Due to extremely high storage inventory levels and continuedweather predictions at or above normal temperatures, Williams GasPipeline Central has been experiencing daily storage injectionsthat are substantially above contractual limits, especially onweekends, the pipeline said. Shippers under TSS and FSS rateschedules are required to adhere to their maximum daily injectionquantity and their defined contractual maximum storage quantities.Due to warmer-than-normal weather forecasts, shippers and pointoperators will need to decrease corresponding supplies to matchdeliveries. During this time, the pipeline will not acceptimbalance payback or banking of gas. If corrective action is nottake, an operational flow order may be necessary effective gas daySaturday.
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Transportation Note
El Paso said Friday the White Rock (NM) Station had been takenout of service for emergency maintenance. The pipeline heldcapacity out of San Juan Basin at the Cycle 2 scheduled rate of2,685 MMcf/d Friday but lowered the volume slightly to 2,680 MMcf/dfor Saturday’s gas day.
Traders, Prices Start Week on Negative Note
Natural gas futures sifted lower Monday following news ofwarming East Coast temperatures and amid a weakening technicalpicture. After a disappointing sub-$3.00 opening, the Novembercontract chopped sideways Monday to settle at $3.016, off 5.6-centsfor the session. Volume was somewhat thin as only 63,328 contractschanged hands.
Northeast Gains, West Drops Stand Out in Flat Market
The cash market closed out last week on a somewhat balancednote, with new upticks of a nickel or more in the Northeast arrayedagainst drops between a nickel and a dime at western points. Inbetween there was a vast sea of mostly flatness.
Transportation Note
During the Oct. 29-31 period, PG&E GT-Northwest will takethe Stanfield (OR) Meter Station out of service to completemodifications requested by Northwest Pipeline to meet expandingdemand of 130,000 Dth. Physical deliveries to Northwest will belimited to 200 MMcf/d through an emergency intertie. There will beno net physical receipts into PG&E GT-NW. Capacity allocationswill be based on service priority.
Transportation Note
El Paso has rescheduled maintenance at its Roswell (NM) Station,which was postponed last week (see Daily GPI, Aug. 31), for today and Thursday. It willcut San Juan Crossover capacity by 30 MMcf/d.
Bulls Finish ‘Tumultuous Week’ on Positive Note
Fresh from a gargantuan six-day, 72-cent price retreat, thenatural gas futures market regained its composure Friday, asscale-down buyers took advantage of lower prices, and new shortscovered positions into the holiday weekend. The October contractclosed up 9 cents at $2.561 in an abbreviated pre-holiday session.
Transportation Note
PG&E declared a system-wide OFO with a 7% tolerance with aStage I non-compliance charge of $1.00/Dth due to high inventoryfor the weekend.
Transportation Note
Transwestern will shutdown Station 1 (Kingman) for automationbeginning Sept. 1. The station should be back up Nov. 31. CurrentWest of Thoreau capacity is 950,000 MMBtu/d. This will be cut toabout 875,000 MMBtu/d during the outage.
Transportation Note
After beginning last week in the middle of a three-dayhigh-inventory OFO (see Daily GPI, June 22), Pacific Gas &Electric declared another one for Saturday after previously sayingit expected system linepack to remain well above the utility’starget through the weekend. The new order carried a positiveimbalance tolerance of 11% and penalties of $1/dth fornon-compliance.
