Zone

As hinted by Thursday’s plunging prices at Florida Gas Zone 3 and the Florida citygate, Florida Gas Transmission lifted Friday an Overage Alert Day that had been initiated last Monday.

The U.S. Coast Guard has issued a final rule establishing a permanent security zone around the mooring area for liquefied natural gas (LNG) tankers at the Elba Island, GA LNG terminal owned by Southern Natural Gas to encompass the opening of two new berths and the expected increase in LNG tanker traffic.

Northeast traders woke up to a Monday morning surprise as bitter cold sent cash prices to a high of $20 at Transco Zone 6 New York and an average well over $12, which was up more than $4 from weekend price levels. New England Citygates on Algonquin jumped to highs of $18 and averaged over $14, up more than $6/MMBtu from Friday. Outside the Northeast, however, price volatility was subdued and price changes were mixed.

TransCanada PipeLines reached a five-year settlement with shippers that will result in a proposed C7.5-cent/Gj increase in Eastern Zone tolls for 2007 to C$1.02/Gj from the 2006 level of C94.5 cents/Gj and will give the pipeline several operational performance incentives. The agreement also covers tolls and costs for years 2008-2011 on the Canadian Mainline.

Saying it had received warming temperature forecasts for the Zone EF market area, Northern Natural Gas lifted a System Overrun Limitation (SOL) for that segment Sunday. However, with single-digit system weighted temperatures and below-zero low temperatures at most reporting stations in the market area upcoming, the pipeline issued a new SOL for Tuesday in all market-area zones (ABC, D and EF).

NGPL said pipeline replacement work on segment one in its Midcontinent Zone will further reduce pressure on its system, cutting capacity from an already reduced state. The pipeline expects a complete outage on that section of the system Nov. 16-17, affecting about 15 receipt/delivery points.

ANR Pipeline Co. said it is holding a nonbinding open season for up to 70 Bcf of working gas storage capacity and associated firm transportation in its ML-7 Zone to Lebanon, OH, and other potential delivery points along its southeast mainline between the Gulf Coast and Willow Run, a Michigan Consolidated receipt and delivery point in Michigan. The open season will close on Aug. 18.

Due to high linepack, Tennessee declared a Critical Day 1 OFO, effective Saturday until further notice, for all LMS-PA, LMS-MA and LMS PL balancing parties in Zone 0. Affected parties who exceed a tolerance of 2% of scheduled quantities or 1,000 dekatherms, whichever is greater, will be assessed penalties of $5/Dth plus the applicable Regional Daily Spot Price, Tennessee said. “In the event the Critical Day 1 OFO is not sufficient to maintain the operational integrity of the system, Tennessee may be required to issue a Critical Day 2 OFO or an OFO Balancing Alert,” it added.

Citing Hurricane Katrina-caused reductions in receipts into Zone 3 of its system and 90-degree forecasts for the Florida market area, Florida Gas Transmission initiated a new Overage Alert Day notice Sunday and kept it in effect through at least Monday. The tolerance for negative daily imbalances was set at 25% both days.