Duke Energy Field Services (DEFS) showed last week that it wasnot willing to sit tight and wait for its midstream venture withPhillips’ GPM to begin, as it announced plans to acquire gatheringand processing assets in central Oklahoma from Conoco Inc. andMitchell Energy & Development Corp. The transaction is expectedto close March 31 after regulatory approvals are received. Nofinancial information was disclosed.
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Duke, Mitchell, and Conoco Shuffle Midcontinent Assets
Duke Energy Field Services (DEFS) yesterday showed it was notgoing to sit tight and wait for its midstream venture withPhillips’ GPM to begin, as it announced plans to acquire gatheringand processing assets in central Oklahoma from Conoco Inc. andMitchell Energy & Development Corp. The transaction is expectedto close March 31 after regulatory approvals are received. Nofinancial information was disclosed.
Industry Briefs
A subsidiary of Coastal Field Services has purchased the GilmoreNo. 3 gas processing plant, near Edina, TX, in Hidalgo County fromPG&E Gas Transmission-Texas (PG&E-GTT). The plant wasconstructed in 1997 and has a capacity to extract 6,000 b/d of gasliquids from inlet volumes of up to 125 MMcf/d of gas. Theagreement, signed Nov. 1, also provides for Coastal to controlcapacity both upstream of the plant and exiting the plant.PG&E-GTT will continue to own and operate the Gilmore No. 1 andNo. 2 plants, which have capacity to extract 6,800 barrels per dayof gas liquids from combined inlet volumes of up to 140 MMcf/d.PG&E-GTT also will continue as operator for the Gilmore No. 3plant. “This acquisition reflects Coastal’s strategy of integratingnatural gas infrastructure in areas where Coastal has significantexploration and production interests,” said Coastal CEO David A.Arledge. “Due to ongoing drilling successes and recentacquisitions, South Texas is one of Coastal’s fastest-growingnatural gas production areas.”
Leviathan Becomes El Paso Energy Partners
El Paso Energy changed the name of Leviathan Gas PipelinePartners, L.P. yesterday to El Paso Energy Partners, L.P.,effective Dec. 1, and appointed Robert G. Phillips, who iscurrently president of El Paso Field Services and a director ofLeviathan, the company’s new CEO. Leviathan’s board accepted theresignation of CEO Grant E. Sims.
Transportation Notes
Saying its Washington Ranch Storage Field was experiencingmaximum withdrawals, El Paso declared an Unauthorized OverpullPenalty situation effective Thursday until further notice. Thepipeline said it would limit scheduled volumes at underperforminginterconnects to insure system integrity.
Transportation Notes
Williams Field Services declared force majeure following aThursday morning fire and explosion at its Opal (WY) Lean OilPlant. The fire started about 6:30 a.m. MDT and a rich-oil heaterexploded shortly thereafter. The Lean Oil Plant was removed fromservice but two cryogenic units remained on-line. Volumes throughOpal were reduced to 430 MMcf/d from a normal maximum capacity of700 MMcf/d. However, WFS said it “does not anticipate significantreductions” in overall gas gathered behind the plant or in tailgatedeliveries to interconnecting pipelines.
Transportation Notes
An outage of the TransCanada Midstream Caribou Gas Plant thatwas scheduled Aug. 3-5 has been canceled, according to a WEI FieldServices posting on the Westcoast bulletin board.
Coastal Grows Gulf Presence
Coastal Field Services Co. made a small increase in itsinterests in Gulf of Mexico Mobile Bayarea and gained the companyoption to increase its share significantly more.
Coastal Buys Utah Midstream Assets
Complementing its integrated operations in Northeast Utah andwestern Colorado, Coastal Field Services, Coastal’s midstreamdivision, bought the Bluebell and Altonah gathering systems andprocessing plants located in the Duchesne and Uintah counties ofUtah. Financial terms were not disclosed.
Alliance: We’re Building It
Just in case there were any doubters still out there, AlliancePipeline says it now has nine of 10 mainline construction crews inthe field installing the $3 billion pipeline system. The crewsstarted construction on two spreads in North Dakota, one inMinnesota, two in Iowa and one in Illinois. Two spreads inSaskatchewan are to start today and one early next week.