By OGJ editors
HOUSTON, June 24 -- Houston-based oil and natural gas independent Apache Corp. Tuesday reported that starting next month it will begin directly marketing about 1.2 bcfd of gas productionwhich includes gas from other producerswithin the US and Canada. This will include about 830 MMcfd in the US and 420 MMcfd in Canada.
The company has already been marketing its oil and gas produced outside the US and Canada, its Canadian gas, and its US and Canadian-produced liquid hydrocarbons.
For the last 5 years, Apache has marketed its US gas through Cincinnati-based Cinergy Corp. Apache reported that its partnership with Cinergy will be terminated and its arbitration pending with Cinergy will be dismissed.
Five years ago, when Apache was producing about 500 MMcfd of gas in the US and Canada, the arrangement with Cinergy "made sense," said G. Steven Farris, Apache CEO and president. "Today," Farris said, "with more than 1 bcfd of gas production in (the US and Canada) and significant changes in the gas marketing arena, it is time for Apache to market its own gas."
Heading up the newly formed oil and gas marketing department will be Janine McArdle, corporate vice-president.
"In this new era of gas marketing, we believe more direct interaction between producers and consumers is good for both ends of the energy chain," McArdle noted.