Type

Southern Natural Gas is implementing an OFO Type 6 Friday for long imbalances. Tiered penalties will apply to positive imbalances exceeding 2% or 200 dekatherms, whichever is less. Southern expected the OFO to stay in effect through at least Sunday. The pipeline also declared force majeure and expected to begin maintenance Thursday afternoon on its South Main Loop Line downstream of Wrens Compressor Station; the work is expected to last through Oct. 12 and is reducing capacity in Group 07 East of Wrens by about 175 MMcf/d. See the bulletin board for a list of affected points. A spokesman said field personnel had not isolated the Loop Line yet as of mid-afternoon Thursday, so the work might start later that day but might not get under way until Friday.

Southern California Gas kept a high-linepack OFO issued for Friday in effect through Sunday, then lifted it Monday.

Southern Natural Gas implemented an OFO Type 6 for long imbalances Friday and said it was highly likely that the OFO would continue through Sunday. Tiered penalties were set for shippers who created positive imbalances exceeding scheduled volumes 2% or 200 dekatherms, whichever was less.

Southern Natural Gas is implementing an OFO Type 6 Thursday for short imbalances on its contiguous system. Tiered penalties of $1-15/Dth will be assessed for negative imbalances that exceed a threshold of 2% or 200 dekatherms. Penalties will not apply to long imbalances.

While Hurricane Katrina was one of the most destructive natural gas disasters to strike the United States, it did not cause the worst-case type of scenarios with respect to natural gas production, according to FERC’s Office of Market Oversight and Investigations (OMOI).

Sonat implemented an OFO Type 6 for short imbalances Sunday, then canceled it at the start of Monday’s gas day. The pipeline last week had said it expected repairs to its Hurricane Ivan-damaged South Pass 60 line to last through Feb. 5 (see Daily GPI, Jan. 25), during which it is unable to receive gas at Main Pass 116. Citing delays created by strong water currents, Sonat estimated Monday that the return to service of Main Pass 116 is now around Feb. 10. “Once again, there are many variables when making repairs offshore. Therefore, this schedule could change,” Sonat added.

Sonat canceled Tuesday the Type 6 OFO for short imbalances that was issued Sunday.

Sonat canceled Thursday a Type 6 OFO for short imbalances that had been implemented Monday.

Sonat implemented an OFO Type 6 for short imbalances effective Monday until further notice. Tiered penalties apply to customers falling short of scheduled receipts by 2% or 200 dekatherms, whichever is greater. Those running long imbalances will not be penalized.