Additional

The U.S. and Canadian rig count may recover a bit this year, but it still will be lower than it was in 2012, according to Schlumberger Ltd. CEO Paal Kibsgaard.

East Tennessee Natural Gas (ETNG) pipeline has executed agreements with Eastman Chemical Co. to provide an additional 86 MMcf/d of firm gas transportation capacity for 25 years to Eastman’s Kingsport, TN, facility. The projects have a combined capital cost of about $120 million and include modifying existing ETNG facilities and building a new 6.4-mile pipeline extension. Coupled with Eastman’s current contracts, ETNG will provide 121 MMcf/d of firm capacity to the Kingsport facility when the projects are completed. The first project, for service of 25 MMcf/d, is expected to begin in November. The Kingsport Expansion Project, to provide 61 MMcf/d, is expected to be in service during the first quarter of 2015. The projects are subject to board and regulatory approvals. ETNG is a unit of Spectra Energy Corp. and Spectra Energy Partners LP.

Despite fierce competition, Gulfport Energy Corp. CEO Jim Palm said his company has managed to acquire additional acreage in the Utica Shale as it looks to determine type curves, well spacing and how long it should wait before bringing new wells into production.

Along with an additional $221 million in costs for mostly natural gas-fired purchased power for its utility, Rosemead, CA-based Edison International is facing a mounting set of problems, which were reflected in third quarter results. The company’s pioneering independent power unit may have to file for Chapter 11 bankruptcy and be cut adrift.

North Dakota again set new all-time highs for oil and natural gas production, drilling permits issued and producing wells in August, according to the latest report from state Department of Mineral Resources (DMR) Director Lynn Helms. The average price for sweet crude was up, too.

For Marcellus Shale producers, the gift-receiving season begins this week and continues through the end of the year in the form of additional pipeline takeaway capacity. Multiple projects are slated to come online between Thursday and the end of the year, giving Marcellus producers increased access to markets, and presumably better prices for their gas.

DCP Midstream’s Sand Hills Pipeline has initiated natural gas liquids transport service from the Eagle Ford Shale. DCP is opening Sand Hills in phases, with this first segment in South Texas online. By the end of 2012, DCP will have completed Sand Hills to connect directly into Mont Belvieu, TX. “When finished, Sand Hills Pipeline will be a major link between the liquids-rich Eagle Ford and Permian producing regions and growing Gulf Coast markets,” said DCP CEO Tom O’Connor. Construction activities continue on the second phase of Sand Hills for Permian Basin service. This phase is expected to enter service by the second quarter of 2013. Sand Hills will consist of 720 miles of 20-inch diameter pipeline with an initial capacity of more than 200,000 b/d, which can grow to 350,000 b/d with the installation of additional pump stations (see Shale Daily, Aug. 19, 2011).

A coalition of New York landowners that supports natural gas development are blasting the administration of Gov. Andrew Cuomo for what may be additional delays in promulgating rules governing drilling and high-volume hydraulic fracturing (HVHF) in the state.

U.S. Ethane presents a “wall of worry” to gas producers and processors (which fear margin collapse), pipelines (which fret over volumes) and consumers (which fear scarcity and high prices), an industry analyst said in Houston Monday. There is always something to worry about, but there’s always something on which to disagree, too.