Construct

Southcross Energy plans to construct a 200 MMcf/d gas processing plant in Refugio County, TX, to handle liquids-rich production from the Eagle Ford Shale, the Dallas-based company said Tuesday.

Regency Energy Partners LP said it will spend about $450 million to construct a wellhead gathering system and other infrastructure in order to serve an undisclosed producer in the Eagle Ford Shale with gas and condensate gathering.

Energy Transfer Partners LP (ETP) will “significantly expand” its Rich Eagle Ford Mainline (REM) project in South Texas and construct a processing facility in Jackson County, TX, to accommodate more than 540,000 MMBtu/d of new commitments for long-term fee-based services from multiple producers, the partnership said Thursday.

Republican lawmakers in Alaska have introduced a bill intended to light a fire under efforts by TransCanada Corp. to construct a natural gas pipeline from the North Slope to serve Lower 48 markets. While the legislation’s backers are growing impatient, pipeline faithfuls claim that the measure could derail the project and signal that Alaska is closed for business.

Canada’s National Energy Board (NEB) Thursday approved an application from TransCanada unit NOVA Gas Transmission Ltd. (NGTL) to construct and operate its C$307 million Horn River Project, an extension of NGTL’s Alberta System to transport sweet natural gas from the Horn River area in British Columbia (BC) to a tie-in point on the existing Northwest Mainline of the Alberta System.

The Federal Energy Regulatory Commission (FERC) on Thursday authorized Central New York Oil and Gas Co. LLC (CYNOG) to construct and operate additional compression and appurtenant facilities to increase the throughput capacity of the North and South Lateral pipelines at its Stagecoach Storage Facility in Tioga County, NY, and Bradford County, PA. CYNOG said the increased capacity would enable it to permit contracted shippers to wheel gas bi-directionally from Millennium Pipeline to Tennessee Gas Pipeline, or from points along the laterals to either Millennium Pipeline or Tennessee Gas, on a firm basis, independent of any storage service provided at Stagecoach. Following open seasons in 2009 and 2010, CYNOG said it has entered into precedent agreements with two unaffiliated shippers for a total of 225 MMcf/d of firm wheeling capacity and with three shippers for an additional 100 MMcf/d of firm wheeling capacity.

Dominion has optioned land in Natrium, WV, to construct a natural gas processing and fractionation facility that would support wet natural gas production from the Marcellus Shale. Engineering design and project planning for the plant, which would be on chemical producer PPG Industries’ 56-acre site, are under way; financial terms were not disclosed. Gas pipeline and storage subsidiary Dominion Transmission launched plans in 2010 to process gas and separate natural gas liquids (NGL) as part of its Marcellus 404 Project (see NGI, April 26, 2010). The proposed facility would phase in service to process up to 300 MMcf/d. Fractionation capacity for up to 38,000 b/d of NGLs would be available.

Dominion said Wednesday it has optioned land in Natrium, WV, to constructa natural gas processing and fractionation facility that would support wet natural gas production from the Marcellus Shale.

Keyera Facilities Income Fund said it will construct its Carlos pipeline from the Keyera Rimbey gas plant into the Hoadley region of central Alberta. The pipeline will allow area producers to deliver liquids-rich gas to the Rimbey plant, which is equipped to remove a high percentage of natural gas liquids from the gas stream. The Hoadley area is undergoing active development as multiple producers target liquids-rich natural gas reserves found in the Glauconite geological zone, Keyera said. The 45-kilometer (28-mile), 12-inch diameter raw gas gathering pipeline is expected to be in service in the second quarter of 2011.