Mmcf

Spectra Energy Corp. is taking a one-third interest in the Sand Hills and Southern Hills pipelines, both of which are under construction by DCP Midstream LLC, a joint venture of Spectra and Phillips 66. The deal is expected to close by the end of November when Spectra, Phillips 66 and DCP Midstream each would own one-third of the pipelines and equally fund their completion. The aggregate investment by Spectra is expected to be $700-800 million. Sand Hills, which would take natural gas liquids from the Permian Basin and Eagle Ford Shale to Gulf Coast markets, would have an initial capacity of 200,000 b/d and be expandable to 350,000 b/d. The first phase recently came online and connection to Mont Belvieu, TX, is expected by year-end (see Shale Daily, Oct. 29). The timing of Sand Hills’ second phase, the Permian portion of the pipeline, has advanced and is due to be in service in 2Q2013. Southern Hills would provide 150,000 b/d, expandable to 175,000 b/d, of capacity from the Midcontinent to Mont Belvieu and has a targeted in-service date of mid-2013.

The Pennsylvania Department of Environmental Protection (DEP) said Monday it has launched its fourth study in about two years to monitor air quality and determine potential impacts of Marcellus Shale activities, this time in the southwestern part of the state.

It will add to the hydrocarbon-rich state’s mitigation of flared associated natural gas supplies in the Bakken Shale play.

Denver-based Antero Resources is unloading its Arkoma Basin assets and redeploying capital to Appalachian shale plays while Vanguard Natural Resources LLC, which is buying Antero’s mostly natural gas Arkoma assets for $445 million, is establishing a new operating area with the deal.

Enterprise Products Partners LP has started the first train at its new cryogenic gas processing plant at Yoakum, TX. This facility has a design capacity of 300 MMcf/d and can extract 37,000 b/d of natural gas liquids. During the start-up period, the plant will process existing Eagle Ford Shale production in a reduced recovery mode to enable testing of the plant and supporting facilities and make adjustments to plant operations. Incoming gas volumes and recovery percentages at the facility will continue to increase throughout May, with full production from the plant expected by June 1. Prior to the start-up of the Yoakum plant, Enterprise had been utilizing capacity at processing plants owned by third parties. Most of these volumes will now be diverted and processed at the Yoakum facility. “The long-term outlook in the Eagle Ford Shale continues to show growth in rich gas production and Enterprise is well-positioned to help meet the need for midstream infrastructure through the cost-effective expansion of our integrated network,” said Jim Teague, COO of Enterprise’s general partner.

ConocoPhillips, which early this year curtailed about 100 MMcf/d of domestic natural gas, continues to shut in “around 9,000 boe/d” in North America’s onshore because of low gas prices and more may be curtailed following further evaluation, CFO Jeffrey Sheets said last week. Encana Corp. also said last week it was curtailing more onshore gas (see related story).

ConocoPhillips, which early this year curtailed about 100 MMcf/d of domestic natural gas, on Tuesday said it would continue to shut in “around 9,000 boe/d” in North America because of low gas prices. More gas also may be curtailed following further evaluation, said CFO Jeffrey Sheets.

Oneok Partners LP plans to invest $1.5-1.8 billion to build a 1,300-mile crude oil pipeline with capacity to transport 200,000 b/d of light sweet crude from the Bakken Shale in the Williston Basin in North Dakota to the Cushing, OK, crude oil market hub, the partnership said Monday.

Inergy Midstream LP, UGI Energy Services Inc. and Capitol Energy Ventures Corp., a unit of WGL Holdings Inc., plan to develop the Commonwealth Pipeline to carry Marcellus Shale production to market.