For the time being at least, Marcellus Shale producers are paying the price for too much of a good thing. Concentrated development in the nation’s preeminent shale gas play has made for basis-inverting constraints on Tennessee Gas Pipeline. However, the industry has seen this sort of thing before (in the Rockies more than once, for instance), and the market will work it out, eventually, a Marcellus producer told NGI’s Shale Daily.
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Articles from Then
Transportation Notes
Southern California Gas (SoCalGas) kept a high-linepack OFO in place through Sunday, then allowed it to expire Monday. SoCalGas also said it lost 100 MMcf/d of North Needles border delivery capacity Sunday for an undetermined amount of time when it declared a force majeure at the receipt point in order to replace a piston on the #1 unit.
Transportation Notes
In e-mail notices that arrived a minute apart Thursday morning, Southern California Gas declared a high-linepack OFO for the same day and then extended it through at least Friday. The tolerance for positive daily imbalances was set at 10% in both cases. The distributor also said it will lose 30 MMcf/d of storage injection capacity from next Tuesday through June 10 due to anomaly repairs on Line 1004.
Cabot Passes 400 MMcf/d Milestone in Marcellus
Thanks to recent upgrades to a compression station in northeastern Pennsylvania, Cabot Oil & Gas Corp. increased its Marcellus Shale production 35% in a single day, a sign of how infrastructure bottlenecks in Appalachia are crimping production rates.
Trunkline Gets FERC Nod for Transport of Eagle Ford Output
FERC has approved Trunkline Gas Co. LLC’s proposal to modify a portion of its existing South Texas System to allow the bidirectional transportation of liquids-rich natural gas from the Eagle Ford Shale play in South Texas.
Crestwood Buys Midstream Assets in Fayetteville, Granite Wash
Privately held Crestwood Midstream Partners LP has completed its acquisition of midstream assets in the Fayetteville Shale in northwest Arkansas and the Granite Wash play in the Texas Panhandle, the Houston-based company said. The deal was announced in February.
EQT Official: Industry Must Educate ‘One-on-One’
The Marcellus Shale industry shouldn’t discount new regulations outright, according to the head of one major midstream player.
Quebec to Enact New Royalty Regime for Shale Gas
Quebec said Thursday a new royalty regime for shale gas will take effect in the province once it concludes a two-year strategic environmental assessment of the industry.
Transportation Notes
Having previously announced System Overrun Limitations (SOL) in all market-area zones for last Thursday and then extending them into Friday, Northern Natural Gas said late Thursday the SOLs would remain in place through Saturday, Sunday and Monday.
Marcellus Shale Facing Pipeline Capacity Issues
A lack of capacity to carry Marcellus Shale gas to New York City (NYC) along the eastern Pennsylvania border remains unresolved and will lead to a glut of supply in 2011, said Societe Generale energy analysts.