Natural Gas Crisis Update

Here is the state-by-state update on the natural gas crisis in the southwest:

New Mexico:

The New Mexico Gas Company reported yesterday that 32,000 customers statewide were without natural gas – less than the 40,000 number that was floated briefly when I was writing my article last night. Note that the company shut off the service to thoese areas in response to low pressure in their pipelines. Not sure how they selected who should be shut off...it would be interesting to know! Restarting will be tedious, because they have to visit each affected home or business twice – first to shut off the main gas valve, then they return to open the valve, purge the system and relight pilots.

Their website shows the following specific service disruptions in New Mexico:

Santa Clara Pueblo (all)

Okway Owingeh Pueblo (all)

San Ildefonso Pueblo (portion)

Santa Ana Pueblo (portion)

Espanola (2,600 customers)

Bernalillo and Placitas (5,000 customers)

Taos, Questa, Red River (10,800 customers)

Coronado Village Mobile Home Park (200)

Silver City (750)

Tularosa, La Luz, Alamagordo (2,500)

Other news sources are reporting the following:

Arizona

Tucson – 14,000 customers without gas, and no word on when it will be restored. See here.

Texas

El Paso Pipeline Company appears to be the biggest player in the crisis, as they own and operate 42,000 miles of pipeline in the U.S. (more than any other company). Their lines leaving west Texas are the primary supply avenues for New Mexico, Arizona and Southern California. They are not stating what their problem was, but this morning they declared force majeure on their pipelines. A number of articles suggest that rolling blackouts in Texas disrupted processing plants or compressor stations, and that the bitter cold caused a number of wellheads to freeze. Frozen wellheads are responsible for cutting U.S. daily production from 62 Bcf (billion cubic feet) to 57.5 Bcf (more than 7 percent) according to Bentek.

California

San Diego – After experiencing pressure drops in its pipelines, SDG&E cut off 88 of its largest customers who had interruptible rates – discounts offered in exchange for an agreement to shut down in just this sort of emergency. An article just out says that SDG&E’s problem was contractual:  it tried to purchase enough gas on the spot market to serve its customers, but they couldn’t because they kept getting outbid by companies elsewhere.

If you have additional information you would like to post, please use the "comments" feature...thanks!