Increased demand from Eagle Ford Shale producers and new gathering and processing agreements support the construction of an additional 300 MMcf/d of processing capacity at Enterprise Products Partners LP's cryogenic gas processing facility in Lavaca County, TX, the partnership said. It is planning to construct 62 miles of 24-inch diameter and 30-inch diameter pipeline loops and increasing compression horsepower. The expansion is expected to begin service in the first quarter of 2013. Enterprise is currently constructing its Eagle Ford rich natural gas mainline system and associated laterals consisting of about 300 miles of pipeline and representing gathering and transportation capacity of more than 600 MMcf/d (see Shale Daily, Aug. 10). The Yoakum facility currently has 600 MMcf/d of capacity under construction, which is expected to begin service during the second quarter of 2012. With the additional 300 MMcf/d train, the plant will have total capacity of 900 MMcf/d when service begins, which is expected in the first quarter of 2013.
Panhandle Oil and Gas Inc. said it has closed on the acquisition of several assets in the Fayetteville Shale from a private seller for $17.5 million. The Oklahoma City-based company said the assets include 193 nonoperated wells producing about 2.7 MMcf/d and 1,531 leasehold acres in Van Buren, Conway and Cleburne counties, AR. Approximately 240 future infill drilling sites have also been identified on the leasehold.
Venoco Inc., an independent exploration and production (E&P) company based in Denver, has withdrawn plans to drill up to nine exploratory oil and gas wells in the Monterey Shale in Santa Barbara County, CA. According to the Monterey County Herald, a county planner said the company made the decision due to the "uncertain regulatory environment" there. The county had enacted additional well permitting requirements, instead of an outright ban on hydraulic fracturing, in September (see Shale Daily, Sept. 26).