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

Election Apocalypse: Investors Fears Very Negative Event a Year From Here and Are Placing Bets to Hedge Themselves

By StevieRay Hansen

The stock exchange is somehow similar to weather forecasts. You never know what’s going to happen but it’s better to plan ahead and be prepared…

It’s D-Day For The Repo Market: On Monday $100 Billion In Liquidity Will Be Drained – What Happens Next?

By StevieRay Hansen

Last week’s apocalyptic report by repo market guru Zoltan Pozsar, which for those who missed it predicted that an imminent market crash and loss of control of…

The Destruction of Civilization

By StevieRay Hansen

Implications of extreme monetary interventions When I was asked to write an article about the impact of negative interest rates and negative-yielding bonds, I thought…

Three Men Arrested In NJ For Running Alleged $722 Million Crypto Ponzi Scheme

By StevieRay Hansen

United States authorities in New Jersey have announced the arrest of three men who are accused of defrauding investors of over $722 million as part…

Is Zoltan’s Market Doomsday Imminent? Here Are The Two Things To Watch

By StevieRay Hansen

In the movie The Outlaw Josey Wales, one of the more famous quotes is, “Don’t piss down my back and tell me it’s raining.” We do not…

Stevie Ray

Leave a Reply

Your email address will not be published.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