Despite Ivan, Gas Prices Plummet on Weak Demand, 99 Bcf Injection

Florida Gas Transmission (FGT) reported that its compressor station 12 in Munson, FL, was damaged by Ivan’s high winds Thursday morning and as a result the pipeline will have about 500,000 Dth/d less firm transportation capacity into the market area available on Friday. However, the news came too late for a cash market reaction. Spot prices on FGT were the biggest decliners Thursday in a surprisingly weak marketplace nationwide.

September 17, 2004

Transportation Notes

Florida Gas Transmission (FGT) said compressor station 12 in Munson, FL, was damaged by high winds. While staff is en route to the station to assist with repairs, damage to roads and bridges have slowed down travel time. For Friday’s gas day, FGT will be scheduling volumes up to 1.5 Bcf/d into the market area. Scheduled volumes into the market area have been about 2 Bcf/d for the past couple of days. If the damage is repaired overnight, FGT will determine if scheduled volumes can be brought up above the 1.5 Bcf/d. The pipeline had an overage alert day on Thursday with a 2% tolerance. Demand on the system continues to be high, while supply remains tight. FGT continues to experienced further decline in receipt gas in Zones 2 and 3. Total system linepack is very low.

September 17, 2004