine Pipeline Company:

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

Maintenance is scheduled to occur February 4 through February 8. 

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

Southern Star Central Gas Pipeline:

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

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

Texas Eastern Transmission:

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

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

Transcontinental Gas Pipe Line Company (Transco):

Subject:Operational Flow Order – Imbalance

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

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

OFO Areas:  Zone 6

Tolerance %:  10% for gas Due from Shippers

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

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

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

Edition 34 – Monday, January 28, 2019

With a polar vortex weather system bringing extremely cold weather to areas east of the Rockies this week, this is a busy time for the natural gas pipeline companies.  Here at GasNewsOnline.com, we will update you on the latest news and provide a full report on the latest critical notices from the interstate natural gas pipeline companies’ electronic bulletin boards.

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Let’s first take a look at a few stories making news today.

On Sunday, Enbridge released an update about ongoing work on the two additional lines that parallel the impacted 30-inch Line 10 Texas Eastern Transmission pipeline in Noble County, Ohio.  A week ago, Texas Eastern’s 30-inch line ruptured in southeast Ohio. 

Following a completion of a comprehensive integrity assessment, the company placed one of the other two pipelines in the right-of-way (Line 25) back into service.

Texas Eastern will continue to shippers informed as work progresses and more definite timelines are known for returning the 2 other pipelines (Line 10 and parallel Line 15) back into service.

Enbridge is working with the Ohio Public Utilities Commission and the federal government’s Pipeline and Hazardous Materials Safety Administration (PHMSA) to verify the integrity of the Texas Eastern pipeline system.

EBB from Sunday 1/27 – PM

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:

As previously posted, TE has determined that further investigations on Line 10 between its Athens and Uniontown compressor stations are required and TE had isolated Line 10 between Athens and Uniontown. At this time, TE has returned Line 10 valve section 4 between Holbrook and Uniontown back to service while the remainder of Line 10 remains isolated. As a result of valve section 4 between Holbrook and Uniontown returning to service, TE estimates the eastbound capacity through its Uniontown compressor station will increase to approximately 4,300,000 Dth/d. TE will provide a timeline on the restoration of capacity through Uniontown as soon as it is known.

As posted this morning, TE returned Line 25 for north to south flow through its Berne compressor station to approximately 1,600,000 Dth/d effective for Gas Day January 27th, 2019. TE is taking the necessary steps to return Line 15 immediately south of the Berne compressor station to service as soon as safely possible. TE will provide a timeline on the restoration of north to south capacity through Berne as soon as it is known.

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Despite a blast of frigid cold air with this week’s “Polar Vortex”, the February, 2019 NYMEX natural gas futures price took a dive on Monday and closed down about 27 cents at about $2.91/MMBtu.   As we’ll cover later, the National Weather Service temperature forecast for the first week of February is showing a significant warm-up in store for the Great Lakes and East coast areas coming next week at this time.

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

Net withdrawals from working gas totaled 163 billion cubic feet (Bcf) for the week ending January 18. Working natural gas stocks 11% lower than the five-year (2014–18) average for this week.

The natural gas plant liquids composite price at Mont Belvieu, Texas, rose by 5¢/MMBtu, averaging $6.51/MMBtu for the week ending January 23. The price of natural gasoline fell by 2%. The price of ethane and butane rose by 2%, and the price of propane rose by 1%. The price of isobutane remained flat week over week.

According to Baker Hughes, for the week ending Tuesday, January 15, the natural gas rig count decreased by 4 to 198. The number of oil-directed rigs fell by 21 to 852. The total rig count decreased by 25, and it now stands at 1,050. This is the largest week-over-week decrease in total rig count since February 2016.

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With much of the nation gripped in a deep freeze this week, let’s review the latest critical notices from the interstate gas pipeline grid.

Colorado Interstate Gas (CIG):

In anticipation of colder weather, Colorado Interstate Gas Company, L.L.C., CIG will take the following actions impacting its No-Notice Storage and Transportation Service (NNT) beginning Gas Day January 28, 2019, and continuing until further notice.

CIG is limiting requests for NNT authorized withdrawal overruns to 100,000 Dth. 

Interruptible Storage Withdrawals will be taken to zero (0 Dth).

CIG expects operators to continuously manage their confirmations on a cycle to cycle basis to match actual flow rates, factoring in freeze off and other conditions as necessary, particularly the cold weather impacts to field production and pipeline operations.

Dominion Energy Transmission:

Subject: System Alert/OFO Advisory Due to Forecasted Extreme Weather Conditions

Due to extreme weather conditions that are expected in our area this upcoming week, Dominion Energy

Transmission, Inc. (DETI) hereby advises its customers that OFOs will likely be issued in certain areas of DETI’s system. Customers are advised to continue to monitor the EBB for any OFO issuances.

As a reminder, the penalties for violations of transportation OFOs are based on a penalty per Dth equal to the higher of $10.00 or two times the Penalty Index Price.

East Tennessee Natural Gas:

Due to impending colder weather, in order to maintain the operational integrity of the system, ETNG is issuing a Balancing Alert Operational Flow Order (OFO) pursuant to Section 14.7 of the General Terms and Conditions of ETNG’s FERC Gas Tariff effective 9:00 AM CCT, January 29, 2019 for all meters east of the Boyds Creek Compressor Station.

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

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

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

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

Florida Gas Transmission:

Overage Alert Day 25% Tolerance

Near freezing temperatures are forecasted to move into North Florida over the next couple of days; therefore, for the gas day of January 28, 2019, FGT would like to notify their customers in FGTs Market Area that it is issuing an Overage Alert Day at 25% (twenty five percent) tolerance.

For the gas day of January 28, 2019, FGT will not interrupt previously scheduled Market Area ITS-1 service below the elapsed prorated scheduled quantity.

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

Gas Transmission Northwest (GTN):

As referenced in a recent posting, TransCanada will be hosting an industry meeting on February 12th in Calgary to discuss the dithiazine matter.  At this meeting, TransCanada and others from the industry will provide a forum to detail technical issues caused by the presence of dithiazine in natural gas, ongoing research and development, provide an opportunity to hear from others, and to discuss next steps.  Please be advised that the intent of this meeting is to discuss technical challenges and solutions only.  Space will be limited.

The meeting will be held at the Westin in Downtown Calgary from 1:30pm to 4:30pm Mountain Time.  Company representatives planning to attend the meeting must register in advance.  To register for the meeting, please reach out to Scott Currier (scott_currier@transcanada.com or 708-446-3738) by February 7. 

Gulf South Pipeline:

During the McComb (MS) compressor station maintenance, capacity could be impacted by as much as 100,000 dth/d for the duration of the maintenance beginning today (January 28 – February 16). 

The following meters are in the Montpelier to McComb Index 130 Scheduling Group.

002424 GREENSBURG CITY GATE

002432 KENTWOOD CITY GATE

002549 MONTPELIER & PINE GROVE CITY GATE

002559 TANGIPAHOA CITY GATE

002583 KENTWOOD BRICK & TILE PLANT

002690 HOLMESVILLE (TO TRANSCO)

013087 TRANSFER @ MONTPELIER / ST HELENA

013456 TRANSFER @ HOLMESVILLE (TRANSCO)

022114 WALTHALL (TO TRANSCO)

022182 MONTPELIER/ST HELENA (TO FGT)

022573 TRANSFER @ WALTHALL (TO TRANSCO)

Mississippi River Transmission (MRT):

Due to the potential for maximum utilization of northbound firm Main Line capacity causing a potential supply deficiency in the Market Zone, MRT is issuing a System Protection Warning (SPW) effective 9:00 a.m. Tuesday, January 29, 2019 and continuing until further notice.

 During this time:

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

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

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

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

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

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

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

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

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

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

This SPW will be updated as more information becomes available.

Natural Gas Pipeline Company of America (NGPL):

CRITICAL TIME DECLARATION – MARKET DELIVERY ZONE  

Natural is declaring a Critical Time in its Market Delivery Zone effective gas day, Tuesday, January 29, 2019, which will remain in effect until further notice.  This action is in response to the recent cold weather and the current forecast for continued extreme colder than normal weather, the high demand for gas on Natural’s system, and the need to maintain system pressures in its Market Delivery Zone.  Based on this current weather forecast, the Critical Time is anticipated to continue in effect at least through the end of the gas day, Friday, February 1, 2019.  The Critical Time will apply to under-receipts and over-deliveries of gas vis-à-vis confirmed nominations.  Please monitor Natural’s Interactive Website for updates as to the duration of the Critical Time. 

During the Critical Time, Shippers are required to comply with the ongoing Operational Flow Order (See most recent posting dated Sunday, January 27, entitled “OPERATIONAL FLOW ORDER ISSUED – MARKET DELIVERY ZONE – UPDATE #2”).  Variances to the detriment of the system at any of a Shipper’s Receipt or Delivery Points are subject to significant charges and penalties, as set forth in Sections 12.4 and 23.7 (c) of the General Terms and Conditions of Natural’s Tariff.  There is no right to be out of balance by any amount and Shippers can be required to correct any and all imbalances. It is Shipper’s responsibility to ensure that appropriate nominations are in place to reflect actual quantities that will flow. 

Accordingly, a Shipper should ensure by communication with its Point Operator that quantities of gas equal to or greater than its nominations are being delivered into Natural’s system at Receipt Points.  A Shipper should also ensure that quantities no greater than those nominated (plus firm no-notice rights) are being taken from Natural’s system at Delivery Points.   

Northern Natural Gas:

Effective Gas Day 01/28 and until further notice, the Carlton Resolution flow obligation will be at 100%.

Operational Alert – A System Overrun Limitation (SOL) has been called for all Market Area zones (ABC, D and EF) with 0% System Management Service (SMS) available for Gas Days Tuesday and Wednesday, January 29 and 30, 2019, due to lower than normal system weighted temperatures.

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

Southern Natural Gas:

Based on the weather forecast predicting colder temperatures as well as the corresponding increase in projected demand on Southern’s North and South pipeline systems, we are notifying all Shippers that the existing Type 3 Level 1 OFO is being upgraded to a Type 3 Level 2 OFO and is being expanded effective with the start of the gas day, Tuesday, January 29, 2019 until further notice.

OFO Type 3 Level 2: Daily Demand Exceeds Capacity
TARIFF SECTION 41.2
EFFECTIVE DATE: January 29, 2019
EFFECTIVE TIME of OFO: 9:00 AM (CCT)  

PENALTY: $15.00 + Highest Regional Daily Price* per Dth for quantities taken in excess of the tolerance

TOLERANCE:  Greater of 102% of the Daily Entitlement or 200 dth

Southern Star Central Gas Pipeline:

Due to severe weather conditions forecasted, Southern Star is issuing a Winter Weather Warning effective Tuesday, January 29, 2019. The following actions will be taken to preserve system integrity:

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

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

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

ISS withdrawals and PLS withdrawals will be unavailable.

Incremental Loans will not be available.

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

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

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

Operational flexibility will not be available during this time.

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

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

These conditions are expected to remain in effect through Thursday, January 31, 2019.

Tallgrass Interstate Gas Transmission:

BIG SPRINGS EAST LOAD ADVISORY

This Advisory is effective starting Gas Day Tuesday, January 29, for Evening cycle until further notice.  Based on the current weather forecast, TIGT is expecting the Big Springs East loads to remain elevated through at least Thursday, January 31, 2019. 

TIGT requests that shippers continue to match their supply nominations to the on-system loads.  Otherwise, TIGT may issue a Directional Notice to maintain the operational integrity of its pipeline. 

PEPL/GRANT (Location 6616)

SSC/TIGT THOMAS (Location 7448)

NNG/TIGT MILLIGAN FILLMORE (Location 8601)

MCMC/TIGT GRANT (Location 11510, by displacement only)

TB/TIGT ADAMS (Location 7857)

TB/TIGT CLAY (Location 8382)

CHEYENNE PLAINS/TIGT SCOTT (Location 41544)

Tennessee Gas Pipeline:

OFO DAILY CRITICAL DAY 1 EXPANDED TO INCLUDE ALL OF ZONES 2, 3, 4, 5 AND 6 EFFECTIVE 1-30-19

Due to a forecast of colder weather and higher demand moving across most of the system, effective for the Gas Day of Wednesday, January 30, 2019, and until further notice, Tennessee Gas Pipeline, L.L.C.  (“Tennessee”) is expanding the existing OFO Daily Critical Day 1 from all areas east of STA 245 on the 200 Line to include all of Zones 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 2, 3, 4, 5 and 6 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 of Zones 2, 3, 4, 5 and 6 are required to keep actual daily receipts into the system equal to or greater than scheduled quantities regardless of their cumulative imbalance position.  In addition, it is essential that delivery point operators schedule gas at meters commensurate with takes within the affected areas.  All LMS-PA, SA contracts acting as balancing parties, LMS-MA and LMS-PL Balancing Parties are required to maintain an actual daily flow rate not exceeding 2% of scheduled quantities or 500 dths, whichever is greater for under-deliveries into the system and over-takes from the system. Customers will be assessed a rate of $5.00 plus the applicable Regional Daily Spot Price per dekatherm for that portion of physical quantities related to under-deliveries by receipt point operators and over-takes by delivery point operators which exceed this tolerance.

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

Texas Gas Transmission:

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

While it is fully expected that all primary firm service obligations will be met, the following services/activities are subject to scheduling reductions until further notice:

Imbalance Payback from Transportation Service Provider

Park Withdrawal

Loan

ISS Withdrawal

FSS Overrun Withdrawal

Interruptible and out-of-path Firm Transportation

HOT – Hourly Overrun Transportation

Additionally, Texas Gas is requesting all shippers take deliveries within their contractual hourly rights so that receipts and Deliveries match their associated scheduled quantities.

If shippers do not voluntarily comply with these provisions, Texas Gas may be forced to issue an Operational Flow Order, which could result in penalties for shippers.

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While much of the country hunkers down this week with extremely cold temperatures in the offing, the National Weather Service six-to-ten day outlook is showing that temperatures will be significantly improved by this time next week.   Warmer than average temperatures are expected east of the Rockies while the Mountain West and West Coast will have the colder than seasonal weather for much of next week. 

Stay warm, everyone!  Thanks for joining us at GasNewsOnline.com.  We check all of the publicly sourced natural gas pipeline and energy news for you and bring you the weather outlook for the coming week.  All for you, and all for FREE

Edition 32 – Tuesday, January 22, 2019

Welcome to this Tuesday edition of GasNewsOnline.com.  After the MLK holiday, the National Weather Service is now advising that the colder weather pattern is now expected to continue right into early February.

We’ll give you the latest temperature update, a look at the gas pipeline companies’ critical notices, and take a look at the latest energy news of the day.  It is all for FREE from GasNewsOnline.com.

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From the US Energy Information Administration, let’s review some of the highlights of last week’s “Natural Gas Weekly Update” publication.

Natural gas spot prices rose at most locations last week.  For example, Henry Hub spot prices in Louisiana rose from $2.91 per million British thermal units (MMBtu) the prior week to over $3.60 MMBtu late last week.  .

At the NYMEX, the price of the February 2019 natural gas futures contract also increased last week, but it was trending backward in Tuesday’s trading.  After rising about fifty cents to over $3.50 last week, Tuesday’s NYMEX price was dropping back to about $3.05 MMBtu near today’s close.   

Net withdrawals from working gas totaled 81 billion cubic feet (Bcf) for the week ending January 11. Working natural gas stocks are still 11% 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 26¢/MMBtu, averaging $6.46/MMBtu for the week ending January 16. The price of natural gasoline, ethane, propane, butane, and isobutane all rose, by 5%, 1%, 7%, 3%, and 1%, respectively.

According to Baker Hughes, for the week ending Tuesday, January 8, the natural gas rig count increased by 4 to 202. The number of oil-directed rigs fell by 4 to 873. The total rig count remains unchanged at 1,075.

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Earlier today, BlueMountain Capital Management has delivered a second open letter today to the Board of Directors of PG&E Corporation. 

As you may recall, PG&E announced that it plans to file for bankruptcy protection prior to the end of January. 

In response, the investment firm, which reportedly owns several million shares of the California utility company’s stock, said that PG&E’s plan to file bankruptcy before the end of January is unnecessary and should be postponed at least until the next Annual Meeting of the company’s shareholders. 

Today’s letter concludes, “If the Board is unwilling to slow down, consult with stakeholders, and make a more deliberate decision, then the Company and its stakeholders deserve a different Board.”

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Let’s examine some of the latest critical notices from the interstate gas pipeline companies’ Electronic Bulletin Boards:

ANR Pipeline:

Attention All ANR Shippers:

Effective gas day Thursday 1/24/2019 for the Timely cycle and until further notice, in order to preserve system integrity and to ensure ANR is able to meet scheduled delivery commitments to all Market Area locations; ANR is, in accordance with the General Terms and Conditions, declaring an “Extreme Condition” as that term is defined in ANR’s FERC Gas Tariff §6.1, lowering the Swing Percentage from 10% to 5 %.

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

Requests for operational flexibility with regard to variable hourly flow rates will be denied. All shippers must adhere to the flow rates applicable to the rate schedule of their nominated contract. Nominations on FTS-3 and ETS contracts to Secondary delivery gates must flow at an even-hourly rate. In addition, no incremental interruptible and overrun services including ANR’s hourly ITS-3 service will be scheduled in the Market Area (ML7) until further notice. Any currently scheduled ITS-3 nominations must flow at their nominated approved flow profile.

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

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

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

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

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

Kern River Gas Transmission:

Colder weather and higher demand are forecasted in Kern River’s market areas throughout Wednesday, January 23rd. Therefore, Kern River requires all shippers and receipt and delivery point operators align their daily scheduled nominations with physical receipts and deliveries to ensure Kern River’s line pack is maintained at current operating levels.

Customers should visit Kern River’s Daily Operational Report (DOR) at http://services.kernrivergas.com to monitor system conditions and other important information.

Mojave Pipeline Company:

Force Majeure – Mojave – Topock Station – Unit 2

Mojave Pipeline Company, L.L.C. (Mojave) has experienced an equipment failure associated with its Topock Compressor Station, and as such Unit 2 is currently unavailable. Accordingly, the operational capacity through the Segment 3000 constraint will be reduced from 463,000 dekatherms (Dth) per day to 346,000 Dth/day effective on January 19, 2019, Timely Cycle (Cycle 1) and remain in effect until further notice. 

Mojave will provide updates as more information becomes available. 

This incident constitutes an event of force majeure under Section 11.5 of the General Terms and Conditions of Mojave’s FERC Gas Tariff.

Nexus Gas Transmission:

Hanoverton Compressor Station Outage: January 23 – 28, 2019
Nexus Gas Transmission, LLC (NEXUS) will be conducting an outage at its Hanoverton Compressor Station. During this outage, capacity through Hanoverton will be reduced to approximately 900,000 Dth/d.

Based on recent nominations patterns, NEXUS does not anticipate restrictions associated with this outage; however depending on nominated quantities, restrictions may be required.

Northern Natural Gas:

A System Overrun Limitation (SOL) has been called for all Market Area zones (ABC, D and EF) with 50% System Management Service (SMS) available for Gas Day January 23, 2019, due to lower than normal forecasted system weighted temperatures.

SOCAL Gas:

Due to cold weather conditions and high customer demand for natural gas, a system‐wide voluntary curtailment of electric generation demand was issued today at approximately 5:00 PM PCT and is effective for gas day January 22, 2019 through gas day January 23, 2019.

Note that a gas day is from 7:00 AM to 7:00 AM. SoCalGas has issued the system‐wide voluntary curtailment order of electric generation demand in accordance with the Aliso Canyon Withdrawal Protocol. The curtailment is a voluntary request coordinated through the Balancing Authorities (CAISO and LADWP) for them to limit and/or reduce electric generation demand on our system, to the extent it does not impact electric system integrity.

If needed, the Aliso Canyon Storage field may be used to meet the current demand as well as maintain inventory levels at the other storage fields for core reliability.

In addition, with the current forecasted weather, SoCalGas is asking customers to conserve natural gas where possible. 

Southern Natural Gas:

The Type 3 Level 2 OFO that was implemented effective January 20, 2019 will be partially lifted for certain groups on the North and South systems effective gas day, Tuesday, January 22, 2019 until further notice.  Please refer to SNG’s EBB dated January 22, 2019 for more information.

Southern Star Central Gas Pipeline:

Winter Weather Watch – Effective Thursday, January 24, 2019

With colder weather forecast across the Southern Star system, Southern Star is issuing a winter weather watch beginning Thursday, January 24, 2019 at 9:00 AM CST. Southern Star requests that shippers adhere to the following criteria:

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

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

Incremental Loans will be available on a limited basis

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

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

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

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

These conditions are expected to remain in effect through Sunday, January 27, 2018.

Tennessee Gas Pipeline:

OFO DAILY CRITICAL DAY 1 LIFTED FOR ALL OF ZONES 2,3,4 AND PART OF ZONE 5 EFFECTIVE 1-22-19

Effective for today’s Gas Day of Tuesday, January 22, 2019, and until further notice, Tennessee Gas Pipeline, L.L.C. (“Tennessee”) is LIFTING the existing OFO Daily Critical Day 1 for all Zones 2, 3, 4 and part of Zone 5 due to milder temperatures moving into those areas.  THE OFO DAILY CRITICAL DAY 1 WILL CONTINUE TO BE IN EFFECT FOR ALL AREAS EAST OF STA 245 IN ZONE 5 ON THE 200 LINE AND FOR ALL OF ZONE 6 ON BOTH THE 300 (EAST OF MLV 336) AND 200 LINES 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 east of Station 245 in Zone 5 on the 200 Line and for all of Zone 6 on both the 300 (east of MLV 336) and 200 lines are still 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 east of Station 245 in Zone 5 on the 200 Line and for all of Zone 6 on both the 300 (east of MLV 336) and 200 lines are still required to keep actual daily receipts into the system equal to or greater than scheduled quantities regardless of their cumulative imbalance position.  In addition, it is essential that delivery point operators schedule gas at meters commensurate with takes within the affected areas.  All LMS-PA, SA contracts acting as balancing parties, LMS-MA and LMS-PL Balancing Parties are required to maintain an actual daily flow rate not exceeding 2% of scheduled quantities or 500 dths, whichever is greater for under-deliveries into the system and over-takes from the system. Customers will be assessed a rate of $5.00 plus the applicable Regional Daily Spot Price per dekatherm for that portion of physical quantities related to under-deliveries by receipt point operators and over-takes by delivery point operators which exceed this tolerance.

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

Texas Eastern Transmission:

Texas Eastern Transmission, LP (TE) hereby declares a Force Majeure in accordance with Section 17 of the General Terms and Conditions of its FERC Gas Tariff. The Force Majeure event is due to an unplanned outage on its 30″ system south of the Berne Compressor Station (Berne) in Berne, Ohio which occurred on January 21, 2019. While efforts to restore this line to full capacity are underway, the estimated time of restoration is unclear at this time.

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

Transcontinental Gas Pipe Line Corporation:

The Operational Flow Order – Imbalance (OFO) currently in effect on the Transco system in Zones 4, 5, & 6 will be terminated effective January 23, 2019 at 9:00 AM CST. 

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 continuation of cold weather across the Upper Midwest to the East Coast is expected to linger into early February according to the 8-14 day temperature outlook from the National Weather Service.  The Southern states should also see temperatures at or a little below normal, while the Rockies and West Coast may continue to have warmer than seasonal weather conditions for early February. 

That wraps up this special Tuesday edition of GasNewsOnline.com.  Please look for our next update on Thursday in front of the coming weekend.  Remember that our audio podcast is available to you for FREE via iTunes as well!

Edition 31 – Thursday, January 17, 2019

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

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

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

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

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

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

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

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

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

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

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

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

ANR Pipeline:

Attn: All ANR Market Area Shippers

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

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

Columbia Gas Transmission:

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

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

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

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

NOTE:  Takes in excess of Total Firm Entitlements (“TFE”) are penalized on Critical Days based on takes exceeding the aggregate daily amount of gas that TCO is obligated to deliver to a shipper under the shipper’s applicable rate schedule.  Each applicable rate schedule outlines this delivery obligation and, consequently, a shipper’s TFE.  (Notice ID 25678425 posted on December 1, 2015 explains in detail) 

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

Applicable Storage Penalties:

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

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

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

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

East Tennessee Natural Gas:

ETNG Operational Flow Order – East of Boyds Creek

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

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

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

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

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

Enable Gas Transmission:

BALANCING OPERATIONAL ALERT

THIS OPERATIONAL ALERT IS BEING ISSUED PURSUANT TO SECTION 20, GT&C, OF EGT S TARIFF TO  ADVISE SHIPPERS SYSTEM WIDE THAT THEY WILL BE REQUIRED TO MAINTAIN ACTUAL RECEIPTS AND  DELIVERIES COMMENSURATE WITH SCHEDULED VOLUMES, BEGINNING ON THURSDAY, JANUARY 17,  2019 AT 9:00 A.M. AND CONTINUING UNTIL FURTHER NOTICE. 

DUE TO FORECASTED HIGH DEMANDS, EGT ANTICIPATES IT MAY BE UNABLE TO SUPPORT IMBALANCE POSITIONS AND MAY REDUCE SCHEDULED QUANTITIES INTRADAY TO BALANCE ACTUAL RECEIPTS AND DELIVERIES NECESSARY TO MAINTAIN SYSTEM DELIVERABILITY AND OPERATIONAL INTEGRITY.

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

THE AVAILABILITY OF BALANCING AND NON-RATABLE SERVICES WILL BE LIMITED.  HOURLY NON- RATABLE NOMINATIONS MUST BE PRE-APPROVED OR WITHIN THE POSTED LIMITS ON EGT S DAILY OPERATING PLAN. EGT WILL CONTINUE TO MONITOR THE PIPELINE S PRESSURE AND IMBALANCES AND  WILL, IF NECESSARY, TAKE FURTHER ACTIONS, INCLUDING THE ISSUANCE OF ONE OR MORE OPERATIONAL FLOW ORDERS (OFO).  SHIPPERS WHOSE TAKES EXCEED THEIR APPLICABLE SCHEDULED VOLUMES WILL BE SUBJECT TO EXCESS CONTRACT QUANTITIES CHARGES PURSUANT TO EGT’S TARIFF.

EGT WILL SCHEDULE RECEIPTS AND DELIVERIES IN ACCORDANCE WITH EGT’S TARIFF.  THIS

OPERATIONAL ALERT WILL REMAIN IN EFFECT UNTIL FURTHER NOTICE AND WILL BE UPDATED AS MORE INFORMATION BECOMES AVAILABLE.

Florida Gas Transmission:

Overage Alert Day 25% Tolerance

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

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

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

Gulf Crossing Pipeline:

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

While it is fully expected that all primary firm service obligations will be met, the following services/activities are subject to scheduling reductions until further notice:

Imbalance Payback from Transportation Service Provider

Park Withdrawal

Loan

Interruptible

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

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

Gulf South Pipeline:

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

While it is fully expected that all primary firm service obligations will be met, the following services/activities are subject to scheduling reductions until further notice:

Imbalance Payback from Transportation Service Provider

Park Withdrawal

Loan

ISS and ISS-P Withdrawal

FSS-P Overrun Withdrawal

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

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

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

Mississippi River Transmission (MRT):

Due to the potential for maximum utilization of northbound firm Main Line capacity causing a potential supply deficiency in the Market Zone, MRT is issuing a System Protection Warning (SPW) effective 9:00 a.m. Wednesday, January 16, 2019, and continuing until further notice.

During this time:

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

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

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

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

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

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

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

Shippers whose deliveries are affected by any of the Seven (7) conditions above are encouraged to source supply at their primary receipt points, MRT s East Line, MoGas, or reduce applicable delivery volumes.

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

Natural Gas Pipeline Company of America (NGPL):

OPERATIONAL FLOW ORDER ISSUED – MARKET DELIVERY ZONE 

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

DAILY 

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

HOURLY 

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

Hourly Rights for Firm Service – 120%

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

Timely/Evening Cycles

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

Intra-Day 1 Cycle

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

Intra-Day 2 Cycle

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

Intra-Day 3 Cycle

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

Hourly Rights for Interruptible Service – 105%

Includes Interruptible and AOR nominations, as well as POA tolerances

Timely/Evening Cycles

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

Intra-Day 1 Cycle

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

Intra-Day 2 Cycle

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

Intra-Day 3 Cycle

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

Limitation on Nominations in All Cycles for Firm and Interruptible Service

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

CHARGES FOR VIOLATIONS OF OFOs  

HOURLY

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

DAILY 

UNATHORIZED OVERRUN

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

BALANCING SERVICE CHARGES

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

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

Northern Natural Gas:

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

Operational Alert – A System Overrun Limitation (SOL) has been called for all Market Area zones (ABC, D and EF) with 50% System Management Service (SMS) available for Gas Day Friday, January 18, 2019, due to lower than normal system weighted temperatures.

Northwest Pipeline:

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

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

Panhandle Eastern Pipe Line Corporation:

Weather Alert 

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

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

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

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

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

Southern Natural Gas:

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

OFO Type 3 Level 2: Daily Demand Exceeds Capacity
TARIFF SECTION 41.2
EFFECTIVE DATE: January 20, 2019
EFFECTIVE TIME of OFO: 9:00 AM (CCT)  

PENALTY: $15.00 + Highest Regional Daily Price* per Dth for quantities taken in excess of the tolerance

TOLERANCE:  Greater of 102% of the Daily Entitlement or 200 dth

This is to notify all customers who are allocated gas at any delivery point in the North and South system segments listed by SNG that they are subject to an operational flow order commencing on the effective date set out in this notice and continuing until further notice. The above-stated penalty will be assessed on any shipper whose allocated deliveries at any delivery point(s) exceed both 102% of their daily entitlement and 200 dth at such delivery point(s) within an OFO Group.

Southern Star Central Gas Pipeline:

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

The following actions will be taken to preserve system integrity:

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

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

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

ISS withdrawals and PLS withdrawals will be unavailable.

Incremental Loans will not be available.

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

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

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

Operational flexibility will not be available during this time.

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

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

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

Tennessee Gas Pipeline:

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

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

All delivery point operators east of STA 245 on the 200 Line are required to keep actual daily takes out of the system equal to or less than scheduled quantities regardless of their cumulative imbalance position.  All receipt point operators east of STA 245 on the 200 are required to keep actual daily receipts into the system equal to or greater than scheduled quantities regardless of their cumulative imbalance position.  In addition, it is essential that delivery point operators schedule gas at meters commensurate with takes within the affected areas.  All LMS-PA, SA contracts acting as balancing parties, LMS-MA and LMS-PL Balancing Parties are required to maintain an actual daily flow rate not exceeding 2% of scheduled quantities or 500 dths, whichever is greater for under-deliveries into the system and over-takes from the system. Customers will be assessed a rate of $5.00 plus the applicable Regional Daily Spot Price per dekatherm for that portion of physical quantities related to under-deliveries by receipt point operators and over-takes by delivery point operators which exceed this tolerance.

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

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

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

Texas Gas Transmission:

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

While it is fully expected that all primary firm service obligations will be met, the following services/activities are subject to scheduling reductions until further notice:

Imbalance Payback from Transportation Service Provider

Park Withdrawal

Loan

ISS Withdrawal

FSS Overrun Withdrawal

Interruptible and out-of-path Firm Transportation

Additionally, Texas Gas is requesting all shippers take deliveries within their contractual hourly rights so that receipts and Deliveries match their associated scheduled quantities.

If shippers do not voluntarily comply with these provisions, Texas Gas may be forced to issue an Operational Flow Order, which could result in penalties for shippers.

Transcontinental Gas Pipe Line Company:

Subject:Operational Flow Order – Imbalance

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

Effective:  Sunday, January 20, 2019 until further notice

OFO Areas:  Zones 4, 5, and 6

Delivery Tolerance %:  5%

Trunkline Gas Company:

Weather Alert 

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

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

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

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

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

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

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

Edition 26 – Thursday, December 27, 2018

Welcome back to GasNewsOnline.com for Thursday, December 27, 2018.  The New Year is right around the corner, so we will check out the latest natural gas news and gas pipeline information which may affect your business through early next week.  All for FREE!

January’s natural gas futures contract looks to be up ten cents today and near $3.64/MMBtu for the new month at the Henry Hub in Louisiana.

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

The natural gas plant liquids composite price at Mont Belvieu, Texas, fell by 52¢/MMBtu, averaging $6.21/MMBtu for the week ending December 19. The price of natural gasoline, ethane, propane, butane, and isobutane all fell for that reporting week.

According to Baker Hughes, for the week ending Tuesday, December 11, the natural gas rig count remained flat at 198. The number of oil-directed rigs fell by 4 to 873. The total rig count decreased by 4, and it now stands at 1,071.

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Let’s check out the latest postings from the electronic bulletin boards of the major interstate gas pipeline companies around the United States:

Algonquin Gas Transmission:

AGT Operational Flow Order


In order to maintain the operational integrity of the system, Algonquin Gas Transmission, LLC (AGT) is issuing an Operational Flow Order (OFO) pursuant to Section 26 of the General Terms and Conditions of AGT’s FERC Gas Tariff effective 9:00 AM CCT, December 29, 2018, to all parties, with the exception of those Operational Balancing Agreements required by FERC regulations, on the AGT system. 

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

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

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

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

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

This OFO will remain in effect until further notice.

East Tennessee Natural Gas:

Line 3100 Outage Update (5)

East Tennessee Natural Gas, LLC (ETNG) is providing the following update on its progress in returning to service the 3100 Line near its Dixon Spring compressor station. As posted on December 21, 2018, ETNG is working diligently to return the capacity thru Dixon Springs to approximately 300,000 Dth/d. The updated progress report is as follows: 

Progress Report: ETNG continues to be diligent on the three major construction activity work streams required to return the pipeline back to service. The three major work streams are: (1) Testing and installing new section of pipeline, (2) Installing temporary pig launchers/receivers and cleaning of the pipeline around incident location and (3) Removing temporary pig launcher/receivers and returning pipeline to service. 

As of December 26, 2018, the testing and installation of the new section of pipeline has been completed. As previously posted, ETNG has commenced and continues its pigging operations to clean the pipeline around the incident location. ETNG is projecting the final pig runs and other commissioning activities, such as the purging and packing of the system, to be completed on December 29th. There are various factors that could potentially change the projected return to service date, such as, but not limited to: weather conditions and unforeseen events due to existing pipeline conditions that could lengthen the work schedule. Based on the current schedule and progress made to date, ETNG is now projecting returning to service approximately 300,000 Dth/d of capacity thru Dixon Spring on DECEMBER 30, 2018.

Looking Ahead: ETNG will continue to provide updates on its progress until the 3100 line has been restored to full capacity. ETNG is committed to prioritizing the work in a safe and efficient manner in order to increase system capacity as quickly as feasible. 

El Paso Natural Gas:

Pipeline Conditions – Increasing Linepack in Advance of Weather

EPNG is concerned about the winter weather forecast to move into the Permian and San Juan basins Friday afternoon into Saturday morning and the potential for a loss of supply due to freeze offs. EPNG will be maintaining higher linepack until the winter weather moves out of the supply basins. Drafting of the system will undermine EPNG’s ability to increase and maintain linepack in advance of the potential supply underperformance.

Delivery point operators are encouraged to review their scheduled supplies to ensure that they are aligned with their flowing quantities.

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

Underperformance caps will be placed on non-performing supplies.

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

Kinder Morgan Louisiana Pipeline (KMLP):

FORCE MAJEURE – COMPRESSOR STATION 760 – LIFTED

KMLP has completed repairs at Compressor Station 760 in Acadia Parish, Louisiana (CS 760).  Therefore, effective for gas day Thursday, December 27, 2018, Intraday 1 Cycle and continuing thereafter, the force majeure will be lifted and flow will resume to normal operations.  All transport services are available.

Mississippi River Transmission (MRT):

MAIN LINE UTILIZATION SPW

Due to the potential for maximum utilization of northbound firm Main Line capacity causing a potential supply deficiency in the Market Zone, MRT is issuing a System Protection Warning (SPW) effective 9:00 a.m. Saturday, December 29, 2018 and continuing until further notice.

 During this time:

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

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

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

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

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

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

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

Shippers whose deliveries are affected by any of the Seven (7) conditions above are encouraged to source supply at their primary receipt points, MRT’s East Line, MoGas, or reduce applicable delivery volumes.

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

Natural Gas Pipeline Company of America (NGPL):

SEGMENT 11 – CS 104 – FORCE MAJEURE

Natural is experiencing electrical issues at Compressor Station 104 (CS 104), located in Barton County, Kansas (Segment 11 of Natural’s Midcontinent Zone).  As a result, Natural is required to reduce the maximum operating capacity through CS 104.  This is a Force Majeure event that limits Natural’s throughput capacity northbound through CS 104. 

The scheduling constraint will be at CS 104; therefore, any gas received south of CS 104 for delivery north of CS 104 will be impacted for the duration of this outage.  For scheduling purposes, the Midcontinent Pool (LOC 25078) is located south (upstream) of the constraint.  Additionally, firm transportation nominated from receipt points south of CS 104 (including the Midcontinent Pool) and transports associated with withdrawals from all Amarillo Storage points will be impacted.  Receipt points north of CS 104 will not be impacted.    

As such, effective for gas day, Friday, December 28, 2018, Timely Cycle and anticipated to continue until further notice,Natural will schedule Primary Firm and Secondary in-path Firm transports to no less than 75% of contract MDQ through CS 104.  Actual nomination levels and changes in pipeline conditions could result in changes to the percentages scheduled (lower or higher) on subsequent gas days.  AOR/ITS and Secondary out-of-path Firm transports continue to not be available.

The stated scheduling percentage is based upon the current level of firm capacity contracted for during this outage and is subject to change based upon operational conditions and Shipper utilization.  Permian Zone delivery points will be available as an alternative.  The Trailblazer Gage (LOC 902900), Rex Jefferson (LOC 42499), and Northern Border Harper (LOC 908090) receipt points, as well as other supply points downstream of this constraint will also be available.

Southern Star Central Gas Pipeline:

Winter Weather Advisory – Effective December 28, 2018 Cold weather is being forecasted across much of the Southern Star system beginning Friday, December 28, 2018, through Sunday, December 30, 2018. Southern Star is issuing a weather advisory effective gas day Friday, December 28, 2018, and requests that operators and shippers monitor weather conditions and ensure their business plans consider the temperatures forecasted. Southern Star will issue underperformance notices to each point operator not delivering the scheduled quantities they had confirmed. Southern Star will unilaterally reduce scheduled quantities per the tariff to match actual flow if the delivering operator does not remedy the underperformance in accordance with the notice.

Transwestern Pipeline Company:

12/26/18

Pipeline Conditions – Low Line Pack – Cold Weather

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

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

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

Any such UPR cuts will be handled by separate notices.

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

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

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Taking a look ahead to temperatures in the first week of January, the National Weather Service six-to-ten day forecast shows below average temperatures across much of the Midwest and Mid-continent regions with normal temperatures across the Great Lakes and Northeast.   The West Coast and Southeast may see slightly warmer temperatures than average.

Thank you for reading GasNewsOnline.com! Have a safe weekend, and a HAPPY NEW YEAR!