Operational

To diversify its geographic operational area, DCP Midstream Partners LP has agreed to purchase Michigan Pipeline & Processing LLC (MPP), a privately held company engaged in natural gas gathering and treating services for gas produced from the Antrim Shale of northern Michigan and gas transportation within Michigan, for $145 million.

To diversify its geographic operational area, DCP Midstream Partners LP has agreed to purchase Michigan Pipeline & Processing LLC (MPP), a privately held company engaged in natural gas gathering and treating services for gas produced from the Antrim Shale of northern Michigan and gas transportation within Michigan, for $145 million.

Sempra Energy is gearing up for the June 30 launch of a major operational overhaul of its Southern California natural gas transmission and storage system. The new system — six years in the making and including a bid-based market for firm pipeline access rights (FAR) and off-system deliveries (OFF) — is designed to provide more flexibility, reliability and a new citygate pricing point.

Sempra Energy is gearing up for the June 30 launch of a major operational overhaul of its Southern California natural gas transmission and storage system. The new system — six years in the making and including a bid-based market for firm pipeline access rights (FAR) and off-system deliveries (OFF) — is designed to provide more flexibility, reliability and a new citygate pricing point.

Higher commodity prices and improved operational performance have led Anadarko Petroleum Corp. to boost both its capital spending and production guidance this year. Some of the new capital will be directed to Anadarko’s emerging play in the Greater Natural Buttes area of northeastern Utah, where the producer has identified more natural gas resources.

Higher oil and natural gas prices and improved operational performance have led Anadarko Petroleum Corp. to increase both its capital spending and production guidance this year. In addition, Anadarko has identified more natural gas resources in its emerging play in the Greater Natural Buttes area of northeastern Utah.

Northern Natural Gas will end a System Overrun Limitation (SOL) for all market-area zones Wednesday. The SOL was implemented last Saturday.

Saying its service area was returning to more normal winter temperatures, Transco ended Friday an Imbalance Operational Flow Order that had been implemented Wednesday along with a reduction in pool scheduling tolerances to 1%. Transco said it was restoring pool tolerances to 4% Friday and would allow due-shipper imbalance makeup nominations. The pipeline also reminded customers that it will make facility modifications Tuesday through Thursday this week in association with a tap installation on the Southwest Louisiana Lateral in Cameron Parish, LA. In order to accommodate the work, all receipt points upstream of Station 44 in Johnson’s Bayou, LA, must be shut in, including gas received on the North High Island and West Cameron laterals. This will affect about 350 MMcf/d of production, Transco said. See the bulletin board for a list of affected points.

The shortest distance between two points doesn’t cut it in the world of natural gas pipelines. By the beginning of 2009, when Phase III of the new Rockies Express (REX) pipeline is operational, it will be cheaper to haul natural gas nearly 2,000 miles from the Rocky Mountain fields of Colorado, Wyoming, Utah and Montana to the northeastern megalopolis than it will be to carry gas approximately 1,300 miles from the Gulf Coast to the Northeast, according to a new report by Bentek Energy.