Eastern

FERC has issued a favorable environmental assessment (EA) of Eastern Shore Natural Gas Co.’s (ESNG) proposal to expand its pipeline system to meet the needs of its customers in the growing Delmarva Peninsula market, which includes most of Delaware and portions of Maryland and Virginia.

Littleton, CO-based American Eagle Energy Corp. expanded its existing carry agreement to accelerate drilling. Last May the company entered into a six-well carry agreement; the amended agreement extends the terms of the financing to an additional four wells, all of which will be drilled in the Bakken or Three Forks zones of its Spyglass Project. “The expansion of our existing carry agreement…allows us to continue aggressively pursuing our development program within the Spyglass Property while minimizing our capital outlay,” said President Brad Colby. The expansion of the scope of the agreement allows American Eagle to contract a second drilling rig to begin drilling infill locations on the Spyglass property. American Eagle expects a second Nabors Drilling rig to arrive by the middle of September and anticipates drilling and completing a total of 12 gross wells (4.2 net) with the two rigs by the end of 2012, including all 10 wells covered by the amended carry agreement.

The country may be suffering through one of its worst droughts in decades and record high temperatures are being recorded on a monthly basis, but portions of the eastern United States can expect above-normal snowfall during the 2012-2013 winter season, according to forecasters at AccuWeather.com.

FERC has approved a request to place into service a fourth storage cavern at the Southern Pines Energy Center in eastern Mississippi. The project originally was proposed by Houston-based SG Resources Mississippi LLC, but it was acquired by PAA Natural Gas Storage LP (PNG) for $750 million in early 2011 (see Daily GPI, Dec. 30, 2010).

A competitive market for compressed natural gas (CNG) — chiefly as a new rival against oil products — has opened for business across most of Nova Scotia. And it’s Eastern Canada’s chief oil refiner, Irving Oil, that will be delivering the trucked gas to coastal fish processors, hospitals, universities and other large commercial users as early as next year.

Millennium Pipeline Co. LLC and sponsors of its proposed natural gas compressor station project in Minisink, NY, which would boost the company’s firm deliveries of Marcellus Shale gas to about 675,000 Dth/d to serve the Northeast and New England markets, continue to await FERC’s final decision on the application, originally filed almost a year ago.

Williams Partners LP is holding a nonbinding open season through June 28 for expansion of its Transco pipeline to provide incremental firm service to markets in northern Georgia and Alabama by 2016.

MarkWest Energy Partners LP is building out its services for Appalachian rich-gas producers with the $512 million acquisition of Pennsylvania-based Keystone Midstream Services LLC.

Although its profits fell while production grew, Southwestern Energy Co. said its drilling programs in both the Fayetteville and Marcellus shales remain profitable. But the Houston-based company also plans to divert $50 million in midstream capital toward ventures in the Brown Dense formation and the Denver-Julesburg (DJ) Basin.