Occurred

Pacific Gas & Electric Co. is ending a systemwide low-inventory OFO Wednesday after it had been in effect for two days.

A record number of global oil and natural gas transactions occurred in 2008, but the financial crisis and economic conditions resulted in a considerable reduction in the transactions’ total value by year’s end, according to a report by PricewaterhouseCoopers LLP (PwC).

TransColorado expects to complete repairs sometime Thursday on an unspecified force majeure event that occurred Sunday at Whitewater Compressor Station in Mesa County, CO. Flows for the gas days of Sunday and Monday were not impacted, TransColorado said, but effective Tuesday until further notice, it will limit volumes through Segments 220 and 240 to 362,000 Dth/d and 412,000 Dth/d, respectively. “At this level of scheduled quantities, AOR/IT, secondary [and] primary FT quantities are at risk of not being fully scheduled,” the pipeline said, adding that as the repairs progress, additional scheduled quantities may become available on an intraday basis. TransColorado reminded customers that maintenance at Whitewater and Dolores compressor stations is still set for Wednesday and has an additional impact on those segments. Capacity for Wednesday’s gas day through Segment 220 will be limited to 350,000 Dth and capacity through Segment 240 will be limited to 400,000 Dth.

As previously posted (see Daily GPI, Aug. 13), Southern Natural Gas has been performing inspections on the 26-inch diameter line downstream of Gate 6 (where a rupture occurred recently in a 20-inch diameter line) and installing an interim solution at Gate 6 to allow Main Pass area volumes to flow into the 26-inch line. The interim solution at Gate 6 and the anomaly inspection on the 26-inch line have been completed, Southern said, and effective with the Intraday 2 nominations cycle Tuesday and until further notice it is allowing about 650,000 Dth/d to flow into the 26-inch line. See the bulletin board for a list of affected points.

Largely due to the previous day’s futures drop of nearly 31 cents, cash prices were down at most points Wednesday. The setbacks occurred despite gradually rising cooling load in the Northeast and in some parts of the South. Flat to about 40 cents higher quotes at several points, primarily in the Rockies, extended mixed price movement for another day.

NGPL reported a force majeure event that occurred Monday between Stations 106 and 196 in Gage County, NE, and impacted both of NGPL’s mainlines through the area. Due to heavy rains in the area, an ongoing maintenance project’s excavation has been flooded, NGPL said, and for safety reasons it immediately reduced the pressure and flows through the affected lines. In an update Tuesday, the pipeline said work is ongoing at the site to remove the water surrounding the pipelines, and inspections will take place once the water is removed. NGPL did not make any intraday scheduling reductions Monday, but said effective Tuesday until further notice, ITS/AOR and Secondary out-of-path transports through the area will not be available. Additionally, firm Primary and Secondary in-path transports are at risk of not being fully scheduled. See the bulletin board for further details.

With expectations rising for a projected natural gas storage surplus of nearly 600 Bcf (versus 10-year norms) by late April, the gas-to-resid spread should range between minus 50 cents/MMBtu to plus $1.00, implying a “likely” May Henry Hub bidweek price of $5.75-7.25/MMBtu, according to Stephen Smith Energy Associates.

A nonaffiliated worker was killed when ANR experienced a pipe rupture about 10 a.m. EST Tuesday in Cass County, MI. The blast occurred on a 24-inch diameter tie line connecting the Bridgman, La Grange and Defiance compressor stations, said a spokesman for ANR parent firm El Paso Corp. There was no fire, but an employee of Midwest Energy Cooperative who was doing work in the vicinity was fatally injured, he added. An investigation is under way. There was no service impact.

Pepco Energy Services Inc. has asked FERC to conduct an investigation into the “serious problems” that allegedly occurred during a November capacity auction by Columbia Gas Transmission, which it said ultimately led to the rejection of valid bids made by Pepco and capacity being awarded to another shipper.