Edition 43 – Thursday, February 28, 2019

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

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

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

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

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On Tuesday, Dominion Energy provided the following statement:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

The Transaction consists of the following actions:

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

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

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

ANR Pipeline:

Attention All ANR Shippers and Storage Customers

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

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

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

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

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

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

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

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

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

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

Colorado Interstate Gas (CIG):

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

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

Columbia Gas Transmission:

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

Columbia Gulf Transmission:

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

East Tennessee Natural Gas:

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

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

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

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

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

Gulf South Pipeline:

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

Expansion Receipts Upstream Tallulah Scheduling Group.

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

Mississippi River Transmission (MRT):

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

 During this time:

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

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

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

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

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

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

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

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

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

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

Northern Natural Gas:

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

Northwest Pipeline:

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

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

Panhandle Eastern Pipe Line:

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

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

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

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

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

Rover Pipeline:

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

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

Southern Star Central Gas Pipeline:

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

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

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

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

ISS withdrawals and PLS withdrawals will be unavailable

Incremental Loans will not be available

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

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

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

Operational flexibility will not be available during this time.

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

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

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

Trunkline Gas Company:

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

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

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

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

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

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

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

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

Edition 31 – Thursday, January 17, 2019

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

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

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

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

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

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

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

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

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

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

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

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

ANR Pipeline:

Attn: All ANR Market Area Shippers

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

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

Columbia Gas Transmission:

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

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

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

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

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

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

Applicable Storage Penalties:

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

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

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

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

East Tennessee Natural Gas:

ETNG Operational Flow Order – East of Boyds Creek

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

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

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

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

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

Enable Gas Transmission:

BALANCING OPERATIONAL ALERT

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

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

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

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

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

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

Florida Gas Transmission:

Overage Alert Day 25% Tolerance

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

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

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

Gulf Crossing Pipeline:

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

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

Imbalance Payback from Transportation Service Provider

Park Withdrawal

Loan

Interruptible

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

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

Gulf South Pipeline:

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

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

Imbalance Payback from Transportation Service Provider

Park Withdrawal

Loan

ISS and ISS-P Withdrawal

FSS-P Overrun Withdrawal

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

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

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

Mississippi River Transmission (MRT):

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

During this time:

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

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

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

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

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

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

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

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

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

Natural Gas Pipeline Company of America (NGPL):

OPERATIONAL FLOW ORDER ISSUED – MARKET DELIVERY ZONE 

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

DAILY 

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

HOURLY 

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

Hourly Rights for Firm Service – 120%

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

Timely/Evening Cycles

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

Intra-Day 1 Cycle

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

Intra-Day 2 Cycle

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

Intra-Day 3 Cycle

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

Hourly Rights for Interruptible Service – 105%

Includes Interruptible and AOR nominations, as well as POA tolerances

Timely/Evening Cycles

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

Intra-Day 1 Cycle

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

Intra-Day 2 Cycle

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

Intra-Day 3 Cycle

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

Limitation on Nominations in All Cycles for Firm and Interruptible Service

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

CHARGES FOR VIOLATIONS OF OFOs  

HOURLY

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

DAILY 

UNATHORIZED OVERRUN

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

BALANCING SERVICE CHARGES

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

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

Northern Natural Gas:

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

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

Northwest Pipeline:

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

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

Panhandle Eastern Pipe Line Corporation:

Weather Alert 

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

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

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

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

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

Southern Natural Gas:

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

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

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

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

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

Southern Star Central Gas Pipeline:

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

The following actions will be taken to preserve system integrity:

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

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

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

ISS withdrawals and PLS withdrawals will be unavailable.

Incremental Loans will not be available.

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

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

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

Operational flexibility will not be available during this time.

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

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

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

Tennessee Gas Pipeline:

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

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

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

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

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

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

Texas Gas Transmission:

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

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

Imbalance Payback from Transportation Service Provider

Park Withdrawal

Loan

ISS Withdrawal

FSS Overrun Withdrawal

Interruptible and out-of-path Firm Transportation

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

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

Transcontinental Gas Pipe Line Company:

Subject:Operational Flow Order – Imbalance

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

Effective:  Sunday, January 20, 2019 until further notice

OFO Areas:  Zones 4, 5, and 6

Delivery Tolerance %:  5%

Trunkline Gas Company:

Weather Alert 

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

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

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

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

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

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

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

Edition 15 – Thursday, November 8, 2018

Winter is sneaking up on us quickly with some parts of the US expected to receive their first freeze or snowfall of the season over the next several days.

Welcome back to GasNewsOnline.com!  We do the heavy lifting so that you may receive a summary of some of the important publicly-released energy and gas pipeline news of the week along with a forecast of temperatures over the next few weeks, too.  All for FREE!  Let’s get started with a look at this week’s gas storage report.

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The weekly natural gas storage survey released today from the U.S. Energy Information Administration showed an additional 65 Bcf of gas injected into storage last week (vs. 58 Bcf predicted by a survey of analysts).  The current volume of gas in storage remains about 16% below the five-year average.

Thursday’s NYMEX natural gas futures price for December closed down one cent to finish Thursday at about $3.54/MMBtu.

From the EIA’s “Natural Gas Weekly Update” publication dated today, November 8, 2018:

The natural gas plant liquids composite price at Mont Belvieu, Texas, fell by 41¢/MMBtu, averaging $7.54/MMBtu for the week ending November 7. The price of natural gasoline, ethane, and propane fell by 10%, 7%, and 4%, respectively. The price of butane and isobutane remained flat week over week.

According to Baker Hughes, for the week ending Tuesday, October 30, the natural gas rig count remained flat at 193.

From the EIA’s “Short Term Energy Outlook” dated November 6, 2018:

EIA forecasts that dry natural gas production will average 83.2 Bcf/d in 2018, up 8.5 Bcf/d from 2017.

Both the level and growth of natural gas production in 2018 would establish new records. EIA expects natural gas production will continue to rise in 2019 to an average of 89.6 Bcf/d.

Despite relatively low storage levels, the EIA expects strong growth in U.S. natural gas production to put downward pressure on gas prices in 2019.

EIA predicts Henry Hub (Louisiana) natural gas spot prices to average $2.98/million British thermal units (MMBtu) in 2019, down 4 cents from the 2018 average.

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In other energy news today…

Anadarko Petroleum Corporation today announced a transaction to sell substantially all of its remaining midstream assets for $4.015 billion to Western Gas Partners, LP (WES) with $2.0075 billion cash proceeds, and the balance to be paid in new Western Gas equity. Concurrently, WES announced it has entered into a merger agreement with Western Gas Equity Partners, LP which will result in a simplified midstream structure. The sale is expected to close in the first quarter of 2019, concurrently with the closing of the merger.

“The size of this asset sale, along with the clear benefits of the simplification transaction, highlights the tremendous value of Anadarko’s midstream business,” said Al Walker, Anadarko Chairman, President and CEO.

Under the terms of the asset sale transaction, WES will acquire substantially all of Anadarko’s remaining midstream assets, which are largely associated with Anadarko’s two premier U.S. onshore oil plays in the Delaware and DJ basins. The acquired assets include DBM Oil Services (100-percent interest), APC Water Holdings (100-percent interest), the Bone Spring Gas Plant (50-percent non-operated interest), and the MiVida Gas Plant (50-percent non-operated interest) in the Delaware Basin of West Texas. In the DJ Basin of northeast Colorado, WES will acquire Anadarko’s 100-percent interest in both the DJ Basin Oil System and the Wattenberg Plant. Additional Anadarko midstream assets to be acquired by WES include equity stakes in the Saddlehorn Pipeline (20-percent non-operated interest), the Panola Pipeline (15-percent non-operated interest), and the Wamsutter Pipeline (100-percent interest).

Under the terms of their merger transaction, WGP will acquire all of the outstanding publicly held common units of WES and substantially all of the WES common units owned by Anadarko in a unit-for-unit, tax-free exchange. WES will survive as a partnership with no publicly traded equity, owned 98 percent by WGP and 2 percent by Anadarko. WES will remain the borrower for all existing debt and future issuances and the owner of all operating assets and equity investments.

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It’s a busy start to the winter season on the natural gas pipeline grid.  Let’s check out the latest critical postings from several gas pipelines’ electronic bulletin boards:

ANR Pipeline:

Southwest Mainline Capacity Reduction (Updated 11/8/18)
This posting supersedes CN ID #8922

ANR continues its planned and unplanned compressor and pipeline maintenance at various compressor stations along its Southwest Mainline in Zones 5 and 6. Additionally, ANR will be performing pipeline maintenance in Zone 6.

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

120-MMcf/d (leaving 610-MMcf/d available) 11/8 – 11/12
85-MMcf/d (leaving 645-MMcf/d available) 11/13 – 11/19
20-MMcf/d (leaving 710-MMcf/d available) 11/20 – 1122
55-MMcf/d (leaving 675-MMcf/d available) 11/23 – 11/30

Since the last posting, ANR has made the following changes. The 120-MMcf/d impact is extended from 11/10 – 11/12. Future dates adjusted accordingly.

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.

 

Columbia Gas Transmission:

Pursuant to Section 15 of the General Terms and Conditions of Columbia Gas Transmission, LLC’s (TCO) FERC Gas Tariff, TCO is declaring a Force Majeure effective Evening Cycle for Gas Day Thursday, November 8, 2018 until further notice for volumes flowing through the Waynesburg North MA35 (WAYNESNO) Internal Constraint due to discovered pipeline anomalies on Line 1360 south of Ellwood City Compressor Station in Pennsylvania. 

Effective Evening Cycle for Gas Day Thursday, November 8, 2018, WAYNESNO will be set to a Total Capacity of 315,000 Dth.  Based on current scheduled volumes, the potential impact to firm service is 75,000 Dth/day.

 

Florida Gas Transmission:

FGT will be performing planned pipeline maintenance between FGT Compressor Station 9 and FGT Compressor Station 10. This maintenance is scheduled to begin on November 14, 2018 and to continue through end of gas day November 20, 2018. During this maintenance FGT will schedule up to 1,100,000 MMBtu/day through Station 10. During normal operations FGT schedules up to 1,300,000 MMBtu/day through Station 10.Potential Overage Alert Day

 

Gas Transmission Northwest (GTN):

Notice of Force Majeure (Posted 11/8/18):

This is to notify all contracted parties of Gas Transmission Northwest (“GTN”) that due to unforeseen and uncontrollable repairs at Stations 3 and 5, pursuant to Section 6.10 of GTN’s FERC Gas Tariff, GTN is issuing a Force Majeure event in effect for all natural gas transactions that Flow Past Kingsgate (Loc 3500), located in Boundary County, Idaho.

GTN anticipates that this restriction will result in the inability to deliver a portion of the Firm delivery volumes scheduled at Flow Past Kingsgate (Loc 3500). The Reservation Charge Crediting Mechanism of Section 5.1.3.9 shall apply to this outage.

GTN will reduce the capacity at Flow Past Kingsgate (Loc 3500) to 2,184-MMcf/d.

 

Natural Gas Pipeline Company of America (NGPL):

Natural has experienced horsepower issues at Compressor Station 168 (CS 168), located in Bailey County, Texas in Natural’s Permian Zone.  This is a Force Majeure event that requires Natural to temporarily reduce the maximum operating capacity northbound, thus limiting Natural’s throughput capacity through CS 168 during this restriction.

The scheduling constraint will be at CS 168; therefore, any gas received south of CS 168 for delivery north of CS 168 will be impacted for the duration of the restriction.  Additionally, transports associated with storage injections may be impacted.  The Permian Pool (PIN 25077) is located south (upstream) of the constraint.

As such, effective for gas day Friday, November 9, 2018, Timely Cycle, and continuing until further notice, Natural will schedule Primary Firm and Secondary in-path Firm transports to no less than 77% of contract MDQ through CS 168.  Actual nomination levels and changes in pipeline conditions could result in changes to the percentages scheduled (lower or higher) on subsequent gas days.  AOR/ITS and Secondary out-of-path Firm transports continue to not be available for the duration of this restriction.

Also – SEGMENT 22 – GULF COAST #2 (CS 302) – INSTALL LAUNCHER & RECEIVER – UPDATE #1

The project end date has been changed, as noted below.  This notice was last posted on October 18, 2018, entitled “NOVEMBER 2018 – SCHEDULED MAINTENANCE PROJECTS”. 

On gas day Wednesday, October 24, 2018, and continuing through gas day Tuesday, November 20, 2018, (previously Thursday, November 8, 2018), Natural will be performing pipeline maintenance to install pigging facilities on the Gulf Coast #2 mainline near Compressor Station 302, located in Montgomery County, Texas (Segment 22 of Natural’s South Texas Zone).  AOR/ITS and Secondary out-of-path Firm transports may not be available during this work.  Primary Firm and Secondary in-path Firm transports may also be at risk of not being fully scheduled.

 

Northern Border Pipeline:

Northern Border OFO Watch (Posted 11/08/18)

Due to low inventory levels and cumulative operational imbalance issues, Northern Border Pipeline is posting an OFO Watch for the following locations:

Stateline (DRN# 1251297)

Squaw Creek (DRN# 1113226)

Rawson (DRN# 1399965)

Hay Butte (DRN# 1367615)

Watford City (DRN# 109973)

Spring Creek (DRN #1251436)

Kildeer (DRN # 1402285)

Manning (DRN# 378214)

Glen Ullin (DRN# 43726)

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 November 13th, 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.

 

Panhandle Eastern Pipeline:

Based on current cold weather forecasts and ongoing pipeline maintenance, Panhandle is preparing for increased pipeline utilization and reduced operational flexibility. Effective Gas Day November 9, 2018, 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.

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

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 Un-park 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 current colder weather forecast in addition to the unplanned maintenance on Southern’s South system, we are notifying all Shippers will be subject to an OFO Type 3 Level 1 effective the start of the gas day, Saturday, November 10, 2018 until further notice.

OFO Type 3 Level 1: Daily Demand Exceeds Capacity
TARIFF SECTION 41.2
EFFECTIVE DATE: November 10, 2018
EFFECTIVE TIME of OFO: 9:00 AM (CCT)
PENALTY: $10.00/Dth

This is to notify all customers who are allocated gas at any delivery point in these segments 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) within the groups listed below exceed 105% of their daily entitlement at such delivery point.

 

Transcontinental Gas Pipe Line Company (Transco):

Subject: System Operating Conditions

Below normal temperatures and associated increased gas demand are currently forecasted for much of Transco’s market area late this week and into next week. 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 on a daily basis.

Specifically, shippers are encouraged not to create “due from” imbalances (short to the pipeline). In addition, shippers that currently have a “due to” (long to the pipeline) imbalance position are encouraged to not under-supply their market requirements in an effort to reduce their “due to” imbalance position.

Absent voluntary compliance, Transco may be required to take further action including, issuing an Imbalance or Scheduling Operational Flow Order (OFO). These OFOs may include Shipper(s) specific and Location(s) specific OFOs directed to parties that have imbalances which has or may, affect the operational integrity of the system.

 

Trunkline Gas Company:

South Texas System Pigging – Beginning Gas Day December 1, 2018, Trunkline Gas Company will undertake pigging operations on its South Texas Modified Transmission System. Expected duration of the run is 11 days.   Operators could experience higher daily line pressures and pressure fluctuations while the pigging operations are in progress.

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Based on all of the pipeline activities above, the temperatures are definitely heading downward quickly.  The updated National Weather Service temperature outlook for the period ending November 18 shows the eastern 2/3 of the country with below average readings, while the Rockies and west coast regions will continue to enjoy warmer-than-normal temperatures.

 

Go out and enjoy the fall temperatures!  Thanks for visiting us at GasNewsOnline.com.  Check out I-tunes as our Podcast should now be available if you would prefer to listen on your drive to or from work.  Please tell a friend!