November 10, 2010 / 6:08 PM / in 9 years

Tennessee Gas line snags cut New England supplies

* Pipeline issues trim supply to New England amid cold

* Traders note regional prices well above norms

NEW YORK, Nov 10 (Reuters) - Problems on El Paso Corp’s EP.N Tennessee Gas Pipeline system have cut natural gas supplies to the New England region and boosted prices over the past week during the heating season’s first bout of cold weather, traders said on Wednesday.

Tennessee Gas said in a website posting repair work continued at its station 325 in Liberty, New Jersey, after an automatic shutdown this week.

The estimated reduction in capacity through the station was about 50,000 dekatherms.

The company expects evaluation of Unit 3 A at the station to be completed on Thursday and, once the cause is determined and resolved, the unit will return to service. Unit 2 A was restored and resumed normal operations late Monday.

In a separate posting, the company said it completed an initial assessment of repairs necessary for a valve section in southwestern New York.

The assessment indicated that repairs can be completed without pipe replacement, but with a continuation of the pressure reduction currently in place.

Last week the company declared force majeure effective Nov. 9 due to the necessary pressure reduction in valve section 225-1 to 226-1.

The company still expects the valve section to be restored to normal operations by Friday, barring complications.

Traders said the reduction in supplies during a recent cold snap helped push prices at Algonquin city gate to nearly $1 over New York regional prices, up sharply from last week’s 50-cent premium and well above the November monthly index premium of about 9 cents.

The Algonquin pipeline delivers natural gas supplies to New England.

The 14,000-mile (22,530-km) Tennessee Gas Pipeline system stretches from the Mexican border to Canada, tapping supply regions in the Gulf of Mexico, Texas, Appalachia and Canada and serving markets across the Midwest and mid-Atlantic, including major metropolitan cities of Chicago, New York and Boston. (Reporting by Eileen Moustakis and Joe Silha; Editing by Walter Bagley)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below