NGI The Weekly Gas Market Report / NGI All News Access

Industry Briefs

Tall Oak Midstream LLC has begun initial natural gas gathering operations on the Tall Oak STACK System, which is designed to serve producers in Oklahoma's STACK play, also known as the Sooner Trend. The play is northwest of Oklahoma City and targets the Woodford and Mississippian-age shales. Tall Oak is gathering gas on the system for multiple customers and expects to commission the system's first processing plant, the Chisholm Plant, in the third quarter. The STACK System serves producers targeting the STACK play's liquids-rich pay zones, including the Upper and Lower Mississippian Meramec, Osage, Woodford Shale and Hunton formations. The system will also have the capacity to serve production from the Woodford and Springer shale plays and other portions of the South Central Oklahoma Oil Province, known as SCOOP.

Pioneer Natural Resources Co. on Tuesday said that severe winter weather in West Texas has significantly impacted production and drilling operations in the Spraberry/Wolfcamp area. At the beginning of January, the Spraberry/Wolfcamp area experienced heavy icing and freezing temperatures, which have resulted in "extensive power outages, facility freeze-ups, trucking curtailments and limited access to production and drilling facilities," the company said. "An extensive recovery period is expected, and it is likely to be several weeks before the full impact of this event can be determined." An operations update is to be provided along with fourth quarter results on Feb. 10. Fourth quarter Spraberry/Wolfcamp production was not impacted by the recent severe weather.

Summit Midstream Partners LP announced it has relocated its corporate headquarters from Dallas to The Woodlands, TX. The company said it made the move to centralize some corporate functions, including its engineering, business development, enterprise technology, HSE and operational control teams. Management added that the new location would "further capitalize on the deep pool of talented energy professionals that live and work in The Woodlands and the greater Houston area." The new headquarters are located at 1790 Hughes Landing Blvd, Suite 500, The Woodlands, TX 77380.

Mexico's Petroleos Mexicanos (Pemex) has completed its 186-mile Interoceanic Corridor natural gas pipeline, which will allow the Antonio Dovali Jaime refinery in Salina Cruz, Oaxaca state in southern Mexico to switch from burning fuel oil to natural gas. According to Pemex, it is the first time that natural gas will be supplied by pipeline to the south of Mexico. The 12-inch diameter pipeline connects the refinery on the Pacific Coast with the Gulf of Mexico. It currently has three compressor stations and will supply 90 MMcf/d of dry natural gas to the refinery facilities, according to an announcement in Spanish from Pemex. The project is expected to reduce emissions of carbon dioxide and sulfur oxides by allowing the switch from fuel oil to natural gas, Pemex said, adding that carbon credits will "represent a substantial resource savings." Additionally, the pipeline is expected to provide an economic stimulus to southern Mexico.

Warren Resources Inc. reported a small explosion Wednesday at a well site serving a Procter & Gamble Co. paper products plant in northeast Pennsylvania. During completion of a well at the site, workers vented a small amount of natural gas, which reached a nearby heating unit, caught fire quickly and was immediately contained. Emergency responders reportedly left the scene in Wyoming County shortly after they arrived. Warren is relatively new to the Marcellus Shale. It entered the play after acquiring all of Colorado-based Citrus Energy Corp.'s assets in the northeast part of the state in July for $352.5 million in a deal that found Citrus folding into New York-based Warren's operations (see Shale DailyJuly 8, 2014). 

Recent Articles by NGI Staff Reports

Comments powered by Disqus