Sea Robin told shippers Tuesday it must shut in the entiresystem for 10-12 hours today and asked them to cut their nominationlevels by 50%. The action resulted from being informed by Texaco,operator of the Sea Robin Processing Plant, that the plant musthalt operation to repair a leak. The event constitutes a forcemajeure, Sea Robin said, and thus it declared an OFO Type 30 forthe shutdown period. The pipeline said it had contacted downstreamdelivery point operators and they could not accept gas untreated bythe plant’s dehydration facility.
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Transportation Notes
El Paso will shut down its Blanco (NM) Plant Monday forscheduled maintenance. Several other facilities on the San JuanCrossover and North Mainline also will have maintenance. Because atotal Blanco outage will last only half a day, the net reduction ofSan Juan Basin supply Monday will be 715 MMcf/d. Downtime of the Cand D units May 18-19 and of the D unit May 20-26 will causereductions of 500 MMcf/d and 270 MMcf/d respectively.
Shut-Ins Start as Gulf Numbers Drop Under $1
Traders had to think about the unthinkable Friday: Gulf Coastgas trading for less than a dollar. A large number of points inLouisiana and Texas averaged in the $0.90s, and in a few caseslow-end quotes slipped into the high $0.80s. Few markets fared muchabove a dollar other than California, Sumas, Stanfield andColumbia-Appalachia.
Storm Threat, Futures Send Cash Quotes Soaring
Noticing continued futures strength and a growing threat of newstorm shut-ins in the Gulf of Mexico, cash prices built onTuesday’s gains with even bigger ones Wednesday. Increases oneither side of 20 cents were common at nearly all points. TheCalifornia market, far removed from Gulf storm influence, sawsmaller gains of about a dime, although a Malin rise of 13 centsnearly fulfilled one source’s prediction of up 20 cents there (seeDaily GPI, Sept. 16) based on Tuesday’s intra-Alberta pricestrength.
Transportation Notes
Nautilus Pipeline offshore southeast Louisiana reported havingto shut down Sunday evening until further notice due to a largeslug of liquids being handled at the slug catcher. Nautilus toldshippers Monday they were released to flow to other systems “forthe next seven to 10 days.” Inquiries about the line’s recentvolumes were not answered Tuesday.