Noted

Texas Eastern noted that in a letter dated Nov. 10, 2005, it had informed all firm storage customers that it would monitor storage activity and, if necessary, issue customer-specific OFOs to those who exceeded their recommended maximum withdrawal limits. The first period in the recommended withdrawal plans ended Dec. 31, and on Wednesday Texas Eastern issued five customer-specific OFOs, that will take effect Jan. 9. The orders require an affected customer to deliver its contract’s firm transportation MDQ (Maximum Daily Quantity) “under Rate Schedules CDS, FT-1 and SCT, as applicable, in the most downstream zone of delivery to the maximum extent contractually feasible prior to utilizing storage services.” Texas Eastern said the OFOs will be canceled when customer inventories are restored to planned levels.

Transco issued an Imbalance OFO with 5% tolerance for positive imbalances, effective Tuesday until further notice. The pipeline noted that it has provided repeated notice of limited operating flexibility as a result of moderate temperatures throughout its market area, but continued to experience “an unacceptable increase” in due-shipper imbalances since it ended an Operational Control Friday (see Daily GPI, Nov. 14). “This has created exigent circumstances that require immediate action,” it said. Customers with daily due-pipeline imbalance will not be subject to penalty.

Natural gas customers in the Southeast and the East Coast generally face “a very challenging dynamic,” in the wake of hurricane Katrina. “We have all our eggs in the Gulf Coast basket,” said AGL Resources CEO Paula Rosput Reynolds, who suggested Georgia has another coast with potential.

California’s state regulators and proponents wanting to site a liquefied natural gas (LNG) terminal in Long Beach Harbor had what may be a concluding head-butt late last month when a final request for a rehearing by Sound Energy Solutions (SES) was denied, reiterating the California Public Utilities Commission’s order that SES file with the state authorities for permission to build its proposed 1 Bcf/d receiving facility.

California’s state regulators and proponents wanting to site a liquefied natural gas (LNG) terminal in Long Beach Harbor had what may be a concluding head-butt late last month when a final request for a rehearing by Sound Energy Solutions (SES) was denied, reiterating the California Public Utilities Commission’s order that SES file with the state authorities for permission to build its proposed 1 Bcf/d receiving facility.

California’s state regulators and proponents wanting to site a liquefied natural gas (LNG) terminal in Long Beach Harbor had what may be a concluding head-butt late last month when a final request for a rehearing by Sound Energy Solutions (SES) was denied, reiterating the California Public Utilities Commission’s order that SES file with the state authorities for permission to build its proposed 1 Bcf/d receiving facility.

Sea Robin Pipeline noted that around 10:30 a.m. CDT Wednesday the Sea Robin Processing Plant operated by Amerada Hess was back online and processing again. Shippers were asked to adjust gas flows and nominations as needed.

Led by an 18% increase in nonregulated gas, oil and natural gas liquids production, a 14% rise in realized natural gas prices, and an 18% increase in nonregulated gas gathering volumes, Questar Corp. posted 2Q2004 net income of $42.6 million, or $0.50 per diluted share, compared with $20.3 million, or $0.24 per diluted share, in the comparable 2003 period.

Seeing little change in fundamental influences, Tuesday’s market was almost a repeat of the day before. Most points were again close to flat, with some ranging to a little more than a dime up or down. The primary difference was that softening trends showed up more often Tuesday.