ONEOK plans NGL, gas system expansions
ONEOK Inc. plans to construct additional NGL and natural gas infrastructure, including:
• A new 125,000-bpd NGL fractionator — MB-5 — in Mont Belvieu, Texas, and related infrastructure.
• A new 200-million-cubic-feet-perday (MMcf/d) natural gas processing facility — the Demicks Lake II plant and related infrastructure — in the Williston Basin.
• An extension of ONEOK’s Arbuckle II NGL pipeline farther north and additional NGL gathering infrastructure to increase capacity between the Mid-Continent market hub and Arbuckle II.
• An expansion of the Arbuckle II NGL pipeline by approximately 100,000 bpd to increase total capacity up to 500,000 bpd by adding pump stations.
These projects are expected to generate adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) multiples of four to six times.
For more information, visit www.oneok.com or call (918) 561-5325.
Williams Partners, Crestwood unveil Powder River Basin expansion
Williams Partners LP and Crestwood Equity Partners LP unveiled a major expansion of the Jackalope Gas Gathering System (JGGS) and associated Bucking Horse gas processing facility in the Powder River Basin Niobrara Shale play, which will increase processing capacity to 345 million cubic feet per day (MMcf/d) by the end of 2019 to meet growing customer demand in this underserved growth basin.
As part of the expansion, the current capacity of the Bucking Horse plant in Converse County, Wyoming, will be increased from 120 MMcf/d to 145 MMcf/d by the end of Q4 2018. The expansion also includes plans to add a second plant on the current Bucking Horse footprint by the end of 2019, adding an additional 200 MMcf/d to JGGS at the existing competitive feerate structure.
For more information, visit www.crestwoodlp.com or call (832) 519-2276.
Freedom Oil & Gas commences drilling program in Eagle Ford Shale
Freedom Oil & Gas Ltd. has commenced drilling on its Eagle Ford Shale acreage in Dimmit County, Texas. After successfully testing its acreage position by drilling six wells that achieved better-than-expected initial results, the company is moving forward with further horizontal well development with a continuous drilling program and a dedicated rig. Freedom has a 100-percent working interest (75-percent net revenue interest) in its acreage.
The first well in the ongoing program commenced drilling on the Wilson pad, the same location where the company drilled its first two wells in 2017. Freedom plans to drill three horizontal wells on the Wilson pad, targeting the lower Eagle Ford formation, with expected lateral lengths of about 7,500 feet. These wells are the Vega 1, 2 and 3.
For more information, visit www.freedomog.com or call (832) 783-5700.
Appalachia, Permian, Haynesville drive U.S. natural gas production
Gross production of natural gas in the U.S. has generally been increasing for more than a decade and in recent months has been more than 10-percent higher than in the same months of 2017. This growth has been driven by production in the Appalachian Basin in the Northeast, the Permian Basin in western Texas and New Mexico, and the Haynesville Shale in Texas and Louisiana. These three regions collectively accounted for less than 15 percent of total U.S. natural gas production as recently as 2007, but they now account for nearly 50 percent of total production.
Production in these regions has increased in part because of new drilling and completion techniques, including longer well laterals that have increased well productivity. By contrast, the Gulf of Mexico’s share of total production, which was 12 percent in 2007, has fallen to just 3 percent in recent months, and the share of production in the rest of the U.S. has declined from 60 percent to 28 percent.
For more information, visit www. eia.gov or call (202) 586-8800.