Transcontinental Gas Pipeline Co. (Transco) is gauging interest in increasing firm storage service for up to 8.7 Bcf/d of withdrawal, 7.3 Bcf/d of injection and 73.1 Bcf of capacity at the Eminence Storage Field in Covington County, MS. The salt cavern storage facility in Transco's Zone 4 has current capacity of almost 12 Bcf. The open season runs to July 16, with capacity available Aug. 1. For information, contact Mike Ledford at (713) 215-4929 or Rose Prevott at (713) 215-4396.
The western oil and natural gas exploration and production (E&P) industry supports more than 268,000 jobs across the U.S. and provides $84.3 billion in economic activity, according tothe Denver-based Western Energy Alliance (WEA). This compared to impact from the 13 western states' E&P activity in 2012 of $51 billion. Overall economic impact grew by 65% in two years, according to WEA. The oil/gas efforts add up to $20.7 billion in wages and another $17 billion in tax revenues annually, WEA said. The industry producer-backed group retained an outside economics firm, John Dunham & Associates, to develop and maintain the economic model used to determine the theoretical national impacts from western E&P activity, breaking the numbers down to the state, congressional district and county levels.
Unknowns remained Tuesday even as repairs were done and local natural gas utility service restored in the far northwest corner of Minnesota on Oneok Partners LP's 24-inch diameter Viking Gas Transmission Pipeline following a rupture and explosion a week earlier (see Daily GPI, May 29). The cause of the incident is still under investigation and the total costs of the repairs are unknown, an Oklahoma-based Oneok spokesperson told NGI. The early morning incident during the Memorial Day weekend knocked out gas distribution service to three small communities in the immediate area in Marshall County, MN. No injuries resulted from the incident that shot flames more than 100 feet into the air.
Questar Corp.subsidiary, Questar Gas Co., has reached an agreement with Eagle Mountain, UT, to purchase the municipality's natural gas system, which consists of six miles of steel high-pressure pipeline and 120 miles of intermediate high-pressure main lines and service lines. "We're pleased to have this agreement with Eagle Mountain," said Craig Wagstaff, Questar Gas COO. "Located southwest of Salt Lake City, this municipal natural gas system serves more than 6,000 homes in one of Utah's fastest-growing areas. The purchase will provide Questar Gas with operational advantages and a good return on our investment." Questar Gas said it expects to complete the purchase by the end of the year.
Penn Virginia Corp. (PVA) has agreed to sell its Mississippi assets to an undisclosed buyer for gross cash proceeds of $72.7 million. The sale is expected to close in July, subject to customary conditions. The effective date of the sale is April 1, 2014. The properties, which target the Selma Chalk with horizontal wells, had net production of about 11.9 MMcfe/d during the first quarter, almost 100% of which was natural gas. As a result of the divestiture, the company's 2014 production will decrease by about 1.9 Bcfe. Estimated proved reserves associated with the divested properties at year-end were 85.3 Bcfe, 69% of which was proved developed and about 100% of which was natural gas. During the first quarter, PVA set a quarterly oil production record, thanks to a 15% increase in output from its Eagle Ford Shale operations as it continued to grow and delineate its South Texas acreage (see Shale Daily, May 14).
Axip Energy Services LP, formerly Valerus Compression Services LP, announced Monday that it plans to sell its international services business to Enerflex Ltd. for $430 million. The transaction, which is subject to standard closing adjustments and regulatory and other conditions, is expected to close in late 2Q2014 or early 3Q2014. Axip's international contract operations and about 170 employees will be transferred to Enerflex. Axip intends to use proceeds from the sale toward its domestic contract services businesses and pay down debt. Axip CEO Pete Lane said the transaction "allows us to focus on the core business of Axip in the rapidly expanding U.S. shale plays."
Dominion's project to add natural gas liquefaction and export capability at its existing Cove Point terminal in Calvert County, MD, has received the blessing of the Maryland Public Service Commission. The certificate was required for two 65 MW steam turbine generators planned for the facility. Waste heat from two combustion turbines, which are used to drive compressors to produce liquefied natural gas (LNG), will be recycled to produce steam to drive the steam turbines. About two weeks ago, the Federal Energy Regulatory Commission issued its environmental assessment of the project, which found that it can be built and operated safely with no significant impact to the environment (see Daily GPI, May 15). The project is estimated to cost between $3.4 billion and $3.8 billion.
Houston-based LNG America and midstream liquefied natural gas (LNG) company Liquiline said they will collaborate on offerings for LNG marine fuel markets in the North American Pacific Northwest and the transport of LNG in ISO (International Organization for Standardization) containers to remote markets in Hawaii and Alaska. Liquiline has pioneered the use of LNG ISO containers for LNG fuel markets in northern Europe; LNG America is developing LNG distribution networks including the country's first Jones Act LNG bunker/shuttle vessels. The joint effort will focus on the movement of LNG over long distance by ISO containers being moved by ship and the servicing of local markets by way of LNG bunker/shuttle vessels. Starting from a base on the U.S. Gulf Coast, LNG America plans to provide LNG through a network of LNG transportation and storage assets enabling the major fuel consumption markets to reliably obtain the fuel (see Daily GPI, June 13, 2013). Liquiline acts as an LNG fuel solutions partner for customers through its LNG sourcing, LNG logistics and LNG terminal solutions.
MarkWest Energy Partners LP said Friday that its Houston Processing and Fractionation facility in southwest Pennsylvania was still shut down and will remain so until further notice. Severe thunderstorms that rolled through much of the region on Wednesday led to a lightning strike at one of the complex's three processing plants (see Shale Daily, May 29). The company said it will likely notify investors and the news media when the plant is brought back online. A company spokesman said damage at the plant was still being assessed and repairs were being made. The 355 MMcf/d facility primarily serves Range Resources Corp., which said Thursday that some of its wells were shut in as a result of the problems at the Houston plant. Some production is being rerouted to MarkWest's Majorsville complex in Marshall County, WV, about 30 miles southwest of the Houston facility in Chartiers Township in Washington County.
SemGroup Corp. partnership Rose Rock Midstream LP agreed to buy Chesapeake Energy Corp.'s crude oil trucking assets in Texas, Oklahoma and Ohio for an undisclosed sum. The acquisition includes 124 trucks, 122 trailers and other equipment, as well as term transportation agreements at market rates with Chesapeake Energy Marketing Inc. About 200 Chesapeake employees are to be offered positions with Rose Rock, more than doubling its workforce. Once completed, Rose Rock would have a fleet with more than 200 trucks and about 350 employees. Most of Rose Rock's assets would be located in or connected to the Cushing, OK, marketing hub.