Routine repairs cut Independence Hub capacity

26 June 2008 20:26  [Source: ICIS news]

HOUSTON (ICIS news)--Enterprise Products Partners said on Thursday that production at the natural gas platform Independence Hub in the Gulf of Mexico was reduced for routine maintenance.

According to the operator, monoethylene glycol (MEG) must be injected into the flow lines in order to keep them from freezing. This normal procedure requires overall pressure to be reduced, causing natural gas output to be cut, spokesman Rick Rainey said.

“This is nothing out of the ordinary,” Rainey said. “We expect this process to take about 24 hours.”

Market sources said flows were down to about 250m mcf/day.

Rainey added that full production, about 1 bcf per day, should return by the end of the week.

Natural gas prices on the NYMEX increased 20.7 cents to $12.960/m Btu in Thursday morning trading following news of the reduced capacity.

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