Hurricane

The National Hurricane Center (NHC) slightly upgraded chances of a tropical wave heading toward the Gulf of Mexico becoming the season’s first named tropical storm, and peak temperature forecasts in the 80s and 90s remained in place for most regions. But even with the additional supportive input of the previous day’s 4.8-cent rebound by July futures, cash prices were a little softer at a small majority of locations Thursday.

After failing to key off Tuesday’s kick-off of the 2010 Atlantic hurricane season, natural gas bulls grabbed hold of Wednesday to test out higher prices. The July contract put in a high of $4.440 before closing out the regular session at $4.424, up 17.6 cents from Tuesday’s finish.

Hurricane restoration efforts in the Gulf of Mexico (GOM) have lifted Chevron Corp.’s natural gas and oil production from late 2008, but lower commodity prices likely will send profits “sharply lower” in 1Q2009, the company reported in an interim earnings update.

More than three months after Hurricane Ike severed a natural gas pipeline that was part of the company’s High Island Offshore System (HIOS), Enterprise Products Partners LP said repairs have been completed and the company has been given permission to resume full service on HIOS. The 42-inch diameter segment of the HIOS system — which transports gas from fields in the western Gulf of Mexico — was severed approximately 130 feet under water during Ike in September. Since then, gas volumes into the system have been limited to certain receipt points upstream of the break and required third-party pipeline systems for delivery to onshore facilities. Enterprise said federal regulators, after approving Enterprise’s inspection and start-up procedures, authorized the partnership to resume full service. The pipeline has the capacity to transport up to 1.8 Bcf/d. HIOS, which is owned by an affiliate of Enterprise, consists of a 291-mile pipeline system that transports gas from fields in the Galveston, Garden Banks, West Cameron, High Island and East Breaks areas of the Gulf of Mexico to third-party pipeline systems. HIOS also includes eight pipeline junction and service platforms.

More than three months after Hurricane Ike severed a natural gas pipeline that was part of the company’s High Island Offshore System (HIOS), Enterprise Products Partners LP said Tuesday repairs have been completed and the company has been given permission to resume full service on HIOS.

Despite the lingering effects of hurricane damage to its Discovery offshore gathering system in the Gulf of Mexico and an ongoing integrity project at its Douglas pipeline in Wyoming, DCP Midstream Partners LP has no plans to lower its payout, according to CEO Mark Borer.

Despite the lingering effects of hurricane damage to its Discovery offshore gathering system in the Gulf of Mexico and an ongoing integrity project at its Douglas pipeline in Wyoming, DCP Midstream Partners LP has no plans to lower its payout, according to CEO Mark Borer.

CenterPoint said it has resolved a Line O failure and shippers are no longer under operational alert No. 697.

Tennessee declared a force majeure Tuesday evening for the 527A-1300 and 527A-1800 lines as a result of damage from Hurricane Ike. The 527A-1300 Line is a 15-mile, 12-inch diameter lateral originating at South Pass 49A offshore southeast Louisiana and terminating with a connection to the Tennessee-owned South Pass 55 platform. The 527A-1800 Line is an 8-inch diameter lateral about 0.1 mile long originating at South Pass 52 and terminating with a connection to the 527A-1300 Line. The South Pass 49 A and South Pass 52 meters were required to shut in until further notice.