Natural Gas Prices Surge as a Significant West Virginia Pipeline Announces Force Majeure

Featured Story

BY SRH

TC Energy’s Columbia Gas Transmission pipeline network has released a notification mandating a “immediate pressure reduction” on Mountaineer XPress Line 100, spanning from the Mt. Olive Compressor Station in Jackson County to the Saunders Creek Regulator Station in Cabell County, West Virginia, cautioning that a “anticipated mechanical problem” will diminish planned volumes.

Columbia Gas Transmission transports Appalachian natural gas to markets throughout the Northeast, Mid-Atlantic, Midwest, and Southeast, with links extending southward to export facilities on the Gulf of America.

The impacted Mountaineer XPress (MXP) pipeline in West Virginia supplies two primary outlets:

Regional markets: Columbia’s TCO trading platform, catering to clients in the Midwest, Northeast, and Mid-Atlantic regions.
Southern markets: The Leach interconnection in Kentucky, which facilitates the entry of gas into Columbia Gulf Transmission for conveyance to the Southeast and the Gulf Coast of Louisiana.

Criterion Research, a natural gas analysis organization, delivered an update regarding the disruption to its clients earlier today.

TCO announced force majeure this morning due to an unforeseen mechanical problem with its Mountaineer XPress (MXP) system located between the Mt. Olive Compressor Station and Saunders Creek Regulator Station in West Virginia, with the pipeline poised to eliminate the MXPSEG MA42 constraint to zero starting with the September 25 Timely Cycle.

TCO anticipates that 1.8 MMDth/d of reliable service will be impacted, approximately aligning with the 1.88 MMDth/d presently arranged via MXPSEG.

MXP is a 2.7 Bcf/d transportation network in the Appalachian region, facilitating the transfer of Marcellus/Utica resources southward through West Virginia into TCO’s extensive infrastructure. Upstream MXP receipts have not significantly reacted thus far, with Sherwood at approximately 714 MDth/d, Corral at around 267 MDth/d, and Viking at about 5 MDth/d today; however, the complete restriction is expected to manifest in tomorrow’s nominations, potentially necessitating considerable rerouting or production reductions if the estimated 1.8 Bcf/d lacks alternative routes. TCO has yet to furnish a schedule for restoration and anticipates releasing another update on Friday morning.

October gas futures surged by 4.5%, equivalent to 13.6 cents, reaching $3.159 per million British thermal units on Nymex at 11:00 a.m. ET. Prices have surged almost 12% since the beginning of Wednesday.

Flow constraints may constrict downstream availability despite the ample presence of natural gas at extraction sites throughout Appalachia.

The Trump WH seems to have a lot of problems in the energy sector

Don't Miss

What Are You Going To Do As Our Money Dies?

By StevieRay Hansen

Central banks are killing our currency to protect the already-rich… Read moreFront-Month WTI Crude Crashes Below Zero For First Time EverIn our recent article It’s Time…

“Stand Down!” – How One Navy Seal Killed A Multi-Billion Hedge Fund

By StevieRay Hansen

It has now been revealed that the fall of Dan Kamensky’s Marble Ridge Capital was at the hands of a former Navy SEAL, turned trader. Joe…

World’s Biggest Sovereign Wealth Fund Lost $21 Billion In First Half 2020

By StevieRay Hansen

Readers may recall in April that Norway’s sovereign wealth fund, the world’s biggest, posted record losses for 1Q20 as the virus pandemic wreaked havoc on global markets.  For more color on the…

After “Extraordinary Event” Crushes Traders, Credit Suisse Forced To Accelerate “Berserk” NatGas ETN

By StevieRay Hansen

Following yesterday’s “berserk” price action in Credit Suisse’s 3x Inverse Natural Gas ETN, the Swiss banking giant has been forced to do something about it….

S&P Jumps Above Record High After $9 Trillion Global Liquidity Tsunami

By StevieRay Hansen

$9 trillion in additional global liquidity (from $79 to almost $88 trillion since the March lows)… Read more”It’s Going To Be Carnage” – Deutsche Begins…

Stevie Ray

Leave a Reply

Your email address will not be published. Required fields are marked *