Southeast

Icy conditions building from the Midcontinent and Texas through the Southeast and heavy snowfalls predicted in the Northeast and Midwest failed to revive most of the cash market Thursday. Only Northeast citygates, where spikes were most often in triple digits, got a significant boost from the new blast of arctic cold enveloping most of North America.

Icy conditions building from the Midcontinent and Texas through the Southeast and heavy snowfalls predicted in the Northeast and Midwest failed to revive most of the cash market Thursday. Only Northeast citygates, where spikes were most often in triple digits, got a significant boost from the new blast of arctic cold enveloping most of North America.

Due to engine maintenance at several compressor stations along its Southeast Mainline (SEML), ANR anticipates the following SEML capacity reductions (from a 1,399 MMcf/d base): 285 MMcf/d Dec. 2-7, 105 MMcf/d Dec. 8-18 and 70 MMcf/d Dec. 19-31. “Based on current nominations, it is anticipated that the above reductions may result in the curtailment of Firm Secondary and IT services,” ANR said.

Due to forecasts of mild Southeast weather, Southern Natural Gas cited projections of high storage injection requirements during the weekend in announcing that an OFO Type 6 for long imbalances would be in effect on its system Saturday until further notice. Tiered imbalance penalties will be assessed to shippers exceeding allocated deliveries by 2% or more (those with long imbalances of less than 2% or 200 Dth/d will not be penalized).

FERC Friday issued a favorable environmental assessment to Transcontinental Gas Pipe Line for its proposed 308,500 Dth/d system expansion to serve natural gas markets in the Southeast.

Forecasts of sub-freezing lows Thursday from the Northeast southward into the Southeast and westward through the Midwest/Midcontinent into the Plains and Rockies resulted in more market strength Wednesday than a day earlier. However, it offered another demonstration of the fact that widespread heating load does not necessarily translate into much higher gas prices.

Less than three months after entering service, Southeast Supply Header LLC (SESH) is conducting a nonbinding open season for a proposed expansion along its existing 274-mile route. The pipeline is a venture of affiliates of Spectra Energy Corp. and CenterPoint Energy Inc. and currently extends from CenterPoint’s Perryville Hub near Delhi, LA, to the Gulfstream Natural Gas System LLC interconnection near Coden, AL. SESH will accept nonbinding nominations for service from any existing or proposed receipt points to any existing or proposed delivery points on its system. The specific scope of the expansion will be finalized following the results of the open season. The target in-service date would be as early as mid-2011. Nominations will be accepted through 5 p.m. EST Jan. 16. For information, contact Randy Riha at rjriha@spectraenergy.com, or (713) 627-4746, or visit www.southeastsupplyheader.com.

California regulators Thursday unanimously approved Pacific Gas and Electric Co.’s (PG&E) 15-year, 375,000 Dth/d transportation contract on the proposed Ruby Pipeline from Wyoming to southeast Oregon where existing north-south interstate pipelines serve PG&E.

BP America Inc. has discovered oil and gas at its Freedom Prospect, also known as the Gunflint prospect, in the deepwater Gulf of Mexico (GOM). The well, located 70 miles southeast of the Louisiana coast in Mississippi Canyon Block 948, is in about 6,100 feet (1,860 meters) of water. The Freedom well was drilled to a total depth of 29,280 feet (8,927 meters) and encountered more than 550 net feet of hydrocarbon-bearing sands in Middle and Lower Miocene reservoirs. Appraisal will be required to determine the size and commerciality of the discovery. The Freedom well is BP’s third discovery in this part of the deepwater GOM following its Tubular Bells and Kodiak discoveries. The well is operated by BP Exploration & Production Inc., a subsidiary of BP America Inc., which has a 25% working interest, and includes co-owners Noble Energy Inc., with a 37.5% working interest, Samson Offshore Co., with a 25% stake, and Marathon Oil Co., which has a 12.5% stake. The lease was acquired by Noble Energy and Samson Offshore in March 2006.