Appalachia

Spectra Energy subsidiary Texas Eastern Transmission LP opened a nonbinding open season for its proposed Texas Eastern Appalachia to Market (TEAM) expansion to transport emerging Appalachian gas production to markets, including those in the Mid-Atlantic and New England states (see related story). The TEAM expansion program has a targeted capacity of approximately 300 MMcf/d but will be scalable and sized to meet customer needs, the company said. The first phase is scheduled to be in service as early as November 2011. TEAM would provide shippers with the opportunity to design transportation services from multiple existing and proposed receipt points on the Texas Eastern system within the Appalachian production region in West Virginia, Ohio and Pennsylvania that span Texas Eastern’s M-2 and M-3 market zones to delivery points across Texas Eastern’s market area including Lambertville, NJ; the Steckman Ridge Storage project in Bedford, PA; near Transco Station 195 in York County, PA; Dominion Transmission at Chambersburg, PA; and Columbia Gas Transmission near Eagle, PA. The project is expected to have more than 30 interconnects. The project would allow producers to connect Appalachian supplies to premium markets and shippers to reach back to supply points in the West Virginia and Pennsylvania regions, the company said. The open season runs until Aug. 29. Interested parties should contact Bob Riga at (617) 560-1436 or rgriga@spectraenergy.com, or Sean Foley at (617) 560-1359 or spfoley@spectraenergy.com.

Spectra Energy subsidiary Texas Eastern Transmission LP opened a nonbinding open season for its proposed Texas Eastern Appalachia to Market (TEAM) expansion to transport emerging Appalachian gas production to markets, including those in the Mid-Atlantic and New England states, the company said Monday.

Losses of up to a dime at several scattered points, primarily in Appalachia and the Gulf Coast, kept price advances from running the board Monday. Predictions of above-normal temperatures this week in the eastern two-thirds of the U.S. and buzz about the possibility of a disturbance moving toward southern Florida from the Bahamas strengthening and getting into the Gulf of Mexico were the chief market boosters.

Fort Worth-based independent Range Resources Corp. may sell its Gulf Coast properties to concentrate its exploration efforts in Texas, Appalachia and the Midcontinent, the company said Monday. The Gulf Coast assets, 85% weighted to natural gas, account for about 4% of Range’s proved reserves and 11% of its production.

Mariner Energy said it restarted about 50 MMcfe/d of gas production from its Ochre and Pluto deepwater Gulf of Mexico projects, which were shut in because of hurricane activity last year and in 2004. Ochre, located in Mississippi Canyon Block 66, was shut in following Hurricane Ivan. Production has been restored at about 10.5 MMcfe/d. Mariner operates Ochre with a 75% working interest and Stone Energy has a 25% working interest. Pluto, located in Mississippi Canyon Block 718, was shut in for the drilling and completion of a new well. Start-up was delayed due to Hurricane Katrina. Production from Pluto has recommenced and the well is currently producing at a gross rate of 40 MMcfe/d. Mariner expects to achieve a gross production rate in the range of 40-50 MMcfe/d. Mariner operates Pluto with a 51% working interest and W&T Offshore has a 49% working interest. Mariner estimates that most of its remaining production shut in due to the damage caused by the 2005 hurricanes will recommence during the fourth quarter of 2006.

Mariner Energy said it restarted about 50 MMcfe/d of gas production from its Ochre and Pluto deepwater Gulf of Mexico projects, which were shut in because of hurricane activity last year and in 2004. Ochre, located in Mississippi Canyon Block 66, was shut in following Hurricane Ivan. Production has been restored at about 10.5 MMcfe/d. Mariner operates Ochre with a 75% working interest and Stone Energy has a 25% working interest. Pluto, located in Mississippi Canyon Block 718, was shut in for the drilling and completion of a new well. Start-up was delayed due to Hurricane Katrina. Production from Pluto has recommenced and the well is currently producing at a gross rate of 40 MMcfe/d. Mariner expects to achieve a gross production rate in the range of 40-50 MMcfe/d. Mariner operates Pluto with a 51% working interest and W&T Offshore has a 49% working interest. Mariner estimates that most of its remaining production shut in due to the damage caused by the 2005 hurricanes will recommence during the fourth quarter of 2006.

Fort Worth-based Range Resources Corp., which concentrates on exploration in the Southwest, Appalachia and the Gulf Coast region of the United States, reported Wednesday 4Q2005 production volumes rose to 250.3 MMcfe/d, a 16.5% increase over the same period a year ago. About 72% of the company’s output in the quarter was natural gas.

MarkWest Hydrocarbon executed agreements with Equitable Production that restructures their processing relationship in Appalachia. The new agreements provide Equitable with additional flexibility in its gathering operations upstream of the MarkWest Energy Partners LP processing facilities, and provide Equitable with assurances of continued processing capacity and operations. The new agreements also protect MarkWest Hydrocarbon during periods of low processing margins. Terms of the deal were not disclosed.

Except for a few essentially flat points in Appalachia and the Gulf Coast, the two-day bullish streak in the general cash market ended Thursday. Several Northeast citygates measured declines in triple-digit amounts, while elsewhere losses tended to range from about a nickel to nearly 90 cents. Traders cited approaching breaks, however small, from the icy conditions that have plagued markets across the northern U.S. and Canada — and even down into the Southeast — over the past few days as chiefly responsible for the price reversals.