Eesws

Transco reported sending a force majeure notice to customers under the ESS and EESWS rate schedules. The pipeline explained that on Dec. 26 it detected a large, unexpected pressure drop in one of seven caverns at Eminence Storage Field in Covington County, MS. Eminence is the facility that supports the service for affected customers. Two days later Transco determined that gas was leaking from Cavern 3 and since then has reduced the cavern’s pressure by venting and flaring gas. On Jan. 4, Transco continued, based on a determination that the reduced pressure in Cavern 3 created a risk to the salt pillars separating it from adjacent Caverns 1 and 2, the pipeline began to reduce the pressures of Caverns 1 and 2 by withdrawing gas from them. During those operations, on Jan. 15 Transco discovered gas escaping from the ground around the wellhead for Cavern 1. It continued to safely withdraw gas from Caverns 1 and 2, and by Jan. 24 their pressure was low enough to avoid potential effects on Cavern 3. However, due to the leak at Cavern 3 and the damage to the well at Cavern 1, both are out of service, and that prompted last Thursday’s force majeure declaration, Transco said. Determining that neither cavern can be returned to service, it plans to file an application with FERC seeking to abandon them. Transco estimates that due to the force majeure event, Eminence is capable of providing about 70% of contracted capacity and 92% of contracted deliverability. The field’s daily injection capability is not affected.