Tetco Natural Gas Line Explodes in Kentucky

SEATTLE (Oil Monster): Texas Eastern Transmission (Tetco) declared a force majeure late yesterday following a rupture of its 30-inch natural gas pipeline north of the Owingsville compressor station in Kentucky.

The line was shut in for gas day today. Tetco said restoration efforts are already underway, but noted the force majeure is in effect until further notice.

The incident occurred upstream from the August 2019 incident where Tetco's Line 15 ruptured.

Price volatility failed to materialize following the August rupture, as Tetco rerouted flows to other lines. But this incident could mean supply disruptions just ahead of the summer demand season.

Even with gas pipeline capacity constrained by the accident, demand lowered by the Covid-19 response, higher storage levels and mild usage for heating or cooling could be bearish counterweights to prices.

Prices for Tetco M-2 receipts rose by 22pc just before yesterday's rupture, averaging $1.54/mmBtu for flows today.

Courtesy: www.argusmedia.com