New midstream infrastructure construction continues to increase as shale-play production drives interest. Most recently announced projects are focused in the Eagle Ford and Bakken shale plays to increase capacity, supporting the growth of rig counts and liquids-rich natural gas and crude oil production. This month’s table reflects some 1.65 billion cubic feet of gas per day and about 226,000 barrels (bbl.) per day of capacity to be added.
Energy Transfer Partners LP entered into multiple long-term agreements with shippers to provide additional transportation services from the Eagle Ford shale in South Texas. To facilitate these agreements, Energy Transfer will construct a gas pipeline, a processing plant and additional facilities at a cost of about $300 million.
The 160-mile, 30-inch Rich Eagle Ford Mainline will have a capacity of up to 400 MMcf per day, with the ability to expand capacity to 800 MMcf per day. This rich-gas gathering system, which is expected to be in service by the fourth quarter of 2011, will originate in Dimmitt County, Texas, and extend to the Chisholm Pipeline, for ultimate delivery to Energy Transfer Partner’s existing processing plants and to a new 120-MMcf-per-day processing plant.
Also, Enbridge Energy Partners LP and Enbridge Income Fund Holdings Inc. have finalized capacity commitments to the Bakken Expansion Program under terms of the open season process. The expansion program is being undertaken on the Enbridge North Dakota System, owned by Enbridge Energy Partners, and the Enbridge Saskatchewan System, owned by the Enbridge Income Fund. The total cost of the program is expected to be $560 million.
The added capacity from this expansion will be 145,000 bbl. per day, of which 25,000 bbl. per day will be available by early 2011, and the remaining 120,000 bbl. per day by late 2012. Under the applicable regulatory arrangements, a maximum of 115,000 bbl. per day can be held by committed shippers and at least 30,000 bbl. per day must be reserved for uncommitted volumes.
Enbridge’s Bakken Expansion Program will involve U.S. projects that will be undertaken by Enbridge Energy Partners at a cost of about $370 million. Canadian projects will be undertaken by Enbridge Income Fund at a cost of some C$190 million. The expansion program will originate at Beaver Lodge, North Dakota, in the heart of the Bakken shale play, and will follow existing Enbridge Energy Partners and Enbridge Income Fund rights-of-way to terminate at and deliver to the Enbridge mainline terminal at Cromer, Manitoba. Once on the Enbridge mainline, Bakken production will have access to multiple markets accessible from the mainline and connected pipeline systems.
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