Devon and Crosstex Plan New Midstream Business

Devon Energy Corporation, Crosstex Energy, Inc. and Crosstex Energy, L.P. announced that they have entered into a definitive agreement to combine midstream assets, including gathering and transportation pipelines, gas processing, fractionation and logistics assets, the Pittsburgh Business Times reports.  The transaction, which is scheduled to close in the first quarter of 2014, includes assets in many of North America’s largest oil and gas regions, including the Utica and Marcellus.  The combination will lead to the formation of a new company, the name of which will be announced prior to the closing of the transaction.   Devon, with a strong upstream portfolio, is expected to be the new company’s largest customer.

Beaver County Creates Tax-Exempt Zone For Proposed Ethane Cracker Plant

The Beaver County Commissioners have approved the creation of a 325-acre tax-exempt zone aimed at enticing Shell to proceed with the construction of an ethane cracker plant in the region.  According to one commissioner, “It’s an important piece of the puzzle, but it still doesn’t guarantee a final decision.”  Not only would Shell be exempt from property taxes, but also, its earned income, net profits, business privilege, and mercantile taxes would be abated.  Read more here.

New Processing Plant and Pipeline Coming to Ohio

A midstream joint venture between Houston-based Kinder Morgan Energy Partners LP and Denver-based MarkWest Utica EMG LLC announced Wednesday that it has plans to build Ohio’s sixth natural gas-processing plant and a new pipeline to carry liquids from Ohio, Pennsylvania and West Virginia to the Gulf Coast for processing.  Although a price tag has yet to be disclosed, industry experts expect the cost for the two projects would approach $1 billion, with the first phase set to begin in the fourth quarter of 2014.  At its conclusion, MarkWest chairman, Frank Semple, believes the pipeline will be “the most efficient project for the Marcellus and Utica producers to access the Gulf Coast natural gas liquid markets.”

Eastern Ohio Natural Gas Processing Plant Begins Operations

A newly constructed natural gas processing and fractionation complex is now online in Columbiana County. The plant was constructed by M3 Midstream and includes an extensive gathering system, a 200-million cubic-feet-per-day cryogenic processing facility and a 45,000-barrel-per-day natural gas liquids fractionation facility. M3 Midstream is planning two additional phases to the complex which will greatly increase processing capacity.

Rockies Express Pipeline To Increase Gas Supply

Rockies Express Pipeline LLC, owners of the 1,698 mile long Rockies Express Pipeline, announced that it has executed an agreement for the transmission of processed gas from the Utica Shale formation, adding significant natural gas supply to the pipeline for transport both to the east and to the west.  The pipeline is one of the largest ever constructed in North America, with the capability of carrying up to 1.8 billion cubic feet of natural gas daily.

Bluegrass Pipeline to Connect Utica and Marcellus Gas Fields with Gulf Coast

The Akron Beacon Journal has profiled the proposed Bluegrass Pipeline, a proposed pipeline that would deliver gas from the Utica and Marcellus gas fields to processing facilities on the gulf coast.  The pipeline would be constructed by Williams and Pipeline Partners under a partnership known as Bluegrass Pipeline, LLC.  If approved by federal regulators, it would pass through Ohio and Kentucky to reach parts of Pennsylvania and West Virginia.  Producers hope the pipeline will help alleviate infrastructure constraints that are limiting production in the Utica and Marcellus gas regions.

XTO Opens NGL Treatment Facility in Butler County, Pennsylvania

MarketWatch reports that XTO Energy Inc., a subsidiary of ExxonMobil, announced on June 17th the startup of a natural gas liquids recovery facility in Butler County, Pennsylvania.  Located on 340 acres, the facility is the first of its kind for XTO in the Appalachian region.  Containing  40 miles of connecting pipeline and 2 gas compressor stations, the facility is designed to treat approximately 125 million cubic feet of natural gas per day.  In the past four years, XTO has drilled 50 wells over 46,000 net acres in Butler County.

Crosstex Building Third Compressor Station in Ohio

Crosstex Energy has announced that it is constructing a third natural gas compressor station in Ohio. Crosstex previously announced in March that it would make a $50 million investment to build two compressor stations in Noble and Monroe counties. Now, Crosstex is spending another $25 million for a third facility in Youngstown area. The facility will be supported by a long-term fee based contract with Antero Resources.

Utica Shale Production Brings Newly Proposed Natural Gas Pipeline to Eastern Ohio

DTE Energy, Spectra Energy Corp. and Enbridge Inc. are jointly developing the proposed Nexus Gas Transmission Project, a proposed 250-mile natural gas pipeline which would connect production in eastern Ohio to the existing pipeline grid in southeastern Michigan.  The proposed pipeline would serve distribution companies, industrial energy consumers and natural gas-fired power generators in the Ohio, Michigan and Ontario areas.   Construction would follow existing utility corridors and 50-foot wide easements already acquired by the partners.  Pending market demand and the necessary permitting and approval process, the project is expected to be operating as early as November 2016.  For more information, click here.

Chesapeake Expects Success in Utica Shale

Chesapeake Energy Corp. remains poised to take advantage of the Utica shale once the infrastructure is in place for gas transportation and processing.  Chesapeake currently has 66 wells in production in Ohio, with 183 more awaiting either pipelines or completions.   By year end, the company hopes to be producing 330 million cubic feet of gas per day.  There are currently 14 Chesapeake rigs operating in Ohio.

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