BridgeTex Pipeline Co. LLC, which is owned 50/50 by Magellan Midstream Partners LP and Plains All American Pipeline LP, is expanding its current capacity from the Permian Basin of 300,000 b/d to 400,000 b/d. Expansion capacity is expected to be available in the second quarter following enhancements to existing pumps and related equipment. The 20-inch diameter BridgeTex system transports Permian crude oil from Colorado City, TX, to the Houston Gulf Coast area. Beginning early in the second quarter, a new origin point at Bryan, TX, which is 100 miles northwest of Houston, will begin operations to accept shipments from the Eaglebine region for delivery to Houston.
North American contract driller Patterson-UTI Energy Inc. has reactivated two fracture spreads since mid-December at a cost of about $2 million, including operating and capital expenses as its rig count climbs. As of Sunday (Jan. 22), the Houston-based operator's U.S. rig count totaled 77, versus an average 71 rigs working during December, while the Canadian rig count was flat at two. A preliminary analysis of 4Q2016 results, which are to be posted on Feb. 9, indicates net losses of about $78.1 million (minus 53 cents/share) with revenue of $247 million. During 3Q2016, net losses totaled $84.1 million (minus 58 cents/share) with revenue of $206 million. The company also is moving forward on its buyout of U.S. onshore driller Seventy Seven Energy Inc. in an all-stock deal valued at $1.76 billion.
Antero Resources Corp.on Tuesday asked the Federal Energy Regulatory Commission to issue a certificate of public convenience and necessity authorizing the Rover Pipeline Project as soon as possible so the company can begin construction "in a timely manner." Rover has committed to clear trees within approved seasonal windows, Antero said in a FERC filing, and those windows close March 31 in Michigan, Ohio, Pennsylvania and West Virginia [CP15-93]. Antero also requested expedited approval in November, and Rover made a similar request in December, saying that if it couldn’t start tree clearing by mid-January, the project “very likely will be delayed for up to a full year.” The 710-mile, 3.25 Bcf/d Rover would connect Marcellus and Utica shale gas to the Midwest Hub in Defiance, OH, and to an interconnection with the Vector Pipeline in Michigan, giving Appalachian producers access to points such as the Dawn Hub in Ontario. Antero recently said its Utica activity this year would be "contingent on the construction timetable" for the Rover Pipeline, for which it's an anchor shipper.