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

Wells Fargo CEO Tim Sloan steps down as bank struggles to get past scandals

By StevieRay Hansen

The word mammon comes from the Greek word mammonas. Similar root words exist in Hebrew, Latin, Aramaic, Chaldean and Syriac. They all translate to “money, wealth, and material…

JPMorgan’s Role in Nigerian Oil Deal Has Come Back to Haunt It

By StevieRay Hansen

It’s important to realize that there is a difference between self-interest and selfishness. All people have self-interests which can operate in ways that are not…

Is This a Warning Sign,Bancorpsouth Bank (NYSE:BXS) Downgraded by ValuEngine

By Editorial Opinions

Greed is a strong and selfish desire to have more of something, most often money or power. There are many warnings in the Bible about…

Second ex Barclays banker convicted in London Euribor re-trial

By StevieRay Hansen

It is the love of money, and not money itself, that is the problem. The love of money is a sin because it gets in…

Michael Avenatti fraud case shines a light on bankers, lawyers and money in Biloxi

By StevieRay Hansen

Why is the love of money a root of all kinds of evil? To help us answer this, we must look at the passage in…

Stevie Ray

Leave a Reply

Your email address will not be published.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