Kinder cuts pressure on El Paso natgas pipe after fire in Arizona last week
August 25 (Reuters) – American energy company Kinder Morgan Inc’s KMI.N The El Paso Natural Gas Pipeline LLC unit has announced that it will reduce operating pressure on its Line 2000 pipeline system, which suffered a fatal explosion in Arizona last week.
This reduction will likely reduce the supply of natural gas from the Permian Basin of Texas and New Mexico to California and other parts of the Southwestern United States Desert, as another heat wave begins to set in. the area later this week.
Energy traders said the combination of hot weather, which will increase the amount of gas-fired power generators to keep air conditioners humming, and lower gas supplies are expected to increase gas prices in California later this week. as temperatures rise.
After a week of cooler-than-normal weather, high temperatures in Los Angeles are expected to drop from the 70s Fahrenheit (24 degrees Celsius) August 18-24 to the low 90s August 26-27, according to AccuWeather. The normal city maximum at this time of year is 85 degrees.
Southern California Citygate Gas Prices NG-SCL-CGT-SNL fell to a nearly one-month low of $ 4.15 per million British thermal units on Friday before climbing to a week-long high of $ 5.07 on Tuesday.
The 30-inch El Paso pipe exploded on August 15 near Coolidge, Arizona, killing two people. Coolidge is located approximately 55 miles southeast of Phoenix.
Kinder Morgan said on Tuesday that El Paso will reduce the operating pressure on the entire 2000 line system.
Gas flows at the El Paso Cimarron compressor in southeastern Arizona have fallen from more than 0.5 billion cubic feet per day earlier in August to about zero since the August 15 explosion.
Kinder Morgan has informed customers that reductions on the 2000 line network will remain in effect until further notice.
UPDATE 2 – Kinder Morgan says Arizona gas pipeline fire extinguished, 2 dead
CRITICAL OPINION OF PIPELINE NATGAS: Force Majeure d’El Paso – Line 2000 – Update # 1
(Reporting by Scott DiSavino; editing by Barbara Lewis)
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