Liquids-rich unconventional gas plays, particularly shales, are continuing to drive midstream spending as evidenced by two announcements last week out of the Eagle Ford Shale as well as the Cana-Woodford Shale and Granite Wash plays.
Targeting the Eagle Ford, Regency Energy Partners LP said it is expanding its South Texas facilities to meet producer demand for rich gas services. The projects are expected to provide 200 MMcf/d of capacity for Regency’s South Texas gathering system.
“Regency’s rich gas volumes in the South Texas region continue to ramp up, and we have been aggressive in our plans to offer increased midstream services in the Eagle Ford Shale,” said Regency CEO Mike Bradley. “Our current expansion projects position Regency for additional growth opportunities and will improve the operational efficiencies of our South Texas gathering system in this prolific shale play.”
The expansions include:
Costs for the projects have been included in Regency’s 2010 organic growth capital budget of $259 million and will be funded under the partnership’s revolving credit facility. The projects are scheduled to be completed in May.
Separately, ONEOK Partners LP said last week it will spend $180 million to $240 million by the first half of 2012 for natural gas liquids (NGL) projects in the Cana-Woodford Shale and Granite Wash plays. When completed, the projects are expected to add 75,000 to 80,000 b/d of raw, unfractionated NGLs to the partnership’s existing NGL gathering systems in the Midcontinent and the Arbuckle Pipeline.
“These projects increase our ability to transport raw NGLs from these two important supply areas and better meet the needs of our customers,” said ONEOK COO Terry K. Spencer. “Our Arbuckle Pipeline plays an integral role in our ability to deliver NGLs to the Mont Belvieu, TX, market center.”
The projects include:
The ONEOK projects are expected to be completed during the first half of 2012. The additional raw NGLs will be fractionated at either the partnership’s fractionation facilities or by third parties, ONEOK said.
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