Magellan Midstream Partners announced in late March plans to build a condensate splitter and make infrastructure improvements to its’ Corpus Christi terminal for $250 million. According to company officials, the splitter will be able to process 50,000 b/d of condensate, supported by a long-term commitment from commodities trader Trafigura AG.
Exterran Partners will spend $360 million to acquire natural gas compression assets from MidCon Compression, a subsidiary of Chesapeake Energy. These assets will be used by Exterran to provide contract services in the Eagle Ford and other domestic plays.
Included in the deal are 334 compression units, with a total horsepower of ~440,000.
BHP Billiton reported in February 2014 that portions of its Eagle Ford gathering system have been temporarily closed due to corrosion. The cause of the corrosion issue is at present being evaluated by the company.
The gathering system closure was revealed in BHP’s December 2013 financial report of Petrohawk. BHP is required to report operations updates and financial results to Petrohawk’s debt holders, after acquiring the company in 2011.
Read more at bhpbilliton.com
BHP Eagle Ford Gathering Line Closure Operations Impact
According to BHP, production is continuing in the Eagle Ford, despite the interruption from the line closure. The company has increased the use of trucking to deliver product to market, and claims that there should be no significant impact on production.
BHP Eagle Ford Expenditures To Go Down in 2014
Onshore U.S. drilling and development cost BHP $2.4 billion in the second half of 2013. About 75% of this expense or $1.8 billion was spent in the Eagle Ford, mostly in the company’s liquids-rich Black Hawk acreage. The company achieved a 72% increase in production for onshore US liquids in the second half of 2013, which was primarily attributable to the Black Hawk acreage.
In 2014, expenditures are expected to decrease in the second half of the financial year, following a 35% decrease in the company’s active rig count to 26.
BHP Eagle Ford Highlights in Second Half of 2013
- Eagle Ford gathering line system closed due to corrosion
- BHP using trucks to deliver product to market
- $1.8 billion Eagle Ford spending in second half of 2013
- 72% increase in production for onshore US liquids
- Active rig count down to 26 – 35% decrease
Funding for two Southeast Texas midstream projects was approved in early February 2014 by Phillips 66′s board of directors. Costs for the construction of a fractionator in Old Ocean, TX, announced in August of 2013, and a liquefied petroleum gas export terminal in Freeport, TX, are an estimated $3 billion combined.
According to Phillip’s 66, the projects will create more than 50 full-time jobs and over 1,000 temporary construction jobs.
Read more: Phillips 66 Plans Gulf Coast Fractionator
Valero plans to build crude topping units at its Corpus Christi, TX refinery and its refinery in Houston.
The two expansions come with a price tag of $730 million, but will likely be needed if the growth of light-sweet crude oil from areas like the Bakken, Eagle Ford, and Permian Basin continue.
Double Eagle Pipeline, a partnership between Kinder Morgan and Magellan Midstream, is expanding to move more crude and condensate to the Houston Ship Channel.
Double Eagle Pipeline has signed an agreement with Anadarko Petroleum to extend its pipeline system and connect with the KMCC Pipeline to move crude to the Houston Ship Channel.
Plains All American plans to spend $120 million to construct a new natural gas liquids (NGL) fractionator and expand its condensate stabilization facility in South Texas.
The new fractionator will be located near the company’s Gardendale facilities in La Salle County, TX.
The fractionator is supported by third party commitments and will have capacity of 15,000 b/d of Y-Grade and off-spec Y-Grade products. [Read more...]
TexStar Midstream has signed an agreement with Calumet Specialty Products Partners to construct, own, and operate a 30,000 b/d pipeline system that will deliver Eagle Ford crude to Calumet’s San Antonio Refinery.
The deal includes a 15-year agreement for TexStar to build and operate the Karnes North Pipeline System (KNPS). The system will include 50-miles of 8-inch pipe from Karnes to the southeast side of San Antonio. [Read more...]
Rosetta Resources will spend approximately tw0-thirds of its $1.1 billion budget in 2014 in the Eagle Ford.
The company will spend $735 million running 4-5 rigs, with plans to drill and complete 90-95 gross wells. Approximately half of the activity will target the Eagle Ford from the company’s Gates Ranch leases.
As a result of Eagle Ford and Permian Basin growth, Rosetta expects production to grow 20-30% to 60,000-65,000 boe/d. [Read more...]
A proposed Corpus Christi Liquefaction Plant (LNG Export) is one step closer to becoming a reality.
Cheniere signed a 20-year LNG sale and purchase agreement (SPA) with Pertamina for 0.8 mtpa (90 mmcfd). The deal accounts for just 5% of the plant’s proposed capacity, so more contracts are needed before the $12 billion project will be financed.