Industry Brief

Enterprise Products Partners LP has sold out capacity at its planned 1.65 billion pounds/year propane dehydrogenation (PDH), which is scheduled to begin operation during the third quarter of 2015. In anticipation of a continuing decrease in supplies of propylene, Enterprise is in talks with additional customers that could lead to the development of additional PDH capacity, the company said. Last June Enterprise said it would build a PDH facility on the Texas Gulf Coast that would consume up to 35,000 b/d of propane to produce 1.65 billion pounds/year (750,000 metric tons per year or 25,000 b/d) of polymer-grade propylene (PGP) (see Shale Daily, June 22, 2012). The facility is to be integrated with the partnership’s existing propylene fractionation facilities, which have capacity of 5.3 billion pounds/year. The PDH facility will also be integrated with Enterprise’s PGP storage facilities, 102-mile distribution pipeline system and export terminal. “This [PDH capacity] demand is being driven by the combination of a 38% decrease in propylene supplies since 2006 due to additional ethane consumption by U.S. petrochemical companies and the growing supplies of domestic propane from the U.S. shale plays,” said Jim Teague, COO of Enterprise’s general partner.

January 10, 2013

Blue Racer JV Expands Midstream Services in Utica

Dominion and Caiman Energy II LLC on Thursday said they are forming Blue Racer Midstream LLC, a $1.5 billion joint venture (JV) that would provide midstream services to natural gas producers operating in the Utica Shale in Ohio and portions of Pennsylvania.

December 24, 2012

Pipeliner Plains Buying Crude Rail Terminals

Plains All American Pipeline LP (PAA) is buying three crude oil rail terminals in the Eagle Ford, Bakken and Niobrara producing regions, as well as various contractual arrangements, from U.S. Development Group (USD) for $500 million.

December 6, 2012

GE, Clean Energy to Build LNG Vehicle Fuel Plants

A unit of General Electric and natural gas vehicle (NGV) fuel supplier Clean Energy Fuels Corp. said Tuesday they will partner on the development of two liquefied natural gas (LNG) production/storage facilities to help fuel Clean Energy’s proposed national network for fueling long-haul trucking fleets with LNG.

November 14, 2012

Chesapeake Sues Gastar Over Failed Partnership

Chesapeake Energy Corp. filed a lawsuit against former partner Gastar Exploration Ltd., alleging that it is owed $130 million from a failed joint venture in Texas.

October 3, 2012

DCP Midstream Doubling Up for DJ Basin Production

DCP Midstream LLC is in the process of doubling its natural gas processing capacity in the Denver-Julesburg (DJ) Basin by the end of 2014 as drilling and completion technologies unlock more gas, the company said.

August 8, 2012

A Portion of Williams Partners’ Atlantic Access Advances

Williams Partners LP said shipper interest supports a portion of Transcontinental Gas Pipeline’s (Transco) Atlantic Access project: expansion of the Leidy Line in northern Pennsylvania by up to 800,000 Dth/d by late 2015. However, the remainder of the previously announced Atlantic Access project will have to wait.

August 3, 2012

National Fuel Gathering System Online in Pennsylvania

National Fuel Gas Midstream Corp. (NFG Midstream), a unit of National Fuel Gas Co., said its Trout Run Gathering System in Lycoming County, PA, was recently placed in service and is delivering gas to an interconnect with Transcontinental Gas Pipe Line Co. LLC (Transco). Initial production is from four recently completed wells operated by Seneca Resources Corp., a subsidiary of National Fuel.

June 18, 2012

ZaZa Energy, Hess End Eagle Ford and France JV

ZaZa Energy Corp. and Hess Corp. have ended a joint venture (JV) agreement they made in 2010 for activities in the Eagle Ford Shale in South Texas and the Paris Basin in France. ZaZa is taking over the Eagle Ford activities while Hess will hold the exploration licenses in France.

June 13, 2012

Rex Expands Ohio Utica Operations

Although keeping a lid on the details of the deal for now, Rex Energy Corp. said the Utica Shale joint venture it recently entered into with MFC Drilling Inc. and Abarta Oil & Gas Co. Inc. requires it to drill and complete one well and begin drilling two others by Nov. 15, and requires three additional wells each year until the company satisfies the carry obligation. The JV covers a three county region of eastern Ohio.

May 3, 2012