Growing demand, higher prices put NGLs at forefront of US drillers' strategy
Natural gas liquids revenues soared to new heights for some of the country's top gas producers in the second quarter as prices surged to the highest levels in years, making liquids more vital than ever to companies' growth plans. For 10 large natural gas drillers operating in Appalachian and Permian Basin shale plays, NGL revenues jumped by at least 50% year over year in the second quarter of 2018. For some, NGL revenues more than doubled.
Southwestern to exit Fayetteville Shale business with $1.87B deal
Southwestern Energy Co. is exiting the Fayetteville Shale in Arkansas and Oklahoma, a play it pioneered, with an agreement to sell its exploration and production and associated midstream gathering assets in the area to a private equity-backed company for $1.87 billion in cash. After the sale, Southwestern plans to focus on its Appalachian shale business. The sale is part of the company's repositioning to focus on "higher margin" Appalachian assets, said Southwestern President and CEO Bill Way. Southwestern budgeted up to $600 million for the next two years for developing liquids-rich assets in its Southwest Appalachia position, with part of the proceeds from the sale to be reinvested into these assets.
Developer of $3.4B Appalachian NGL storage hub selects engineering contractor
Appalachia Development Group, which is developing the Appalachia Storage and Trading Hub, selected Parsons Corp. as its engineering, procurement and construction partner for the project, which is estimated to cost $3.4 billion. Parsons will initially focus on front-end engineering and design, or FEED, and pre-FEED work, Appalachia Development Group said in a statement.
Evolution Midstream building 100-MMcf/d processing plant in Powder River Basin
Denver-based Evolution Midstream LLC has started the construction of a new natural gas processing plant in Wyoming, which would serve producers in the Powder River Basin. The Jewell facility would have an initial processing capacity of 40 MMcf/d, increasing to 100 MMcf/d at full capacity in 2019 to accommodate anticipated production growth in the region.