shale

The rapid growth of Canada's oil sands is expected to dramatically increase its consumption of natural gas over the coming decade, a prospect that stands to help Alberta's gas industry but raise the country's emissions.

The Department of Energy reports natural gas production in the Northeast has grown rapidly since early 2009 as a result of increased drilling activity in the Marcellus Shale.

The Marcellus Shale contains about 84 Tcf of undiscovered, technically recoverable natural gas and 3.4 billion barrels of undiscovered, technically recoverable natural gas liquids according to a new assessment by the U.S. Geological Survey (USGS). 

These gas estimates are significantly more than the last USGS assessment of the Marcellus Shale in the Appalachian Basin in 2002, which estimated a mean of about 2 Tcf and 0.01 billion barrels of natural gas liquids.

MarkWest Liberty Midstream & Resources, L.L.C. announced three critical milestones in the ongoing development of the hydrocarbon-rich area of the Marcellus Shale. The first milestone was made by Sunoco Logistics L.P. of completion of the Mariner West open season and execution of definitive transportation agreements.

Following hot on the heels of the announcement that Kinder Morgan Energy Partners had agreed to acquire El Paso Corporation, KMP announced Oct. 24 that it has signed a definitive purchase and sale agreement to acquire SouthTex Treaters, a manufacturer, designer and fabricator of natural gas treating plants that remove CO2 and H2S, for approximately $155 million.

In a deal that will have enormous ramifications for the pipeline industry, Kinder Morgan, Inc. has announced plans to buy El Paso Corp. for $38 billion.

If it goes through, the deal will create the largest midstream energy enterprise company as well as:

Kinder Morgan, Inc. and El Paso Corporation announced Oct. 16 a definitive agreement whereby KMI will acquire all of the outstanding shares of EP in a transaction that will create the largest midstream and the fourth largest energy company in North America with an enterprise value of approximately $94 billion and 80,000 miles of pipelines.

As part of an agreement with Koch Pipeline Company, L.P., NuStar Logistics has reactivated its Pettus South Pipeline to transport Eagle Ford shale crude oil to Corpus Christi, TX.

Pennsylvania and the Marcellus Shale natural gas reservoir are emerging as a key focus of natural gas pipeline operators, as the increasing gas flow spurs projects to bring it to customers in the northeastern U.S. and possibly Canada.

NOVA Gas Transmission Ltd., a wholly owned subsidiary of TransCanada Pipe Lines Ltd., recently announced plans for two pipelines. The first involves plans to construct and operate four new segments of pipeline and related facilities for the proposed Komie North Extension Project.

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