Curtailing

Encana Corp. is curtailing North American natural gas supply by up to 600 MMcf/d this year through cuts to capital investments and by shutting in production, the Calgary producer said Friday. Actions were under way to “slow down or curtail” output from existing wells equal to 250 MMcf/d, said CEO Randy Eresman.

NSTAR Gas Co. has called on FERC to enjoin Algonquin Gas Transmission LLC from curtailing firm transportation service to its customers in the cities of Somerville and Cambridge, MA.

NSTAR Gas Co. has called on FERC to enjoin Algonquin Gas Transmission LLC from curtailing firm transportation service to its customers in the cities of Somerville and Cambridge, MA.

With gas prices plummeting over the last two weeks and storage space severely limited, it may not be long before producers start curtailing production. Analysts at Raymond James & Associates said last week if recent higher-than-average storage injections continue, “then U.S. producers would need to shut in about 10% of their production to rebalance the system over the next two months.”

EOG Resources has started to curtail natural gas production in the Gulf Coast region of Texas and Louisiana because of low gas prices. The company said it is reducing compression at some of its fields to decrease wellhead flows by up to 75 MMcf/d over the next couple months. It plans to reevaluate the market situation this winter before continuing the curtailments into 2002.

EOG Resources has started to curtail natural gas production in the Gulf Coast region of Texas and Louisiana because of low gas prices. The company said it is reducing compression at some of its fields to decrease wellhead flows by up to 75 MMcf/d over the next couple months. It plans to reevaluate the market situation this winter before continuing the curtailments into 2002.

The failure of a 7,000-horsepower motor has crippledTranswestern’s Bloomfield Compressor Station on the San JuanLateral, curtailing an estimated 100,000 MMbtu/d at 20 points. Thepipeline expects motor repairs to last until July 7.

Transwestern expects to complete maintenance Thursday on itsTopock Lateral that has been curtailing about 125 MMcf/d ofdeliveries to the PG&E interconnect at Topock, AZ, since June1. However, another phase of work on the lateral will begin Friday,reducing to zero deliveries at Topock to Mojave, SouthernCalifornia Gas and PG&E through June 30. About 400 MMcf/d willbe impacted by the second phase.

NOVA said a leak discovered in a flange assembly early Thursdayon its North Lateral in eastern Alberta is curtailing up to 500MMcf/d of upstream production. The line usually flows 1.6-1.7Bcf/d, a spokesman said. He estimated the leak will require 24-48hours of repair time, but no schedule has been set.