PG&E Calif Gas unit warns on high natgas inventory

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NEW YORK, June 1 | Mon Jun 1, 2009 1:44pm EDT

NEW YORK, June 1 (Reuters) - Pacific Gas and Electric Co's (PCG.N) California Gas Transmission unit on Monday issued an operational flow order for Tuesday for all customers on its natural gas pipeline system due to high inventories.

The system-wide alert, issued at 5 percent tolerance, forces shippers to stay within 5 percent of their scheduled volumes in order to maintain system integrity, the company said in a website posting.

OFOs and other alerts protect the operational integrity of a pipeline by requiring shippers to take action to balance their supply with their customers' usage on a daily basis within a specified tolerance band.

The Weather Channel's weather.com said the Pacific Northwest would be unseasonably warm throughout the week into the weekend, with an upper level low in the eastern Pacific, off the California Coast, forecast to move ashore late week.

Highs Monday were seen in the 40s degrees Fahrenheit in higher elevations of the Rockies to near 110 F in the Lower Colorado Valley and near Death Valley, the forecaster said.

CGT's near 1,000-mile Line 300, with the capacity to transport 1.1 billion cubic feet per day of supply, carries gas from several interstate pipelines to customers in California, while its 725-mile Lines 400 and 401 deliver Canadian and Rocky Mountain gas to the state, with a peak capacity of about 2 bcf per day. (Reporting by Eileen Moustakis; Editing by Walter Bagley)

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