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Transportation Notes

Southern California Gas issued a high-linepack OFO for Friday, saying it will assess Buy-Back charges to customers who deliver into its system more than 110% of their actual gas usage.

Southern Natural Gas said a Type 6 OFO is highly likely for long imbalances Saturday and Sunday. Southern also announced plans to file with the Federal Energy Regulatory Commission a petition requesting a temporary waiver of certain tariff provisions. If approved, the waiver would allow shippers with FT rights at receipt points that are out of service as a result of Hurricanes Katrina and Rita to request to shift on a temporary basis up to their firm Maximum Daily Receipt Quantity (MDRQ) to another receipt point on the system where capacity is available. Southern will ask for FERC authorization to hold an open season to allow firm shippers to request temporary receipt point shifts effective Dec. 1. It proposes the waiver to be in effect between Dec. 1 and June 30, 2006. Any MDRQ that is shifted under this waiver will automatically shift back to the shipper's previous firm receipt point on the earlier of the first day of the month after the original receipt point resumes operations or July 1, 2006.

Northwest reported completion of excavation work to relieve stress on the pipe due to a recent landslide near Centralia, WA, and that it was returning the affected section to service for Thursday's gas day, two days earlier than previously expected (see Daily GPI, Nov. 1). Northwest thanked its customers and upstream pipeline Westcoast for their willingness to rearrange supplies and for providing operational assistance during the outage. In an effort to assist customers who rearranged supplies to respond to this outage by purchasing domestic gas through Friday, Northwest said it will attempt to overschedule the Kemmerer (WY) Compressor Station for the gas days of Thursday and Friday. However, it asked customers to realign supplies to relieve the throughput pressure on Kemmerer as much as possible in order to maintain Northwest's storage balance in the Jackson Prairie facility to support winter operational needs.

Trans Quebec & Maritimes Pipeline (TQM) has informed TransCanada that transportation service on the TQM system may be interrupted due to repairs to TQM's Lachenaie Compressor Station Nov. 7-10 and to its East Hereford Compressor Station Nov. 16-18. TQM also has scheduled pipeline integrity work for Nov. 8. TransCanada does not expect FT service to be affected during these periods, but said there is a likelihood that discretionary deliveries to GMi EDA and East Hereford will not be fully authorized.

Transco said Thursday it has been informed by the operator of the Sabine Plant that the plant is expected to resume processing by no later than Nov. 15. Effective on the date that plant operations are resumed, Transco said, gas tendered to its system at the UTOS-Transco meter and the UTOS Enron TGT meter (also a Tennessee interconnect) will be required to meet Transco's gas merchantability requirements. "Unless sufficient quantities of natural gas are processed [at] the Sabine Plant, receipts at the UTOS interconnect and Tennessee interconnect will be restricted," according to a bulletin board posting.

Citing low volumes upstream of its Patterson (LA) Compressor Station, ANR has reduced the total delivery capacity between Patterson and the Eunice Compressor Station to 585,000 Dth/d through the end of November. ANR said it anticipates curtailment of IT nominations as a result.

El Paso said it had not expected maintenance on the Gallup Station's C turbine, which had been scheduled for Thursday (Nov. 3), to affect markets, but after processing Cycle 1 nominations, it appeared that sizeable cuts would result. Therefore, it postponed the work until Nov. 14-15. On the night of Nov. 14 the turbine will be taken offline for cooldown at midnight. The capacity of the San Juan Basin will be reduced by 100 MMcf/d for the Nov. 14 gas day, and by 250 MMcf/d for Cycles 1 and 2 Nov. 15 and by 80 MMcf/d for Cycles 3 and 4.

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