Energy Transfer 'under the gun' to add Gulf Coast NGL processing, company says
Energy Transfer LP is under pressure from customers to expand its Gulf Coast NGL processing capacity regardless of whether that exacerbates a potential overbuild, according to company President Mackie McCrea. "We're under the gun to build [fractionators]," McCrea said during an Aug. 8 earnings conference call. "Once we have [the eighth Mt. Belvieu fractionator built] all of our fractionators will be at about a 90% demand charge for all of that capacity."
Keyera sees diverse NGL dealmaking options but says it will remain prudent
There is no shortage of opportunities for Keyera Corp. to develop its midstream businesses, but while the company sees itself as well-positioned to take advantage of potential investments, it will continue to apply strict criteria to acquisitions and project expansions, company executives said Aug. 7. "We are seeing more assets come available or at least people exploring monetizations of different assets. I think from our point of view, we just want to continue to be very prudent about how we deploy capital: How do we view returns on a risk-adjusted basis and making sure we get strong returns?" Keyera CFO Steven Kroeker said during a conference call.
Targa Resources starts up Permian-to-Mont Belvieu NGL pipeline
Targa Resources Corp. placed into service an NGL pipeline that will eventually provide 300,000 barrels per day in liquids transportation capacity, one of the company's projects aimed at addressing takeaway constraints in the Permian Basin. The Grand Prix pipeline project, which Targa is developing with Blackstone Group Inc. and Stonepeak Infrastructure Partners LP, has started flowing 150,000 bbl/d to 170,000 bbl/d to Mont Belvieu, Texas. CEO and Director Joe Bob Perkins called the pipeline "the largest and clearly most strategic single project in Targa's history" during the company's second-quarter earnings conference call Aug. 8.
Shale driller Southwestern to scale back drilling in H2'19
Southwestern Energy Co. plans to scale back on its drilling in the second half of the year, lowering its average rig count of six rigs in the first half of the year to two rigs by the end of the third quarter, company officials said Aug. 7. The planned reduction in drilling activity comes in response to continued low commodity prices seen in the Appalachian region for natural gas and natural gas liquids, company officials said during a conference call to discuss second-quarter results.
Oaktree-backed midstream firm inks gas gathering, processing deal in Louisiana
Private equity-backed Black Bear Midstream struck a seven-year natural gas gathering and processing deal with an unnamed Cotton Valley producer in DeSoto and Caddo parishes in Louisiana. Supporting the agreement is the construction of about 20 miles of 16-inch, rich gas gathering pipeline west of Black Bear's cryogenic processing facility in DeSoto Parish, according to an Aug. 6 news release.