After being offline since Sept. 22 due to storm damage and flooding from Hurricane Rita, Sabine Pipe Line LLC said it has lifted the force majeure for various interconnects on its system (see Daily GPI, Sept. 27). As a result, the New York Mercantile Exchange (Nymex) said Tuesday it is lifting the force majeure condition for both September and October 2005 natural gas futures contract delivery obligations, effective for gas day Oct. 5 (see Daily GPI, Sept. 28).

As of 9 a.m. Tuesday, the force majeure was lifted at Sabine’s following interconnects:

Sabine said shippers wishing to nominate from these points to tender nominations at their earliest convenience. The company added that nominations for receipts from Columbia Gulf to Sabine Pipe Line may be confirmed and scheduled to the extent that the volumes are available for displacement.

Sabine also reported that due to the unavailability of compression at the Henry Hub complex, nominations for receipts and deliveries will be accepted only to the extent that gas can be received and delivered without additional compression.

“Conditions of force majeure continue in effect for all remaining points until further notice,” Sabine said. “Repairs have been completed at the Port Neches [TX] compressor station and the compressor is ready for service.”

In lifting its force majeure, Nymex urged all participants who have outstanding obligations for September and October delivery months to commence nomination procedures in conformance with prescribed practices of Sabine, Gulf South and Columbia Gulf, noting that any remaining September and October natural gas obligations should commence and complete ratable delivery in the calendar month of October 2005.

Nymex said the timing of payment as it relates to the September deliveries will be extended to those consistent with October delivery due to the extension of the delivery period. Timing of payment for October deliveries will be consistent with standard contract requirements. The exchange also noted that parties have available now, as always, the ability to mutually agree to execute an alternative delivery procedure pursuant to Nymex rule 220.17(A) for the September and October 2005 delivery obligations.

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