Normal

Saying linepack on upstream pipelines had stabilized, Southwest Gas lifted Wednesday the Stage 1 OFO it had issued Monday and told transportation customers that the normal nominating and scheduling process was being resumed effective with Wednesday’s gas day. Despite the linepack improvement, Southwest said it encourages customers to ensure that actual takes match scheduled supplies.

The National Weather Service may have been off a bit when it predicted above-normal temperatures during the current workweek in nearly all of the eastern three-fourths of the United States. (see Daily GPI, Nov. 12). Traders returned from rather mild weekends in many cases to find forecasts of Tuesday lows in the 20s, 30s and 40s in Canada and most of the northern U.S., spreading as far south as the Midcontinent and Texas. The result was flat to much higher prices at all points Monday.

Prices rebounded at all points Monday based largely on the previous Friday’s 32-cent climb by futures and the return of industrial load from its normal weekend drop. Weather-based demand continued to be relatively light.

Production is in the process of ramping up to normal levels of about 400 MMcf/d from the Sable Offshore Energy Project off Nova Scotia, an ExxonMobil spokesman said. The unit was down for planned maintenance when it was evacuated due to the threat from Hurricane Bill (see NGI, Aug. 31). The facility was remanned and maintenance was completed Aug. 30, said spokesman Merle MacIsaac. He said a damage inspection revealed that no harm had been caused by Bill. The Sable project is owned by ExxonMobil Canada Properties Ltd., Shell Canada Ltd., Imperial Oil Resources, Pengrowth Energy Trust and Mosbacher Operating Ltd. Sable gas production travels on Spectra Energy’s Maritimes & Northeast Pipeline. The Maritimes & Northeast mainline interconnects with Portland Natural Gas Transmission System, Tennessee Gas Pipeline and Algonquin Gas Transmission. Through lateral pipelines the pipeline serves markets in Nova Scotia and New Brunswick. Emera Inc. and ExxonMobil Canada own minority interests in the pipeline.

Production was in the process of ramping up to normal levels of about 400 MMcf/d from the Sable Offshore Energy Project off Nova Scotia as of Sunday, an ExxonMobil spokesman said.

The 356-mile Gulf Crossing Pipeline, a subsidiary of Boardwalk Pipeline Partners LP, went into service last Wednesday at normal operating pressures of up to 72% of the specified minimum yield strength (SMYS). The new pipeline gives Texas and Oklahoma natural gas producers greater access to markets.

Natural gas prices will likely remain between $3.75 and $4.75/MMBtu this summer due to healthy storage levels and normal temperature forecasts, according to Stephen Smith of Stephen Smith Energy Associates.

Texas Eastern said an unplanned outage at its Five Points (OH) Compressor Station (see Daily GPI, May 15) has been resolved and the station was returned to normal operation Friday. All restrictions on its 24-inch diameter system in the area were removed.

Baja Path capacity on the California Gas Transmission system of Pacific Gas & Electric will be limited to 830 MMcf/d, or 70% of normal, Wednesday and Thursday while a section of Line 300A is replaced. Another reduction to 1,050 MMcf/d (92%) will occur May 12-18 during hydro testing of the line.