Infrastructure Updates!

Let's make this the place to post information pertaining to anything and everything pertaining to pipelines,compressor stations,ROW acquisitions etc.
Links to websites,articles,maps,anything to do with infrastructure is just as valuable to know as where the next well pad is going in! (If not more so)

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Permalink Reply by Joseph-Ohio on June 23, 2015 at 1:02pm

I guess I was looking for a heading called "Three Rivers Midstream" initially.

Mike MurphyPermalink Reply by Mike Murphy on June 23, 2015 at 11:12pm

Mike MurphyPermalink Reply by Mike Murphy on June 23, 2015 at 11:14pm

Mike MurphyPermalink Reply by Mike Murphy on June 23, 2015 at 11:16pm

Mike MurphyPermalink Reply by Mike Murphy on June 23, 2015 at 11:20pm

Mike MurphyPermalink Reply by Mike Murphy on June 23, 2015 at 11:25pm

Mike MurphyPermalink Reply by Mike Murphy on June 23, 2015 at 11:55pm

Surging NGL Production Drives Infrastructure Projects In Marcellus, Utica Plays

By Jennifer Brickle

EVERGREEN, CO.–The Marcellus and Utica shale plays in the U.S. Northeast are causing quite a buzz across the energy sector, with one of the most dramatic growth curves in North America. Like other high-Btu plays across the country, attractive returns in the wet portion of the Marcellus have spurred aggressive drilling activity. However, gas production has been limited by changes in historical flow and pricing patterns, as well as the region’s ability to handle the associated natural gas liquids.

In addition, there are constraints on Northeast regional processing, fractionation and ethane take-away capacity. However, once these constraints are relieved, wet gas production from the region is forecast to double by 2017 to 4.6 billion cubic feet a day.

Significant investment in midstream infrastructure is under way to address these constraints, with more than 4.8 Bcf/d of gas processing capacity, 473,000 barrels a day in additional NGL fractionation capacity, and three pipeline projects planned to start by 2016. The completion of these projects will impact the U.S. NGL supply/demand balance significantly, particularly for ethane.

For ethane to be recovered in the Marcellus and Utica, demand from a new steam cracker will be required or the product will need to be transported out of the region to demand markets along the U.S. Gulf Coast or globally. Although this is a major issue in the region today, several solutions have been announced, which will allow for the full-scale startup of NGL production by mid-2016.

Projected increases in U.S. Northeast NGL production are primarily the result of expected developments in the Marcellus wet gas region through 2014. However, after 2015, BENTEK forecasts that the Utica could further increase the amount of liquids-rich gas produced in the region by roughly 30 percent and require additional solutions for handling NGLs.

Production Growth

The Marcellus and Utica shales are among the greatest energy resources in North America and sit next door to the largest natural gas markets in the country, including Philadelphia, New York City, Hartford, Boston and Washington (Figure 1). Proximity to these traditionally premium-priced Northeast markets, along with low per-unit development and production costs, make the Marcellus a strong competitor to other U.S. production basins as well as natural gas-exporting countries.

FIGURE 1

Marcellus and Utica Production Area and Infrastructure 

Natural gas production growth in the Marcellus Shale, as well as other unconventional gas plays, has been fueled in part by the proliferation of horizontal drilling technology. Today, horizontal rigs make up more than 75 percent of the drilling fleet in the Marcellus, with the horizontal rig count eclipsing the vertical rig count in late 2009. The bulk of drilling activity is in Pennsylvania, followed by West Virginia.

Chesapeake Energy Corp. is the largest player in the region, with more than twice as many rigs as the second most active operator, Range Resources. Equitable Resources, Talisman Energy and Shell (by virtue of its 2010 acquisition of East Resources) also have substantial acreage positions and are running large numbers of rigs in the region.

FIGURE 2

Northeast Gas Production versus Processing Capacity

With NGLs valued at more than four times dry natural gas on a Btu basis, rich gas production creates significantly higher returns to producers versus dry gas. This has led Marcellus producers to begin to move more capital and rigs from the dry, northern regions of the Marcellus to the wet counties in West Virginia. Driven by higher returns in the wet gas region of the Marcellus Shale, production began ramping up in 2010 and surged to roughly 800 million cubic feet a day by December 2011, resulting in one of the most dramatic growth curves in North America.

However, to continue to obtain these higher returns, additional infrastructure to process, transport, and/or fractionate the liquids will be required to serve the U.S. Northeast region.

As shown in Figure 2, there is 1.7 Bcf/d of processing capacity in the region, and with 22 projects announced to increase processing capacity by 7.8 Bcf/d, infrastructure is growing rapidly. As shown in the chart, this will provide ample capacity in the region through 2017, based on our production projections. Marcellus wet gas production is forecast to increase by 80 percent over the next six years to roughly 2.9 Bcf/d. The Utica Shale is expected to produce as much as 1.7 Bcf/d of natural gas by December 2017. In total, we are forecasting roughly 4.6 Bcf/d in wet gas production from these shale regions.

Raw-Mix NGL

The U.S. Northeast region has not been a large producer of raw-mix NGLs, producing only 40,000 bbl/d in 2011. However, over the next six years, NGL production is expected to increase dramatically because of the changing gas production outlook. Based on these projections, BENTEK expects NGL production to increase at an even more dramatic rate of 1,040 percent to roughly 480,000 bbl/d by the end of 2017 (Figure 3).

FIGURE 3

Northeast NGL Production versus Fractionation Capacity

There are currently 11 fractionators in the Northeast with a combined capacity of 132,000 bbl/d (112,000 bbl/d assuming all units run at 85 percent utilization), all of which is “propanes plus” fractionation (i.e., excludes ethane production). Over the next three years, there are 11 fractionation projects planned to either expand existing capacity or construct new units. These projects will increase capacity in the region by 473,000 bbl/d to 605,000 bbl/d (515,000 bbl/d assuming all units run at 85 percent utilization). Of this new capacity, more than 40 percent will be dedicated to recovering ethane from the raw-mix NGL stream.

Based on this chart, overall fractionation utilization has increased, but will be relieved by a surge in fractionation capacity additions in 2013. By 2014, utilization will again begin to increase as the Utica Shale begins ramping up NGL production, and most units will be running at or near full rates by 2017, requiring additional fractionation capacity in the region.

Ethane Solutions

Ethane is currently not being recovered in the U.S. Northeast region because of a lack of demand and take-away capacity. This constraint will be relieved by several projects that have been announced to deal with this issue, allowing for ethane to be recovered in the Northeast region by mid-2013 (Figure 4).

The first solution will be to export 50,000-65,000 bbl/d of ethane to petrochemical markets in Sarnia, Ontario, through MarkWest/Sunoco’s Mariner West pipeline project. MarkWest Liberty Midstream & Resources entered a joint venture with Sunoco Logistics Partners to convert 350 miles of a refined products line to transport purity ethane westward from MarkWest’s processing and fractionation facilities in Pennsylvania to Nova’s Corunna steam cracker in Sarnia.

FIGURE 4

Regional Processing and Pipeline Infrastructure

The pipeline will have an initial capacity of 50,000 bbl/d, but will be expandable to 65,000 bbl/d as demand increases for additional ethane in the northern tier markets. As of October 2011, Sunoco Logistics had received sufficient binding commitments for Mariner West during its open season to allow the project to continue. The project is expected to be operational by mid-2013.

MarkWest and Sunoco also are proposing a Mariner East project, which would have capacity to transport about 70,000 bbl/d of ethane and propane from the Northeast region to Sunoco’s export terminal at its Marcus Hook refinery on the Delaware River in Southeast Pennsylvania, where the products could then be exported to U.S. Gulf Coast and global markets. The project includes a 45-mile pipeline to deliver ethane from MarkWest’s Houston, Pa,, fractionator to an interconnect with an existing Sunoco line at Delmont, Pa., to move purity products to new refrigerated storage facilities at Sunoco’s Delaware River refinery and marine port at its Marcus Hook Refinery, where it will be loaded onto vessels.

Although the project is not officially expected to enter service until 2014 for propane and 2015 for ethane, MarkWest already is testing the feasibility of the Mariner East project, and started exporting propane in June. Deliveries were made by truck from MarkWest’s Houston fractionator to Sunoco’s refinery and marine port, loaded onto vessels, and likely shipped to Central/South America.

Range Resources has committed as the anchor shipper on both Mariner projects, with a 15-year agreement for 40,000 bbl/d on Mariner East and 15,000 bbl/d on Mariner West.

Pipeline To Texas

Range Resources also has committed to transport 20,000 bbl/d of ethane on Enterprise’s Appalachia-to-Texas Express (ATEX) project. Enterprise’s 1,230-mile ATEX pipeline project will deliver purity ethane from the Marcellus/Utica Shale areas of Pennsylvania, West Virginia and Ohio to the U.S. Gulf Coast.

ATEX will have the capacity to transport up to 190,000 bbl/d from the Northeast region to the partnership’s storage and distribution assets in Texas. The first leg of the system includes constructing 595 miles of new pipeline extending to Cape Girardeau, Mo. At Cape Girardeau, Enterprise will reverse a 16-inch diameter pipeline and place it into ethane service. ATEX is expected to begin commercial operations in the first quarter of 2014.

Despite having enough commitments to break ground on its ATEX pipeline project, Enterprise announced another open season. So far, the 2014 project has generated interest primarily from producers with long-term investments and large rig fleets in the liquids-rich side of the Marcellus. Two of the producers also hold prospective Utica acreage, which is expected to add more ethane volumes during the next two years.

Range Resources, Antero Resources and Chesapeake Energy have taken capacity on ATEX in 20,000, 20,000 and 75,000 bbl/d contracts, respectively. The Chesapeake anchor contract will ramp up over five years. Total contracted capacity on ATEX is at 65,000 bbl/d for 2014, and should climb to 120,000 bbl/d in 2018 with the Chesapeake ramp-up.

Creating demand in the area is another solution being considered, with two parties vying to be the first to get a steam cracker project under way. Aither Chemical and Bayer Corp. have proposed a 600 million pounds/year steam cracker, which would be located just outside of Charleston, W.V., on land owned by Bayer. The steam cracker could consume 17,000 bbl/d, if running at 100 percent capacity. Aither’s facility also would have a 300 million pounds/year acetic acid unit, which would consume some ethane supplies. Aither Chemical has held an open season, to which it received a positive response.

Shell Chemical also is proposing a world-scale steam cracker in the Northeast region, which could consume as much as 90,000 bbl/d of ethane. In March 2012, Shell signed a land option agreement for a potential ethane steam cracker near Monaca, Pa., on the banks of the Ohio River, which would be convenient for product transportation. The site is also on the path of Mariner West pipeline, which could be a source of ethane feedstock.

Overall, we expect natural gas and NGL infrastructure constraints to be relieved by a rush of capital investments over the next several years, although the region could still be at risk. If all these ethane projects do not move forward or if ethane supplies exceed local demand and take-away capacity, gas pipelines in the region could be pushed to maximum Btu limits with ethane rejection, and marginal natural gas production likely will be stalled.

Additionally, value could be lost from natural gas, NGLs and oil volumes not sold because of reduced well production rates. Range Resources mentioned in a presentation at a conference in early September that it could grow its wet Marcellus production to 1.3 Bcf/d with its current ethane take-away options, but that level of growth would entail only minimum ethane extraction to meet pipeline specifications.

Many other producers in the wet Marcellus play certainly are considering ethane rejection as the means of keeping their liquids-rich wells flowing, which should test the gas quality limits on interstate pipelines in the Marcellus. When the maximum Btu limits on the pipelines are reached, ethane recovery will be necessary to keep production from new wells flowing. This potential for lost production sales–particularly for higher-value liquids–could add additional value to producers holding ethane take-away capacity on these projects, as well as provide the incentive for additional capital investments.

Mike MurphyPermalink Reply by Mike Murphy on June 24, 2015 at 12:19am

Could the Utica Shale Share Infrastructure with Texas’ Shale Plays for Improved Efficiencies?

In a recent bid to solve the heavy demand of natural gas in eastern Texas and the Gulf Coast, Spectra Energy Partners LP, through Texas Eastern LP, has filed an application with the Federal Energy Regulatory Committee to establish a bidirectional expansion project in the region. Specifically, the project is meant to “provide supply access solutions to meet the needs” of the oil and gas industry in the Gulf Coast areas of Texas and Louisiana, and will allow the market in eastern Texas to access oil and gas supplies in the northeast, particularly the Utica Shale, as well as in south Texas and the middle of the United States. This development may, in fact, improve the efficiency of gas transport both in and out of Texas, allowing for markets in the Gulf and the mainland U.S. to gain access to the booming operations in the Appalachian Mountains and South Texas.

Specifics of the Project

The project, known as the Texas Eastern Gulf Markets Expansion, would affect the oil and gas industry in Texas, Louisiana, Tennessee, Mississippi, Kentucky, Ohio, and Pennsylvania. According to Spectra, the project would begin with the installation of a new compressor unit in Louisiana, as well as another one in Provident City, Texas. It would also include modifications to existing compressor stations and meter stations “to allow for bidirectional flow on the Texas Eastern system.”

What will this mean for oil and gas markets, both in Texas and the northeast? Most importantly, it will pair surging markets with huge demand with supplies throughout the U.S. Upon the completion of this project, shippers can customize their supply basin based on their individual preferences, as the bidirectional capacity of the pipelines will allow states along the way to choose their point of origin.

The Takeaway of the Expansion Project

Of course, Texas Eastern stands to gain heavily from this project, which is targeted to begin on November 1st, 2017, depending on a variety of factors. That being said, this new development project may be a boon to others along the pipeline; instead of relying on traditional flow of transportation, they will now have the choice between securing gas from multiple locations. Furthermore, those along the Gulf Coast will benefit from direct access to gas supply, a necessary expansion for the surging markets within this region. Hopefully, upon its inauguration, the efficiency of transport established by this project will work to the advantage of shippers, operators, and the entirety of the gas industry in these regions.

Permalink Reply by Philip Brutz on June 26, 2015 at 8:07am

Marcellus Shale region to see wave of large pipeline projects

http://powersource.post-gazette.com/powersource/companies/2015/06/2...

By Stephanie Ritenbaugh / Pittsburgh Post-Gazette

Over the next three years, the Marcellus Shale region can expect to see about 17 pipeline projects meant to ship about 17.3 billion cubic feet per day of natural gas out of Pennsylvania, West Virginia and Ohio to end-users, according to IHS Energy.

Those destinations “are varied, and in addition to New England, some are targeting the Midwest, eastern Canada and the South,” said Matthew Piatek, associate director of North American natural gas for IHS, which tracks energy markets.

“Given the amount of production in the tri-state area currently, it will be able to satisfy the lion’s share of Mid-Atlantic and New England demand and still export a net amount of natural gas,” Mr. Paitek said.

The new infrastructure is in high demand. As natural gas production ramped up in the Marcellus and Utica regions, the existing pipeline network to take that fuel from well sites to market has been maxed out.

That has led to a supply glut and to depressed natural gas prices in Pennsylvania, even as neighboring New England and New York weathered dramatic natural gas price spikes during high-demand winter months.

“There will be significant relief with the buildout happening this year,” said Lindsay Schneider, principal analyst with Wood Mackenzie’s natural gas team.

Still, next summer could look a bit different from this one as low natural gas prices prompt drillers to pull back production, Ms. Schneider noted. Between 2014 and 2015, Wood Mackenzie estimates supply growth of about 2.1 billion cubic feet per day (Bcf/d) from the Marcellus. In 2015-2016, that is expected to fall to about 1.8 Bcf/d.

But even with a slowdown, production is expected to grow, Ms. Schneider said.

“The supply growth will have to catch up with pipeline capacity later this decade,” she said. “That’s very different than now, where exit capacity has to catch up with supply.”

Waves of pipeline projects 

Since the early days of Marcellus production — Range Resources was the first to begin producing natural gas from the shale formation in 2005 — pipeline projects have evolved.

One change is in who is driving demand for more pipelines. Now, more end-users are signing up to get the gas, rather than drillers pushing for the projects, said Mr. Piatek.

“That’s been one of the areas we expect to see major growth in demand, particularly for LNG exports from the Atlantic and Gulf Coast areas, new gas-fired generation in the Southeast, as well as an appetite for [local distribution companies] through the Midwest,” Mr. Piatek said.

Traditionally, natural gas pipelines have flowed from historic production areas in the south to the northern states.

When the Marcellus entered the picture, one of the first phases of pipeline expansions was improving access to those interstate pipelines, Mr. Piatek noted. 

Those were relatively small-scale, less capital intensive projects — including adding compression to allow more gas to flow through the steel or modifying existing pipelines. Then came projects to reverse the flow of pipelines as Pennsylvania natural gas drilling outpaced that of other parts of the country.

One such project was the 1,698-mile, 1.8-Bcf/d Rockies Express Pipeline, which was built to take natural gas from Colorado and Wyoming to eastern Ohio in 2009. In 2014, the pipeline was reversed to also allow gas from the Appalachian Basin to reach Midwest markets.

“The flavor of the year last year was the year of the turnaround — to reverse the flow of the pipeline,” Mihoko Manabe, senior vice president at Moody’s Investor Services, said. “But those projects were still of the brownfield variety.”

Now, more greenfield projects are in the works. Moody’s expects the wave of construction to crest around 2017-2018, with “the huge, billion dollar projects,” Ms. Manabe said.

“This is a once-in-a-lifetime construction cycle,” she said. “Once the infrastructure is built, the activity will die down. That’s why there is so much frenetic activity in pipeline development.

“If you don’t seize the moment now, a competing pipeline will build the way out.”

The scale is significant in terms of the country’s natural gas infrastructure, she added.

“The Marcellus is re-plumbing the gas flows of the eastern half of the U.S. in a big way,” Ms. Manabe said.

Stephanie Ritenbaugh: sritenbaugh@post-gazette.com or 412-263-4910.

Permalink Reply by searcherone on June 26, 2015 at 2:10pm

This is from the West Virginia State Journal

Permalink Reply by john tindor on June 29, 2015 at 7:17am

Mike,

     Thanks for the maps, graphs, and news articles that you've posted in this thread.  Clearly, you have many sources, but is there one in particular which provides more maps than the others?  I would appreciate it if you were willing to share your sources for maps.

     John

Mike MurphyPermalink Reply by Mike Murphy on June 29, 2015 at 11:41pm

John  do a search on "Utica infrastructure projects" and click on images and you   will see many maps on there ...........and you can find many articles on the same search.........I have      mineral  interest in both the Marcellus and Utica formations so I do research on them on a daily bases..........uticashalemaps.com is a good site also...... several maps there along with current news articles listed on the side bar......that site at this point is only dealing with ohio but with resent exploration in west Virginia and pa I expect they will start to cover those two states at some point 

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