Destin says declares force majeure due to Pascagoula Plant turnaround

Destin Pipeline Monday declared force majeure for gas supplies from the offshore Mississippi Main Pass 260 block to the Pascagoula Gas Processing Plant due to a turnaround at the Mississippi plant, Destin said Monday. 

The turnaround at the BP-operated Pascagoula plant started Monday and was set to last for about 17 days, Destin said in a notice on its website. 

"Destin has arranged for an alternate offshore delivery point to minimize the impact of the processing plant shutdown on its shippers," the company said in a statement. "Viosca Knoll Gathering System (VKGS) has indicated its willingness to accept deliveries on a best efforts, interruptible basis from Destin at its interconnect at MP260, subject to receipt of any necessary regulatory approval." 

The force majeure led to a 104,000 Mcf loss so far Monday, according to Bentek Energy, like Platts a unit of the McGraw-Hill Companies. 

The force majeure was seen as having little impact on spot prices for next-day gas, with the Florida Gas Transmission Zone 3 rising about 10 cents on average on the IntercontinentalExchange to the low $3.60s/MMBtu. Volumes at that point on ICE fell by almost 90,000 Mcf, to around 20,000 Mcf.