NGI The Weekly Gas Market Report

Briefs -- Utah Lease Sale, Enterprise Products, Piedmont Natural Gas, Manta Ray Offshore Gathering Co., EnWater Solutions, Denton, TX

The U.S. Bureau of Land Management (BLM) Utah Vernal field office is seeking public comment on the environmental assessment (EA) done regarding its plans to offer 28 parcels totaling about 12,225 acres for oil and natural gas leasing set for November this year. Maps and additional information are included in the EA. The public comment period will run through July 15, and BLM said it is particularly looking for the identification of issues germane to proposed sale or new technical or scientific information relevant to the case. "Comments that contain only opinions or preferences will not receive a formal response, but may be considered in the BLM decision-making process," a BLM Utah spokesperson said.

Enterprise Products Partners LP plans to build a cryogenic natural gas processing facility and associated gas and natural gas liquids (NGL) pipeline infrastructure to accommodate production growth in the Delaware Basin of West Texas and southeastern New Mexico. A site for the plant, which will have a capacity of 300 MMcf/d and the capability to extract more than 40,000 b/d of NGLs, has yet to be determined. The project will include rich natural gas gathering lines, a residue pipeline to Waha and an NGL pipeline to Enterprise's Mid-America Pipeline system. These assets will be designed to integrate with the rest of the company's Delaware Basin infrastructure. The project is anchored by long-term commitments from a major producer, Enterprise said. The facility is expected to begin service in the second quarter of 2018. "This project, which complements our ongoing growth in the region, is the third cryogenic natural gas processing plant Enterprise has announced in less than 24 months, said Jim Teague, CEO of Enterprise's general partner. "The South Eddy facility began operations earlier this year, while our joint venture processing plant at Waha is expected to begin service in the third quarter of 2016. Altogether, these initiatives are expected to increase our processing capacity in the Delaware Basin to 800 MMcf/d, compared to 40 MMcf/d in 2012 [see Shale DailyMay 5April 30, 2015]."

Piedmont Natural Gas will solicit bids for asset management services and gas supply to begin Nov. 1 for its North Carolina, South Carolina and Tennessee operations. The Charlotte, NC-based utility has a total system throughput of more than 250 Bcf/year, with firm transportation contracts on Columbia Gas Transmission, Columbia Gulf Transmission, Dominion Transmission, East Tennessee Natural Gas Pipeline, Midwestern Gas Transmission, Texas Eastern Transmission,Tennessee Gas Pipeline and Transcontinental Gas Pipeline. The company will be seeking asset management services, seasonal and year round supply for contract terms yet to be determined. To receive a copy of the request for proposals when posted, contact Keith Maust, (704) 731-4901; or Sarah Stabley, (704) 731-4907.

The Federal Energy Regulatory Commission has extended until Aug. 27 the limit on emergency transactions by Manta Ray Offshore Gathering Co. LLC (MROG), which has been using its gathering system as an intermediate link in the delivery of natural gas within federal waters offshore Louisiana for nearly four months. On March 1, MROG notified FERC that on Feb. 29 it had initiated the emergency transportation activity to continue the flow of offshore deepwater gas produced in association with oil by Chevron U.S.A. Inc., BHP Billiton Petroleum (Deepwater) Inc. and ExxonMobil Gas & Power Marketing during an outage by Transcontinental Gas Pipe Line Co. LLC (Transco). The need for emergency service became effective Feb. 29 when Transco posted an exception to its resumption of Southeast Louisiana Crossover flow for producers located upstream of its production platform in South Timbalier Block 300. The production would flow on MROG's gathering system as an alternate transportation route while platform modifications are undertaken, MROG said. MROG filed a notice April 14 to extend the action through June 28, and on June 16 filed a petition seeking a waiver in order to continue the emergency transportation arrangement until Aug. 27.

TPH Partners, the private equity arm of Tudor, Pickering, Holt & Co., has formed multi-service water management company EnWater Solutions LLC to serve oil and gas operators in the Permian Basin. The Midland, TX-based company combined the partnership's existing water business in the Permian and assets from Pelagic Water Systems LLC. Services range from high-volume saltwater disposal facilities to permanent and temporary water pipelines. Micky Thacker, a former Flint Energy Services executive, was named CEO.

As had been expected, Denton, TX, City Council Tuesday voted to proceed with the Renewable Denton Plan, which would see the city, which sits atop the Barnett Shale, issue bonds to pay for a $265 million natural gas-fired power plant to augment its power portfolio as it shifts to greater reliance on renewable energy (see Daily GPIJune 20). Denton Mayor Chris Watts and two council members voted against the plan while four council members voted for it. Public comment prior to the vote from those opposed largely centered around concern about air pollution from the gas-fired plant. One speaker opposed to the plan said the city should more carefully explore compressed air energy storage to back up intermittent renewable energy supplies. One speaker in favor of the plan cited the increased use of renewable energy that it would allow as well as an expected reduction in power costs for consumers. 

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