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Briefs -- Siemens, Schlumberger, Simmons & Co., Oklahoma Quakes, EnLink Midstream, Enterprise LPG, Magnolia LNG, Noble Energy, Sabine Pass

November 13, 2015
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Dresser-Rand, a unit of Siemens Power and Gas, has an order for two small-scale liquefied natural gas (LNG) production systems, LNGo liquefaction, from AGL Resources Elizabethtown Gas unit in New Jersey. Each system would be geared to produce about 13,500 gallons/day of LNG as peak-shaving storage for the Elizabeth, NJ-based utility. The system is a modularized, portable plant designed for onsite LNG production, including four packaged skids -- power, compressor, processor and conditioning modules. The conversion plants eliminate the need for trucking shipments of LNG from centralized production plants.

The U.S. Department of Justice has cleared without conditions the proposed merger between Schlumberger Ltd. and Cameron International Corp. The world's largest oilfield services operator and Houston-based Cameron agreed to a $14.8 billion deal last summer that would combine complementary technology portfolios (see Shale DailyAug. 27). Completing the merger, expected in early 2016, requires approval by Cameron stockholders; the vote is scheduled Dec. 17. Schlumberger also said it has acquired Tulsa-based Fluid Inclusion Technologies Inc., an oilfield service company that specializes in laboratory analysis of trapped fluids in rock material and advanced borehole gas analysis on drilling wells. 

Piper Jaffray Cos. agreed to buy Houston-based energy investment banker Simmons & Co. International for $139 million to expand into the energy sector. Piper, based in Minneapolis, plans to operate the unit from Simmons' Houston headquarters and Aberdeen, Scotland. Simmons was founded in 1974 and has executed more than 830 advisory transactions and 330-plus private and public transactions, which together represent a total transaction value of $260 billion. The firm employs more than 170 people. Fred Charlton is to be appointed chairman of energy investment banking and serve as co-head of energy investment banking with James Baker. Bill Herbert would become head of global energy research, while Will Britt would continue to lead specialized energy equity sales. Simmons generated revenue of $96 million in the fiscal year ending June 30.

In response to seismic activity around Fairview, OK, the Oklahoma Corporation Commission's Oil and Gas Conservation Division restricted the operation of drilling waste injection wells in the area that inject into the Arbuckle formation. There are only two wells within 10 miles of the center of the seismic activity. One well, operated by PetroWater Solutions, was required to cut injected volumes by 25%. Another well, operated by D&B Operating, was required to cease operations and reduce depth. The regulator took a similar action earlier this month following seismic activity around Medford, OK (see Shale DailyNov. 10).

An EnLink Midstream Partners LP subsidiary agreed to pay $40 million to Apache Corp. to acquire full ownership of their jointly owned Deadwood natural gas processing facility in the Permian Basin. The facility in Glasscock County, TX, has capacity of 58 MMcf/d and was processing 45 MMcf/d in mid-November. The project was developed in 2011; EnLink has operated the facility since startup. The acquisition brings EnLink's processing capacity in the Permian to 343 MMcf/d net, excluding the Riptide processing plant under construction, which would add another 100 MMcf/d of capacity in the Permian's Midland sub-basin. Dallas-based EnLink's assets include more than 9,200 miles of gathering and transportation pipelines, 17 processing plants with 3.6 Bcf/d of processing capacity, seven fractionators with 280,000 b/d of capacity, and barge and rail terminals, product storage facilities, brine disposal wells, a crude oil trucking fleet and equity investments in private midstream companies.

Enterprise Products Partners LP has struck additional contracts to export 125 million bbl of liquefied petroleum gas (LPG) over seven years from its Houston Ship Channel terminal, which now has 90% of its operating capacity subscribed through 2019, the company said Monday. Jim Teague, COO of Enterprise's general partner, said the majority of the terminal's capacity is contracted for periods as far out as 2022 (see Daily GPIOct. 30). The United States is the world's largest LPG exporter, he said. Enterprise is nearing completion of a series of expansions at the terminal designed to accommodate growing demand for export capacity. During the first quarter, the company increased its loading rate to more than 16,000 bbl per hour (bph), or 9 million bbl per month. By the end of this year, Enterprise said it expects to complete the terminal's final phase, which will increase loading rates to more than 27,000 bph. Enterprise will then have the capacity to load up to 16 million bbl per month, which equates to approximately 29 vessels per month.

Liquefied Natural Gas Ltd.'s (LNGL) Magnolia LNG LLC has struck an engineering, procurement and construction (EPC) contract with a joint venture of KBR and Korea's SK E&C USA for the Magnolia LNG project in Louisiana. The contract is worth nearly $4.36 billion for four liquefied natural gas (LNG) trains at the project. It guarantees production of 7.6 million tonnes per annum (mtpa) of LNG, which is 0.8 mtpa higher than previous guidance provided by the project developer. "The total EPC capital cost in the range of US$495 to US$544 per tonne of LNG plant capacity (for the 8 mtpa or greater plant) establishes a new low for U.S. Gulf Coast projects and is substantially lower compared with recent LNG projects around the world," said LNGL CEO Maurice Brand. "With execution of the EPC contract in hand, we shall continue with final engineering activities but will not commit to outsized, non-cancellable commitments in advance of execution of offtake agreements for at least 4 mtpa of additional sales." The Magnolia LNG project, sited in Lake Charles, LA, received a final environmental impact statement last week (see Daily GPINov. 13). 

Under an agreement with the Israeli government, Noble Energy Inc. and its Israeli partner, Delek Group, will sell their interests in the undeveloped Karish and Tanin gas fields in the eastern Mediterranean to a third party. Noble spokeswoman Paula Beasley told NGI the Houston-based company will sell its interest in the Alon A and C licenses -- where the fields are located -- to Delek, which will assume responsibility for their sale to a third party. The move is designed to increase competition in Israel's natural gas industry. Noble will retain its stake in the Tamar and Leviathan fields (see Daily GPIJune 30). According to reports, Noble sold its 47% stake in the fields for $67 million.

Sabine Pass Liquefaction LLC and Sabine Pass LNG LP (collectively, Sabine Pass) have asked FERC for authorization to introduce fuel gas into gas turbine generators E and F at the liquefied natural gas liquefaction and export terminal nearing completion in Louisiana. In the filing at the Federal Energy Regulatory Commission, Sabine Pass requested approval by Tuesday (Nov. 17) [CP11-72]. The first train of the Cheniere Energy Inc. project is expected to come online around the first of the year (see Daily GPIOct. 20).

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