Ethane

The day-in and day-out reports from operators ready to build new natural gas pipelines and natural gas liquids (NGL) midstream infrastructure generally have had one thing in common over the past couple of years: most are for the Marcellus Shale. And that’s not going to change anytime soon, according to industry executives.

Crosstex Energy LP is proceeding with Phase II of its Cajun-Sibon natural gas liquids (NGL) pipeline extension and fractionator expansion in Louisiana.

The Pipeline and Hazardous Material Safety Administration (PHMSA) has proposed changes to its Part 190 procedural rules to broaden enforcement powers as called for in a bill that President Obama signed into law earlier this year (see NGI, Jan. 9). Congress passed the legislation following fatal pipeline explosions in San Bruno, CA, and Allentown, PA (see NGI, Feb. 14, 2011; Oct. 18, 2010). Key proposed changes include: increase in the administrative civil penalty caps to $200,000/violation/day and up to $2 million for related violations; authority to seek civil penalties for obstructions of inspections or investigations; more power to issue subpoenas; prohibits ex parte communications; and adds references to PHMSA’s new authority under the Clean Water Act to enforce its oil spill plan regulations. Comments on PHMSA’s notice of proposed changes are due on Sept. 12.

Days after a Royal Dutch Shell plc subsidiary announced that it intends to purchase a site in Pennsylvania — presumably for its “world-scale” ethane cracker in the Marcellus Shale — media reports are fueling speculation that two other companies are interested in building crackers in West Virginia.

Current and former officials in the West Virginia Department of Environmental Protection (DEP) warn that companies hoping to build an ethane cracker in the state could have difficulty getting the necessary permits if they choose to build in areas that don’t meet federal air quality standards.

Ohio is a “long shot” for a world class ethane cracker planned for Appalachia, but the state would still benefit if the facility lands anywhere in the region, Ohio Gov. John Kasich said Tuesday.

Rosetta Resources Inc. will be dropping more than 90% of its $640 million 2012 capital budget in the Eagle Ford Shale of South Texas, the Houston-based company said Monday.

Midstream natural gas processing services offered by MarkWest Liberty Midstream & Resources LLC in northwestern West Virginia continue to expand after the operator on Wednesday secured long-term agreements with pipeline subsidiaries of Magnum Hunter Resources Corp.

The natural gas industry is more bullish about the Utica Shale than ever before, but several geologists remain skeptical until more data is publicly available about the play.