Canyon Midstream Partners LLChas begun development of a natural gas gathering, processing and treating system in the Permian Basin called the James Lake System. The project is anchored by a 10-year gathering and processing agreement with “one of the world’s largest oil and gas companies,” the company said. The system is to include a cryogenic processing plant in Ector County with an initial capacity of 70 MMcf/d and treating capabilities for gas containing hydrogen sulfide and carbon dioxide. To supply the plant, Canyon is developing 40 miles of high-pressure gathering trunklines and three compressor stations, which will connect to low-pressure field gathering systems it is constructing for its anchor customer in Ector and Andrews counties. When completed in late 2014, the James Lake System will deliver residue gas into the El Paso Natural Gas pipeline and offer interconnections to multiple natural gas liquids pipelines in Ector County. “Ultimately, we expect the current James Lake project will be the first phase of a distributed and integrated gathering and processing system in the Permian Basin…” said Canyon President Michael Walsh.
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GE Energy and Vess Oil Partnering Again in Texas
GE Energy Financial Services and an affiliate of Vess Oil Corp. are buying about 13,000 net acres in East Texas and associated production from the Woodbine formation from an EnerVest Ltd. affiliate for $108 million.
Dallas Operator Targeting Naturally-Fractured Buda Limestone
Dallas-based Gulf Coast Western LLC has secured 3,500 acres in Wilson County, TX, where it intends to target the “revitalized” Buda Limestone Formation with 10 horizontal wells initially. The naturally fractured Buda is just below the Eagle Ford Shale and is seen as a lower-cost oil opportunity than the Eagle Ford.
Researchers Find 18 Tcf Left in Fayetteville at About $4/Mcf
The venerable Fayetteville Shale has about 38 Tcf of technically recoverable reserves left, and 18 Tcf of that can be had with gas prices near $4/Mcf, according to a study by the Bureau of Economic Geology (BEG) at The University of Texas at Austin (UT).
Storage Operator Trying to Duck Market Risk, FERC Told
A Gulf Coast natural gas storage operator’s application to abandon capacity solely due to weak market conditions is contrary to the public interest, would set a dangerous precedent if granted, and is not supported by FERC policy, the Commission was told in a Tuesday filing.
Texas LNG Project Files for Export OK
Texas LNG LLC is seeking export authorization from the U.S. Department of Energy for a project that would send up to 2 million tonnes per annum (mtpa) of liquefied natural gas (LNG) worldwide under tolling agreements.
Oneok Board OKs Gas Utility Business Spin-Off
The Oneok Inc. board of directors on Wednesday unanimously approved the separation of the company’s natural gas distribution business into a stand-alone, publicly traded company to be called ONE Gas Inc.
Enterprise Rethinks, Upsizes LPG Export Plan
Enterprise Products Partners LP plans to further expand its liquefied petroleum gas (LPG) export terminal at Oiltanking Holding Americas Inc.’s complex on the Houston Ship Channel instead of developing a second terminal site.
Gas and Power Chaos Lingers; Cold Retreating
As cold — albeit waning — continued to grip much of the United States Tuesday, power plants in PJM Interconnection and ISO New England wereimpacted by natural gas delivery issues and/or high prices for the fuel. The Energy Information Administration (EIA) said pipelines into New England were constrained by the Polar Vortex. Meanwhile, throughput at a central Alabama gas utility was running at 10-year record levels.
Polar Vortex Sends Northeast Next-Day Gas Prices $40-$60 Higher
Arctic temperatures sweeping much of the country in a Polar Vortex strained pipeline throughputs and pushed natural gas spot prices to record highs in the Northeast. Transco Zone 6 non-NY next-day prices shot higher by $59.76 to average $70.66/MMBtu, while Transco Zone 5 increased by $61.27 to average $72.43/MMBtu, according to NGI’s Daily Gas Price Index.