Marcellus Briefs

Aug. 12, 2015

Gov. Tom Wolf sets up pipeline task force

Pennsylvania's natural gas drilling has outpaced available pipeline capacity, said Gov. Tom Wolf who announced a task force on pipeline infrastructure development on May 27.

The Pipeline Infrastructure Task Force (PITE) was set up to promote collaboration between the gas industry, state agencies, and communities across Pennsylvania. John Quigley, acting secretary of the Pennsylvania Department of Environmental Protection, will serve as task force chairman.

"Over the next decade, we could see the construction of as many as 25,000 miles of gathering lines," Quigley said. "We can also expect another 4,000 to 5,000 miles of midstream and transmission pipelines in Pennsylvania."

The task force will recommend best practices for planning, routing pipelines, engaging the public, streamlining permitting, and developing long-term operational and maintenance plans to ensure pipeline safety and integrity.

WPX Energy divests Marcellus package

WPX Energy Inc. of Tulsa closed on its $200 million sale of Marcellus shale marketing contracts and the release of pipeline transportation capacity to an undisclosed buyer as part of WPX's strategy to reduce debt and focus on core properties.

The transaction also released WPX from $390 million in future demand payment obligations linked with 135 MMbtu/d of firm transportation capacity commitment on Williams' Transco Northeast Supply project.

As of late May, WPX had sold more than $1.5 billion in assets as it focuses on the Piceance in Colorado, the Williston in North Dakota, and the San Juan in New Mexico.

UGI planning to build Marcellus LNG plant

UGI Energy Services LLC, a wholly owned subsidiary of UGI Corp., plans to build a $60 million liquefied natural gas (LNG) plant in Wyoming County, Pa., to utilize Marcellus shale gas.

The proposed plant would be adjacent to UGI Energy Services' Manning gas compression station. Gas would be supplied by UGI's Auburn gathering system.

The LNG plant was expected to be operational by early 2017 and have the capability of producing 120,000 gpd. UGI Energy Services, through its wholly owned subsidiary UGI LNG Inc., already owns and operates the Temple LNG plant near Reading, Pa.

Caiman Energy, Blue Racer name new chief executive

Stephen Arata was named chief executive officer of both Caiman Energy II LLC and Blue Racer Midstream LLC.

Previously, Arata was chief financial officer of Caiman Energy II and Blue Racer Midstream. He joined Caiman Energy LLC as chief financial officer in October 2010.

During 2012, Arata co-founded Caiman Energy II and also was involved with the formation of Blue Racer Midstream, a joint venture between Caiman Energy II and Dominion to provide midstream services to producers in the Utica and Marcellus plays.

Kyle Irons succeeded Arata as chief financial officer of Caiman Energy II and Blue Racer Midstream. Irons served as vice-president of finance of Caiman Energy II from July 2012 to May 2015. He joined Caiman Energy in 2010 as director of finance.