Appalachian

Scotland-based John Wood Group plc has acquired privately-owned oil and gas construction firm Kelchner Inc. for an undisclosed sum, expanding its global footprint to the Appalachian Basin.

The Ontario Energy Board has approved applications from Spectra Energy Corp. subsidiary Union Gas Ltd. and Enbridge Gas Distribution Inc. for 15-year contracts to move natural gas from the Appalachian Basin into the Union Gas Dawn Hub in Ontario on the Nexus Gas Transmission system.

Rice Energy Inc. said Monday that it would sell a $500 million interest in its midstream holdings to an unnamed energy infrastructure fund, stopping short of disclosing terms of the deal before it’s completed early next year.

Royal Dutch Shell plc confirmed Wednesday that it plans to close its Appalachian headquarters in Western Pennsylvania next summer, citing an “ongoing drive to enhance competitiveness” during the commodities downturn.

Hammered by Appalachian basis differentials, Gastar Exploration Inc. plans to continue focusing its capital on the Oklahoma liquids plays as it proceeds with plans to sell off its Marcellus and Utica acreage.

After recording substantial production gains in the quarter, Rice Energy Inc. managed to protect against Appalachian basis differentials through hedging and firm transportation contracts to other markets.

Next-day gas was mostly higher in Monday’s trading, with producing regions adding a few pennies and market zones such as the Northeast tacking on double-digit advances. Stout gains in next-day power in the Northeast gave gas buyers an incentive to make incremental purchases although weather forecasts called for a return to milder temperatures.

Pennant Midstream LLC, which provides natural gas gathering and processing services in the Utica Shale’s northern tier, said Monday that a Williams Partners LP affiliate has acquired a 5% ownership interest in the facilities it owns.

A decline in U.S. natural gas is a sure thing in 2016, but it won’t fade as much as some are predicting because of the Appalachian behemoth, Raymond James & Associates said Monday.