USGC gas infrastructure still feeling effects of Harvey

Tropical Storm Harvey, which made landfall along the US Gulf Coast (USGC) near Corpus Christi, Texas as a Category 4 hurricane on August 25, has brought historic amounts of rain to the US energy capital of Houston and impacted oil and gas infrastructure along the coast.

Just under a week later, Harvey is now moving into southwestern Louisiana, threatening energy infrastructure there.

Weather analysts forecast that the storm will pass through northeastern Louisiana and northwestern Mississippi on Thursday and Thursday night, weakening as it crawls across land.

In terms of energy operations and infrastructure, however, the impacts of Harvey's long stall over Texas are still being felt. Below is a summary of the status of regional natural gas upstream and midstream operations:

• Offshore natural gas production in the US Gulf of Mexico rose to 2.7 Bcfd on August 30 from 2.6 Bcfd on August 29 and a low of 2.4 Bcfd on August 26.

• In southern Texas, Eagle Ford shale gas production has recovered, with Marathon Oil and EOG Resources restarting operations.

• Cheniere Energy continued operations at its Sabine Pass LNG export terminal in Cameron Parish, Louisiana, throughout the storm. Cheniere continues to await instructions from port officials about how to proceed. The company said it will respond accordingly to safely schedule deliveries from the presently closed port.

• Pipeline gas exports to Mexico hit a summer low of 2.9 Bcfd on August 26 as Harvey disrupted supply and pipeline transport in southern Texas. Gas exports to Mexico are at around 20% below the month-to-date average prior to the storm, at approximately 3.5 Bcfd on August 30.

• US gas consumption is down 3 Bcfd from the month-to-date average prior to the storm, and down approximately 4.5 Bcfd from the August 2016 volume. Gas demand from the power generation sector is down 3.8 Bcfd from the month-to-date average prior to the storm, to approximately 30.6 Bcfd.

• Kinder Morgan's Tennessee Gas Pipeline, which runs from the US Gulf Coast to New England, lifted its force majeure at Station 1, but is maintaining a force majeure at Station 9 as of August 30. The pipeline lifted an operational flow order (OFO) for Zones 4, 5 and 6, but still has an OFO in place for all areas south of Station 25 in Zone 0, and for Zone 2 and 3 for overtakes and under-deliveries.

• Natural Gas Pipeline Co. of America is maintaining its force majeure for its Louisiana Line. The following stations are unavailable at present: Compressor Station 302, located in Montgomery County, Texas; Compressor Station 342, located in Cameron Parish, Louisiana; and Compressor Station 343, located in Liberty County, Texas. During the force majeure, the scheduling constraint is at Compressor Station 302.

• Late on August 29, DCP Midstream reported no change to volumes shut in on its system. Approximately 600 MMcfd of south-central Texas capacity remains shut in. DCP's other facilities, including the Sand Hills pipeline, Southern Hills pipeline and other NGL pipelines connected to the Gulf Coast are in operation.

• Gulf South Pipeline said the Enterprise Burns Point gas processing plant in Louisiana, with a capacity of 160 MMcfd, has been shut due to weather conditions.

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