The benefits of shale gas are undeniable, but those “other Tcfs” — natural gas liquids (NGL) — are transforming the global marketplace and provide tremendous opportunities for the U.S. marketplace, an executive with MarkWest Energy Partners LP said in Philadelphia this week.
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Blue Racer Midstream LLC, designed to provide expanded services over the next three years in the Utica and Marcellus shales, on Thursday secured an initial five-year, $800 million credit facility that could be expanded to $1 billion.
Western Gas Partners LP has exercised an option to acquire a 25% interest in a joint venture with Enterprise Products Partners LP to own two fractionation trains (Trains 7 and 8) being constructed in Mont Belvieu, TX. The trains, scheduled to begin service later this year, would be operated by Enterprise. Western, formed by Anadarko Petroleum Corp., also plans to begin constructing a second cryogenic processing train at its Lancaster plant in the Denver-Julesburg Basin this year. Lancaster II is expected to have a capacity of 300 MMcf/d with throughput of 200 MMcf/d guaranteed by an Anadarko subsidiary. The partnership anticipates the project will cost $165 million, with 50% spent in 2013 and the remainder spent by early 2015. The new train is expected to begin operating in early 2015.
Dallas-based Summit Midstream Partners LP (SMLP) is buying two shale gas gathering systems — one in the Bakken and the other in the Marcellus — in two deals worth a combined $460 million. The Marcellus transaction marks the company’s entry into the play.
NuStar Energy LP’s planned acquisition of natural gas liquids (NGL) pipeline and fractionation assets could be in jeopardy as seller TexStar Midstream Services LP told the company in mid-February that it was terminating the sale. NuStar disclosed during a midstream conference presentation in early March that it was evaluating its legal options in the matter. “If NuStar does not complete this acquisition, we do not expect a material adverse impact on our results of operations,” the company said in a presentation to a Morgan Stanley midstream conference. Last November, NuStar said it was buying the Eagle Ford Shale NGL assets, as well as Eagle Ford crude oil pipeline, gathering and storage assets (see Shale Daily, Nov. 9, 2012). The crude oil asset transaction, worth about $325 million, has closed. The pending NGL asset transaction is worth about $100 million.
The Lone Star West Texas Gateway NGL (natural gas liquids) Pipeline has entered service, transporting NGLs from the Permian and Delaware basins in West Texas to Mont Belvieu, TX, project partners Energy Transfer Partners LP (ETP) and Regency Energy Partners LP said Tuesday.
Operations have begun at MarkWest Energy Partners’ Sherwood I gas processing plant and the initial phase of its high-pressure gas gathering system in Harrison and Doddridge counties, WV, to serve the Marcellus production of Antero Resources.
For Marcellus Shale producers, the gift-receiving season begins this week and continues through the end of the year in the form of additional pipeline takeaway capacity. Multiple projects are slated to come online between Thursday and the end of the year, giving Marcellus producers increased access to markets, and presumably better prices for their gas.
MarkWest Energy Partners LP on Tuesday agreed to extend its natural gas liquids (NGL) gathering pipeline in northwest Pennsylvania to accommodate the start-up later this year of XTO Energy Inc.’s midstream processing plant in Butler County, PA.
Dominion Resources has formed new unit Dominion NGL Pipelines, which is soliciting interest in a new pipeline that would carry ethane from the tailgate of a new processing plant being built by Dominion near Natrium, WV, to an interconnect with Enterprise Products Partners LP’s planned Appalachia to Texas Express (Atex Express) pipeline near Follansbee, WV.