Southwest

Two earthquakes that recently shook the area around the East Texas town of Timpson were unlikely to have been caused by natural gas drilling or drilling waste disposal activities, according to the Railroad Commission of Texas (RRC).

Two companies in southwest Mississippi are proceeding with plans to produce and strengthen sand for hydraulic fracturing. The Blaine Cos., which maintains quarry operations in Natchez, MS, is launching Magnolia Frac Sand LLC, a business division that will produce frack sand for Fores Frac Sand LLC, a new division of Fores Canada Inc., and Fores Resin Coat LLC will strengthen some of the frack sand by coating it with resin. Fores is also installing a handling facility and a loading and storage facility in Natchez. Blain is investing $7 million in Magnolia and Fores is investing $27 million in its Mississippi entry. The project is expected to create about 60 jobs in the Natchez area.

The first test, or “cool-down” shipment of liquefied natural gas (LNG) to the Manzanillo receiving facility is expected this Friday along the southwest coast of Mexico. An initial shipment of 77,000 tons of LNG is slated to come from Peru, which has a long-term contract with the Mexican federal government through Spain-based energy giant Repsol.

Citing unplanned engine maintenance at Buttermilk Compressor Station in its Southwest Gathering Area, ANR said based on high line pressures and current operating conditions it was required to reduce receipt nominations at its CenterPoint interconnect in the area to zero Tuesday through Dec. 10.

Pacific Gas and Electric Co. (PG&E) said Monday part of its transmission pipeline picking up Southwest supplies at the California-Arizona border failed a hydrostatic test earlier in the day. Crews were working to replace a one-mile segment of Line 300 B in a remote part of Bakersfield, CA, in the southern central valley region.

Noble Energy Inc. and CONSOL Energy Inc. have clinched their joint venture agreement to develop a swath of Marcellus Shale properties in southwest Pennsylvania and northwest West Virginia, the companies said Monday.

FERC Thursday approved El Paso Natural Gas pipeline’s request for a waiver of $6 million in penalties incurred by its shippers during the major chill in the Southwest last February, which forced El Paso to declare an emergency on its system.

Hot weather wasn’t much of a factor in Wednesday’s market as forecast peaks in the mid 90s or higher remain confined to parts of South Texas, the desert Southwest and inland California. Otherwise moderate to cool or chilly conditions dominate the rest of the North American outlook.

Florida Gas Transmission did not extend an Overage Alert Day beyond Friday.