Tag Archives: Shale

Crosstex to build 3rd natural gas compressor station in Utica shale region

Crosstex Energy, which in March said it would invest $50 million in two natural gas compressor stations in Noble and Monroe counties, will spend another $25 million for a third facility in eastern Ohio, Youngstown’s Business Journal reports.

Crosstex, a midstream energy firm in Dallas, said it would make the investment in its E2 company. The facility, like the others, is supported by a long-term, fee-based contract with Denver-based Antero Resources.

The compressor stations are the sort of midstream facilities needed to move oil and gas from well sites to end users such as chemical plants, requisite infrastructure still needed in Ohio’s Utica shale play.

MATCOR is a leading provider of ISO 9001:2008-certified cathodic protection products that product compressor stations and many other infrastructure needs within the Utica Shale. Learn more about our services and cathodic protection installation that carry a 10 year guarantee. MATCOR offers the latest insights on anodes for cathodic protectioncathodic protection equipment and more.

SOURCE: http://www.bizjournals.com/columbus/morning_call/2013/05/crosstex-plans-3rd-utica-natural-gas.html

Proposed Columbia Gas Pipeline – Philadelphia Area

In recent headlines from the Marcellus Shale natural gas boom, a major interstate pipeline company wants to expand its transmission network in the Philadelphia area to deliver more gas to customers.

Columbia Gas Transmission Group (A MATCOR client) submitted plans Monday with the Federal Energy Regulatory Commission (FERC) outlining a public campaign for its $210 million project.

The East Side Expansion Project, so named because it adds capacity to the eastern part of Columbia’s 16-state system, includes installing a 20-inch-diameter pipeline on a 7.5-mile route in Gloucester County and a 26-inch-diameter pipeline for 8.9 miles in Chester County.

“We are responding to a demand for increasing capacity of natural gas from our customers,” said Brendan C. Neal, community relations and stakeholder outreach manager for the transmission company, a subsidiary of NiSource Inc.

The new and larger pipes with greater capacity, which would be buried alongside existing Columbia pipelines, will require the company to acquire additional right-of-way from adjoining property owners. But the project is less likely to create public apprehension than a pipeline crossing virgin countryside.

“Since they’re running along an existing line, it does limit some of the concerns,” said Lyman Barnes, administrator of Logan Township, Gloucester County.

The work would expand capacity on a part of Columbia’s pipeline that runs from New York state to Virginia through Southeastern Pennsylvania. The existing line connects to the Millenium Pipeline near Port Jervis, N.Y., and transports Marcellus gas southward to Downingtown, where an eastward extension goes under the Delaware River into South Jersey.

The new line would expand supply options for the West Deptford Energy Station, a 738-megawatt gas-fired power plant being built in Gloucester County by LS Power Group. That plant, scheduled to go into service next year, would consume up to 80 million cubic feet of gas a day.

Columbia will increase capacity on its existing pipeline mostly by adding more horsepower to compressor stations in Milford and Easton, Pa., which will push greater volumes of gas though the pipes. Those station expansions are likely to attract the attention of environmental activists, who have objected to air emissions from other such projects.

Pipeline infrastructure designed to deliver natural gas from traditional production areas in the Gulf Coast states is being reconfigured to accommodate new Appalachian shale production.

The project would require FERC approval. The papers filed on Monday with the federal agency were a request to initiate a “prefiling,” which would include public meetings in April before the company formally files its application with the commission in August. Columbia anticipates FERC would authorize construction by June 2014.

SOURCE: http://www.philly.com/philly/business/20130228_Major_interstate_pipeline_firm_wants_to_expand_its_network_in_Phila__area.html

Dominion Resources plans $1.5 billion pipeline and processing deal for Ohio Utical shale gas

RICHMOND, Va. – Dominion Resources Inc., parent company of Dominion East Ohio Gas, is partnering with a Dallas company to build natural gas processing plants and pipelines to the plants from gas wells in Ohio and parts of Pennsylvania.

In a joint statement issued Thursday, Dominion and Caiman Energy II, LLC said they would sign a $1.5 billion joint venture by the end of the month.

Blue Racer Midstream LLC will be an equal partnership between Dominion and Caiman, with Dominion contributing existing equipment and facilities valued at about $800 million and Caiman contributing the additional funding over time, the companies said.

The development is expected to help the state’s gas and oil industry grow more smoothly because it will provide the necessary pipeline capacity and processing plants immediately to market the gas as it flows from the new wells.

The absence of gas processing plants and pipelines to newly drilled remote wells has hampered Ohio shale gas development, say analysts, creating a kind of chicken and egg situation because such expensive projects could not be built without the certainty that the wells would be drilled.

Dominion will also contribute a processing plant now under construction in Natrium, W. Va., just across the Ohio River, as well as a large diameter pipeline already connecting the plant to Dominion East Ohio’s gathering pipeline system. The plant is being built next to an older but similar facility.

Earlier this year, East Ohio converted part of its major north-south pipeline system in Ohio to move gas from Ohio Utica shale fields to the Natrium processing plant. The lines were built decades ago to move gas from West Virginia and southern Ohio to the heavy industries in Northeast Ohio, industries that have either shrunk or disappeared.

Blue Racer Midstream’s initial plan is to convert more of East Ohio’s major pipelines to “wet gathering lines” and feed the unprocessed gas from thousands of wells the industry anticipates will be drilled in the Utica shale to the Natrium plant.

The plant will clean up raw or rich gas from the wells, removing oils and then separating the more valuable industrial gases — butane, propane, and ethane — from the methane that will become heating or natural gas.

The various gases and oils can then be shipped from the plant to multiple markets, said the companies, either by truck, railroad, pipeline or barge facilities.

“The Utica shale has enormous potential to provide jobs and revenues for the local Ohio economy,” said Thomas F. Farrell II, Dominion’s chairman, president and chief executive officer, in a prepared statement.

Jack Lafield, Caiman’s chairman and chief executive officer, said Dominion “brings well-positioned assets and experienced operations for gathering, processing, fractionating and delivering natural gas and liquids produced from the Utica shale field.”

Three other similar projects are also under way.

Earlier this month, a partnership of companies led by M3 Midstream, LLC, of Houston, announced its $1 billion gas processing plant under constructionin Columbiana County is on schedule to open in May 2013. Chesapeake Energy had been part of the group but sold its share.

In early November, two Denver companies, MarkWest Energy Partners, a gas transportation and processing company, and Antero Resources, a gas producer, partnered with a Texas investment company, the Energy and Minerals Group, to build processing plants and pipelines in Nobel County. State officials estimated the initial investment at $500 million.

In July, NiSource, Inc., parent company of Columbia Gas of Ohio, announced a joint venture with Texas exploration and production company Hilcorp Energy Co. to build about 50 miles of pipeline and a gas processing plant in the state. NiSource estimated the initial cost at about $300 million. In this latest announced project, Dominion intends to contribute its existing gas gathering pipeline system with an eye toward expanding its capacity to move at least 2 billion cubic feet of natural gas per day.

SOURCE: http://www.cleveland.com/business/index.ssf/2012/12/dominion_resources_plans_15_bi.html

Spectra Energy to buy stake in two NGL pipelines in US

US-based natural gas infrastructure company Spectra Energy has entered an agreement with DCP Midstream and Phillips 66 to buy one-third stake in two natural gas liquids (NGL) pipelines in Texas, US.

The two under construction NGL pipelines, Sand Hills Pipeline and Southern Hills Pipeline, are currently being developed by DCP Midstream which is a 50-50 joint venture company between Spectra Energy and Phillips 66.

Upon closing of the deal, the three companies will each own one-third interest in the two pipelines and will equally contribute funds for the completion of Sand Hills and Southern Hills pipelines.

Spectra Energy did not disclose the value of the agreement but is expected to invest $700m to $800m in the two pipeline projects.

Spectra Energy president and chief executive officer Greg Ebel said the pipeline projects will complement the company’s current pipeline network in North America.

“As these NGL pipelines begin serving customers later this year and in 2013, they will directly add attractive, stable earnings and cash flow to Spectra Energy’s results,” Ebel added.

The Sand Hills is a 720 miles and 20in pipeline which will transports NGL from Permian Basin and Eagle Ford Shale to key markets on Gulf coast. The initial capacity of 200,000 barrels per day (bpd) can be increased to 350,000 bpd later.

It is expected to be operational in the second quarter of 2013.

The Southern Hills is a 900miles long pipeline which is being constructed to transport NGL from the Mid-Continent to Mont Belvieu in Texas.

It has an initial capacity of 150,000 bpd which can be expanded to 175,000 bpd. The pipeline is scheduled to begin services in mid-2013.

SOURCE: http://transportationandstorage.energy-business-review.com/news/spectra-energy-to-buy-stake-in-two-ngl-pipelines-in-us-021112