Eagle Ford shale prompts more midstream service agreements

By OGJ editors
HOUSTON, Oct. 25
-- Eagle Ford shale activity in South Texas continues to spawn processing and transportation agreements.

One of the latest is from Enterprise Products Partners LP, which today said subsidiaries have signed 10-year agreements with Pioneer Natural Resources USA Inc., Reliance Eagleford Upstream Holding LP, and Newpek LLC to handle liquids-rich natural gas and crude oil production from the Pioneer’s acreage in the Eagle Ford shale.

The agreements cover much of the Pioneer's expected production, including commitments for firm natural gas transportation, natural gas processing, NGL fractionation and transportation, and crude oil marketing.

Enterprise said Pioneer's NGL-rich gas will be processed initially in Enterprise's existing Gulf Coast plants until early 2012 when it can be processed at Enterprise's previously announced gas plant under construction in Lavaca County in South Texas (OGJ, Sept. 27, 2010, Newsletter). This cryogenic plant will initially be able to handle 600 MMcfd and extract as much as 60,000 b/d of NGLs.

Pioneer's NGL production will ultimately move on Enterprise's new 127-mile NGL pipeline from the new gas plant to Enterprise's Mont Belvieu, Tex., complex east of Houston. The new NGL pipeline will have initial capacity of more than 60,000 b/d, which Enterprise said can be expanded to more than 120,000 b/d and is also set for completion in early 2012.

To accommodate the additional NGLs, Enterprise has announced construction of a fifth, 75,000-b/d NGL fractionation train at Mont Belvieu to be in service in early 2012. In addition, Enterprise's fourth NGL fractionation train, which also can handle 75,000 b/d, is to begin operating by yearend. Addition of these two new fractionation units will increase Enterprise's total NGL fractionation capacity at Mont Belvieu to about 380,000 b/d, said the company.

As part of the crude oil agreements, Enterprise will build about 100 miles of supply laterals that will deliver crude oil produced by Pioneer into the new 140-mile pipeline Enterprise announced earlier this year (OGJ Online, Sept. 1, 2010).

Pioneer's producing area in the Eagle Ford shale currently covers more than 300,000 gross acres in McMullen, Atascosa, Live Oak, Bee, Karnes, and DeWitt counties, said the Enterprise announcement.

The gathering lines required to link production to midstream processing and transportation will be provided by EFS Midstream LLC, a joint venture of Pioneer and Reliance. The agreements with Pioneer and its joint-venture partners marks the fourth major midstream deal Enterprise has executed with Eagle Ford producers in the past year, said the company.

It said more about 100 rigs are working in the Eagle Ford shale, drilling nearly 175 wells. Current production from the play is about 300 MMcfd and 40,000 b/d of crude oil and condensate.

Related Articles

And now, the Watchies for 2014

01/05/2015 Before we get much farther into the new year, let's look back on the old. 2014 was disappointing in several respects, but there were some bizarre -...

PNR, Reliance seek divestment of Eagle Ford midstream business

11/04/2014 Pioneer Natural Resources Co. (PNR), Dallas, and Reliance Holding USA Inc. are pursuing the divestment of their Eagle Ford shale (EFS) Midstream bu...

PNR head urges DOC to issue condensate export permits to others

10/15/2014 The head of an independent oil and gas company that in late June received one of the first two federal approvals to export condensate urged the US ...

Linn completes acquisition of Pioneer’s Hugoton assets

09/11/2014 Linn Energy LLC, Houston, has closed on its purchase of Hugoton field assets in Kansas from Pioneer Natural Resources Co., Dallas, for cash proceed...

PNR closes sale of Alaska subsidiary

04/16/2014 Pioneer Natural Resources Co. (PNR), Dallas, has completed the sale of its subsidiary Natural Resources Alaska Inc. to Caelus Energy Alaska LLC, Da...

PNR reports $3.3 billion capex plan for 2014

02/11/2014 Pioneer Natural Resources Co. (PNR), Dallas, reported capital expenditure plans of $3.3 billion for 2014, $2.2 billion of which to be used to targe...

Pioneer to sell Alaska subsidiary for $550 million

10/25/2013 Dallas-based independent Pioneer Natural Resources Co. has agreed to sell its equity in subsidiary Natural Resources Alaska Inc. to privately held ...

Successes mount in Eagle Ford shale play

11/25/2009 Texon Petroleum Ltd., Brisbane, reported logging 142 ft of potential pay in Cretaceous Eagle Ford after deepening a vertical well completed in Cret...

PNR sells Spraberry properties to Pioneer Southwest

09/02/2009 Pioneer Natural Resources Co., Dallas, has sold oil and gas properties in the Spraberry field in West Texas to Pioneer Southwest Energy Partners LP...
White Papers

Pipeline Integrity: Best Practices to Prevent, Detect, and Mitigate Commodity Releases

Commodity releases can have catastrophic consequences, so ensuring pipeline integrity is crucial for p...
Sponsored by

AVEVA’s Digital Asset Approach - Defining a new era of collaboration in capital projects and asset operations

There is constant, intensive change in the capital projects and asset life cycle management. New chall...
Sponsored by

Transforming the Oil and Gas Industry with EPPM

With budgets in the billions, timelines spanning years, and life cycles extending over decades, oil an...
Sponsored by

Asset Decommissioning in Oil & Gas: Transforming Business

Asset intensive organizations like Oil and Gas have their own industry specific challenges when it com...
Sponsored by

Squeezing the Green: How to Cut Petroleum Downstream Costs and Optimize Processing Efficiencies with Enterprise Project Portfolio Management Solutions

As the downstream petroleum industry grapples with change in every sector and at every level, includin...
Sponsored by

7 Steps to Improve Oil & Gas Asset Decommissioning

Global competition and volatile markets are creating a challenging business climate for project based ...
Sponsored by

The impact of aging infrastructure in process manufacturing industries

Process manufacturing companies in the oil and gas, utilities, chemicals and natural resource industri...
Sponsored by

What is System Level Thermo-Fluid Analysis?

This paper will explain some of the fundamentals of System Level Thermo-Fluid Analysis and demonstrate...
Available Webcasts


The Alternative Fuel Movement: Four Need-to-Know Excise Tax Complexities

When Thu, Jun 4, 2015

Discussion on how to approach, and ultimately embrace, the alternative fuel market by pulling back the veil on excise tax complexities. Taxes may be an aggravating part of daily operations, but their accuracy is crucial in your path towards business success.

register:WEBCAST



On Demand

Prevention, Detection and Mitigation of pipeline leaks in the modern world

Thu, Apr 30, 2015

Preventing, detecting and mitigating leaks or commodity releases from pipelines are a top priority for all pipeline companies. This presentation will look at various aspects related to preventing, detecting and mitigating pipeline commodity releases from a generic and conceptual point of view, while at the same time look at the variety of offerings available from Schneider Electric to meet some of the requirements associated with pipeline integrity management. 

register:WEBCAST


Global LNG: Adjusting to New Realities

Fri, Mar 20, 2015

Oil & Gas Journal’s March 20, 2015, webcast will look at how global LNG trade will be affected over the next 12-24 months by falling crude oil prices and changing patterns and pressures of demand. Will US LNG production play a role in balancing markets? Or will it add to a growing global oversupply of LNG for markets remote from easier natural gas supply? Will new buyers with marginal credit, smaller requirements, or great need for flexibility begin to look attractive to suppliers? How will high-cost, mega-projects in Australia respond to new construction cost trends?

register:WEBCAST


US Midstream at a Crossroads

Fri, Mar 6, 2015

Oil & Gas Journal’s Mar. 6, 2015, webcast will focus on US midstream companies at an inflection point in their development in response to more than 6 years shale oil and gas production growth. Major infrastructure—gas plants, gathering systems, and takeaway pipelines—have been built. Major fractionation hubs have expanded. Given the radically changed pricing environment since mid-2014, where do processors go from here? What is the fate of large projects caught in mid-development? How to producers and processors cooperate to ensure a sustainable and profitable future? This event will serve to set the discussion table for the annual GPA Convention in San Antonio, Apr. 13-16, 2015.

This event is sponsored by Leidos Engineering.

register:WEBCAST


Emerson Micro Motion Videos

Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!

 

Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected