Midstream Monitor

Midstream Monitor December 22 2017
Investors in power generation infrastructure will take a long, wild ride before the sector stabilizes. Also, Permian midstream deals may be pricey, but passing them up may be more costly in the long run; Jarl Pedersen of the Port of Corpus Christi discusses the sunny outlook for U.S. crude oil exports; and propane seems well-positioned for a price spike in coming weeks.
Eversource Energy, a New England utility, demands that the Environmental Defense Fund stop citing a study that asserts that the utility limited natural gas supplies to the region to profit from price spikes. Also, oil and gas prices rose sharply in the United Kingdom after the Forties Pipeline System was shut down; warmer than expected winter weather has clobbered natural gas futures; and Cove Point moves closer to operating as the second-largest U.S. LNG export facility.
Greylock Energy, backed by a $400 million equity commitment from Arclight Capital Partners, closes on a deal for ECA. Also, Kinder Morgan Canada is struggling to gain permit approvals for its Trans Mountain Expansion pipeline; and some analysts are questioning the accuracy of the EIA's ethane production data.
Industry titan Harold Hamm offers his insights on exports, the outlook for LNG and other topics during an exclusive interview with Hart Energy's Leslie Haines and Paul Hart. Also, the long-despised Jones Act could actually benefit oil and gas companies seeking to partner with the offshore wind sector; experts see 2017 as a good one as far as rising global oil and gas demand; and NGL prices climb to a 37-month high.
The U.S. energy industry will benefit from the alignment of global economic growth, a corporate economist told executives at the Pipeline Leadership Conference in Plano, Texas. Also, Tom Hutchins of Kinder Morgan Inc. reminded conference attendees that management must focus on people as much as assets; and the hypothetical NGL barrel reached another three-year high.
New pipeline capacity has come online in time for the upcoming winter in the Northeast, but it is unlikely that producers can respond fast enough meet rising gas demand.
Has energy investing conventional wisdom been turned on its head? Does debt trump equity? Sharam Honari of BlackGold Capital Management and Jim Hanson of Duff & Phelps explain what the numbers mean and what you might want to do about it. Also, a combination of solar and LNG could be a plausible option for many island nations, says Wood Mac; and the hypothetical NGL barrel reaches its highest price point in three years.
Oil deals are easy; gas deals are like a "knife fight," attorney James Holmes told executives in Dallas. Also, India wants its own version of the Henry Hub natural gas trading exchange; NGL prices dip slightly; and EagleClaw Midstream Ventures has drawn private equity in its Permian Basin activities.
Even with commodity prices in a prolonged slump, the industry can expect production growth, DrillingInfo's Maria Sanchez told the A&D Strategies Conference. The question, she said, is about demand. Also, two studies agree that LNG exports can be a long-term support for natural gas producers but the process is complicated; cooler expected temperatures than last winter could lead to more price spikes for NGL in coming months.
Was the cancellation of TransCanada's Energy East pipeline project a result of market forces or government obstruction? Contributor Markham Hislop digs behind the scenes to find out. Also, propane prices aren't expected to fall much anytime soon; and oil and gas companies are expected to play key roles in the development of wind energy.


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