Iroquois Gas Transmission System said it will pursue development of the Wright Interconnect Project (WIP), an expansion of its existing compression and metering facilities in Wright, NY. Last week Constitution Pipeline Co. said that a finalized route it will propose for a Marcellus pipeline included an agreement with Iroquois to expand the compressor station, which would eliminate the need for Constitution to build a 32,0000-hp compressor facility in Schoharie County, NY (see Shale Daily, Jan. 22). The WIP project will enable delivery of up to 650,000 Dth/d of natural gas from the terminus of the proposed Constitution Pipeline in Schoharie County into both Iroquois and the Tennessee Gas Pipeline under a 15 year capacity lease agreement with Constitution, Iroquois said. WIP is targeted for an in-service date of March 2015 to coincide with the startup of the Constitution Pipeline.
Existing
Articles from Existing
Pennsylvania DEP Paves Way for Use of Acid Mine Water in Fracking
The Pennsylvania Department of Environmental Protection has finalized the process it will use for encouraging and reviewing proposals to use mine-influenced water, such as acid mine drainage, in oil and gas extraction operations from shale formations.
Eagle Ford Capex May Surpass World’s Most Expensive Energy Project
Over the next three years capital expenditures (capex) in the Eagle Ford Shale could top the projected spending for the Kashagan project in Kazakhstan, now the world’s most expensive standalone energy project, according to an analysis by Wood Mackenzie.
Oneok Partners Seeks Oversight Clarity on Bushton, KS, NGL Plant
In an effort to determine which government agency has oversight authority for the Bushton, KS, natural gas liquids (NGL) fractionation plant, three subsidiaries of Oneok Partners LP have filed a declaratory judgment action in federal District Court in Tulsa, OK, seeking a ruling on the jurisdictional limits of the Pipeline and Hazardous Materials Safety Administration (PHMSA).
Sasol to Build Huge GTL Facility in Louisiana
In a long-term bet on abundant U.S. natural gas, South Africa’s Sasol Ltd. on Monday announced plans to construct a $16-21 billion natural gas-to-liquids (GTL) plant in Westlake, LA — the second largest commercial plant of its kind in the world.
Magnum Hunter Acquiring Williston Basin Acreage, Wells
Magnum Hunter Resources Corp.’s Bakken Hunter LLC is buying existing wells and about 20,000 net Williston Basin lease acres in Divide County, ND, from Samson Resources Co. for $30 million in cash.
ZaZa Energy: We’re Unlocking the Eaglebine
Houston-based ZaZa Energy has completed drilling and casing its Eaglebine Stingray A-1H well in Walker County, TX, and said evaluation results are “very encouraging,” with estimates of 21 Bcf of gas and 29 million bbl of oil per section in place. ZaZa said it expects to begin hydraulic fracturing operations on Nov. 12, with initial production planned for late November.
Raymond James: 2013 Natural Gas Prices Hinge on Coal Switching
Gas-to-coal switching, which has drained some of the excess domestic gas stores, will tell the tale about 2013 natural gas prices, with gas expected to continue to gain in the first six months, while coal regains some of its losses in the second half of the year, according to Raymond James & Associates Inc.
Chesapeake Still ‘Battling Natural Gas Headwinds,’ Says McClendon
Chesapeake Energy Corp. can see some daylight following the deluge of U.S. natural gas, but it won’t be until the end of the year that the producer is able to report a decline in domestic output, CEO Aubrey McClendon said Friday.
Industry Briefs
Chesapeake Energy Corp. has completed sales of its Permian Basin properties, which allows it to reduce the outstanding balance on existing term loans to $1.2 billion from $4 billion by the end of this month. The company said it plans to fully repay the term loans by the end of the year. The assets sold produced close to 21,000 b/d of liquids and 90 MMcf/d of natural gas in 2Q2012, or about 5.7% of Chesapeake’s production during the period. The multi-sales package was announced in September (see Shale Daily, Sept. 13). SWEPI LP, a subsidiary of Royal Dutch Shell plc, bought the southern Delaware Basin assets, while the northern Delaware Basin portion was sold to Chevron U.S.A. Inc., a subsidiary of Chevron Corp. The producing assets in the Midland Basin were sold to affiliates of Houston-based EnerVest Ltd.
