In two deals announced Monday Magnum Hunter Resources Corp. is growing its foothold in the Appalachian Basin in what CEO Gary C. Evans called “a long-dated call option in natural gas.
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El Paso Subsidiary High on Eagle Ford Shale
El Paso Corp. subsidiary El Paso Exploration & Production Co.’s (EPEP) Eagle Ford Shale development continues to go according to plan as the company recently completed three additional successful well tests in LaSalle County, TX, and announced it has increased its lease position.
NGLs: Not Just a By-Product; Too Much of a Good Thing?
As natural gas producers continue to turn their efforts to high-Btu gas shale plays, it remains to be seen whether the resulting production growth of natural gas liquids (NGL) can be accommodated by existing and planned processing and fractionation capacity, not to mention demand from the petrochemical industry.
Industry Brief
Denali — The Alaska Gas Pipeline LLC awarded an engineering contract for the gas treatment plant on its proposed pipeline from Alaska’s North Slope to serve Lower 48 markets to Fluor WorleyParsons Arctic Solutions. The contract covers the services required during the initial design phase of the project for the plant. Major contract elements include a series of technical studies, development of the project design basis, project execution planning, cost estimating, schedule development and other services. The plant, to be located on the North Slope, will remove carbon dioxide, water, hydrogen sulfide and other impurities from the gas before it is shipped in the pipeline. It will also provide initial gas chilling and compression. It will be the largest plant of its type on earth, and will have process modules weighing up to 9,000 tons.
Industry Brief
The engineering and project management company AMEC plc said it has been selected by the U.S. Fish and Wildlife Service (FWS) to prepare an environmental impact statement (EIS) of a 17-state, multi-species habitat conservation plan proposed by NiSource. The EIS will be “of unprecedented magnitude in the natural gas industry,” AMEC said. NiSource proposed the habitat conservation plan for its 17,000-mile network of natural gas pipelines, storage fields, compressor stations and appurtenant facilities stretching from Louisiana to Maine. AMEC’s scope of work will include the scheduling and facilitation of stakeholder consultation and public comment meetings, database management, geographical information system services, establishment of the administrative record, creation and production of all EIS documents and overall support to the FWS, including the evaluation of mitigation and conservation measures to enhance and protect species populations and their habitats.
Industry Briefs
Zurich, Switzerland-based ABB is selling its Lummus Global business to Chicago Bridge & Iron Co. (CB&I) for $950 million, the company said. Lummus provides engineering, procurement and construction management services to the upstream and downstream oil and gas, petrochemical and refining industries. The sale, which is subject to regulatory and CB&I shareholder approval, is intended to further focus ABB on its core business in power automation technology, the company said. Netherlands-based CB&I will purchase the entire Lummus Global business, which employs about 2,400 and had reported revenues of $988 million in 2006. ABB’s automation and power businesses remain committed to the oil and gas sector, the company said. In connection with the divestment of Lummus, ABB said it has discovered certain suspect payments in a number of countries. ABB reported these suspected payments to the U.S. Department of Justice and the Securities and Exchange Commission, and is cooperating fully with the authorities, while continuing its internal investigations and compliance reviews. ABB said it retains liability for potential fines and penalties.
What a ‘Bore’: PG&E CA Storage Facility Gets $56.9M Reliability Boost
In what its sponsors are calling an engineering marvel, Pacific Gas and Electric Co. (PG&E) will begin June 18 the key phase of a $56.9 million underground storage reliability upgrade. It involves what the utility is calling the longest 24-inch-diameter natural gas pipeline pull ever conducted in the West.
What a ‘Bore’: PG&E Storage Facility Gets Pipe Reliability Boost
In what its sponsors are calling an engineering marvel, Pacific Gas and Electric Co. will begin Monday the key phase of a $56.9 million underground storage reliability upgrade. It involves what the utility is calling the longest 24-inch-diameter natural gas pipeline pull ever conducted in the West.
Peru LNG Project Gets Green Light by Hunt Oil, Repsol, SK Corp.
Hunt Oil said it awarded a $1.5 billion engineering, procurement and construction (EPC) contract to Chicago Bridge & Iron (CB&I) for the Peru LNG project (PLNG) in Pampa Melchorita, Peru. The project, which is expected to provide about 4.4 million metric tons of LNG per year to the West Coast of Mexico and possibly the United States, has been given a green light to proceed by the international consortium of Hunt Oil, Spain’s Repsol and SK Corp. of Korea.
Peru LNG Project Gets Green Light by Hunt Oil, Repsol, SK Corp.
Hunt Oil said it awarded a $1.5 billion engineering, procurement and construction (EPC) contract to Chicago Bridge & Iron (CB&I) for the Peru LNG project (PLNG) in Pampa Melchorita, Peru. The project, which is expected to provide about 4.4 million metric tons of LNG per year to the West Coast of Mexico and possibly the United States, has been given a green light to proceed by the international consortium of Hunt Oil, Spain’s Repsol and SK Corp. of Korea.