Comprehensive Energy Data Intelligence
Information About Energy Companies, Their Assets, Market Deals, Industry Documents and More...
Energy Transfer LP Races to Carry Permian Basin Gas to Gulf Coast Hubs
03/01/2022
The Permian Basin's abundance of resources — given that it's the largest shale field in North America —, quickly became the driving force behind Energy Transfer LP's plans for a natural gas pipeline from West Texas and eastern New Mexico to export hubs on the Gulf Coast. The project under consideration would combine new and existing pipelines to serve coastal gas hubs.
A 260-mile new build pipeline would extend eastward from the Midland sub-basin along existing rights-of-way, interconnecting with Energy Transfer’s existing 36-inch pipeline near Fort Worth, Texas.
Given the proposed route and Energy’s ability to utilize existing assets, construction could be completed in two years or less once the parties involved have reached FID (final investment decision). The company's Co-CEO Thomas Long also corroborated this timeline.
A race to build pipelines in the Permian Basin has been triggered due to the increasing quantity of natural gas production under the Permian and the ever-increasing demand for natural gas exports from the Gulf Coast. Various companies, including Kinder Morgan Inc. and MPLX LP, are looking at building new pipelines in the region due to the demand spike.
Energy Transfer likely edged past Kinder Morgan and others into the lead for building the next Permian pipeline since the project strikes as the most economical option for the basin outside of capacity expansions on existing pipelines and could essentially add 1.5-2 Bcf/d of transport capacity with just 260 miles of new pipe.
Additionally, Energy Transfer announced that work had started on the Gulf Run Pipeline, which will connect Louisiana to the rest of the nation and international markets for natural gas transmission. To help meet growing global energy demand, existing assets will also be modified to complete the project.
Approximately 135 miles of the pipeline would run between Westdale and Starks. Enhancing and repurposing some underutilized infrastructure in northern Louisiana will be accomplished by modifying Line CP.
QatarEnergy and Exxon Mobil Corporation both have signed a 20-year agreement under which a $10 billion Golden Pass LNG export plant for this project is going to be built in Texas, and will provide 1.65 billion cubic feet of natural gas daily.
As a result of all those strings being pulled, Gulf Run should be completed by the end of 2022. At least according to Energy Transfer’s Top management statements.
But not all of Energy’s programs have “ongoing” or “underdevelopment” statuses. While management boasted about future prospects, there was also an announcement that the company had finally completed the last phase of its long-delayed Mariner East NGL pipeline expansion in Pennsylvania. A fine boost to the company's trust ratings. After all, actions speak louder than words.
If you are looking for more information about energy companies, their assets, and energy deals, please, contact our sales office mapping@hartenergy.com, Tel. 619-349-4970 or SCHEDULE A DEMO to learn how Rextag can help you leverage energy data for your business.
Evolution Acquires Non-operated Wyoming Natural Gas Interests
Evolution Petroleum just spend a fortune on Jonah’s Field right after acquiring Hamilton Dome Field in Wyoming. The price of the transaction is $29.4 million. The Houston-based company aims to diversify into natural gas assets, providing access to the western markets through the Opal market hub, with the optionality to flow to the east. That transaction took effect on February 1. We anticipate closing on or about April 1.
U.S. Natural Gas Pipelines Infrastructure Overview by Rextag
The U.S. natural gas pipeline network is a complex system of pipelines that transport natural gas from production areas to consumers across the country. The pipeline network consists of three main types of pipelines: gathering pipelines, transmission pipelines, and distribution pipelines. Gathering pipelines are small-diameter pipelines that transport natural gas from production wells to processing facilities or larger transmission pipelines. Transmission pipelines are large-diameter pipelines that transport natural gas over long distances, sometimes across multiple states. Distribution pipelines operate at low pressure and are located in or near urban areas. They are often referred to as "utility pipelines" because they are typically owned and operated by local gas utility companies.
Continental Resources is expanding its operations in the Midland Basin, including taking over some assets that used to belong to Occidental Petroleum. The company plans to use its expertise in exploration in this area.
Equinor and EQT Corporation have agreed that Equinor will exchange its operated assets in the Marcellus and Utica shale formations in Ohio for a stake in EQT’s non-operated interests in the Northern Marcellus formation.
Appalachian Basin (formerly Marcellus and Utica) covers most of New York, Pennsylvania, Eastern Ohio, West Virginia, and Western Maryland in the north, reaching down to parts of Northwest Georgia and Northeast Alabama in the south. The basin is massive, covering about 185,000 square miles, roughly 1,000 miles long from northeast to southwest, and in some places, it's up to 300 miles wide. In this area, some major companies are making significant investments. EQT stands out as the largest producer in the Appalachian Basin, with other key players including Chesapeake, Range Resources, Antero, Repsol, and Gulfport also actively investing.