Transportation Notes

Dominion rescinded Wednesday OFOs #5 and #6 that were issued earlier this week, but said OFOs #3 and #4 (implemented last week) remain in effect. See the bulletin board for details.

Based on the high levels of gas scheduled north through the Kemmerer (WY) Station this month, Northwest warned customers Wednesday of a receiving party overrun entitlement and potential OFO. The pipeline said its Jackson Prairie storage account was approximately 1.7 Bcf on Feb. 6 but had dropped to about 1.1 Bcf by Tuesday of this week. "Northwest has lost approximately 600,000 [dekatherms] in less than two weeks due primarily to overscheduling Kemmerer" by an average of 42,000 Dth/d in the past 15 days, it continued. "At this rate, without drafting, Jackson Prairie could drop to the OFO threshold of 700,000 [dekatherms] in eight to nine days. We realize that the price spread between Sumas and the Rockies is currently very high. However, unless customers change their gas procurement practices and voluntarily buy more of their gas from Canadian sources, an OFO may be unavoidable. It is important to note that Northwest has run the portable [Kemmerer] compressors 100% of the time since the beginning of December. Portable compression boosts Kemmerer capacity to about 500,000 Dth[/d], accounting for fuel."

During inspections at Cornudas A Station, El Paso discovered damage to the Cornudas 2A turbine. The unit will remain down for repairs through Feb. 27. This outage, combined with previously scheduled work at Cornudas B Station, will reduce the capacity of the South Mainline by 90 MMcf/d Thursday and by 20 MMcf/d Friday through Feb. 27. Due to current low volumes being scheduled through the South Mainline, no impact on deliveries is expected.

TransCanada's BC System began a daily open season Tuesday for 19,046 GJ/d of capacity that will be available for a minimum term of one year commencing Nov. 1, 2003. The receipt point is the Alberta/British Columbia Border (A/BC) with delivery to Kingsgate, BC. The open season process will be active on the TransCanada web site between 10 a.m. and 3 p.m. Calgary time each business day until further notice. No deposits are required. For more information, call Kay Coad at (403) 920-5569.

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