Tennessee indicated that repairs to correct problems caused by liquids entering Station 823 may be proceeding faster than expected. Barring any unexpected issues, Tennessee said Friday, it anticipated that the work would be complete in two to three days; on Wednesday it had estimated “five to 10 days” (see Daily GPI, April 19). As a result, the pipeline saw a good chance of restrictions through Station 823 being lifted by the end of the weekend. Tennessee said that as an alternative, it had analyzed the possibility of activating the Seahawk meter. “However, after further investigation, Tennessee has determined that opening the Seahawk meter is not a viable option due to a lack of flow control in the area. Without flow control, the possibility of free flowing liquids into Tennessee’s system at Grand Chenier and Kinder is too great a risk.” In an effort to assist customers in moving their gas off the Tennessee system, it was offering discounts at six meters and said “any other mutually agreeable meters upstream of Station 823” could be used.
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Transportation Notes
Dominion reported taking South Oxford Station out of service Tuesday for unexpected repairs and said that at this point it does not know exactly how long the repairs will take. Due to high line pressures, producers in bubble 4413 were required to reduce their deliveries by 50% until further notice.
Transportation Notes
Dominion said it took Maxwell Station out of service Thursday morning for unexpected repairs and hopes to have the station back in service early next week. Production in bubbles 4401 and 3214 was required to shut in until further notice.
NGI The Weekly Gas Market Report
Power Line Outages Threaten NYC Power; Concerns in Other Regions
Unexpected outages in recent weeks on two of the four major power transmission lines from upstate New York into New York City mean that New York City as well as Long Island “will be tested during any periods of sustained hot weather this summer,” FERC Chairman Joseph P. Kelliher told a congressional committee last Wednesday.
Transportation Notes
Trailblazer declared a force majeure at its compressor station 602 in Lincoln County, NB on Monday. The station experienced an unexpected outage due to an internal electrical failure on one of its compressor units. The estimated duration of the outage is four weeks. Effective on the Intraday 1 cycle for Tuesday and continuing until further notice, secondary out-of-path and ITS/AOR volumes will not be available for scheduling. Trailblazer estimates that 800,000 Dth of firm capacity will be available during the outage. Therefore, nominated primary firm and secondary in-the-path firm transportation will be scheduled pro rata based on the shipper’s primary contract MDQ in accordance with Trailblazer’s tariff. Trailblazer expects to be able to confirm 94.5% of total contracted MDQ for primary firm transportation.
Cash, Futures Keeps Drifting Higher on Lack of Bearish Fundamentals
The unexpected happened again on Tuesday when natural gas cash and futures prices defied the slightly cooler weather trend, the overbought conditions on Nymex, the absence of a threatening hurricane and the lofty height of price levels — and proceeded to continue climbing.
Industrial Demand Growth, Crude Oil Link Support Gas Prices
A combination of underlying factors, some of them unexpected and not widely known, probably will lead to another record for average annual natural gas prices this year, speakers at GasMart in New Orleans said on Thursday. Some of the causes are clear, including lower production and record high crude oil prices, while others are not as clear, such as the weak dollar and rising industrial output despite high fuel costs.
Industrial Demand Growth, Crude Oil Link Support Gas Prices
A combination of underlying factors, some of them unexpected and not widely known, probably will lead to another record for average annual natural gas prices this year, speakers at GasMart in New Orleans said on Thursday. Some of the causes are clear, including lower production and record high crude oil prices, while others are not as clear, such as the weak dollar and rising industrial output despite high fuel costs.
In Unexpected Move, Senate Confirms Kelly for Second Term at FERC
In a surprising turn of events, Senate Republicans struck an agreement with the White House over the weekend which cleared the way for Senate approval of about 175 pending nominations, including that of FERC Commissioner Suedeen G. Kelly for a second term, and which will result in the expected recess appointment of two nominees to the Nuclear Regulatory Commission (NRC) in January, Senate Energy Committee Chairman Pete Domenici (R-NM) said.
In Unexpected Move, Senate Confirms Kelly for Second Term at FERC
In a surprising turn of events, Senate Republicans struck an agreement with the White House over the weekend which cleared the way for Senate approval of about 175 pending nominations, including that of FERC Commissioner Suedeen G. Kelly for a second term, and which will result in the expected recess appointment of two nominees to the Nuclear Regulatory Commission (NRC) in January, Senate Energy Committee Chairman Pete Domenici (R-NM) said.