Agreements

FERC Monday issued a favorable environmental assessment (EA) of Tennessee Gas Pipeline’s Northeast Upgrade Project, which when combined with the 300 Line expansion that recently went into service, will add 1 Bcf/d of capacity to transport gas from the Marcellus Shale basin to Northeast markets.

Hundreds of landowners with the nonprofit Associated Landowners of the Ohio Valley (ALOV) have agreed to sign lease agreements with Chesapeake Energy Corp.

Increased demand from Eagle Ford Shale producers and new gathering and processing agreements support the construction of an additional 300 MMcf/d of processing capacity at Enterprise Products Partners LP’s cryogenic gas processing facility in Lavaca County, TX, the partnership said. It is planning to construct 62 miles of 24-inch diameter and 30-inch diameter pipeline loops and increasing compression horsepower. The expansion is expected to begin service in the first quarter of 2013. Enterprise is currently constructing its Eagle Ford rich natural gas mainline system and associated laterals consisting of about 300 miles of pipeline and representing gathering and transportation capacity of more than 600 MMcf/d (see Shale Daily, Aug. 10). The Yoakum facility currently has 600 MMcf/d of capacity under construction, which is expected to begin service during the second quarter of 2012. With the additional 300 MMcf/d train, the plant will have total capacity of 900 MMcf/d when service begins, which is expected in the first quarter of 2013.

ExxonMobil Corp. is working closely with Russia’s state-owned oil company OAO Rosneft to complete some joint partnership agreements worldwide, which include plans to develop projects in the deepwater GOM and in the U.S. onshore, the investor relations chief confirmed Thursday.

ExxonMobil Corp. is working closely with Russia’s state-owned oil company OAO Rosneft to complete some joint partnership agreements worldwide, including plans to develop projects in the deepwater GOM and in the U.S. onshore, the investor relations chief said Thursday.

A lawsuit filed by Energy Transfer Partners LP against Enterprise Products Partners LP and Enbridge Inc. over an abandoned proposal to construct an oil pipeline from Cushing, OK, to Houston “is about a company…trying to get in the courthouse what it could not achieve in the marketplace,” Enterprise said in a motion for summary judgment.

Kodiak Oil & Gas Corp. said Wednesday it has agreed to purchase 13,500 net acres in the Bakken Shale play from an undisclosed private oil and gas company for about $235 million in cash. It also agreed to assume the terms of a contract for its sixth drilling rig.

DCP Midstream LLC and Occidental Petroleum Corp. (Oxy) have made preliminary agreements for Oxy’s Occidental Chemical Corp. to provide right-of-way for DCP Midstream’s Sandhills Pipeline LLC and for DCP Midstream to provide a supply option for a proposed Oxy natural gas liquids (NGL) fractionator in Ingleside, TX. The agreement will provide Sandhills with about 14 miles of right-of-way and access to the Mont Belvieu, TX, fractionation complex. DCP Midstream is in the process of securing the remaining right-of-way and environmental permits for the pipeline. The 70-mile system will transport Y-grade NGLs from gas plants in the Permian Basin and South Texas to the various fractionator facilities along the Gulf Coast, along with the Mont Belvieu NGL hub (see Daily GPI, June 10).

DCP Midstream LLC and West Texas LPG Pipeline LP (WTLPG) have struck long-term agreements for natural gas liquids (NGL) gathering services for the DCP Midstream Sandhills Pipeline LLC through two new interconnects with WTLPG.