NYMEX

Long targeted by conventional drillers in the Appalachian Basin, the Upper Devonian Shale formations have been known for some time to hold a cache of dry natural gas. But new technologies, combined with more than a year of close analysis have shown unconventional operators that those six layers of source rock can’t be overlooked.

Texas oil and gas producers turned in another month of production growth in February, according to preliminary data from the Railroad Commission of Texas (RRC). Both oil and gas production were up from a year ago. March oil well completions were up sharply from a year ago, but gas well completions declined.

Cheniere Energy Partners LP’s Sabine Pass Liquefaction LC has signed up to be the anchor shipper on Transcontinental Gas Pipe Line Co. LLC’s (Transco) Gulf Trace expansion, a 1.2 million Dth/d project to serve the Sabine Pass Liquefaction project being developed in Cameron Parish, LA (see Daily GPI,April 17). The Sabine contract is sufficient to support the pipeline expansion, Transco said. A binding open season for additional capacity is to end May 8. The first phase of Sabine Pass is scheduled for completion as early as the fourth quarter of 2015. Gulf Trace will make Transco’s production area mainline and southwest Louisiana lateral systems bidirectional from Station 65 in St. Helena Parish, LA, to Cameron Parish, LA. In addition to the pipeline reversal, a new, eight-mile 36-inch diameter lateral pipeline and two new compressor stations are planned. The cost of the project is estimated at $300 million; in-service is expected in early 2017.

Spot natural gas for weekend and Monday delivery declined across a wide front Friday, with few points making it on to the positive side of the trading ledger. West Coast points were hard hit, but deep double-digit declines were seen in the Midcontinent, Marcellus, eastern and northeast points.

A bankruptcy court in New York said Friday that an entity called Any Acquisition LLC has submitted the highest bid, $2.65 million, to purchase most of the assets of two subsidiaries of Norway’s Norse Energy Corp. ASA.

Weekly physical natural gas prices compiled byNGIput in a deceptively modest gain of 6 cents to average $4.66 for the week ended April 25. Although futures slid on the week, the advance of the May contract from an April 2 low of $4.221 managed to make a high for the move on Thursday at $4.805 hinting that the advance from earlier in the month may still have more legs.

In the aggregate, spot natural gas prices for Friday delivery traded flat in Thursday’s exchanges, but swings were seen in the Rockies as a major gas plant explosion disrupted receipts and deliveries. At eastern points mild, seasonal temperatures along with softer power prices prompted weaker next-day quotes.

Cheniere Energy Partners LP’s Sabine Pass Liquefaction LC has signed up to be the anchor shipper on Transcontinental Gas Pipe Line Co. LLC’s (Transco) Gulf Trace expansion, a 1.2 million Dth/d project to serve the Sabine Pass Liquefaction project being developed in Cameron Parish, LA (see Daily GPI,April 17). The Sabine contract is sufficient to support the pipeline expansion, Transco said. A binding open season for additional capacity is to end May 8. The first phase of Sabine Pass is scheduled for completion as early as the fourth quarter of 2015. Gulf Trace will make Transco’s production area mainline and southwest Louisiana lateral systems bidirectional from Station 65 in St. Helena Parish, LA, to Cameron Parish, LA. In addition to the pipeline reversal, a new, eight-mile 36-inch diameter lateral pipeline and two new compressor stations are planned. The cost of the project is estimated at $300 million; in-service is expected in early 2017.

Elected officials in the City of Broomfield, CO, unanimously agreed to a tolling agreement with Sovereign Operating Co. LLC on Tuesday, as the company moves forward with plans to put them in the crosshairs of a lawsuit over the city’s newly enacted ban on hydraulic fracturing (fracking).