natural gas

Gross withdrawals of natural gas in the Lower 48 during the month of March increased by 1.6% compared to the preceding month, thanks in part to good weather in the Appalachian and Uinta basins, according to the U.S. Energy Information Administration (EIA).

MarkWest Energy Partners LP said Monday that most of its Houston Processing and Fractionation facility in southwest Pennsylvania is back online after a lightning strike late last Wednesday forced the company to shut down operations there so it could assess the damage (see Shale Daily, May 29).

Rice Energy Inc. delivered big on Monday, reporting some of the best initial production (IP) results yet seen in Ohio’s Utica Shale, with its first well, the Bigfoot 9H in Belmont County, flowing at a stabilized rate of nearly 42 MMcf/d after five days, exceeding the market’s expectations.

Dominion’s project to add natural gas liquefaction and export capability at its existing Cove Point terminal in Calvert County, MD, has received the blessing of the Maryland Public Service Commission. The certificate was required for two 65 MW steam turbine generators planned for the facility. Waste heat from two combustion turbines, which are used to drive compressors to produce liquefied natural gas (LNG), will be recycled to produce steam to drive the steam turbines. About two weeks ago, the Federal Energy Regulatory Commission issued its environmental assessment of the project, which found that it can be built and operated safely with no significant impact to the environment (see Daily GPI,May 15). The project is estimated to cost between $3.4 billion and $3.8 billion.

The Louisiana regulator charged with overseeing oil and gas well operations in the state and managing its population of “orphaned” wells is falling short in several areas, according to a new report by the Louisiana Legislative Auditor (LLA), which recommended new/increased producer fees to improve well inspection practices.

Gross withdrawals of natural gas in the Lower 48 during the month of March increased by 1.6% compared to the preceding month to 76.68 Bcf/d, the largest increase in more than a year, according to the U.S. Energy Information Administration (EIA).

Penn Virginia Corp. (PVA) has agreed to sell its Mississippi assets to an undisclosed buyer for gross cash proceeds of $72.7 million. The sale is expected to close in July, subject to customary conditions. The effective date of the sale is April 1, 2014. The properties, which target the Selma Chalk with horizontal wells, had net production of about 11.9 MMcfe/d during the first quarter, almost 100% of which was natural gas. As a result of the divestiture, the company’s 2014 production will decrease by about 1.9 Bcfe. Estimated proved reserves associated with the divested properties at year-end were 85.3 Bcfe, 69% of which was proved developed and about 100% of which was natural gas. During the first quarter, PVA set a quarterly oil production record, thanks to a 15% increase in output from its Eagle Ford Shale operations as it continued to grow and delineate its South Texas acreage (see Shale Daily,May 14).

Spot natural gas prices were able to post double-digit gains in Monday’s trading as near-term temperature forecasts called for above-normal temperatures and cast doubt about continuing hefty additions to storage.

In a letter sent to the CEOs of 32 global energy companies and 44 insurance firms that provide risk management services to them, a group of nongovernmental organizations (NGO) warned each executive that he or she may be subject to personal liability risks in the future if their organizations oppose efforts to rein in climate change.