power

Physical natural gas prices for Wednesday delivery bounded higher by 12 cents overall on average Tuesday. A change in the near-term weather outlook was enough to shoot the screen higher, and cash quotes quickly followed.

PVR Partners and Hess Corp. have struck a deal for the former to construct an 45-mile natural gas trunkline and gathering facilities to serve Hess’s lean gas production in the Utica Shale in eastern Ohio. The deal also establishes an area of mutual interest (AMI) to the companies.

More than one year after creating a subcommittee to study hydraulic fracturing (fracking) and develop a consensus for best practices, ASTM International has proposed a new standard for data management and reporting that would cover oil and gas operations in shale plays.

Jobs at the core of Ohio’s growing shale industry, including those in pipeline construction and well drilling, grew nearly 18% and paid an average wage of more than $76,000 during the fourth quarter of 2012, according to a quarterly report by the state’s Department of Job and Family Services (ODJFS).

The Pennsylvania Public Utility Commission (PUC) has approved a Sunoco Pipeline LP request to abandon a portion of its petroleum products pipeline transportation service in the state, moving Sunoco Logistics Partners LP’s plans for the Mariner East pipeline project one step closer to fruition.

After multiple delays, Dallas-based Cubic Energy Inc. has obtained nonbinding commitments for up to $107 million of financing to fund the the previously announced acquisition of Gastar Exploration Texas LP’s East Texas properties (see Shale Daily, April 23). The financing is also intended to fund drilling and working capital, potential additional acquisitions, as well as payment of existing debt. Gastar agreed to extend the closing date of the transaction until Sept. 20, and Cubic agreed to increase the price to be paid for the East Texas assets by $1 million, resulting in a final price of $47 million.

The U.S. Department of Labor’s Occupational Safety and Health Administration (OSHA) has proposed a rule to protect workers exposed to silica, including those involved in hydraulic fracturing that uses silica, or sand, as a proppant.

Heading into the Labor Day Holiday three-day weekend, physical natural gas prices on average Friday for the Sunday-Tuesday period were steady with strength at Northeast locations and an overall balanced market capable of offsetting free-falling prices at certain Marcellus points.

The Dow Chemical Co. last week confirmed it would move forward to expand two big petrochemical facilities along the Gulf Coast of Texas and Louisiana integrated by “advantaged shale gas.” A unit of Royal Dutch Shell plc also has launched an open season to solicit more interest in a proposed ethane cracker expected to be sited in Pennsylvania.