Problems

TransCanada said an unplanned outage occurred Tuesday at Station 211 due to exhaust problems with the C compressor unit. It expects to return 211C to service Friday. Due to increased demand at Niagara, discretionary service on the Kirkwall Lateral is being restricted. Diversions to Niagara and Douglastown may be affected, including diversions from Douglastown to Niagara, the pipeline said.

In a congressional hearing that featured a thorough review of the El Paso market manipulation case and all the issues contributing to the serious natural gas market malfunction last year in California, FERC Chairman Pat Wood told a House Government Reform subcommittee chaired by Doug Ose (R-CA) that he does not see a need for new legislation.

PG&E Gas Transmission-Northwest (GTN) reported discovering internal problems with the B unit at Station 6, requiring that the unit be withdrawn from service. As a result, Kingsgate capacity was restricted to 2,400 MMcf/d in Thursday’s Intraday 1 scheduling cycle until further notice.

Since the “near-term problems” involving the California power market and added funding for low-income energy assistance seem to have become less pressing, Chairman Jeff Bingaman (D-NM) announced last week that the Senate Energy and Natural Resources Committee will move up its consideration of comprehensive legislation that will address long-term energy issues.

Since the “near-term problems” involving the California power market and increased funding for low-income energy assistance seem to have been resolved or are close to it, Chairman Jeff Bingaman (D-NM) announced yesterday the Senate Energy and Natural Resources Committee will move up its consideration of comprehensive legislation that will address long-term energy issues.

Pacific Gas & Electric did not extend a high-linepack OFO with zero tolerance for positive imbalances beyond Saturday.

Noting it had advised shippers earlier in the week about high linepack problems due to overproduction, reduced demand and limited storage injection capacity, Tennessee said Wednesday a systemwide OFO Balancing Alert will take effect with today’s gas day. Positive daily imbalances that exceed 2% (or 500 dekatherms, whichever is greater) over nominated volumes will be charged $15 plus an index price for each dekatherm outside of the designated tolerance. Penalties will not apply to negative imbalances. The OFO is expected to remain in effect until testing of the Bear Creek Storage Field is completed May 1. Tennessee also said that based on current and anticipated future conditions, its ban on 500 Leg receipts with a dew point higher than 20 degrees F. and without proof of processing will remain in effect through the end of May.

Combustion problems with the #2 engine at ANR’s Grand Chenier (LA) Station are more extensive then originally thought (see Daily GPI, March 21), and the manufacturer has extended its estimate for completion of repairs until mid-April, the pipeline said. Volumes that can be received through Grand Chenier from HIOS and the West Cameron near-shore blocks will continue to be reduced by about MMcf/d until the repairs are finished.

Once upon a time, some regions of the United States were having problems meeting peak seasonal demand for natural gas. Inadequate pipeline and storage capacity, combined with production exceeding new natural gas discoveries, sent suppliers looking for alternatives. Imported liquefied natural gas became a hot commodity. Now the story has been rewound and is playing all over again — with bigger players and a wider stage.