NGI The Weekly Gas Market Report

Briefs -- Atlas Resource Partners, Eastern Shore Natural Gas Co., Enbridge Energy LP, Energy Transfer Partners, Enterprise Propylene Exports

The New York Stock Exchange (NYSE) has suspended trading of Atlas Resource Partners LP's (ARP) common and preferred units. NYSE informed the company last week that it would begin proceedings to delist the company's units. ARP is now listed on the over-the-counter market. Its common units were trading around 13 cents each on Thursday. The delisting is one part of the company's financial woes. It has delayed a payment on its borrowing base and exercised its 30-day grace period to pay interest on its senior notes. ARP's general partner, Atlas Energy Group LLC, was also delisted in March and is currently trading over-the-counter (see Shale DailyMarch 21). ARP has producing wells and reserves in 17 states, which include assets in the Barnett, Eagle Ford, Marcellus and Utica shales.

The Federal Energy Regulatory Commission on Thursday approved a pair of orders clearing the way for Eastern Shore Natural Gas Co.'s proposed White Oak Expansion and System Reliability projects in Pennsylvania and Delaware [CP15-18, CP15-498]. The White Oak Expansion would enable Eastern Shore to provide 45,000 Dth/d of firm transportation to the Garrison Energy Center in Dover, DE through the installation of 3.3 miles of 16-inch diameter looping pipeline (Daleville Loop) and 2.1 miles of 16-inch diameter looping pipeline (Kemblesville Loop) in Chester County, PA, and 3,550 hp of additional compression at the Delaware City Compressor Station (see Daily GPIApril 25). The System Reliability Project would decrease the likelihood of brown outs during high demand months through the installation of 2.5 miles of 16-inch diameter looping pipeline (Porter Road Loop) in New Castle County, DE, and 7.6 miles of 16-inch diameter looping pipeline (Dover Loop) in Kent County, DE, and associated facilities. The orders were approved as part of the consent agenda at FERC's regular monthly meeting in Washington, DC. FERC released a favorable environmental assessment for the projects earlier this year.

The U.S. Environmental Protection Agency (EPA) and the Department of Justice announced a settlement with Enbridge Energy LP and several related Enbridge companies to resolve claims stemming from two separate oil spills in Marshall, MI and Romeoville, IL, in 2010. Enbridge agreed to spend at least $110 million on measures to prevent spills and improve operations across nearly 2,000 miles of its pipeline system in the Great Lakes area, and to pay $62 million in civil penalties for Clean Water Act violations, the agencies said. Enbridge will also pay more than $5.4 million in unreimbursed costs incurred by the government in connection with cleanup of the Marshall spill, as well as all future removal costs incurred by the government in connection with the spill. In addition to payments required under the proposed settlement, Enbridge has already reimbursed the government for $57.8 million in cleanup costs from the Marshall spill and $650,000 for cleanup costs from the Romeoville spill, and reportedly incurred costs in excess of $1 billion for required cleanup activities relating to the spills, the agencies said. Enbridge was held responsible for the discharge of at least 20,082 bbls of oil in Marshall and another 6,427 bbls in Romeoville. In 2012, the National Transportation Safety Board said the 30-inch diameter pipeline rupture and spill in the Kalamazoo River in Marshall was the most expensive onshore oil spill in U.S. history (see Daily GPIJuly 16, 2012).

A spokeswoman for Energy Transfer Partners on Wednesday said an investigation into a fire near the Energy Transfer-operated King Ranch natural gas plant in Kleberg County, TX, had begun and repairs would begin "shortly." A fire on Monday (see Daily GPIJuly 19) affected multiple Kinder Morgan Inc.-operated pipelines and certain customer receipt and delivery points on Kinder Morgan Texas Pipeline, Tejas Pipeline, Border Pipeline and Monterrey Pipeline, as well as assets owned and/or operated by outside parties, a Kinder Morgan spokesman said. On Wednesday he said no new information was available. No further details were provided on what caused the fire or to what extent natural gas flows were still affected.

Enterprise Products Partners LP has loaded its first two vessels with polymer-grade propylene (PGP) for export at the Enterprise Hydrocarbons Terminal (EHT) along the Houston Ship Channel, adding a new service at the facility. The company is expecting an increase in the number of PGP export cargoes in response to growing international demand. It has the capability to load 5,000 metric tons per day of refrigerated PGP at the EHT dock facilities, which are supplied by propylene fractionators and storage wells at Enterprise's Mont Belvieu, TX, complex. "Our EHT facility provides us with the enhanced efficiency and additional capacity we need to meet the increased demand from our customers looking to export PGP, which is price advantaged due to the shale revolution," said Jim Teague, CEO of Enterprise's general partner. "With the addition of our 1.65 billion pound PDH [propane dehydrogenation] plant, which is scheduled to begin service in the second quarter of 2017 [see Daily GPIJan. 28], Enterprise will have the capability to produce 7.5 billion pounds of propylene per year, sufficient to meet the needs of our domestic and international customers."

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