Cheyenne Connector, REX Cheyenne Hub commence service
Both the Cheyenne Connector pipeline and the Rockies Express Pipeline (REX) Cheyenne Hub Enhancement Project have commenced commercial service, following FERC approval. Tallgrass Energy LP owns 50 percent and operates the Cheyenne Connector, while DCP Midstream owns the other 50 percent.
The 70-mile, 36-inch-diameter Cheyenne Connector is fully subscribed at 600 million cubic feet per day (MMcf/d), with additional expansion capacity available. The pipeline receives natural gas from processing facilities in the Denver-Julesburg Basin and delivers it to the REX Cheyenne Hub near the Wyoming border.
The REX Cheyenne Hub receives natural gas from interconnected pipelines and has bidirectional capability at several interconnects. It is currently subscribed to 800 MMcf/d, 200 MMcf/d of which is anticipated to be placed in service in the fourth quarter of 2020.
For more information, visit www.tallgrassenergy.com or call (913) 928-6060.
Rystad: Oil, gas assets for sale above 12.5 billion boe
According to Rystad Energy estimates, oil and gas companies have assets for sale with recoverable reserves of more than 5 billion bbl of liquids and 7.5 billion boe of natural gas. While some of these planned divestments were announced before the COVID-19-related oil price crash, more were added in reaction to the pandemic and its aftermath.
The majority of assets on offer are in the producing phase, followed by volumes of undeveloped resources in the pre-FEED stage. The majors contribute nearly 70 percent of the liquid volumes and 50 percent of the gas reserves lined up for divestment globally.
An estimated 104,000 square kilometers of exploration acreage is also up for grabs, with potential exploration license sales being marketed by majors, E&Ps, industrial companies and integrated companies. About 83 percent of the exploration acreage available for farm-in is offshore.
For more information, visit www.rystadenergy.com or call + 44 7514 46 3869.
Joint venture to acquire Anadarko oil, gas opportunities
Stonehorse Energy Ltd. and Brookside Energy Ltd. have formed a new joint venture, the Orion Project. The joint venture will enable the partners to take advantage of opportunities to acquire oil and gas producing properties in Oklahoma's Anadarko Basin.
A 50/50 joint venture between the companies, Brookside Energy subsidiary Black Mesa Energy LLC will be responsible for identifying, acquiring and operating the properties on behalf of the collaboration.
The joint venture will target natural-gas weighted, mature long-life production assets with very low terminal decline and upside that can be unlocked from remedial workover activity behind pipe or deeper productive zones. The Black Mesa Energy team has commenced work on the Orion Project.
For more information, visit http://brookside-energy.com.au or call +61 8 6489 1600.
Pa.'s natural gas tax generates nearly $2 billion in revenues
Pennsylvania's Public Utility Commission (PUC) has reported the state's natural gas industry's existing impact tax has generated nearly $2 billion in new revenues since 2012. For the 2019 reporting year, community and municipal disbursements and revenues received through the tax totaled $200,364,500.
According to the PUC, the 2019 distribution is approximately $42.6 million lower than last year, largely due to the average price of natural gas in 2019 ($2.63 per MMBtu) versus the average price in 2018 ($3.09 per MMBtu), resulting in a lower impact fee payment for each well than in the 2018 reporting year.
"The PUC report shows that, even in current market conditions, natural gas development continues to supply essential revenues and fuel to power recovery efforts as Pennsylvanians transition to a 'new normal,'" said API-PA Executive Director Stephanie Catarino Wissman.
For more information, visit www.api.org or call (202) 682-8000.
