Monday, May 6, 2019

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Dominion Energy Questar Pipeline:

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

Enable Gas Transmission:

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

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

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

Also on Enable Gas Transmission:

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

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

Kern River Gas Transmission:

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

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

Natural Gas Pipeline Company of America (NGPL)

STORAGE – Changes/Restrictions

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

Texas Gas Transmission:

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

Transwestern Pipeline:

East Mainline Receipts – Capacity reduction

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

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

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

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

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

Monday, April 1, 2019

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

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

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

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

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

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

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

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

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

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

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

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

ANR Pipeline:

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

Brownsville Southbound (LOC #1260569):

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

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

Colorado Interstate Gas (CIG):

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

Dominion Energy Transmission:

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

Dominion Energy Questar Pipeline:

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

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

Gulf South Pipeline:

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

Expansion Area 19 Delivery Scheduling Group

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

Southern Natural Gas:

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

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

Tennessee Gas Pipeline:

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

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

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

Also from Tennessee Gas:

TGP SUMMER MAINTENANCE/ WEBEX UPDATE 4-16-19

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

Texas Eastern Transmission:

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

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

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

Based on progress made to date, TE projects that:

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

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

Transcontinental Gas Pipe Line Company (Transco)

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

Transwestern Pipeline:

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

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

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

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

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

Edition 27 – Thursday, January 3, 2019

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

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

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

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

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

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

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

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

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

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

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

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

Algonquin Gas Transmission:

AGT Operational Flow Order

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

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

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

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

Dominion Energy Questar Pipeline

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

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

El Paso Natural Gas:

WARNING OF STRAINED OPERATING CONDITION (SOC) – DRAFT

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

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

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

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

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

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

Northern Border Pipeline:

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

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

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

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

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

Southern Natural Gas:

January 2, 2019

To All Southern Natural Gas Company Shippers

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

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

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

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

Transwestern Pipeline:

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

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

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

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

Any such UPR cuts will be handled by separate notices.

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

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

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

Thanks for joining us at GasNewsOnline.com.  Please let your friends in the natural gas transportation business know about us.  Our information and services, as always, are FREE!

Edition 26 – Thursday, December 27, 2018

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

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

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

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

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

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

Algonquin Gas Transmission:

AGT Operational Flow Order


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

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

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

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

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

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

This OFO will remain in effect until further notice.

East Tennessee Natural Gas:

Line 3100 Outage Update (5)

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

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

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

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

El Paso Natural Gas:

Pipeline Conditions – Increasing Linepack in Advance of Weather

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

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

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

Underperformance caps will be placed on non-performing supplies.

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

Kinder Morgan Louisiana Pipeline (KMLP):

FORCE MAJEURE – COMPRESSOR STATION 760 – LIFTED

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

Mississippi River Transmission (MRT):

MAIN LINE UTILIZATION SPW

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

 During this time:

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

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

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

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

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

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

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

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

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

Natural Gas Pipeline Company of America (NGPL):

SEGMENT 11 – CS 104 – FORCE MAJEURE

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

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

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

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

Southern Star Central Gas Pipeline:

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

Transwestern Pipeline Company:

12/26/18

Pipeline Conditions – Low Line Pack – Cold Weather

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

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

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

Any such UPR cuts will be handled by separate notices.

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

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

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

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