Southern Natural Gas has restored service on all facilities that were forced to shut down because of damage last September from Hurricane Ivan. Over the course of Monday and Tuesday it announced the completion of repairs to the 12-inch Main Pass 144 lateral, the 18-inch Main Pass 306 lateral and the 24-inch Main Pass 289-298 line. It released the following receipt points from a force majeure and approved them for flow: Main Pass 133 C, Main Pass 123-Pogo, Main Pass 144 Chevron, Main Pass 306, Main Pass 288 Conoco, Main Pass 289-Main Pass 290 Shell and Main Pass 289 VKGC. An affiliated pipeline, Tennessee, still has about 14 MMcf/d in Ivan-related outages at two meters in the South Pass area, an El Paso Corp. spokesman said. Those meters are expected to be back online by the end of September.
Damage
Articles from Damage
Empress Processing Facilities Return to Service
Inter Pipeline Fund said its Empress II processing plant in Alberta is now fully operational after being down for repairs due to damage caused by a thunderstorm on the evening of June 23. Empress I is the only straddle plant out of six in the area that remains out of service, a BP Canada spokeswoman said. BP operates several of the facilities for Inter Pipeline Fund and others.
Industry Briefs
National Fuel Gas said its subsidiary, Horizon Energy Development BV, has agreed to sell its majority interest (85%) in United Energy for US$116.3 million to Czech Energy Holding, a company owned by Patrik Tkac, founder and partner of the J&T Group. United Energy is a district heating and electric generation business in the Bohemia region of the Czech Republic. The company expects the transaction to be completed before the end of its fiscal year. “We remain pleased with what we’ve accomplished in the Czech Republic, but given the strong value of the Czech currency and the number of unsolicited offers that we were receiving for our Czech assets, this appeared to be a good time to bring a successful end to our activities there,” said National Fuel CEO Philip C. Ackerman. National Fuel began its operations in the Czech Republic in 1996, when it first acquired a small district heating company and a project development company. After a number of additional acquisitions and mergers, United Energy, based in the city of Komorany, grew to be one of the largest independent producers of heat and electricity in the Czech Republic. National Fuel expects to realize a net nonrecurring gain of US$25 million, or $0.30 per diluted share, from the sale.
Duke Energy’s Moss Bluff Storage Facility to Return to Full Service Soon
The Duke Energy natural gas storage cavern in Liberty County, TX, which sustained the most damage in an explosion and fire last August, is expected to return to service within a couple of weeks, a spokesman for Duke Energy Gas Transmission (DEGT) said Thursday.
Duke Energy’s Moss Bluff Storage Facility to Return to Full Service Soon
The Duke Energy natural gas storage cavern in Liberty County, TX, which sustained the most damage in an explosion and fire last August, is expected to return to service within a couple of weeks, a spokesman for Duke Energy Gas Transmission (DEGT) said Thursday.
Panelists Support Finding that Funds Have Not Caused Increased Volatility
The increase in natural gas futures market volatility over the last few years has coincided with a similar rise in hedge fund market participation, but hedge funds have been unfairly blamed for being the cause the market’s woes, according to several panelists speaking at GasMart in New Orleans on Wednesday. Their conclusions generally echoed those of the New York Mercantile Exchange on the topic (see Daily GPI, March 9).
Transportation Notes
Sonat reported finding additional Hurricane Ivan-caused damage on the Main Pass 311 tap assembly that had not detected during the initial post-Ivan dive investigations. In order to make repairs, the Main Pass 311-A meter has been isolated and the pipeline declared a force majeure at the point. Sonat is not accepting nominations at Main Pass 311-A until further notice. Based on its best information available, Sonat expects to complete repairs and return the point to service sometime Saturday. However, it noted there are many variables when making repairs offshore, and this schedule could change.
Nevada Consumer Advocate Leaves Office with Lawsuit Against Reliant
Before he was officially replaced Tuesday by one of the three members from the state public utilities commission, Nevada’s lame duck Consumer Advocate Tim Hay fired a legal broadside against Reliant Energy and some of its affiliates, alleging they conspired with now bankrupt Enron Corp. to drive up wholesale power and natural gas costs in Nevada and California during the infamous 2000-2001 energy market meltdown.
EOG Says Offshore Gas Production Unaffected by Rig Accident
An unmanned natural gas platform owned by EOG Resources located off the coast of Galveston sustained heavy damage Friday after being struck by a freighter, according to the U.S. Coast Guard. EOG on Friday said the platform has been shut in for about a month since Hurricane Ivan and said its lines were secured.
EOG Says Offshore Gas Production Unaffected by Rig Accident
An unmanned natural gas platform owned by EOG Resources located off the coast of Galveston sustained heavy damage Friday after being struck by a freighter, according to the U.S. Coast Guard. EOG on Friday said the platform has been shut in for about a month since Hurricane Ivan and said its lines were secured.
