Newfield’s Eagle Ford Production Is Set to Surge at Year-end

NFX Plans to Drill 20 Wells and Grow Production 30% in 2014
Newfields Eagle Ford Focus Areas

Newfield’s Eagle Ford Focus Areas | Click to Enlarge

Newfield Exploration’s Eagle Ford production grew 9% from the second quarter to the third quarter to average 8,200 boe/d. Fourth quarter production is expected to surge to more than 12,000 boe/d as well pads in the West Asherton area come online.

Growth in the last few months of the year puts Newfield on pace to grow production 70% year over year. The company’s production is approximately 56% oil, 19% NGLs, and 24% natural gas.

Read more: Newfield Moving to Pad Completions in the Eagle Ford

Newfield is drilling horizontal laterals that range from 5,000-10,000 ft in the West Asherton Field in Dimmit County and has been able to drive well costs down approximately 20% to $7.3 million.

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Enterprise Completes 7th NGL Fractionator at Mont Belvieu

Fractionation Capacity Ensures the Value of Eagle Ford NGLs Is Realized
Mont Belvieu Fractionator

Mont Belvieu Fractionator | Click to Enlarge

Enterprise Products brought its seventh fractionator online at the company’s Mont Belvieu Complex earlier in September.

The new unit adds 85,000 b/d of fractionation capacity and expands the company’s capacity at Mont Belvieu to 570,000 b/d.  An eighth plant will be online at the end of the year and will add another 85,000 b/d of capacity. [Read more…]

Sand Hills NGL Pipeline In Service & Moving Permian & Eagle Ford Liquids

DCP Midstream, Phillips 66, & Spectra Own The Pipeline
DCP Sand Hills Pipeline Map - Eagle Ford Segment

DCP Sand Hills Pipeline – Eagle Ford Segment | Click to Enlarge

The Sand Hills NGL Pipeline is online and taking NGLs from the Permian & Eagle Ford regions to fractionation facilities in the Gulf Coast and near Mont Belvieu.

The pipeline is 720 miles and runs from West Texas, near Midland, into South Texas on to Mont Belvieu. The pipeline will have initial capacity of 200,000 b/d and could be expanded to 350,000 b/d if needed. [Read more…]

DCP’s Sand Hills Pipeline Moving Eagle Ford NGLs to Mont Belvieu

DCP will spend $1 Billion building the 720-mile, 20-inch pipeline
DCP Sand Hills Pipeline Map - Eagle Ford Segment

DCP Sand Hills Pipeline – Eagle Ford Segment | Click to Enlarge

DCP’s Sand Hills Pipeline has started servicing the Eagle Ford Shale. The company is opening the 720 mile pipeline that runs from the Permian Basin to Mont Belvieu (East of Houston) in segments. The next segment connects directly to Mont Belvieu and will be open by the end of 2012. Construction tying in the Permian Basin will be finished mid-2013.

“When finished, Sand Hills Pipeline will be a major link between the liquids-rich Eagle Ford and Permian producing regions and growing Gulf Coast markets,” said Tom O’Connor, chairman and chief executive officer of DCP Midstream. “With Sand Hills, we can offer an integrated NGL takeaway solution to producers, who will enjoy reliable one-stop service. Sand Hills adds to our well positioned assets in the Permian and Eagle Ford producing regions.”

When finished, the Sand Hills Pipeline will be 720 miles of 20-inch pipe with capacity of 200,000 barrels per day of NGLs and will have the ability to expand to 350,000 b/d  if needed. DCP is projecting it will spend $1 billion on the pipeline and offers three strategic reasons for constructing the pipeline:

  • Provides critical capacity and NGL transport from South Texas and the Permian Basin
  • Capitalizes on increased Eagle Ford growth
  • Improves reliability of the overall NGL network

Kinder Morgan – KKR Announce Midstream Deal for Camino Real and Altamont Assets

$ 300 Million for Altamont Assets (Utah) and the Camino Real Gathering System (Eagle Ford Shale)

Kinder Morgan is acquiring KKR’s 50% interest in a joint-venture with El Paso that controls gathering and processing assets in Utah and the Eagle Ford Shale for $300 million. The deal is a precursor to the $20+ billion Kinder Morgan – El Paso acquisition that will close in May. At closing of both deals, Kinder will own 100% of the two systems.

Both systems were in place to help gather and process El Paso’s upstream oil and gas production in the areas. The Camino Real System in South Texas has capacity of 150 mmcf/d and 110,000 b/d. The Altamont system is larger and includes over 1,000 miles of pipelines, a processing plant, and a natural gas fractionator. [Read more…]

Chevron Phillips – Baytown Petchem Facility to be World’s Largest

Growing Feedstock Supplies Are Leading to Major Petchem Expansions

Chevron Phillips announced the company is going forward with a major petro-chemical facility at the Cedar Bayou Chemical Complex in Baytown, TX. The new plant will be the world’s largest on purpose 1-hexene plant and will be capable of producing 250,000,000 metric tons (551,000,000 lbs) per year.

The announcement follows a release less than two weeks ago that the company will expand NGL fractionation, at the Sweeny Plant in Old Ocean, TX, to 116,000 b/d. An increase in capacity of 22,000 b/d or almost 20%.

Both developments are the direct result of growing feedstock supplies from liquids plays that produce significant volumes of NGLs. We discussed the reasoning behind new fractionation and petchem facilities in more detail in a previous article titled Eagle Ford NGLs Adding to U.S. Supply Growth.

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