Scale

Enterprise Products Partners LP plans to build one of the world’s largest propane dehydrogenation (PDH) units on the Texas Gulf Coast to take advantage of abundant supplies of propane thrown off by shale gas plays and to address periodic shortages of propylene in the region.

Days after a Royal Dutch Shell plc subsidiary announced that it intends to purchase a site in Pennsylvania — presumably for its “world-scale” ethane cracker in the Marcellus Shale — media reports are fueling speculation that two other companies are interested in building crackers in West Virginia.

A powerful earthquake measuring 7.6 on the Richter Scale struck Mexico Tuesday centered in the state of Guerrero near the Pacific Coast city of Acapulco and rattling Mexico City nearly 250 miles away. There were no initial reports of deaths and the nation’s liquefied natural gas (LNG) receiving terminals appeared to be undamaged.

Days after a Royal Dutch Shell plc subsidiary announced that it intends to purchase a site in Pennsylvania — presumably for its “world-scale” ethane cracker in the Marcellus Shale — media reports are fueling speculation that two companies are interested in building their own crackers in West Virginia, with one possibly making their announcement today, Wednesday.

Gastar Exploration Ltd. has signed a lease with Bayer AG to drill Marcellus Shale gas wells on 1,400 gross acres in New Martinsville, a site that is being touted as a possible location for an ethane cracker in West Virginia.

World-scale engine builder Cummins Inc. sees potential for growth in the market for natural gas engines for trucks.

National Fuel Gas Co. (NFG) said low natural gas prices were forcing its Seneca Resources Corp. subsidiary to scale back capital expenditures (capex) on exploration and production (E&P) for fiscal 2012, which includes dropping two of its six drilling rigs in the Marcellus Shale.

Williams Partners LP (WPZ) said Thursday it has started up the Springville natural gas gathering pipeline, one of the building blocks in its plan to secure large-scale infrastructure in the capacity-constrained Marcellus Shale. Springville initially would help deliver 300 MMcf/d to Northeast markets.

Shale-inspired historic low prices for natural gas are reconfiguring the electricity generation sector, particularly for renewable or clean power, according to Sacramento, CA-based consultant/independent power entrepreneur Mark Henwood. The market is beginning to notice what Henwood called “this rapid shift in natural gas economics.”