Blue Racer signs midstream agreements; Natrium II done in March

Blue Racer Midstream LLC, a joint venture of Dominion Resources and Caiman Energy II LLC, entered into long-term agreements with Utica shale natural gas producers to provide comprehensive, integrated midstream services from liquids-rich acreage in Monroe, Noble, Guernsey, Belmont, Harrison, and Carroll counties, Ohio.

Producers party to the new agreements include Eclipse Resources I LP, Hess Corp., Consol Energy Inc., and PDC Energy Inc. Services provided by Blue Racer will include natural gas gathering, compression, treating, processing, and transportation; condensate handling; and fractionation, storage, transportation, and marketing of natural gas liquids.

Blue Racer says it will commission Natrium II, a 200-MMcfd expansion to its Natrium natural gas processing site in Marshall County, W.Va., in early March. The expansion brings overall nameplate processing capacity at the Natrium complex to 400 MMcfd. In addition to the Natrium expansions, Blue Racer is building its Berne processing complex in Monroe County, Ohio. Berne will use three 200-MMcfd cryogenic processing units. Blue Racer expects to commission the first 200-MMcfd processing unit at Berne by the end of the third quarter. Once operating at full capacities, the Natrium and Berne sites will be able to process 1 bcfd of natural gas.

Current fractionation capacity at Natrium is 46,000 b/d, enough for the processing expansions at Natrium and the first 200 MMcfd of processing at Berne. Blue Racer will expand fractionation capacity at Natrium to 126,000 b/d by March 2015, providing increased ethane recovery and accommodating additional processing capacity at Berne.

A 30-mile, Y-grade pipeline will carry processed liquids from the Berne complex to Natrium for fractionation. NGL are currently transported from Natrium to downstream markets via rail, truck, and pipeline. Blue Racing is also developing barging via the Ohio River, which the company says will make Natrium the only fractionation site to offer barge service to Utica producers.

Blue Racer’s ethane pipeline provides direct access to the Enterprise Products Partners’ ATEX Pipeline (OGJ Online, Dec. 6, 2013). Additional pipelines out of Natrium will connect to Sunoco’s Mariner East and Mariner West pipelines and EPP’s TEPPCO Pipeline. Blue Racer is pursuing interconnects to other long-haul NGL pipelines awaiting approval.

In addition to existing natural gas pipeline interconnections with Dominion Transmission Inc. and Dominion East Ohio, Blue Racer is establishing interconnections with Texas Eastern Transmission and has approved establishing an interconnection with Rockies Express Pipeline.

Blue Racer’s network of nearly 600 miles of large-diameter gathering pipelines spans 24 counties in Ohio and West Virginia and can gather more than 1.5 bcfd of natural gas. The company in October purchased a 45-mile, 24-in. OD pipeline from Dominion Transmission Inc. that fully interconnected Blue Racer’s gathering systems to its Berne processing site. Blue Racer says it continues to expand its gathering system to meet producer demand. Eclipse, for instance, owns 95,000 net Utica acres and plans to double its rig count to six during 2014.

Blue Racer already had midstream agreements in place with other Utica producers, including Chesapeake Energy Corp., Total Gas & Power North America Inc., Rex Energy Corp., and EnerVest.

Related Articles

ESAI: Wave of new petroleum product supply yet to materialize

06/22/2015 Despite a jump in world petroleum-product demand during the first quarter, product supply underperformed in key Middle Eastern and Latin American c...

Nationalism may restrict climate efforts, Statoil economist warns

06/22/2015 Growing national confrontations could undermine efforts to meet goals to reduce global climate change impacts, Statoil’s chief economist warned.

US crude export debate increasingly geopolitical, EIA conference told

06/22/2015 The ongoing debate over whether more US crude oil exports should be authorized has more in common with conditions in the 1980s when supplies were a...

Gazprom Neft lets contract for Moscow refinery

06/19/2015 Russia’s JSC Gazprom Neft has let a contract to Tecnimont SPA, a subsidiary of Maire Tecnimont SPA, Milan, for engineering, procurement, and constr...

Gassco to operate Johan Sverdrup gas line in North Sea

06/19/2015 Norwegian state-owned Gassco reported it will take over operatorship of the 156-km natural gas transportation system from Johan Sverdrup field in t...

WoodMac: Western Canadian liquids production on upward trajectory starting in 2016

06/19/2015 Wood Mackenzie Ltd. believes the economics of core areas within shale plays in western Canada will yield comparable returns to key producing plays ...

Rosneft, BP sign upstream, downstream agreements

06/19/2015

OAO Rosneft agreed to sell BP PLC a 20% share of Taas-Yuryakh Neftegazodobycha in eastern Siberia for $750 million.

Total sheds stake in German refinery

06/19/2015 OAO Rosneft has completed a deal for the purchase of Total SA’s minority interest in the 11.5 million-tonne/year PCK Raffinerie GMBH refinery, loca...

PBF Energy inks deal for Louisiana refinery, logistics assets

06/18/2015 PBF Holding Co. LLC, a subsidiary of PBF Energy Inc., Parsippany, NJ, has entered an agreement with ExxonMobil Corp. and Petroleos de Venezuela SA ...
White Papers

Three Tips to Improve Safety in the Oil Field

Working oil fields will always be tough work with inherent risks. There’s no getting around that. Ther...
Sponsored by

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
Available Webcasts


OGJ's Midyear Forecast 2015

When Fri, Jul 10, 2015

This webcast is to be presented by OGJ Editor Bob Tippee and Senior Economic Editor Conglin Xu.  They will summarize the Midyear Forecast projections in key categories, note important changes from January’s forecasts, and examine reasons for the adjustments.

register:WEBCAST


Predictive Analytics in your digital oilfield - Optimize Production Yield and Reduce Operational Costs

When Tue, Jul 7, 2015

Putting predictive analytics to work in your oilfield can help you anticipate failures, plan and schedule work in advance, eliminate emergency work and catastrophic failures, and at the same time you can optimize working capital and improve resource utilization.  When you apply analytic capabilities to critical production assets it is possible to reduce non-productive time and increase your yield.

Learn how IBM's analytics capabilities can be applied to critical production assets with the goal of reducing non-productive time, increasing yield and reducing operations costs.

register:WEBCAST



On Demand

Cognitive Solutions for Upstream Oil and Gas

Fri, Jun 12, 2015

The oil & gas sector is under pressure on all sides. Reserves are limited and it’s becoming increasingly expensive to find and extract new resources. Margins are already being squeezed in an industry where one wrong decision can cost millions. Analyzing data used in energy exploration can save millions of dollars as we develop ways to predict where and how to extract the world’s massive energy reserves.

This session with IBM Subject Matter Experts will discuss how IBM Cognitive Solutions contribute to the oil and gas industry using predictive analytics and cognitive computing, as well as real time streaming for exploration and drilling.

register:WEBCAST


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

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


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