Enterprise Products Partners LP extended the repair schedule for the Independence hub and pipeline from early May to the first half of June. The hub was forced to shut down production following a leak discovered last month.
A large discovery in the Pierre Shale of the Raton Basin in Colorado was the highlight of Pioneer Natural Resources’Q1 2008. The discovery, located below the Raton coal bed methane field, has the potential for over 2 trillion cubic feet.Thus far Pioneer has drilled 10 vertical wells and will begin evaluating the potential for horizontal well drilling. It is anticipated that the company will add 175 wells in the play – 160 as part of the coal bed methane field and 15 in the Pierre Shale – in 2008. These additional wells are expected to increase production in the region by 15%.
Williams is holding an open season for the Northeast Supply Project, a proposed expansion of its Transco pipeline that will ship gas from the Rockies, Appalachia and the Marcellus Shale to Eastern markets. This open season combines the company's previously announced Northeast Connector project and Rockies Connector Pipeline, which the company announced in late 2007.
Tight capacity has hindered the Rockies for some time as production has outpaced the ability to move gas out of the region. That situation is looking to improve in the next year with the Rockies Express pipeline project fully finishing and allowing shipments of natural gas to the East Coast. Additional capacity may come online from the proposed Pathfinder pipeline, which would focus on bringing Rockies gas to the Midwest and possibly the East Coast.
EnCana announced plans to reorganize by splitting the company into two primary divisions. One division, currently called GasCo, will focus on natural gas resources plays in North America. This division includes nearly all of the company’s NGL production. The other division, which has the working name of IntegratedOilCo (IOCo), will concentrate on the company’s established natural gas and oil production assets. Additionally, IOCo will focus on the company’s Canadian oil sands and refinery assets.
DCP Midstream Partners LP will acquire the remaining 75% interest in DCP East Texas Holdings from its general partner, DCP Midstream LLC, in the second half of 2008. The agreement, including the price, must still be approved by both companies’ boards of directors.
Hiland Partners announced plans for a new gas processing plant in the Bakken Shale. The company reached an agreement with Continental Resources Inc (CRI) to build and operate the plant, along with gathering pipelines and other facilities in the North Dakota play over a 10-year period. CR is an exploration and production company controlled by Hiland's general partner.
Nigeria’s $10 billion Brass LNG project is close to securing six supply and purchase agreements, enabling it to begin construction. The site will deliver roughly 10 million tons of LNG per year. The project features three buyers that have committed to importing 2 million tons of LNG, for a 20-year period, into North America.
Higher natural gas prices and larger NGL margins were the main drivers for Williams seeing its net income grow nearly four times to $500 million in Q1 2008, from $134 million in the previous year’s quarter.
Natural gas currently represents a small part of China’s energy infrastructure, but with decreased supplies and higher prices for crude oil, the country is expected to enter the market at a heavier rate in the future.
Feedstock prices held firm in Mont Belvieu and dropped in Conway, which saw frac spread margins improve greatly from last week’s large drop offs. Feedstock prices 5% in Kansas and rose about 1% in Texas.The frac spreads that improved the most were ethane, which rose 22% in Kansas and 16% in Texas, and butane, which rose 19% in Kansas and 8% in Texas.