Stabilized

El Paso said conditions had improved sufficiently to allow it to end Thursday the Strained Operating Condition that was declared Tuesday. “Linepack has stabilized and maximum withdrawals from Washington Ranch storage facility are no longer required to support system operations,” the pipeline said.

El Paso said Tuesday its linepack “has stabilized at a manageable level through a combination of takes that more closely match receipts and injections into storage. The threat of Strained Operating Conditions (SOC) has been significantly reduced.” On Sunday it had reported that in a combination of receipt quantities in excess of nominations and takes that were significantly below nominations, system linepack was “rising at rates that are not sustainable.” Since Friday linepack had increased nearly 500 MMcf/d and the Washington Ranch Storage facility was at maximum injection capacity, El Paso said Sunday.

Operating conditions related to low linepack on the El Paso system stabilized to the point that the pipeline was able to lift Friday the Critical Operating Condition (COC) that it had declared the day before (see Daily GPI, Dec. 9). “With temperatures moderating, receipt volumes appear to be recovering and demand continues to decline,” El Paso said in a bulletin board posting. “System linepack is still low and Washington Ranch Storage Facility is still on withdrawal at maximum capacity. As a result, rather than completely canceling the COC, El Paso is lowering it to a Strained Operating Condition” with a 10% imbalance threshold. Shippers would be allowed to submit make-up nominations Saturday to correct any shortfalls encountered during Friday’s gas day, it added.

World energy demand will continue to grow, but new oil and natural gas discoveries ramping up across the globe will likely lead to stabilized prices and perhaps even a dip in the long term, the CEO of BP plc said Tuesday.

After dropping 13 cents Monday morning to carve out its lowest point in nearly three months, the natural gas futures market stabilized and chopped sideways to higher in the trading session as buyers stepped in at what they view as bargain price levels. Though it was initially hit hardest by the selling, the June contract also received the biggest buying boost as traders lifted it off its $6.405 low. The prompt month closed at $6.446, down 9 cents for the session.

Restatements to El Paso Corp.’s oil and natural gas reserves will slice $2.7 billion off the value of production assets, and the resulting restatements to hedge accounting will cut shareholder equity by $1 billion, the company has announced. However, as it overcomes the 41% downward revision to its reserves, CEO Doug Foshee said the company’s core businesses, led by its pipeline group, remain solid.

Restatements to El Paso Corp.’s oil and natural gas reserves will slice $2.7 billion off the value of production assets, and the resulting restatements to hedge accounting will cut shareholder equity by $1 billion, the company announced Monday. However, as it overcomes the 41% downward revision to its reserves, CEO Doug Foshee said the company’s core businesses, led by its pipeline group, remain solid.

Although some analysts believe the gas industry still hasn’t seen the worst of the demand destruction due to high gas prices, consultants at Energy and Environmental Analysis Inc. (EEA) predict that gas consumption from the industrial sector will remain flat at current levels “for the foreseeable future.”

Although some analysts believe the gas industry still hasn’t seen the worst of the demand destruction due to high gas prices, consultants at Energy and Environmental Analysis Inc. (EEA) predict that gas consumption from the industrial sector will remain flat at current levels “for the foreseeable future.”