Thursday, May 16, 2019

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

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

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From the US Energy Information Administration, working gas in storage was estimated at 1,653 Bcf as of Friday, May 10, 2019. This represents a net increase of 106 Bcf from the previous week.

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

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

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

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

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

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

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

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

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

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

ANR Pipeline:

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

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

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

The estimated impact to Firm Primary is as follows:

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

Columbia Gas Transmission:

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

643131 – Corral:

May 21, 2019 – 0 Non-Firm

SHERWODB – Sherwood B MA42:

May 21, 2019 – 940,000 Total Capacity

MXPSEG – MXPSEG MA42:

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

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

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

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

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

Dominion Energy Questar Pipeline:

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

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

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

Gas Transmission Northwest (GTN):

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

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

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

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

Gulf South Pipeline:

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

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

Mississippi River Transmission (MRT): 

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

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

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

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

Natural Gas Pipeline Company of America (NGPL):

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

Tennessee Gas Pipeline:

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

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

Texas Gas Transmission:

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

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

Transcontinental Gas Pipe Line Company (Transco):

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

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

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

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

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

Monday, May 6, 2019

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Dominion Energy Questar Pipeline:

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

Enable Gas Transmission:

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

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

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

Also on Enable Gas Transmission:

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

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

Kern River Gas Transmission:

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

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

Natural Gas Pipeline Company of America (NGPL)

STORAGE – Changes/Restrictions

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

Texas Gas Transmission:

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

Transwestern Pipeline:

East Mainline Receipts – Capacity reduction

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

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

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

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

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

Monday, April 22, 2019

Happy Earth Day from GasNewsOnline.com!

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Dominion Energy Transmission:

Reminder: Limited Daily and Hourly Flexibility:

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

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

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

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

Southern Natural Gas:

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

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

Texas Gas Transmission:

Planned Maintenance – Harrison (Ohio) compressor station

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

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

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

TransColorado Gas Transmission:

Force Majeure Declared at Blanco Hub Compressor Station – Segment 310

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

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

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

Transcontinental Gas Pipe Line Company (Transco):

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

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

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

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

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

Thursday, April 11, 2019

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

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

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

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

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

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

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

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

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

ANR Pipeline:

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

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

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

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

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

Colorado Interstate Gas (CIG):

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

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

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

Egan Hub Storage:

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

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

El Paso Natural Gas:

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

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

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

Great Lakes Gas Transmission:

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

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

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

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

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

Gulf South Pipeline:

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

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

Natural Gas Pipeline Company of America (NGPL):

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

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

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

PIN                  Name                                                  

3251                EPNG MOORE

46856              SOUTHERN STAR BEAVER

901429            CAMERICK PLT BEAVER

905207            COLORADO INTERSTATE GAS FORGAN

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

Southern Natural Gas:

Type 6 OFO Warning

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

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

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

Texas Eastern Transmission:

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

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

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

This notice will remain in effect until further notice.

Texas Gas Transmission:

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

Wyoming Interstate Gas:

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

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

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

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

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

Monday, April 8, 2019

Welcome to GasNewsOnline.com!  April is upon us with springtime weather causing a severe weather outbreak in the South early this week, while an early spring heavy snowfall is expected in the upper Midwest by later this week! 

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

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

Net natural gas storage injections totaled 23 billion cubic feet (Bcf) for the week ending March 29. Working natural gas stocks are now 1.13 Tcf, which is 31% lower than the five-year (2014–18) average for the same week.

According to Baker Hughes, for the week ending Tuesday, March 26, the natural gas rig count decreased by 2 to 190. The number of oil-directed rigs fell by 8 to 816. The total rig count decreased by 10, and it now stands at 1,006.

According to the EIA, U.S. LNG exports totaled 4.1 Bcf/d in January 2019, marking the third consecutive month where a new record high was reached. The volume of U.S. LNG exports rose steadily during 2018 as three new liquefaction units, called trains, totaling 1.9 Bcf/d capacity, began service:   

A single train at the Cove Point (Maryland) terminal in March 2018;

Train 5 at the Sabine Pass (Louisiana) terminal in November 2018;

Train 1 at the Corpus Christi (Texas) terminal in December 2018.

LNG export volumes are expected to continue to rise in 2019 as an additional 4 Bcf/d of liquefaction capacity is brought online by the end of this year.

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Today, Kinder Morgan, Inc. announced that Tennessee Gas Pipeline (TGP) and El Paso Natural Gas (EPNG) have agreed to settlements with their shippers to address issues raised by the Federal Energy Regulatory Commission’s (FERC) 501-G process.

Rate adjustments set forth in the agreements by TGP and EPNG will have a combined approximately $50 million EBITDA impact for 2019; and when fully implemented, will have an approximately $100 million combined annual impact on EBITDA. KMI expects that these two agreements, pending approval by FERC, should resolve the vast majority of KMI’s 501-G exposure.

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Now, 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, April 9, 2019, to all parties, with the exception of those Operational Balancing Agreements required by FERC regulations, on the AGT system.

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

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

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

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

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

This OFO will remain in effect until further notice.

ANR Pipeline:

ANR Pipeline Company Notice of Force Majeure (Lifted 04/08/19)

Effective today, ANR has lifted the Force Majeure event on its Southeast Southern Segment (Zone 2) related to the unexpected pipeline repairs north of its Celestine Compressor Station. The associated capacity restrictions for Cottage Grove compressor station have been lifted.

East Tennessee Natural Gas:

East Tennessee Natural Gas (ETNG) has experienced an unplanned outage at its Glade Spring Compressor Station (Glade Spring) on the 3300 Line. Repair efforts to restore this compressor station to full capacity are underway. As a consequence of this outage, ETNG estimates that west to east capacity will be as follows:

Glade Spring Compressor Station – 105,000 Dth/d
Rural Retreat Compressor Station – 200,000 Dth/d
Deliveries on the Roanoke Line – 57,000 Dth/d

Based on current pipeline conditions ETNG doesn’t anticipate any restrictions associated with this outage; however if nominations change, restrictions may be required.

Gulf South Pipeline:

Carthage Junction compressor station maintenance:  Begins April 8, 2019 – Ends April 11, 2019

Hall Summit Scheduling Group – Locations will experience higher than normal operating pressures. Capacity could be impacted by up to 300,000 dth/d for the duration of the maintenance for all services other than primary firm.

MidContinent Express Pipeline (MEP):

MEP will be performing a cleaning pig run on the entire portion of its pipeline system in Zone 2, segments 200 and 210, from Madison Parish, Louisiana to Choctaw County, Alabama.  This work will require MEP to restrict throughput capacity in Zone 2 of its system. 

As such, effective for gas day Wednesday, April 10, 2019, and continuing through gas day Thursday, April 11, 2019, MEP estimates the impact to be up to 360,000 into Segment 200.  Actual nomination levels, changes in pipeline conditions, and assistance MEP is seeking from connecting pipelines upstream and downstream of the outage could result in a decrease to the capacity reduction.  AOR/ITS and Secondary out-of-path Firm transports will not be available during this outage.  Primary Firm and Secondary-in-path Firm transports are at risk of not being fully scheduled into Segment 200, assuming all such contracts are nominated at full applicable contract MDQ through the constrained segment. 

LOC 44450 AMID/DESTIN will be unavailable for all transport services for the duration of this outage. 

Additionally, all park and loanservices under Rate Schedule PALS will not be available anywhere on the system.

Natural Gas Pipeline Company of America (NGPL):

Announces: TRANSPORTATION RESTRICTIONS – NSS STORAGE SERVICES

AMARILLO SYSTEM

“IN-PATH” TRANSPORT FOR INJECTIONS”

Effective for gas day Tuesday, April 9, 2019, Timely Cycle, and continuing until further notice, Natural will require “in-path” transportation for NSS storage injections on the Amarillo System.  AOR/ITS and Secondary out-of-path firm transportation associated with NSS injections will not be scheduled.  Any receipt gas nominated from Rex Moultrie (LOC 44413) and pathed to the Amarillo System for storage injections will be available and scheduled on all transport services (subject to any posted constraints).

“IN-PATH” TRANSPORT FOR WITHDRAWALS TO THE MARKET AREA”

Effective for gas day Tuesday, April 9, 2018, Timely Cycle, and continuing until further notice, Natural will not require “in-path” transportation for NSS storage withdrawals on the Amarillo System to the Market Delivery Zone.  AOR/ITS and Secondary out-of-path firm transportation associated with NSS withdrawals will be scheduled.  

Northwest Pipeline:

Jackson Prairie storage customers are required to forward in writing an estimate of the volumes to be injected into their accounts during the period May 1 through September 30, 2019.  Please e-mail this information to your Marketing Services representative by May 1, 2019.

The suggested fill percentages are listed below in order to meet deliverability demands anticipated in the upcoming heating season.  In order to have full use of your working gas quantity, it is recommended the three benchmark percentages be met to avoid the standard reduction of usage based on meeting the minimum fill percentages as outlined in Section 8.3 of Rate Schedule SGS-2F.

 Jun 30 – minimum of 35% of total working gas quantity 

 Aug 31 – minimum of 80% of total working gas quantity

 Sep 30 – 100% full

Texas Eastern Transmission:

Texas Eastern (TE) has experienced an unplanned outage at its Athens, Ohio compressor station and efforts to restore the compressor station to full capacity are underway.

This outage results in the following capacity north to south through compressor stations on the 30 inch:

Approximately
Berne 2,103,000 Dth/d
Wheelersburg 2,025,000 Dth/d
Tompkinsville 1,796,000 Dth/d

TE will take into consideration the reduced capacity during the timely cycles for future gas days.

TE will post updates to the status of its Athens compressor station as soon as it is known.

Texas Gas Transmission:

Texas Gas will be performing valve maintenance at location #9490 – Regency Riverton (Caldwell Parish, Louisiana) beginning Wednesday, April 10 and ending Thursday, April 11, 2019.

This location will be shut-in during this maintenance.  If you have any questions please contact your Customer Service Representative.

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The extended National Weather Service six-to-ten day temperature outlook shows that warmer than seasonal weather will continue in the Southeastern US.  Expect normal April temperatures from New England, the Great Lakes and most of the Midwest.  Cooler than seasonal weather will prevail in the Rockies into the Pacific Northwest through April 18. 

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

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

Friday, March 22, 2019

Welcome to GasNewsOnline.com!  While we search over fifty interstate natural gas pipeline companies for their critical postings, other news is happening this week.  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.  

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From the US Energy Information Administration, working natural gas in storage decreased by 47 Bcf for the week ending Friday, March 15.  Natural gas stocks remaining in storage are now nearly 33% below the five-year historical range.

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Penn Virginia Corporation announced Thursday that it has mutually agreed with Denbury Resources Inc. to terminate their previously announced merger agreement.

“After careful consideration, the Penn Virginia board of directors decided that it is in the best interests of the Company and our shareholders to mutually agree to terminate our merger agreement with Denbury,” said John A. Brooks, President and Chief Executive Officer of Penn Virginia. “Given the caliber and dedication of our team, the high quality of our assets and the strength of our balance sheet, we believe we are well positioned to continue to execute our previously announced two rig development plan, which is expected to be fully funded from cash flow.  We remain focused on developing our assets and maximizing value for our shareholders as a standalone company.”

As a result, the special meeting of Penn Virginia’s shareholders, which was to be held on April 17, 2019, will not take place.  Under the terms of the merger agreement and the termination agreement, neither Penn Virginia nor Denbury will be responsible for any payments to the other party as a result of the termination of the merger agreement.

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Earlier this week, Williams announced a series of transactions that will establish a new platform for the optimization of its midstream operations in the western Marcellus and Utica basins through a long-term partnership with the Canada Pension Plan Investment Board.   

The $3.8 billion joint venture will include Williams’ 100 percent owned Ohio Valley Midstream system (“OVM”) and 100 percent of Utica East Ohio Midstream system (“UEO”).  The Canada Pension Plan Investment Board will invest $1.34 billion for a 35 percent ownership stake in the joint venture. Williams will retain 65 percent ownership, will operate the combined business, and will consolidate the financial results of the joint venture in Williams’ financial statements.

Concurrent with signing the agreement, Williams acquired the remaining 38 percent ownership stake in Utica East Ohio Midstream from Momentum Midstream and will take over operatorship.  UEO is involved primarily in the processing and fractionation of natural gas and natural gas liquids in the Utica Shale play in eastern Ohio.

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As winter transitions into spring, let’s review the latest postings from the interstate natural gas pipeline systems entering the weekend:

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 immediately, 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 as indicated below:

Effective Immediately – Gas Day March 24: The penalty shall apply to each dekatherm of actual delivery quantities exceeds the greater of 6,000 Dth or 106% of scheduled delivery quantities.

Gas Day March 25 and until further notice: The penalty shall apply to each dekatherm of actual delivery quantities exceeds the greater of 4,000 Dth or 104% of scheduled delivery quantities.

In each situation indicated above, 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.

ANR Pipeline:

ANR will begin planned pipeline maintenance near the St. John Compressor Station along its Michigan Leg South located in the Northern Area (Zone 7). The total St. John Eastbound, LOC #226633, capacity will be reduced by the following:

500-MMcf/d (leaving 767-MMcf/d available) 4/29 – 5/3

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

Columbia Gas Transmission:

In response to customer questions regarding its Leach XPress (LXP) and Mountaineer XPress (MXP) projects, Columbia Gas Transmission, LLC (TCO) has developed a schematic highlighting active project points and internal constraints for customers to reference.

https://navigates.cpg.com/infopost/webmethods/DownloadFile.aspx?Mode=V&S3FN=LXP_MXP+Project+Schematic.pdf&S3K=%2Ftco%2Fpermanentpostingsandfaqs%2FLXP_MXP+Project+Schematic.pdf

Although this schematic may serve as a useful tool for customers, TCO strongly recommends the continued utilization of the Internal Constraint Rights screen within Navigates when evaluating a specific contract’s rights for an input nomination.   

Columbia Gulf Transmission:

Columbia Gulf Transmission (CGT) would like to notify customers of an upcoming change in location numbers effective April 1, 2019, impacting the Gulf South – Delhi interconnect.

Currently, Gulf South Delhi nominations are entered at a single bi-directional location for receipts and deliveries. Currently shown as: GULF SOUTH DELHI – 4204

Starting April 1, 2019, all nominations for this location will move to two newly created location numbers:

Receipts from Gulf South Delhi:  Loc Prop 4204R
Deliveries to Gulf South Delhi:     Loc Prop 4204D

Loc Prop 4204 will become inactive on April 1, 2019. All receipts and deliveries for Gulf South Delhi should be nominated at the new 4204R and 4204D locations for Timely Cycle Gas Day April 1,2019. Any nominations at Loc Prop 4204 will be reduced to 0.

Dominion Energy Transmission:

As of Monday, April 1, 2019, Dominion Energy Transmission, Inc. will return to one (1) Operational Impact Area (OIA).

Also from Dominion:

Based on storage withdrawals during the 2018-2019 Winter Period, storage inventory levels are at near historic lows. As a result of the current inventory levels, DETI can handle only limited withdrawals from its storage pools until inventory levels increase.

To protect its storage pools and to minimize withdrawals, DETI will not require its GSS customers to meet their Minimum Turnover Obligations pursuant to Section 8.7 of Rate Schedule GSS for the period November 1, 2018 through April 15, 2019. As a result, no charges set forth in GT&C Section 35.3D will be assessed if the minimum turn obligation is not met during this period. Further, DETI requests that GSS customers voluntarily minimize withdrawals with the start of the injection season on April 1.

This voluntary action may allow the avoidance of the issuance of storage OFOs if inventory levels decline further. Customers are advised that DETI may be required to issue OFOs that limit storage withdrawals in April and possibly, require the use of all firm transportation capacity prior to the use of storage withdrawals.

Gulf South Pipeline:

Carthage Junction Compressor Station Maintenance:  Begins April 9, 2019 – Ends April 10, 2019

Area 8 to 16 Expansion Scheduling Group – Capacity could be impacted by as much as 150,000 dth/d for the duration of the maintenance for all services other than primary firm.

MidContinent Express Pipeline (MEP):

MEP will be performing a cleaning pig run on the entire portion of its pipeline system in Zone 2, segments 200 and 210, from Madison Parish, Louisiana to Choctaw County, Alabama.  This work will require MEP to restrict throughput capacity in Zone 2 of its system. 

As such, effective for gas day Wednesday, April 10, 2019, and continuing through gas day Thursday, April 11, 2019, MEP will schedule Primary Firm and Secondary-in-path Firm transports to no less than 71% of contract MDQ into Segment 200, assuming all such contracts are nominated at full applicable contract MDQ through the constrained segment.  Actual nomination levels, changes in pipeline conditions, and assistance MEP is seeking from connecting pipelines downstream of the outage could result in an increase to the percentage scheduled.

AOR/ITS and Secondary out-of-path Firm transports will not be available during this outage. Additionally, all park and loanservices under Rate Schedule PALS will not be available anywhere on the system.

Natural Gas Pipeline Company of America (NGPL):

As part of its required ongoing pipeline integrity Management Program, on gas day Tuesday, March 26, 2019, and continuing through gas day Thursday, April 11, 2019, Natural will perform an ILI tool run on the Gulf Coast #2 mainline between Compressor Station 300 located in Victoria County, Texas and Compressor Station 341 located in Nueces County, Texas (Segments 22 and 20 of Natural’s South Texas Zone).  This tool run will require Natural to schedule Primary Firm and Secondary in-path Firm transports, only, southbound into Segment 22 for the duration of this tool run.  AOR/ITS and Secondary out-of-path Firm transports will not be available.

On gas day Tuesday, March 26, 2019, and continuing through gas day Monday, April 1, 2019, Natural will be performing station maintenance at Compressor Station 303, located in Angelina County, Texas (Segment 26 of Natural’s Texok Zone). This work will require Natural to schedule Primary Firm and Secondary in-path Firm transports, only, southbound through Compressor Station 302 located in Montgomery County, Texas for the duration of this maintenance project.  AOR/ITS and Secondary out-of-path Firm transports will not be available during this work.  Additionally, Primary Firm and Secondary in-path Firm transports may also be at risk of not being fully scheduled.

Northwest Pipeline:

Effective immediately and until further notice, Northwest is increasing the available deliverability into the Jackson Prairie storage facility from 442,000 Dths to 550,000 Dths.

Northwest is able to support the increase above design capacity due to prevailing pressures and facility conditions, which it expects will continue into the summer.

Tennessee Gas Pipeline:

Pursuant to Article XII of the General Terms and Conditions of Tennessee’s FERC Gas Tariff, Tennessee posted a notice of an emergent repair issue on the 300-1 Line between STA 219 and MLV 301 located in Mercer County, PA effective for the Gas Day of Friday, March 15, 2019 (Notice Identifier 370784), due to an anomaly identified from results received from Tennessee’s ongoing integrity program.  Work continues on this section of the pipe. 

Anticipated return to service is projected to be April 7, 2019.  Tennessee continues to estimate the current impact to be up to 65,000 Dths. Based upon current and recent nominations, restrictions through a pro rata portion of Secondary Out of the Path nominations pathed through STA 307(Segment 307 BH) continue to be at risk. 

Texas Eastern Transmission:

Below is a link to Texas Eastern Transmission’s planned outage information for 2019: https://infopost.spectraenergy.com/GotoLINK/GetLINKdocument.asp?Pipe=10076&Environment=Production&DocumentType=Notice&FileName=TETLP+2019+Planned+Outage+Presentation.pdf&DocumentId=8aa1649f695385180169597ca33600ca

Texas Gas Transmission:

North Louisiana System Maintenance:

Start Date: March 25, 2019 – End Date: April 7, 2019

Texas Gas will be performing direct assessments on the North Louisiana Lateral. Capacity will be limited to 325,000 MMBtu for the Carthage East-West (CEW) segment.

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The National Weather Service temperature forecast for the last week of March shows a warming trend through the midsection of the United States.  Cooler-than-seasonal conditions will return to the Great Plains, the West Coast and much of the Southeast through March 31. 

That’s all for this edition of GasNewsOnline.com! Enjoy a weekend of watching the college basketball games, and we hope to see you again on Monday!

Thursday, March 14, 2019

Happy “Pi” Day!

After returning from a brief vacation touring portions of Oklahoma and Texas, it’s time to get back to work here at GasNewsOnline.com! Due to time constraints, there will be no audio podcast of today’s edition.

With a final cold blast and heavy winds buffeting parts of the country this week, the weekend looks to be quite busy on the interstate natural gas pipeline grid. Let’s check out the latest critical postings:

Algonquin Gas Transmission:

In order to maintain the operational integrity of the system, Algonquin Gas Transmission, LLC (AGT) is issuing an Operational Flow Order (OFO) pursuant to Section 26 of the General Terms and Conditions of AGT’s FERC Gas Tariff, effective 9:00 AM CCT March 14, 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 as indicated below:

Gas Day March 14 – 15: The penalty shall apply to each dekatherm of actual delivery quantities exceeds the greater of 6,000 Dth or 106% of scheduled delivery quantities.

Gas Day March 16 and until further notice: The penalty shall apply to each dekatherm of actual delivery quantities exceeds the greater of 4,000 Dth or 104% of scheduled delivery quantities.

In each situation indicated above, 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.

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 March 13, 2019, and continuing until further notice.  Therefore, when necessary to minimize imbalances and protect system integrity, underperformance caps may be placed on nonperforming receipt points effective the next available nomination cycle until further notice.

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

Columbia Gas Transmission and Columbia Gulf Transmission:

Columbia Gas Transmission, LLC will be commencing service for the remaining contracted 330 MDth/d of its Mountaineer XPress (MXP) project capacity effective Gas Day Friday, March 15, 2019.   Nominations will be accepted beginning for the Timely Cycle for Gas Day Friday, March 15, 2019.  Please monitor the Daily Capacity Posting effective for Friday, March 15, 2019 for capacity changes related to MXP. 

Columbia Gulf Transmission, LLC will be commencing service for the remaining contracted 330 MDth/d of its Gulf XPress (GXP) project capacity effective Gas Day Friday, March 15, 2019.   Nominations will be accepted beginning for the Timely Cycle for Gas Day Friday, March 15, 2019. 

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, March 16, 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.

Natural Gas Pipeline Company of America (NGPL):

As part of its required ongoing pipeline integrity Management Program, on gas day Tuesday, March 26, 2019, and continuing through gas day Thursday, April 11, 2019, Natural will perform an ILI Smart Tool run on the Gulf Coast #2 mainline between Compressor Station 300 located in Victoria County, Texas and Compressor Station 341 located in Nueces County, Texas (Segments 22 and 20 of Natural’s South Texas Zone).  This tool run will require Natural to schedule Secondary in-path and Primary only southbound into Segment 22 (South Texas Zone) for the duration of this tool run.  AOR/ITS and Secondary out-of-path Firm transports will not be available. 

Also from NGPL:

On gas day Tuesday, March 26, 2019, and continuing through gas day Monday, April 1, 2019, Natural will be performing station maintenance at Compressor Station 303, located in Angelina County, Texas (Segment 26 of Natural’s Texok Zone).  This work will require Natural to schedule Secondary in-path and Primary only southbound through Compressor Station 302 located in Montgomery County, Texas, (Segment 26 of Natural’s Texok Zone) for the duration of this maintenance project.  AOR/ITS and Secondary out-of-path Firm transports will not be available during this work.  Primary Firm and Secondary in-path Firm transports may also be at risk of not being fully scheduled.

Northwest Pipeline:

Northwest will hold the annual maintenance conference call on Wednesday, March 20, 2019, from 3:00 PM to 4:00 PM MDT. The call-in number is 385-355-3006 and the conference id is 34150489.

The 2019 maintenance schedule has been posted on Northwest’s portal at http://www.northwest.williams.com. The information on the schedule represents Northwest’s best estimates given the information currently available.

Please note that the estimated capacity reductions and project durations are dependent on many variables and are subject to change. Northwest will update the schedule as the projects progress and new information becomes

available. 

Tennessee Gas Pipeline:

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 on the 300-1 Line between STA 219 and MLV 301 located in Mercer County, PA effective for the Gas Day of Friday, March 15, 2019.  Due to results from Tennessee’s ongoing integrity program, Tennessee has identified an anomaly that necessitates pressure reduction on this section of the pipe.  Tennessee is estimating the current impact to be up to 65,000 Dths. Based upon current and recent nominations, restrictions through a pro rata portion of Secondary Out of the Path nominations pathed through STA 307(Segment 307 BH) may be required. 

Texas Eastern Transmission:

As previously posted, Texas Eastern (TE) has limited operational flexibility to manage imbalances. As result, effective immediately, TE requires all delivery point operators in Market Area Zones M1-24, M2-24 and M3 to keep actual daily takes out of the system equal to or less than scheduled quantities regardless of their cumulative imbalance position unless otherwise coordinated with your operations account representative. All receipt point operators in Market Area Zones M1-24, M2-24 and M3 are required to keep actual daily receipts into the system equal to or greater than scheduled quantities regardless of their cumulative imbalance position unless otherwise coordinated with your operations account representative.

Additionally, TE requires all shippers and point operators in Access Area Zones STX, ETX, WLA and ELA and Market Area Zones M1-30 and M2-30 to carefully review demand for gas and schedule gas consistent with daily needs and to tender and receive gas consistent with confirmed nominations regardless of their cumulative imbalance position unless otherwise coordinated with your operations account representative.

Correspondingly, the previously posted imbalance notice is no longer in effect.

Texas Gas Transmission:

Texas Gas will be performing direct assessments on the North Louisiana Lateral beginning March 25 through April 7, 2019.  Capacity will be limited to 325,000 MMBtu for the Carthage East-West (CEW) segment.

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

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:  Friday, March 15, 2019 until further notice

OFO Areas:  Zones 4, 5, and 6

Delivery Tolerance %:  10% Due to Shipper and 10% Due From Shipper

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After a blustery week in many portions of the United States, the National Weather Service six-to-ten day temperature forecast through March 24 shows a warming trend for the upper Midwest and the Northeast. Portions of the South, though, may still be a little cooler than normal for late March.

Thanks for checking in to GasNewsOnline.com! Please come back late Monday for a complete update and podcast to start your work week.

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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 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 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!