Boardwalk Pipeline Partners LP’s Gulf South Pipeline Co. LP is seeking FERC approval to offer a new natural gas exchange service in the Perryville, LA, area.
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MarkWest Expanding Midstream Business Across Appalachia
As Appalachian Basin operators cut back dry gas investments to focus on liquids, MarkWest Energy Partners LP is accommodating with a major expansion of its Marcellus, Utica and Huron shale operations.
Weir Makes Play for Another Unconventional Drilling Provider
UK-based Weir Group plc this week struck a $176 million deal to acquire Dallas-based Novatech LLC, its second oilfield services purchase in two months. The transaction would give Weir an even bigger footprint in North America’s onshore.
California Regulators Push Efficiency, Utility Incentives
California regulators reiterated on Thursday their strong reliance on energy efficiency programs and the need to provide utility shareholder incentives to expand the efforts. In doing so they ignored calls from consumer advocates to end the rewards to shareholders.
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The California Public Utilities Commission (CPUC) is seeking to hire a management consultant to provide an internal audit of the commission’s Gas Safety and Reliability Branch program. A CPUC spokesperson said the regulatory commission has reached “a turning point in its regulation of natural gas safety,” and is seeking professional expertise to “inform and guide” future changes. Under a two-year contract not to exceed $300,000, the internal audit consultant is expected to examine the overall structure, function and effectiveness of the CPUC’s natural gas safety program.
Pennsylvania Cataloging Marcellus Emissions
The Pennsylvania Department of Environmental Protection (DEP) is asking natural gas companies to provide information about air emissions from their facilities in the state.
Industry Brief
Atlas Pipeline Partners LP (APL) struck a long-term, fee-based agreement with ExxonMobil Corp. subsidiary XTO Energy Inc. to provide gas gathering and processing services for up to an incremental 60 MMcf/d from the Woodford Shale region of Oklahoma to its Velma processing facility in Velma, OK. The agreement supports APL’s planned 60 MMcf/d expansion of its Velma system. The cryogenic facility is expected to enter service in mid-2012. XTO would use the expanded facility, which would have capacity of 160 MMcf/d after the expansion is completed.
Industry Briefs
Bechtel Oil, Gas and Chemicals Inc. has contracted with Cheniere Energy Partners LP unit Sabine Pass Liquefaction LLC to provide engineering, procurement and construction of the first two liquefaction trains at the Sabine Pass LNG terminal in Cameron Parish, LA. The contract is worth $3.9 billion. Total expected cost for the project before financing costs is estimated at $4.5 billion to $5 billion. Sabine Liquefaction is planning to construct facilities capable of producing 9 million metric tons per year of liquefied natural gas (LNG) in the first phase of its project and selling 7 million metric tons per year of the production under long-term agreements. To date it has contracted half of the production with BG Gulf Coast LNG LLC (see Daily GPI, Oct. 27) and said it will make a final investment decision upon contracting the remaining 3.5 million metric tons per year. Construction is expected to begin in 2012 with LNG exports expected to occur as early as 2015, Cheniere said.
FERC OKs Empire-Tennessee Interconnection in New York
FERC Friday gave Empire Pipeline Inc. the green light to place into service a major interconnection on its Tioga County Extension Project to transport Marcellus Shale production in Pennsylvania to the U.S.-Canadian border.
Flowback Water System Predicted to Become ‘Best Practice’
A new system for treating shale well flowback water at or near the source was introduced Tuesday near Fort Worth, TX, by Fountain Quail Water Management, a unit of Calgary-based Aqua-Pure Ventures Inc.