Thursday, April 18, 2019

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

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

********************

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

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

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

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

********************

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

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

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

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

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

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

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

********************

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

Algonquin Gas Transmission:

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

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

ANR Pipeline:

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

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

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

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

Also from ANR:

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

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

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

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

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

Colorado Interstate Gas (CIG):

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

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

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

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

Columbia Gas Transmission:

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

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

Cobb South MA18 (A03SOUTH)

Cobb Northeast MA18 (A03NORTH)

Cobb Northwest MA18 (A03LOW)

Cobb Line H (A03LINEH)

Cobb CS MA18 (COBBA03) 

East Tennessee Natural Gas:

Boyds Creek Compressor Station Outage – April 23 – 24

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

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

Enable Gas Transmission:

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

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

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

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

Gas Transmission Northwest (GTN):

May 2019- GTN Fuel and Line Loss Percentage

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

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

Gulf South Pipeline:

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

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

Kinder Morgan Louisiana Pipeline (KMLP):

SEGMENT 140 – MLV #7 – AT OPERATING CAPACITY 

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

Mississippi River Transmission (MRT):

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

During this time:

1) Shippers should avoid daily long imbalance positions

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

3) MRT may not accept any makeup of short positions

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

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

Southern Natural Gas:

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

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

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

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

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

Tennessee Gas Pipeline:

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

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

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

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

Trailblazer Pipeline Company:

TRAILBLAZER MECHANICAL ISSUE–COMPRESSOR STATION 603–UPDATE #1

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

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

Transcontinental Gas Pipe Line Company (Transco):

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

Effective:        Friday, April 19, 2018

Ends:               Until Further Notice

Transactions:  Deliveries

Type:               Due to Shipper

OFO Area(s):  Zones 4, 5, and 6

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

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

********************

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

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

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

Happy Easter!

Edition 41 – Thursday, February 21, 2019

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

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

********************

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

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

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

********************

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

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

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

********************

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

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

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

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

********************

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

Algonquin Gas Transmission:

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

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

ANR Pipeline:

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

The capacity restriction is as follows:

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

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

Columbia Gas Transmission:

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

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

Gulf South Pipeline:

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

Montpelier to McComb Index 130 Scheduling Group:

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

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

Natural Gas Pipeline Company of America (NGPL):

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

Rockies Express Pipeline (REX):

SENECA COMPRESSOR STATION MAINTENANCE

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

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

Southern Natural Gas:

Fairburn Force Majeure – Update #1

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

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

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

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

Trailblazer Pipeline:

SUMMIT INTERCONNECT (SEG 10)

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

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

********************

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

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

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

Edition 25 – Thursday, December 20, 2018

Like George Bailey on the bridge in It’s A Wonderful Life, the natural gas business is hoping for a wintertime miracle to give another boost to natural gas prices for the coming year.

Welcome back to GasNewsOnline.com!   We take care of wrapping up the packages of natural gas news and gas pipeline bulletin board postings for you – all for FREEHo, Ho, Ho!

Before we take a look at a large number of critical notices from the interstate pipeline companies, let’s check out some of the latest natural gas news today:

********************

From the US Energy Information Administration‘s “Weekly Natural Gas Storage Report“, working gas in storage decreased by 141 Bcf from the previous week.   Natural gas stocks were 720 Bcf or 20.6% below the five-year average.

********************

Oklahoma Gas & Electric, the utility subsidiary of OGE Energy Corp., announced today that it will acquire two existing power plants to meet customers’ energy needs. The plants will replace capacity currently provided by power purchase contracts set to expire in 2019.

The company announced it will acquire the Shady Point plant near Poteau, Oklahoma, and the Oklahoma Cogeneration plant in Oklahoma City.

The Shady Point facility is a 360 MW coal- and natural gas-fired plant utilizing circulating fluidized bed boilers that produce lower emissions due to their design features and emissions controls.

The Oklahoma Cogeneration facility is a 146 MW natural gas-fired combined-cycle plant.

The company will pay approximately $53 million for the two plants, which currently serve OG&E customers.

“In the past five years, we’ve completed several critical projects that advance our commitment to deliver energy reliably and affordably to customers in an environmentally responsible way.  Today’s announcement builds on that commitment,” said OGE Energy Corp. Chairman, President and CEO Sean Trauschke. “Our diverse energy portfolio of natural gas, wind, solar and coal gives us the versatility to meet a variety of economic and environmental needs. The result is our electric rates are 29 percent below the national average, which is a driver of economic development, and OGE is among industry leaders in emissions reduction performance.

********************

ENGIE Resources today announced the acquisition of Plymouth Rock Energy based in Woodmere, NY. The transaction, which has received approval from the Federal Energy Regulatory Commission and became effective December 19, 2018, will enable ENGIE Resources to expand its natural gas and electricity presence in seven states and by more than 20,000 customers.

The combined organization expects to benefit from complementary products, geographies, and systems in addition to shared information technology and billing and service economies.

********************

The interstate gas pipeline network is getting ready for the long Christmas break by posting a number of critical notices to shippers and customers.  Let’s take a look:

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, December 24, 2018, to all parties, with the exception of those Operational Balancing Agreements required by FERC regulations, on the AGT system.

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

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

This OFO will remain in effect until further notice.

Columbia Gulf Transmission:

Effective December 20, 2018 for the ID1 cycle, the Kinder Morgan La. interconnect, Meter 4206 is now designated as bidirectional and available for delivery nominations on Columbia Gulf Transmission, LLC (CGT).  This meter is located in Evangeline Parish, LA on CGT’s Mainline.  

Dominion Energy Questar Pipeline

Dominion Energy Questar Pipeline’s fuel reimbursement rate is changed for January 1,2019 from 1.87% to 1.57% pending FERC approval by the end of December. If there are any changes to the rate, the approved rate will be reposted.

East Tennessee Natural Gas:

Line 3100 Outage Update

Enbridge is working with PHMSA towards a timely in-service of East Tennessee Natural Gas’ (ETNG) 22-inch natural gas pipeline impacted by the incident that occurred in Pleasant Shade, Tennessee, on December 15, 2018.

Safety is a fundamental principle in everything we do and we are ensuring all construction and restoration operations are completed safely.  We continue to refine our return to service plan, and currently do not have an estimated time of restoration. 

Enbridge is committed to bringing the affected section of its East Tennessee Natural Gas system back to operation in a safe manner.  We will provide further updates as future milestones are achieved or as circumstances warrant.

El Paso Natural Gas: 

Pipeline Conditions – Weekend Linepack Concerns 

Currently EPNG linepack is within acceptable limits going into the holiday weekend. However, EPNG is concerned that the forecasted milder weather across our service area could result in a high linepack situation. 

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

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

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

Washington Ranch is on maximum injection. 

Payback to the system, such as Make-Up Receipt (MR) transactions, may be limited or denied due to operational concerns related to the potential for a high linepack condition. 

Enable Gas Transmission:

REVISED PLND BYARS LAKE MAIN

New Information Posted December 19th, 2018

This Operational Alert is being issued pursuant to Section 20, GT&C, of EGT’s Tariff to notify shippers of planned maintenance at EGT s Byars Lake Compressor Station.

Effective February 6, 2019, at 9:00 a.m. and continuing through February 7, 2019 (previously January 9 through 10), EGT will conduct planned maintenance on its Byars Lake Compressor Station, located in McClain County, Oklahoma and in EGTs West 2 Pooling Area.  During this maintenance, capacity through EGT’s Allen Compressor Station will be limited to approximately 780,000 Dth/d; point operators will experience higher pressure.

Based on current nominations, EGT expects impacts to its services, including potential impacts to firm service.  During the planned maintenance, shippers whose receipts are in the West 1 and West 2 pooling areas West of the Allen Compressor Station should nominate point to point in order to maintain the highest priority level of service.

Gulf South Pipeline:

Olla (Louisiana) Compressor Station Maintenance – Update

Effective date:  December 20, 2018               End Date:  December 28, 2018

For the Marksville Deliveries Scheduling Group, capacity could be impacted by as much as 100,000 dth/d for the duration of the maintenance.

Northern Natural Gas:

In an effort to provide timely and useful information that may impact customers’ decisions regarding nominated volumes, and to assist shippers in scheduling their transportation and storage services, Northern is providing advance notice of the Carlton Sourcing Obligation, System Underrun Limitation (SUL), and System Overrun Limitation (SOL) for the holiday weekend.

Based on temperatures that are currently forecast for the Market Area throughout the holiday weekend, the following system conditions will be in effect to ensure adequate line pack and delivery pressures.

The Carlton Sourcing Obligation will be as follows:

Gas Day Saturday, December 22, 2018, will be 0%

Gas Day Sunday, December 23, 2018, will be 0%

Gas Day Monday, December 24, 2018, will be 0%

Gas Day Tuesday, December 25, 2018, will be 0%

Gas Day Wednesday, December 26, 2018, will be 0% 

SUL and SOL status for both the Market and Field Areas will be as follows:  No SUL or SOL 

Holiday Weekend Temperatures Projected to be Warmer-Than-Normal

The likelihood of storage injection allocations is at a higher probability for the extended holiday weekend due to the forecast of warmer than normal temperatures. These conditions could lead to the allocation of interruptible storage injections, including firm deferred delivery overrun injections.

Although Northern does not anticipate calling an SUL, Northern may be required to allocate overperforming receipt points and/or underperforming delivery points located in the Permian basin to actual flowing volumes during an intraday nomination cycle in order to maintain adequate supply/market balance. As performance improves at these receipt and delivery points, allocations would be lifted.

Northwest Pipeline:

Effective December 21-23, 2018, Jackson Prairie will be undergoing maintenance. Nominations that net to an injection or withdrawal of 50,000 Dth/d will be accepted. Northwest requests that customers stay on rate to avoid the issuance of an Entitlement.

Northwest will schedule up to 10,000 Dth at $0.10 for both Park and Loan at JP for December 21-23. 

Northwest is NOT allowing interruptible in or out of JP December 21-23.

Northwest is asking Shippers to voluntarily reduce nomination through the Rangely compressor station to avoid the issuance of an OFO over the holidays. Operational capacity is 370,000 Dth/d. If nominations exceed 370,000 Dth/d Northwest could issue an OFO.

Northwest encourages you to continue scheduling your supply so that sufficient gas is being delivered to Northwest to cover your market.

Northwest Pipeline reserves the right to cut secondary gas to protect the operational integrity of its pipeline. This includes cutting secondary gas at any compressor in a constrained corridor; moving balancing gas to and from Clay Basin and Jackson Prairie; or to minimize OFOs for primary irm shippers.

PG&E – California Gas Transmission:

Due to the completion of maintenance on Line 300 A/B, pipeline inventory limits will be restored to the following ranges starting on today’s gas day, December  20, 2018:

Total System Demand above 2,800 MMcf will change back to 4,350-4,000 MMcf from 4,200-3,850 MMcf

Total System Demand at 2,800 MMcf or below will change back to 4,300-3,900 MMcf from 4,150-3,750 MMcf.

Southern Star Central Pipeline:

Line Segment 130 Force Majeure (UPDATE #13):

Southern Star Central Gas Pipeline (Southern Star) posted a Force Majeure Update on Line Segment 130 Tuesday, June 19, 2018. Southern Star continues working to fully restore service for Line Segment 130.

Additional work has been completed, Effective TIM Cycle Gas Day December 20, 2018, and Southern Star will increase capacity at the Kansas Hugoton Receipt constraint to 383,000 Dth/d.

Texas Eastern Transmission:

TE Imbalance Notice – UPDATE

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 and M2-24 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 and M2-24 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 Zone M1-30, M2-30 and M3 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, effective immediately, the previously posted imbalance notice is no longer in effect.

This notice will remain in effect until further notice.

Trailblazer Pipeline:

TRAILBLAZER MECHANICAL ISSUE–COMPRESSOR STATION 603

Trailblazer Pipeline Company LLC (“Trailblazer”) has recently identified a mechanical issue with one of the two compressor units at Compressor Station 603. The unit is currently unavailable and is not expected to be available until early April 2019.  At this time, secondary firm quantities, as well as ITS/AOR are at risk of not being scheduled.

Trailblazer will post updates as additional information becomes available.

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).

Beginning:  Friday, December 21, 2018 and until further notice

OFO Areas:  Zones 4, 5, and 6

Tolerance %:  10% for gas Due from Shippers or Due to Shippers

********************

The National Weather Service has posted its January, 2019 temperature forecast.  The picture shows average to slightly colder than average temperatures across the central and eastern portions of the United States.  The Rockies and West Coast will again see warmer than average weather.

Have a very MERRY CHRISTMAS and enjoy the holiday season!   Please tell a friend in the natural gas transportation business about GasNewsOnline.com!   Subscribe to our FREE audio podcasts on iTunes.