While the major gas distributors in the state of New York are close to meeting their Nov. 1 storage inventory targets despite hurricane curtailments, the New York State Public Service Commission (NY PSC) Thursday said it was concerned about the preparedness and reliability of one smaller investor-owned utility, Corning Natural Gas Corp. The commission took the “extraordinary actions” of calling on other gas companies in the state to provide supply to Corning on a mutual-aid assistance basis, and ordered Corning to show cause why a temporary operator should not be appointed for the utility.
Hurricane
Articles from Hurricane
Futures Support Holds at $12.70, But for How Long?
With forecasters continuing to call for Hurricane Wilma to pass up Gulf of Mexico infrastructure and hit Florida head-on instead, natural gas futures traders were freed up on Friday to explore support levels down around $12.70. After bouncing off $12.68 in the morning, November natural gas ended up settling at $12.872, down 10.5 cents on the day and 34.7 cents lower than the previous Friday’s close.
Manufacturers Sound Off on Natural Gas Prices; Support More Drilling
Citing harsh economic impacts on the national economy from the post-hurricane run up of natural gas prices, the National Association of Manufacturers (NAM) Thursday sounded the call for “a second national energy bill” from Congress that would open up parts of the outer continental shelf to drilling. NAM’s President John Engler, the former governor of Michigan, said the manufacturers support a bill from Rep. Richard Pombo (R-CA) to lift the drilling restrictions.
Transportation Notes
In completing an assessment of Hurricane Rita-related damage to its 12-inch lateral from South Marsh Island Block 17/18 through Eugene Island Block 115, ANR said it identified a leak at Eugene Island Block 133. ANR declared a force majeure event in the area Friday and said until further notice, receipt locations on that line and any connected laterals will not be available for nominations. In an update Monday on repairs to offshore and onshore facilities in its Southeast Gathering Area (SEGA), ANR said effective immediately it was increasing capacity through its Grand Chenier, LA facilities to 250 MMcf/d for the SE 3 A (Grand Chen)-CFTP location until further notice. ANR also said it returned to service the following offshore pipelines and interconnects that have been inspected and approved: the 30-inch West Cameron 167 line to Grand Chenier (although at this time no liquids will be accepted at West Cameron 167); and the 16-inch Cameron Meadows line to Lake Arthur, but no interconnections have been cleared for flow on this line. ANR continues to accept nominations for receipt and delivery points located downstream of the Lake Arthur Compressor Station.
Transportation Notes
ANR said it completed its Hurricane Rita related damage assessment of its West Cameron 167-to-Grand Chenier pipeline segment and related facilities. Due to damages ANR is declaring a force majeure event in this area of its system. ANR continues not to accept any nominations through Grand Chenier. It is pursuing temporary solutions to provide partial service of these facilities in the very near future. ANR said it experienced close to a 66% loss in deliverability on its Gulf system but because it sources significant supplies from the Mid-Continent and Canadian basins it has been able to maintain market deliveries. As a result of damage to its system, ANR has to replace subsea pipe and connections in the South Marsh Island 108 area and it has to repair the measurement and a separation and dehydration plant in the Grand Chenier area. It expects to restore 100% of its throughput by December.
Sabine Lifts Force Majeure on Various Interconnects; Nymex Follows Suit
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).
Ohio Lawmaker Pushes for Drilling Under Lake Erie
Skyrocketing energy prices combined with the hurricane devastation in the Gulf of Mexico are just the spurs needed for the state of Ohio to take another look at the possibility of drilling for natural gas under Lake Erie and on state-owned lands as well, according to an Ohio legislator.
Survey: Top CEOs See Negative Fallout from Katrina Lasting Up to a Year
More than 60% of the CEOs of leading U.S. corporations report that Hurricane Katrina will have a negative impact on their businesses, with many expecting the fallout to last up to a year, according to a post-Katrina quarterly survey of 97 CEOs that was conducted by the Business Roundtable.
NGI The Weekly Gas Market Report
EIA’s Caruso Says Customers to Feel ‘Economic Pain’ of Gas Prices This Winter
Natural gas customers nationwide are going to suffer the “economic pain” of high prices and tight supply this winter in the wake of Hurricane Katrina, the head of the Energy Information Administration told a House subcommittee last Wednesday.
EIA’s Caruso Says Gas Customers to Feel ‘Economic Pain’ of Gas Prices This Winter
Natural gas customers nationwide are going to suffer the “economic pain” of high prices and tight supply this winter in the wake of Hurricane Katrina, the head of the Energy Information Administration told a House subcommittee Wednesday.