Barnett

Industry Brief

Louis Dreyfus Energy Services announced plans to install up to 80 MMcf/d of gathering pipeline this year to serve the southern Barnett Shale play in North Texas. The company said Tuesday the project could lead to construction of a large-diameter pipeline should the region’s gas development increase substantially. Louis Dreyfus has nearly completed the initial 20 MMcf/d phase of the new gas gathering and processing system in Eastland, Erath, Bosque and Hill counties, TX. The gathering system will be expanded later this year to 40-80 MMcf/d. The project consists of converting existing pipeline capacity to natural gas in a corridor from Taylor to Navarro Counties with the capability to move gas both east and west. Louis Dreyfus Energy Services and its subsidiaries plan to put additional capacity in service as the region develops. Louis Dreyfus Energy Services also owns a 20% stake in the 850 MMcf/d Sea Robin gas processing plant; a 1,400-mile NGL pipeline from the Permian Basin to a storage facility in Hull, TX; a 4.5-million-barrel propane/butane storage and terminal facility in Hattiesburg, MS; and a 50% interest in Mont Belvieu Storage Partners, among other assets.

February 16, 2005

Smith Consultants Project Lower Gas Prices than EEA, Nymex

With normal cooling degree and heating degree days in the third and fourth quarters, Stephen Smith Energy Associates estimated in its latest Monthly Energy Outlook that third quarter Henry Hub natural gas prices will average $5.82/Mcf and fourth quarter prices will be $5.62, yielding an average annual forecast of $5.80 for 2004. If the estimate holds, gas prices would average 40 cents higher than in 2003, but would be well below the $6.20 average set by Energy and Environmental Analysis Inc. (EEA) consultants last week (see related story).

June 28, 2004
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