Necessary

Northern Border Partners LP last Tuesday said it has finalized the necessary contractual commitment to proceed with the Eastern Extension Project of its Midwestern Gas Transmission (MGT) pipeline, which would extend the potential for the system to deliver Chicago-sourced natural gas to Southeast and Mid-Atlantic markets.

Northern Border Partners LP on Tuesday said it has finalized the necessary contractual commitment to proceed with the Eastern Extension Project of its Midwestern Gas Transmission (MGT) pipeline, which would extend the potential for the system to deliver Chicago-sourced natural gas to Southeast and Mid-Atlantic markets.

BP plc remained atop the leader board for physical natural gas sales in North America in the first quarter, with 24.5 Bcf/d in gas sales, a 22% hike year-over-year. Sempra Energy retained second place, gaining 1% in gas sales over 1Q2003.

El Paso said the necessary replacement parts for repairing mechanical damage to Flagstaff (AZ) Station’s Unit #1 (see Daily GPI, April 30) will not be available until mid-June, and thus it declared the outage a force majeure event. The incremental reduction of North Mainline capacity due to the Flagstaff outage is 100 MMcf/d, and other North Mainline maintenance previously scheduled during May is being reassessed in light of the Flagstaff situation. Previously posted capacity reductions will be revised as soon as possible. El Paso also said the Alamo Lake (AZ) Station’s #2 turbine was started Thursday but experienced a mechanical failure and must be disassembled to determine the extent of damage. Capacity of the Havasu Crossover was returned to 570 MMcf/d Friday until further notice.

Flagstaff (AZ) Station’s #1 compressor has suffered mechanical damage, making the station inoperable until further notice because the necessary replacement parts have not been located yet, El Paso said. Reductions of North Mainline capacity due to the Flagstaff outage coupled with other maintenance that is ongoing or planned through May 14 will fluctuate between 125 MMcf/d and 215 MMcf/d. See the bulletin board for details.

Reiterating its belief that liquefied natural gas (LNG) imports will be necessary to augment dwindling domestic supply, Energy Security Analysis Inc. (ESAI) added that it believes that imported LNG will “radically change” the U.S. and world gas markets, pushing domestic gas prices downward.

After warning shippers a day earlier that one might become necessary, Florida Gas Transmission issued an Overage Alert Day notice Wednesday due to near-freezing weather moving into Florida. The notice had a 15% tolerance for negative daily imbalances.

Gaining the final regulatory approval necessary, Piedmont Natural Gas said the Securities and Exchange Commission (SEC) approved its requested exemption under the Public Utility Holding Company Act in connection with the pending purchase of North Carolina Natural Gas Corp. (NCNG) and 50% of Eastern North Carolina Natural Gas (ENCNG) from Progress Energy, Inc.

TransCanada Corp. said that the plan of arrangement to establish it as the parent company of TransCanada PipeLines Ltd. has received all necessary regulatory approvals and certificates. As a result, the agreement went into effect Thursday.