natural gas prices

Enable Midstream Partners LPplans to construct 200 MMcf/d of additional gas processing capacity near its Bradley Processing Plant in Grady County, OK, to serve producers in the South Central Oklahoma Oil Province, also known as SCOOP. The plant, currently under construction to provide 200 MMcf/d of capacity, is expected to be in service in 1Q2015. “Strong producer activity continues on our Anadarko Basin gathering systems, particularly in the SCOOP play,” said CEO Lynn Bourdon. “We already have critical long-lead plant infrastructure ordered and anticipate a fourth quarter 2015 startup for this additional capacity.” The additional capacity is to cost around $200 million, including plant equipment, associated compression, and installation costs. The investment was anticipated in capital guidance. Enable has added about 500,000 gross acres of SCOOP-area dedicated acreage since the end of 2013.

Natural gas futures rose following the release of government storage figures that were somewhat less than what the market was expecting.

As pipelines scurry to develop takeaway capacity from the oversupplied Marcellus/Utica shale region, a Morningstar Commodities Research analyst said the consequences of development will be both bullish and bearish for prices, depending upon where one’s gas lands.

As pipelines scurry to develop takeaway capacity from the oversupplied Marcellus/Utica shale region, a Morningstar Commodities Research analyst said the consequences of development will be both bullish and bearish for prices, depending upon where one’s gas lands.

Physical gas for delivery Friday was mixed in Thursday’s trading as both buyers and sellers scrambled to get their deals done prior to the release of government storage data.

It was a tale of two markets in spot trading for Thursday deliveries as eastern points plunged in response to weather forecasts sharply milder than Tuesday, with some locations in the Northeast seeing declines of well more than $1.00.

ZaZa Energy Corp. and an affiliate of private equity firm Quantum Energy Partners has struck an East Texas joint venture (JV) agreement that includes acreage in Walker, Grimes, Madison, Trinity and Houston counties. ZaZa is to receive about $17 million, consisting of cash and a right to receive Quantum’s interest in the next 15 East Texas JV wells. ZaZa is to assign to Quantum 6,000 net acres in undeveloped leases within its East Texas JV and is to retain its interest in all existing wells and the right to participate with respect to Quantum’s working interest in reserved wells. Following the assignment, ZaZa will have about 30,000 net acres in its East Texas JV and about 10,000 net acres in its East Texas focus area. Closing is subject to the approval of ZaZa’s existing East Texas JV partner. “ZaZa has been meeting with Quantum for more than a year to lay the groundwork for this new relationship,” said CEO Todd Brooks. “Our new partnership validates the progress ZaZa has made, and we look forward to working with Quantum as we move forward with our East Texas acquisition and development plans.”

Natural gas led the way for new electricity generation capacity in the first half of 2014 (1H2014), accounting for about half of the added capacity, according to the latest electricity monthly statistics from the U.S. Energy Information Administration (EIA) released on Monday.

North Dakota officials on Tuesday issued a plea for three additional oil/natural gas inspectors to keep an eye on gathering pipeline systems that are sprouting up to support record production from the Bakken and Three Forks formations in the Williston Basin.