Sendero completes construction of New Mexico midstream complex
During the fourth quarter of 2017, Sendero Midstream Partners LP placed into service a new state-of-the-art cryogenic natural gas processing plant capable of processing over 130 million cubic feet of gas per day, along with the initial phases of its natural gas gathering pipeline system, gas compression and dehydration facilities in Eddy County, New Mexico.
Sendero's natural gas gathering system currently comprises approximately 50 miles of large-diameter low- and high-pressure gas pipelines and approximately 14,000 horsepower of installed field compression, in addition to the operational cryogenic plant. Additionally, Sendero has commissioned its 29-mile, 12-inch-diameter NGL pipeline. The NGL line provides Sendero with access to two downstream NGL pipelines near Orla, Texas, Targa's Grand Prix system and Energy Transfer's Lone Star NGL system, and is currently flowing NGLs produced in its Carlsbad, New Mexico, plant to these end markets.
For more information, visit www.sen deromidstream.com or call (832) 917-6960.
Shale Crescent seeks petrochemical investment in Appalachian Basin
Investing in a new ethylene or polyethylene project in the Shale Crescent USA region will deliver significant financial advantages compared to a similar facility on the U.S. Gulf Coast, according to a new independent report by IHS Markit.
Commissioned by Shale Crescent USA, the report, "Benefits, Risks, and Estimated Project Cash Flows: Ethylene Project Located in the Shale Crescent USA Versus the US Gulf Coast," concludes an ethylene project in the Shale Crescent USA region is expected to produce a net present value (NPV) of $930 million over the life of the project, compared to an NPV of $217 million for a similar project on the U.S. Gulf Coast. This represents an NPV cash flow advantage of $713 million for an investment in the Shale Crescent USA -- over four times higher than in the U.S. Gulf Coast project, using a 15-percent discount factor. Over a 20-year period, that divergence is expected to equate to a pre-tax profit advantage of some $3.6 billion. This compares to an initial plant investment of approximately $3 billion.
For more information, visit www. shalecrescentusa.com or call (202) 568-4704.
EIA: U.S. exported more natural gas than it imported in 2017
The U.S. exported more natural gas than it imported in 2017, marking the first time since 1957 the U.S. has been a net natural gas exporter. The transition to net exporter occurred as natural gas production in the U.S. continued to grow, reducing pipeline imports from Canada and increasing exports, both by pipeline and as LNG.
Natural gas production in the U.S. increased significantly over the past decade. The U.S. surpassed Russia in 2009 as the world's largest natural gas producer as shale gas production drove overall increases in natural gas production. Most recently, production increases have been concentrated in the Appalachia region, primarily the Marcellus and Utica shales. Natural gas production reached an average of 73.6 billion cubic feet per day in 2017, a 1-percent increase from the 2016 level and just slightly lower than the 2015 record level.
For more information, visit www. eia.gov or call (202) 586-8800.
Cabot plans 85 wells in Marcellus Shale this year
Cabot Oil & Gas Corp. expects to average three rigs and two completion crews in the Marcellus Shale during 2018, resulting in 85 net wells drilled and 95 net wells completed.
Cabot has approximately 179,000 net acres in the dry gas window of the Marcellus Shale, primarily in Susquehanna County, Pennsylvania, with two rigs running. The average lateral length for the 2018 Marcellus Shale drilling program is 8,300 feet, and the expected average well cost is $8.3 million for drilling, completion and facilities.
Cabot has provided first-quarter 2018 net production guidance of 1,775-1,825 million cubic feet per day for natural gas, 7,500-8,000 barrels per day for crude oil and condensate, and 700-800 barrels per day for NGLs.
For more information, visit www. cabotog.com or call (281) 589-4600.