NuStar Energy LP’s planned acquisition of natural gas liquids (NGL) pipeline and fractionation assets could be in jeopardy as seller TexStar Midstream Services LP told the company in mid-February that it was terminating the sale. NuStar disclosed during a midstream conference presentation in early March that it was evaluating its legal options in the matter. “If NuStar does not complete this acquisition, we do not expect a material adverse impact on our results of operations,” the company said in a presentation to a Morgan Stanley midstream conference. Last November, NuStar said it was buying the Eagle Ford Shale NGL assets, as well as Eagle Ford crude oil pipeline, gathering and storage assets (see Shale Daily, Nov. 9, 2012). The crude oil asset transaction, worth about $325 million, has closed. The pending NGL asset transaction is worth about $100 million.
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Articles from storage
Unimin Opens Proppant Terminal in Ohio’s Utica Shale
Unimin Corp. has opened a proppant distribution terminal in Navarre, OH, in Stark County to serve oil and natural gas operators in the Utica Shale.
Williams’ Marcellus Revisions Could Change Infrastructure Plans
The Marcellus Shale’s natural gas volumes are continuing to flow higher, but significant revisions in growth expectations by pipeline giant Williams Partners Ltd. (WPZ) have led one analyst to question whether the “excellent adventure” to establish a major natural gas hub is turning into a “bogus journey.”
Williams’ Marcellus Revisions Could Change Infrastructure Plans
The Marcellus Shale’s natural gas volumes are continuing to flow higher, but significant revisions in growth expectations by pipeline giant Williams Partners Ltd. (WPZ) has led one analyst to question whether the “excellent adventure” to establish a major natural gas hub is turning into a “bogus journey.”
California Carbon Capture Oilfield Project Revived
An ambitious multi-dimensional, $4 billion project that involves what would be California’s first commercial carbon capture and storage (CCS) has been revived in the state’s oil patch in the southern end of the central valley west of Bakersfield. State energy officials have scheduled a workshop Feb. 20 for the Hydrogen Energy California (HECA) project.
‘World Scale’ Petrochem Complex Not Only Answer, Says Developer
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.
Industry Briefs
Merchant Energy Holdings LLC is holding a nonbinding open season through Feb. 20 for up to 8 Bcf of firm, high-deliverability, multi-cycle working gas storage capacity available April 1 at its ECGS facility in Logan County, CO, about 90 miles east of the Cheyenne Hub. ECGS began operation in April and is completing its second phase of expansion, which includes additional injection/withdrawal wells, gathering and processing facilities and gas compression. ECGS is connected with Trailblazer Pipeline and has access to other major pipelines at the Cheyenne Hub. Total injection and withdrawal capability after the expansion will be more than 200,000 Dth/d. For information, visit www.mehllc.com or contact Scott Smith, (713) 403-6472, ssmith@mehllc.com; or Kevin Legg, (720) 351-4004, klegg@mehllc.com.
Most EQT Spending, Drilling in 2013 Will Target Marcellus
EQT Corp. plans to spend $1.5 billion on capital expenditures (capex), drill more than 170 wells and invest $320 million in midstream projects in 2013, according to the company’s operational forecast released Tuesday.
West Texas NGL Pipeline Enters Service Early
The Lone Star West Texas Gateway NGL (natural gas liquids) Pipeline has entered service, transporting NGLs from the Permian and Delaware basins in West Texas to Mont Belvieu, TX, project partners Energy Transfer Partners LP (ETP) and Regency Energy Partners LP said Tuesday.
EIA: August Shale Production Not Enough to Counter Overall Decline
New wells in the nation’s shale plays helped push natural gas production higher in Texas and some other states in August, but it wasn’t enough to keep the U.S. total from sliding to 76.60 Bcf/d, a 3.4% decline compared with 79.33 Bcf/d in July, according to the Energy Information Administration’s (EIA) latest Monthly Natural Gas Gross Production report.
