Gathering

Atlas Pipeline Partners LP last week acquired control of Anadarko Petroleum Corp.’s interests in the Chaney Dell and Midkiff-Benedum gas gathering and processing systems for $1.85 billion, subject to adjustments.

The proliferation of midstream master limited partnerships (MLP) and their pursuit of gathering, processing, pipeline and storage have driven asset valuations to exceptional heights and made compelling deals harder to find.

The proliferation of midstream master limited partnerships (MLP) and their pursuit of gathering, processing, pipeline and storage have driven asset valuations to exceptional heights and made compelling deals harder to find.

Tightly held Targa Resources Inc. plans to spin off its North Texas midstream assets, which include 3,950 miles of integrated natural gas gathering pipelines, two natural gas processing plants and a fractionator in the Fort Worth area, through an initial public offering (IPO) of 16.8 million common units.

Due to a required but unplanned pipeline inspection, ANR restricted its segment between the E.G. Hill and Custer Compressor Stations in the Southwest Gathering Area to 200 MMcf/d Wednesday. “At this time, it is anticipated this restriction will be in place through the weekend or until more information becomes available,” ANR said. Based on recent nominations, it expected that the reduction would result in the curtailment of nominations associated with IT and Firm Catalog Receipt Points in the affected area.

ANR Pipeline said an unforeseen engine outage at its Patterson compressor station will lead to restrictions in the Southeast Gathering Area. Patterson to Eunice delivery capacity will be reduced to 650,000 Dth/d through Friday. Based on current nominations ANR said it anticipates that the reductions will result in the curtailment firm secondary and interruptible nominations.

Kinder Morgan Energy Partners LP (KMP) late Wednesday said it sold its Powder River Gathering System and the Painter Unit fractionation facility in Wyoming to Momentum Energy Group LLC for approximately $43 million in cash. The parties also executed a long-term processing agreement at KMP’s Douglas processing plant. Proceeds from the sale will be used to pay down debt. KMP management said the assets were not core to the company’s strategy, which is operating transportation pipelines and terminals. KMP owns or operates more than 27,000 miles of pipelines and approximately 145 terminals. Its pipelines transport more than 2 million bbl/d of gasoline and other petroleum products and up to 9 Bcf/d of natural gas.

Tulsa-based Midstream Energy Services said it signed agreements to purchase the Keyes, OK, natural gas processing and treating plant, a 155-mile gathering system in Oklahoma and Colorado and a 38-mile helium pipeline in Kearny County, KS, from Nathaniel Energy Corp. and subsidiaries for $16.2 million. The Keyes Plant is a 12 MMcf/d propane refrigeration, cryogenic helium extraction, and amine treating plant that processes gas from several Oklahoma and Colorado gas fields, including the Keyes field in Cimarron and Texas Counties, OK. The Keyes field is one of the premier helium supplies in the country, and the Keyes Plant provides one of only nine liquefaction processes for helium in the United States, a commodity that trades for over $55/Mcf in unrefined form. “In an environment of rising commodity prices, these assets provide more than the traditional services that exist in the midstream sector by handling off-spec, high-nitrogen natural gas, helium extraction as well as traditional gas processing capabilities,” said Midstream President Jim Lind.

ANR Pipeline continued work to return producers in its Southeast Gathering Area (SEGA) to service following damage from Hurricane Rita. ANR said it would accept nominations for receipt and delivery points downstream of its Patterson compressor station. However, due to production losses there is insufficient gas to operate the compressor station, and as a result of this, the pressures between Patterson and the Eunice compressor stations will be significantly lower than normal. Its 24-inch diameter line from Vermilion 397 to EI 188, including connecting laterals is unavailable for service due to damage. Inspections of ANR’s western SEGA system continues and an assessment of any damage to its West Cameron 167 to Grand Chenier segment and its Cameron Meadows/Lake Arthur line is still being compiled. ANR will not be able to accept nominations from production sources upstream of its Lake Arthur compressor station and Grand Chenier compressor station until further notice.