Houston-based Occidental Petroleum Corp. has flipped the switch on its first solar facility to directly power an enhanced oil recovery (EOR) operation in the Permian Basin.
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Shell’s Cracker Project Progressing After Administration Waives Steel Quota
Shell Chemical Appalachia LLC can continue constructing its multi-billion dollar ethane cracker in western Pennsylvania without delay after the Trump administration last week eased restrictions on imported steel from South Korea, Argentina and Brazil.
Brief — Pennsylvania Ethane Cracker
Shell Chemical Appalachia LLChas transitioned from the early works phase to the main works phase of its multi-billion dollar ethane cracker projectin western Pennsylvania. About 900 workers are on-site for the next phase of the project, when crews will begin erecting major equipment and the 200 structures at the facility. Shell has been focused on site-preparation at the 400-acre site in Beaver County where a zinc smelting plant once operated and has so far moved more than seven million cubic yards of earth, improved roadways, built a power substation, water treatment plant, rail lines and docks along the Ohio River, according to the Pittsburgh Regional Alliance. The facility is expected to be operational in the early 2020s.
Briefs — BLM Quarterly Auctions
The U.S. Bureau of Land Management (BLM) said seven state offices collectively generated $170.7 million in bonus bids from oil and natural gas lease sales during 3Q2017. The sales covered 218 parcels consisting of more than 134,800 acres. New Mexico had the largest sale with more than $130 million, while Wyoming garnered $38.7 million. Other states generated under $1 million each. The 20 of 29 scheduled onshore lease sales in 2017 have brought in $316.2 million in bonus bids, versus 20 in 2016 that produced $192.5 million. BLM officials said oil and gas development on federally managed lands in the last fiscal year supported 201,000 jobs and $42 billion in economic output.
NGI The Weekly Gas Market Report
Briefs — California RNG Study
California is a major future source for renewable natural gas (RNG), with the potential to produce enough of the biogas to fuel 2.4 million homes, according to a recent study at the University of California Davis. Researchers concluded that the state could produce enough RNG to replace 75% of its diesel fuel consumption. Utility and renewable fuel representatives at a workshop in Sacramento indicated California could reduce its methane emissions by providing more incentives for RNG to be produced at dairies, landfills and wastewater treatment plants, all potential sources of RNG.
Tellurian Buys Into Haynesville with Eye on Cheaper LNG Exports
Houston-based upstart Tellurian Inc. appears to be the first independent U.S. liquefied natural gas (LNG) export project branching out into the upstream sector with its purchase of Haynesville Shale properties.
East Cheyenne Gas Storage Leak Capped; Evacuations End
Well-control contractors Saturday afternoon capped a natural gas storage well leak and began returning the site to normal at Houston-based Midstream Energy Holdings LLC’s underground gas storage facility near Peetz, CO, in Logan County.
East Cheyenne Gas Storage Leak Prompts Colorado Evacuations
Midstream Energy Holdings LLC employees and contractors were expected to be on site all weekend to respond to a well-control incident at East Cheyenne Gas Storage, an underground natural gas storage facility near Peetz, CO, in Logan County.

FERC Requests More Information on Cove Point LNG Ahead of June Inspection
FERC has asked Dominion Cove Point LNG LP (DCP) to provide additional information ahead of a technical review and site inspection scheduled in June by Commission staff of its liquefied natural gas (LNG) export facility.
Japanese Companies Invest in NatGas-Fired Power Project in Pennsylvania
Two Japanese companies have invested in a natural gas-fired power plant being developed by a subsidiary of the investment firm Ares Management LP in southeast Pennsylvania.