Kinder Morgan's Gulf LNG Project Gets Green Light from FERC

The Federal Energy Regulatory Commission gave Kinder Morgan the approval to build its Gulf LNG export project in Mississippi in a 3-1 vote. The proposed project would add 11.5 million metric tons of new capacity to Kinder Morgan's terminal in Pascagoula, Mississippi, which would include two liquefaction plants.

Some Democrats opposed and concerned about LNG terminals' impacts on climate change, but FERC Chairman Neil Chaterjee praised the vote tweeting, "This is big news for the US & our allies. Today's approval of #GulfLNG is significant for the economy & America's geopolitical interests."

The company initially developed the Gulf LNG site as a liquefied natural gas import terminal in 2009. But with record production from U.S. shale plays creating a surplus of natural gas, the company filed an application with FERC in July 2015 seeking permission to redevelop part of the site as an export terminal.

The project will also modify the existing Gulf LNG Pipeline allow for bidirectional flow. It's the fifth LNG export project the agency has approved so far this year.

Source:
chron

Breakwater Energy Partners Launches Midstream Division

A new midstream division has been launched by Breakwater Energy Partners to build and operate pipelines and other equipment to move freshwater and wastewater to and from oil and gas sites in the West Texas shale play.

The company has already pushed to boost oilfield wastewater recycling in the Permian Basin and the move to launch the midstream division is to unify its water sourcing, transfer and recycling businesses under the Breakwater name

"We are looking forward to providing our customers even more solutions as we continue our commitment to the quality of our work, integrity and continuous improvement," Breakwater CEO Jason Jennaro said in a statement.

The company’s headquarter is in Houston and has more than 400 employees. It recycles more than 16.8 million gallons of oilfield wastewater per day and has more than 350 miles of lay flat hose and 140 transfer pumps.

Source:
chron

Genesis Energy Sells Pipeline Assets as Wyoming Emerges as Newest Big Shale Play

Houston's Genesis Energy is selling its Powder River Basin pipeline assets in Wyoming for $300 million.

With oil companies looking for the next big find, many have turned to the Powder River Basin of Wyoming that offers less congested and cheaper land than in the Permian Basin.  

Genesis is unloading its facilities in what is considered to be the next big emerging shale play in the country. Independent Houston producers such as EOG Resources and Anadarko Petroleum are all expanding in Wyoming.

Genesis is selling its pipeline, rail and oil gathering assets in the Powder River Basin to Dallas-based Silver Creek Midstream, which is looking to grow its Wyoming presence.

Genesis plans to use the cash proceeds to reduce its debt. While Genesis is primarily a pipeline business, it has spent over a billion dollars expanding into the alkali mining business in Wyoming.

Source:
Houston Chronicle

Backlash of Fracking in Oklahoma After Record Quake Could Slow Shale Play Development

Crop of Oklahoma Earthquake, September 3, 2016 ( USGS )

Crop of Oklahoma Earthquake, September 3, 2016 (USGS)

A record-tying earthquake that shook Oklahoma and was felt in six other states on Saturday may bring more backlash against hydraulic fracturing, which could possibly slow down development of some U.S. shale plays.

The 5.6-magnitude tremor was felt from Texas all the way to Illinois, tying with a record in 2011. Last year, 890 earthquakes were recorded as 3.0 or higher, a significant increase from a 2008 recording of only two earthquakes at 3.0 or higher, which occurred before the state’s fracking boom.

With an oil production increase in Oklahoma came an increase in wastewater disposal wells. As drilling companies use fracking methods to break up rock and extract oil, large quantities of wastewater are produced as a result. Drilling companies then inject the water into deep wastewater wells.

Many earthquakes in the state have been triggered by wastewater injection, and the Oklahoma Corporation Commission has been issuing restrictions over the last year to reduce the amount of wastewater injected into wells.

The weekend earthquake led the commission to suspend 37 wells in the state.

President of Strategic Energy and Economic Research in Winchester, Massachusetts Michael Lynch said: “[Oklahoma is] going to push the industry to come up with some permanent solutions. It’s hard to believe Oklahoma would ban fracking, but I can see where they would say to people that they have to do something else with the wastewater, which is believed to be the source of the increase in earthquakes,” according to Bloomberg.

Source:
Bloomberg