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

HSBC Resuscitates 35,000 Job Cut Plan As Banking Troubles Persist

By StevieRay Hansen

Back in February, HSBC, Europe’s largest bank and troubled lender, announced a plan that would slash upwards of 35,000 jobs. Shortly after, the lender put restructuring plans on hold for…

Soaring Food & Energy Costs Spark Rebound In Producer Prices

By StevieRay Hansen

Producer Prices rebounded MoM in May with headline Final Demand PPI rising 0.4% (against +0.1% exp) but it left PPI YoY still down 0.8%… Read more”It’s…

Civil War 2.0 Weather Report: The Tsunami Begins, But You Knew That…

By StevieRay Hansen

If we can stop him, we shall prevent the collapse of Western Civilization.  No pressure.” – Sherlock Holmes:  A Game of Shadows In the first issue of the…

Pandemic, Economic Collapse, Full Societal Breakdown

By StevieRay Hansen

“And the will of Zeus was moving towards its end.”  – Homer Symbiotic Disharmony The recline and flail of western civilization beats on.  Pandemic, economic…

JPMorgan Is “Counting The Days” Until The Second Covid Wave

By StevieRay Hansen

As governments ease lockdown restrictions, attention is focused on the risk of a second wave of COVID-19 infections. And, as JPMorgan writes, “the message from…

Stevie Ray

Leave a Reply

Your email address will not be published.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