ANR Maintenance Event Sparks Basis Discount Woes

A maintenance event at ANR Pipeline's Mermentau and Grand Chenier compressor stations caused significant disruptions to natural gas flows in late September.

The outage, which took place from September 16-21, reduced Lake Arthur Southbound capacity by nearly 0.70 Bcf/d, affecting around 66-67% of firm shippers based on current nominations and contracted capacity on ANR.

This led to a widening of the NGI's ANR SE spot basis discount to Henry Hub by about 23 cents initially, averaging a 21.5-cent discount throughout the event.

According to Entropic Analytics flow data, scheduled volumes through the affected segment collapsed from 1.01 Bcf/d to 0.34-0.55 Bcf/d during the outage, with an average flow of 0.41 Bcf/d.