Shut

Faced with prices that are expected to fall lower than $2/Mcf, producers could begin curtailing production soon and that would further ensure the return of sharply higher prices next winter, given the current drilling decline, according to panelists at Cambridge Energy Research Associates’ CERAWeek 2002. Supply restrictions during a hot summer would quickly change the storage situation, the panelists said.

Producers’ economic decisions to shut down gas processing plants all along the Gulf Coast last year, leaving liquids in the gas stream, has led pipelines to place restrictions on the quality of the gas entering pipelines in order to protect their operations, the Interstate Natural Gas Assoc. of America (INGAA) said in a letter to FERC Chairman Pat Wood.

The Interior Department has shut down its web site in compliance with a temporary restraining order (TRO) issued by a federal judge in Washington, DC.

After analysis of anomalies discovered during its routine inspection program, NGPL has shut in its #1 line between Compressor Stations 301 and 302 in Segment 22. The #2 line is still flowing at a reduced pressure while repairs commence on the #1 line. Effective today until further notice, gas sourced out of the South Texas Zone for deliveries north or east into the Gulf Coast System will be restricted. AOR, IT and Secondary volumes will not be scheduled, while Primary services will be available at a reduced level.

NGPL reported that repairs are continuing on a leak discovered late last week on its A/G Line, which remains shut in. NGPL said it made operational arrangements with its own system and with interconnecting operators, but “due to the length of the outage, the impact of not having the A/G Line available has greatly increased the linepack on the Amarillo system.” Effective with Monday’s gas day, NGPL was not scheduling ITS/AOR or Secondary volumes through Stations 109, 110 and 801, saying only Primary Firm services will be scheduled there until further notice.

The power is still off on Texas’ deregulation pilot, which was scheduled to finally begin today after its June 1 ramp-up was shut down in late May (see Daily GPI, May 23). Pilot customers now won’t have service from their new retail electric providers until at least July 20, and maybe even later, according to the Texas Public Utility Commission.

El Paso will shut in Line 3079 (Lusk Line) in Lea County, NM, today for repairs. There will be no flow between Valve 1 and Lusk, affecting the IGCNMLSK, IMEWLUSK and IPHFUEL1 interconnects and any supplies south of Lusk destined for the San Juan Crossover. An Unauthorized Overpull Penalty situation remained in effect Tuesday for the El Paso system.

Texas Eastern will require the shut-in of all production upstream of the Provident City Plant on its Wilcox System in the South Texas Zone starting Tuesday due to anomaly investigations and the subsequent pipe repair needed. The work is expected to be completed sometime Saturday in order for gas flow to resume Sunday.

Destin Pipeline will shut in when the Pascagoula (MS) Gas Plant begins about four days of maintenance May 1 at 6:30 p.m. CDT. Current Destin throughput is about 650 MMcf/d, a staffer said. The pipeline will accept about one-third of normal nominations for the May 1 gas day and will resume taking nominations on May 5 once the plant is operational. The start of the plant work represents a one-day postponement from when it was originally announced last month (see Daily GPI, March 12).