Natural Gas Transportation Update
- FERC granted permission to Florida Gas Transmission Co. LLC to start natural gas transportation services on the remaining facilities of the Phase VIII Expansion Project. According to the project’s website, Phase VIII will consist of approximately 483.2 miles of multi diameter pipeline in Alabama, Mississippi and Florida. One new compressor station will be built in Highlands County, Florida, that will add 213,600 horsepower to the existing mainline compression. The project will provide an annual average of 820,000 MMBtu per day of additional firm transportation capacity. The project is anticipated to be completed in the spring.
- On March 29, Anadarko Petroleum’s Independence Hub has reduced production due to required safety testing on subsea equipment. According to BENTEK estimates, production was reduced by 300 million cubic feet (MMcf) per day from 528 MMcf per day to about 233 MMcf per day on March 29. On March 30, production edged up slightly, but was still down by 185 MMcf per day in comparison to normal outflow levels. The facility is expected to resume normal operations this week. Independence Hub, the largest natural gas processing facility in the Gulf of Mexico, has a design capacity of 1 Bcf per day. According to Anadarko, the hub spans 1800 square miles, in waters up to 9000 feet deep.
- Southern Natural Gas Company has scheduled a shut-in test at the Muldon Storage Field in Mississippi for April 5 through April 11. Under the terms of Southern’s tariff, this test constitutes a Force Majeure event. As a result, Southern will allocate CSS rate schedule customers 36% of their contracted daily injection and daily withdrawal quantities. In the event notice, Southern stated that it will monitor nominations closely during the shut-in tests to “determine if there is an imbalance between anticipated supply and demand that would threaten the operation integrity of the system.”