Energy Transfer Partners has completed the final phase of its 42-inch pipeline that connects Energy Transfer’s 36-inch North Texas Pipeline in the Barnett Shale and the Bethel Storage facility to the Carthage Hub and other intrastate and interstate pipelines.
U.S. inventories of propane reported a modest 100,000 bbl decline last week, finishing the 2006-07 heating season at an estimated 25.1 million barrel as of March 30, 2007, the lowest level for this period since 2003, according to the Energy Information Agency.
Eagle Rock Energy Partners will spend $264.4 million in cash and stock to buy certain assets of Montierra Minerals & Production and will also acquire Laser Midstream Energy.As part of the Montierra acquisition, Joseph A. Millls Montierra’s current CEO will be named Eagle Rock’s chairman and CEO, effective at closing later this month. Alex Bucher, who currently serves as Eagle Rock’s president and CEO, will swap his title of CEO for that of chief operating officer and will focus on Eagle Rock’s midstream segment. Billy Quinn, managing partner of Natural Gas Partners, which controls Eagle Rock Energy, will give up his role as chairman of the partnership.
Enterprise President Bob Phillips says the Independence Hub and Trail may be a stopping point for significant investment in the deepwater Gulf of Mexico with the company now placing new emphasis on unconventional gas plays in the Rockies and Barnett Shale.Phillips told an analyst meeting at the Waldorf Astoria in New York March 29 that unconventional gas plays represent biggest sources of supply for both natural gas and NGLs. “We’re seeing a shift in NGL production from the East offshore Louisiana where it is declining slightly to the Rockies. We’re investing heavily to be there in the next decade, to bring the increased NGLs out of the Rockies into the market,” Phillips said.
Spectra Energy Partners hopes to raise up to $278 million in an initial public offering of 11.5 million common units. The company plans to apply to list its common units on the New York Stock Exchange under the symbol SEP
NOVA Chemicals Corporation has signed a letter of intent with Aux Sable Canada Ltd to develop and ethane extraction plant in Fort Saskatchewan, Alberta that would process natural gas from the Alliance Pipeline.Aux Sable and NOVA will work together to develop the project which will be owned and operated by Aux Sable and is expected to begin operating in mid-2010. Estimates put the cost of the plant at C$100 million.
Following the surprisingly sharp drop in propane inventories from the prior week, propane markets returned to more seasonal activity last week with a weekly inventory decline of about 700,000 bbls, leaving the nation’s propane supply at an estimated 25.2 million bbls as of March 23, according to the Energy Information Agency.
Enterprise Products Partners is in the process of adding a fourth propylene splitter at Mont Belvieu which will increase propylene/propane fractionation capacity by about 1 billion pounds per year to a total of approximately 6 billion pounds per year.Enterprise Chairman Dan Duncan made the announcement Sunday to the 2007 International Petrochemical Conference sponsored by the National Petrochemical Refiners & Marketing Association (NPRA) at the Henry B. Gonzalez Convention Center in San Antonio. Duncan receive the eleventh annual Petrochemical Heritage award at the opening of the conference Sunday.
The scale of projects in the upstream sector is growing dramatically, creating significant implications for the industry, according to ExxonMobil’s Andrew Swiger. From 2001 to 2005, the vast majority of investment was for projects less than $5 million a piece. “This trend is reversing and will reverse dramatically over the period of 2006 to 2010 with nearly $150 billion in spending on projects that individually require greater than $5 million a piece,” said Swiger, speaking to the Gas Processors Association annual convention in San Antonio March 12.
Capacity of the vast infrastructure that moves crude oil to refineries from Canada and the Gulf Coast will be increasingly important as supplies tighten, according to Greg Armstrong, chairman and chief executive of Plains All American Pipeline LP. The Houston-based firm, with $9 billion of assets, focuses on just such infrastructure: pipelines, oil and gas storage, and terminals. The company operates 20,000 miles of pipelines and 60 million barrels of storage, and has 500 trucks.
The current crop of six E&P-related master limited partnerships (MLPs) that have gone public since January 2006 will not repeat the mistakes MLPs made 25 years ago, according to Steve Pruett, president of Legacy Reserves LP (Nasdaq: LGCY), Midland, Texas.
Chevron Corporation was honored as the International Refining & Energy Company of the Year, and Marathon Petroleum Company LLC was honored as the North American Refining & Energy Company of the Year during Hart Energy Publishing’s World Fuel and Fuels Conference in San Antonio March 22.
Randy Moeder, president and CEO of Hiland Partners and Hiland Holdings, announced last week that he plans to resign to pursue other career opportunities.After 17 years with Hiland and its predecessor companies, Moeder, 46, said he needed “to step back and take a rest” and spend more time with his family. He will remain with the company for up to six months to assist in a smooth transition.