NGI The Weekly Gas Market Report

Briefs -- Brazos Midstream | Health Registry | Lucid Energy | DAPL Costs

Brazos Midstream Holdings LLC has completed multiple crude oil and gas gathering and processing projects in the southern Delaware Basin, a subbasin of the Permian Basin that is one of the most active oil- and gas-producing basins in the United States. Brazos commenced operation of a new 60 MMcf/d gas processing plant (Comanche I), several new compressor stations and 150 miles of large-diameter, low- and high-pressure gas gathering pipelines. The project also included the construction of 35 miles of crude oil gathering pipelines, two crude oil storage terminals with a combined capacity of 50,000 bbl and connections to multiple downstream crude oil pipelines. Brazos also has begun construction of a second gas processing plant (Comanche II), which will add 200 MMcf/d of capacity. Comanche II is expected to be operational during the first quarter of 2018 and will increase Brazos' total operated processing capacity in the Delaware Basin to 260 MMcf/d.

The Southwest Pennsylvania Environmental Health Project (EHP) has started a public health registry to gauge the impacts of shale oil and gas development on people living near upstream and midstream operations nationwide. Launched in partnership with the healthcare advocacy organization, Genetic Alliance, the voluntary online registry asks about demographics, proximity to operations, air and water exposure and health symptoms, among other things. Those living within five miles of upstream or midstream sites are encouraged to register. EHP believes the registry will help doctors and researchers better understand the impacts of natural gas development on public health.

Dallas-based midstream services provider Lucid Energy Group has secured an equity commitment for up to $250 million from Magnetar Capital to support Lucid’s proposed natural gas gathering and processing system in the Delaware Basin, a sub-basin of the Permian. “This important transaction, combined with the existing support of EnCap Flatrock Midstream, allows us to continue to aggressively expand our Delaware Basin franchise and offer large-scale, best-in-class service to producers in the region,” said Lucid CEO Mike Latchem. Lucid provides midstream services to producers in the Permian’s Midland and Delaware basins and is the largest privately held natural gas processor in the Permian with more than 930 MMcf of capacity in operation or under construction, and more than 3,600 miles of operational pipeline assets. Lucid in September 2016 acquired Agave Energy Co., the owner and operator of gas gathering and processing assets in the Delaware.

North Dakota is set to receive $15 million from the federal government to help defray the costs of providing emergency law enforcement services for the Dakota Access Pipeline (DAPL) protest encampment, Gov. Doug Burgum said. Burgum sought a presidential disaster declaration, citing costs of more than $37 million for the protest encampment, which spanned 233 days. He sent a separate letter to the Trump administration seeking a disaster declaration, which could provide more funds. In the request, Burgum said "significant federal responsibility exists for the start and continuation of the protest," including "the U.S. Army Corps of Engineers' failure to enforce its regulations and maintain law and order on its property." Sen. John Hoeven (R-ND) said the Justice Department budget in the federal government funding bill includes the $15 million reimbursement.

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