Enterprise Products Cryogenic Processing Expands by 300 mmcfd in Yoakum

Yoakum TX Map

Enterprise Products' second 300 mmcfd cryogenic processing train in Yoakum, in Lavaca County, has come online. Capacity is now 600 mmcfd at the plant and the company has the ability to extract 74,000 b/d of NGLs. The first Enterprise Yoakum processing train came online in May of 2012.

The latest announcement includes the second train and brings capacity to two-thirds of what is ultimately planned. When completed the facility will have total capacity of 900 mmcfd.

“Like the Eagle Ford Shale play itself, our Yoakum natural gas facility continues to exceed expectations and provide Enterprise with new growth opportunities,” said A.J. “Jim” Teague, executive vice president and chief operating officer of Enterprise’s general partner. “Based on the operating results we’ve seen from the first train which began service in May 2012, we expect the second and third trains to perform above their original design capacity, giving us the confidence to pursue additional processing commitments for all three plants.”

Read the full press release at enterpriseproducts.com

Anadarko Increases Eagle Ford Reserves - Resource Estimate to 600 mmboe

Anadarko increased its resource estimate for its Eagle Ford Shale properties to 600 million barrels of oil equivalent (mmboe) at its analyst day. The company also reported having before tax rates of return of more than 100% at as little as $2 natural gas prices, as long as oil is $100 per bbl. The average well across the company's acreage produces 65% liquids (40% oil & 25% NGLs).

Anadarko's 2012 Drilling Plans

Anadarko plans to drill 250 wells with 10 operated rigs in 2012 and will increase to 275+ wells in 2013.  The company has also doubled the expected number of wells with 4,000 planned locations. Over the past couple of years, the company has made significant operational improvements. Rig spud to rig release has fallen from 18 to 12 days, while drilling costs have remained below $2 million per well. Anadarko can also complete an individual stage in less than 8 hours and has driven completion costs below $5 million. The average well drilled in 2012 will have a lateral length of more than 6,600 ft. That's an increase of more than 2,000 ft per well over lateral lengths in 2009.

Anadarko's Eagle Ford Type Well

A typical well in the Eagle Ford for Anadarko displays the following characteristics:

• 450 mboe EUR
• Almost 600 boe/d IP, with a little less than 350 boe/d at the end of year one
• 40% Oil, 25% NGLs, 35% Natural Gas
• $5.8 million well costs

Additional Processing Capacity Coming Online

The company will also have the Brasada Processing Plant (200 mmcf/d) online in 2013. the Brasada Plant will add more than 5,000 b/d of NGLs production in 2013. Current expectations are for net sales volumes that almost reach 50,000 boe/d by year- end 2013.

Read more at anadarko.com

Enterprise Products Partners to Expand Eagle Ford Gas Pipeline and Processing

Enterprise Products Partners announced plans to expand natural gas pipeline and NGL infrastructure in the Eagle Ford Shale. The developments are in response to demand from operators in the region who are experiencing strong growth. The company estimates current crude oil production is 200,000- 250,000 bbls/d and may ultimately reach 750,000-850,000 bbls/d. Plans will be in service by the first quarter of 2013 and include:

• Additional 300 mmcfd train at the Yoakum cryogenic plant in Lavaca County, TX
• Adding 62 miles of pipeline loops (24 and 30 inch) and compression to add 300 mmcfd of gathering capability
• Y-grade pipeline from Yoakum, TX to Mont Belvieu will be expanded from a planned 20 inches to 24 inches.

The 300 mmcfd train at the Yoakum Plant is in addition to the 600 mmcfd under construction. That will bring total capacity up to 900 mmcfd at the opening of this train.  In total, Enterprise Products processing capacity in South Texas will jump from 1.5 bcfd to 2.4 bcfd when the Yoakum plant is fully functional.

"Increased drilling activity in the prolific Eagle Ford Shale continues to create opportunities for Enterprise to leverage its integrated network of midstream assets to provide producers with flow assurance and market choice," said A.J. "Jim" Teague, executive vice president and chief operating officer of Enterprise's general partner. "Each new addition to our growing infrastructure footprint allows us to provide enhanced service options for customers in a more efficient, timely and cost-effective manner.

Read the entire news release at enterpriseproducts.com

Kinder Morgan - Copano Energy Open Eagle Ford Rich Gas System

Kinder Morgan and Copano Energy's Eagle Ford Shale joint venture began gas flows on its rich gas gathering system in August. Plans include more than 400 miles of pipe and more than 700 mmcfd of processing capacity. A condensate line that will traverse much of south Texas is slated to open in mid 2012. 

In our natural gas pipeline segment, certainly the developments in the Eagle Ford continue to be really doing very well. Eagle Ford Gathering which is a joint venture between ourselves and Copano Energy in South Texas, initiated flow on our rich gas gathering system on August 1.

Currently the joint venture expects to have about 400 miles of pipelines with capacity together and process over 700 million cubic feet per day, by early 2012. If you include 50% interest in the joint venture, but not including the crude condensate line, our natural gas pipeline segment has committed about $200 million to expansion projects in the Eagle Ford Shale play. And we continue to make progress on our straight Condensate line which we expect to go and service in mid 2012, that will actually be a part of our products pipeline segment.

Read more quotes from Kinder Morgan at seekingalpha.com