NEW YORK Jan 23 William Companies Inc's
Transcontinental Gas Pipeline Co (Transco), a major provider of
natural gas to the U.S. Northeast, issued a system-wide
operational flow order to its natural gas shippers on Wednesday
as cold weather led to significant demand.
In a website posting to customers, Transco said it issued
the order to ensure system integrity, manage imbalances on its
system and handle within-the-day volatility effective on
Gas traders said gas for Thursday delivery on the Transco
pipeline at the New York citygate traded as high as
$43 early and was at an average price of $37.50, the highest
average price for New York tracked by Reuters since a peak at
$38 in early January 2008.
Operational flow orders, or OFOs, protect the integrity of a
pipeline by requiring shippers to balance their supply with
customers' usage, typically within a specified tolerance band.
The 10,000-mile Transco natural gas pipeline system has the
capacity to carry 9.6 billion cubic feet of supply per day from
South Texas to New York City. It is a major provider of natural
gas to the U.S. Northeast and Southeast.
The Weather Channel's weather.com said temperatures in New
York would reach a high of only 22 degrees Fahrenheit on
Wednesday and 23 F on Thursday, dipping to lows in the mid-teens
F overnight, with a similar forecast for much of the week.