Spectra's Algonquin limits gas line flows for US Northeast cold

NEW YORK Tue Nov 6, 2012 2:55pm EST

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NEW YORK Nov 6 (Reuters) - Spectra Energy's Algonquin Gas Transmission unit on Tuesday said it had restricted some interruptible customers on its U.S. Northeast natural gas pipeline system as regional cold weather led to increased demand for the fuel.

The company said in a website posting it had scheduled nominations at each pipeline segment and meter station up to its operational capacity, restricting some interruptible customers - those that typically pay less to ship gas with the understanding that service can be cut in periods of peak demand.

No firm transportation service had been restricted.

Cold weather moved in the U.S. Northeast early this week, with temperatures dipping into the low-30s Fahrenheit, boosting heating demand.

Prices on the Algonquin system traded at over $7 per million British thermal units on Tuesday, according to ICE data. Other regional Northeast prices, including gas in New York City, traded closer to $4.

The over 1,000-mile, 1.5 billion cubic feet per day Algonquin system supplies natural gas to New England from connections with five major interstate pipelines, moving gas from the Gulf Coast to as far north as Massachusetts.

Spectra earlier this week said two of its natural gas compressor stations in New Jersey remained shut after Hurricane Sandy hit the state one week ago, but the stations were not needed to meet demand and there was no impact to customer deliveries.

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