Pipelines

PDC Energy Inc. has signed a midstream services agreement with MarkWest Utica EMG LLC and plans to nearly double its capital expenditures (capex) in the Utica Shale for 2013 while also increasing its estimated net production.

Physical natural gas prices fell a couple of pennies on average Wednesday, but if constrained market points in the East on pipelines such as Algonquin, Iroquois, Transco, and Tennessee were held out of the mix, then the overall market loss would increase to about a nickel. Futures trading was light and traders suggest now might be a good time to sell irrespective of Thursday’s inventory report. At the close of futures trading April fell 5.9 cents to $3.470 and May dropped 5.6 cents to $3.519.

NET Midstream unit NET Mexico Pipeline LP plans to build a 124-mile, 42-inch diameter natural gas pipeline to carry gas produced in the Eagle Ford Shale of South Texas to the Texas-Mexico border.

Physical natural gas prices Wednesday eased a couple of pennies in an overall broad decline. However, if volatile New England points on pipelines such as Iroquois, Algonquin, and portions of Tennessee are factored in, the decline is 27 cents. No more than a handful of locations were able to post gains. At the close of futures trading March had added 7.6 cents to $3.306 and April was up by 7.5 cents to $3.371. March crude oil slipped 50 cents to $97.01/bbl.

For the third time in less than three months, Gulfport Energy Corp. and Windsor Ohio LLC, an affiliate of Wexford Capital LP, have agreed to make a transaction in the Utica Shale, this time for net acreage and a higher working interest (WI).

Physical natural gas prices on average plunged 77 cents Monday, but free-falling prices on Northeast pipelines such as Algonquin, Iroquois and portions of Tennessee and Transco skewed the results. If those points are taken out of the mix, the decline was 10 cents. At the close of futures trading March had fallen 0.7 cent to $3.279 and April was down 0.9 cent to $3.346. March crude oil added $1.31 to $97.03/bbl.

Royal Dutch Shell plc hasn’t given any indication that it will back out of plans to build a world-scale petrochemical complex in Pennsylvania, but a developer working on a smaller project in the Northeast thinks bigger isn’t always better.

As power generators turn increasingly from coal to natural gas, it’s not just gas producers that benefit. Pipelines get a lift, too.

Tundra Energy Marketing Ltd. and CN, Canada’s national railway company, have signed a memorandum of understanding to build a crude oil car loading terminal in southwestern Manitoba, near the border with Saskatchewan, to serve Bakken oil producers in the two provinces, the companies said Thursday.