Williams taps storage for Northwest gas flows: Update

Williams' 3.8 Bcf/d (108mn m³/d) Northwest natural gas pipeline, a key conduit for gas to the Pacific northwest, will draw from storage today to compensate for lost supplies from Canada.

The pipeline company will use 1.2 Bcf/d from the 44-Bcf Jackson Prairie storage site in Lewis County, Washington. The gas will offset lost Canadian supply resulting from the rupture of Enbridge's 1.6 Bcf/d Westcoast Energy pipeline earlier this week. Northwest normally receives about 1 Bcf/d from Westcoast through an interconnection at Sumas, Washington.

Williams yesterday was working with interconnecting pipelines, industrial users and electric utilities in the northwest to reduce loads on Northwest after losing access to Westcoast gas, the pipeline's biggest single source of supply. Northwest also carries gas from the Rockies and the San Juan basin into the region.

The 36-inch Westcoast mainline ruptured near Prince George, British Columbia (BC) in Canada on 9 October. Enbridge, the operator of Westcoast, shut the pipeline from station 2 to the US-Canada border near Huntingdon, BC. It also depressurized a neighboring 30-inch diameter line.

Gas prices at Westcoast station 2 fell yesterday to 49¢/mmBtu from $1.68/mmBtu in the prior session. No trade was reported at Sumas yesterday as deliveries there fell to zero. Prices at Sumas averaged $2.97/mmBtu on 9 October.

Enbridge was in the process today of resuming service on the 30-inch pipeline after receiving approval from Canadian regulators. The startup of that line will restore partial flows to Westcoast customers, but the company could not say when gas would begin flowing on the larger line.

Puget Sound Energy, Washington state's biggest utility, yesterday asked customers to cut back on electricity and gas after the rupture, including lowering thermostats and limiting the use of hot water. The utility said it would use alternative fuels like coal to help meet near-term demand.

It also plans to use LNG in storage to address any supply shortfall.