Briefs
Study: Energy East will boost canadian economy
TransCanada Corp. released the results of a report by Deloitte & Touche LLP that examines the jobs and economic benefits associated with the company's $12-billion Energy East Pipeline project. An estimated $10 billion in additional GDP for the Canadian economy during the six-year development and construction phase and $25.3 billion during the 40-year operations phase is estimated. Over 10,000 full-time jobs will be directly supported during development and construction of the pipeline between 2013 and 2018 and another 1,000 full-time jobs will be supported once it begins service. The development and construction phase is expected to generate an additional $3 billion in tax revenues for municipal, provincial and federal governments across Canada. The operations phase will result in $7.2 billion in added tax revenues.
Aux Sable, Summit Midstream execute gas purchase agreement
Aux Sable Midstream LLC (ASM) and Summit Midstream Partners LP (SMLP) have executed a new, long-term gas purchase agreement for liquids rich natural gas gathered on SMLP's Bison gathering system. The natural gas will be conditioned at ASM's Palermo Plant and then transported via ASM's Prairie Rose Pipeline and the Alliance Pipeline for processing at Aux Sable Liquid Products LP's (ASLP) Channahon, Illinois 2,100 MMcfd natural gas liquids extraction and fractionation facility.
Under the agreement, SMLP will dedicate gas gathered from their Bison gathering system in Burke and Mountrail counties to ASM up to 25 MMcfd with options to increase volumes as they develop.
The agreement provides Bakken producers with "reliable and competitive market access for their rich natural gas that might otherwise be flared or less efficiently handled through field facilities," said WJ (Bill) McAdam, president and CEO of Aux Sable.
Aux Sable Liquid Products and Aux Sable Midstream are both owned by Enbridge (42.7% equity interest), Veresen (42.7% equity interest) and Williams Partners (14.6% equity interest).
ONEOK Partners to make $440M investment in Powder River Basin
ONEOK Partners LP plans to invest roughly $440 million in the natural gas liquids-rich area in the Powder River Basin in Wyoming.
With the investment the Tulsa, OK-based partnership will purchase a 50 MMcfd natural gas processing facility – the Sage Creek plant and related natural gas gathering and natural gas liquids (NGL) infrastructure – in western Converse and Campbell Counties for $305 million from an undisclosed seller; and invest $135 million to upgrade and construct natural gas gathering and processing related infrastructure, NGL gathering pipelines and well connections.
The transaction is expected to close during 3Q13 while the related infrastructure projects are expected to be completed in the second half of 2014. Financing will come from available cash and short-term borrowings.
As part of the acquisition, ONEOK Partners will receive long-term acreage dedications and fee-based and percent-of-proceeds agreements with producers. As natural gas volumes increase to the Sage Creek natural gas processing plant and NGL volumes are transported to the adjacent ONEOK Partners-owned and operated Bakken NGL pipeline over the next several years, total partnership annual EBITDA from this acquisition and the related investments is expected to increase by $40 million to $60 million between 2015 and 2018.
Shell contracts Technip to lay world's deepest gas pipeline in GOM
Shell Offshore Inc. has awarded Technip an engineering, procurement, and installation contract for the development of subsea infrastructure for the Stones field located in the Walker Ridge area in the US Gulf of Mexico, at a water depth of approximately 9,500 feet. The development will host the deepest floating, production, storage and offloading (FPSO) unit in the world and will be Shell's first FPSO in the Gulf of Mexico.
Technip will be in charge of installation of the subsea production system and Stones lateral gas pipeline, inclusive of associated project management, engineering and stalk fabrication.
Technip's operating center in Houston, Texas will perform the overall project management. The flowlines and risers will be welded at Technip's spoolbase in Mobile, Alabama. The offshore installation is expected to be performed in the second half of 2014 by the Deep Blue, Technip's deepwater pipelay vessel.
Canyon Midstream to provide wellhead gas services in TMS
Arroyo Midstream Partners LLC, a joint venture between Canyon Midstream Partners LLC and Gas Processors Inc., has entered into an Interim Gas Processing and Marketing Agreement with Goodrich Petroleum Company LLC for acreage in Louisiana and Mississippi which is prospective for the Tuscaloosa Marine Shale (TMS). Arroyo is currently providing Goodrich with wellhead gas processing services at two recently completed wells in southwestern Mississippi, and expects to add gas processing facilities to process gas volumes from an additional two wells by the end of 2013.
