Gas-Processing Turnarounds Drive U.S. Oil & Gas Industry's Fourth-Quarter Maintenance

Researched by Industrial Info Resources (Sugar Land, Texas)--The continued adoption of natural gas-fired power generation and the rising demand for pipeline services in booming shale plays are pressuring the U.S. Oil & Gas Industry to keep its existing facilities in the best possible shape. Industrial Info is tracking a variety of maintenance-related projects across the production, terminal and pipeline industries, including those in energy hotspots such as the Permian Basin and the Gulf Coast, that are set to begin from October through December.

Click on the image at right for a breakdown of maintenance-related projects in the fourth quarter, by industry sector.

The gas-processing sector accounts for the biggest chunk of the business, by both project count and total investment value (TIV). The U.S. Gulf Coast, which has seen a remarkable buildout in gas-processing facilities over the past decade, is home to three such projects: Phillips 66's (NYSE:PSX) (Houston, Texas) NGL fractionation plant in Mont Belvieu, Texas, which processes 143,000 barrels per day (BBL/d) of natural gas liquids (NGL); DCP Midstream LP's (NYSE:DCP) (Denver, Colorado) cryogenic gas-processing plant near Goliad, Texas, which processes 200 million standard cubic feet per day; and Enterprise Products Partners LP's (NYSE:EPD) (Dallas, Texas) Neptune cryogenic gas-processing plant in Centerville, Louisiana, which processes 650 million standard cubic feet per day.

The ongoing heat wave pummeling the southern U.S. has contributed to a recent recovery in natural gas prices, with spot prices at the Permian's Waha hub recently hitting their highest levels in six months. The Permian is home to its own maintenance-related project: DCP's December turnaround at its Pegasus Cryogenic Natural Gas Processing Plant in Midkiff, Texas, which processes 100 million standard cubic feet per day. For more information, see Industrial Info's reports in the Mont Belvieu, Goliad, Centerville and Midkiff projects.

A bigger factor in the gas price recovery is the growth of midstream takeaway capacity in the Permian, which just last year faced a glut of produced gas that diminished the resource's price. That scenario is changing rapidly; Kinder Morgan Incorporated's (NYSE:KMI) (Houston) new Gulf Coast Express Pipeline is set to enter service before the end of the summer.

Several existing pipeline systems in the area are undergoing maintenance next quarter to keep them operating at maximum capacity. These include a trio of "pigging" projects on Kinder Morgan's El Paso Pipeline, in which devices known as "pigs" are sent through a pipeline system for cleaning, coating and inspection: from Fort Stockton to the Waha Hub, running about 36 miles; from Pecos to Carlsbad, also running about 36 miles; and from Salt Flat to El Paso, running about 32 miles. Maintenance includes any repairs deemed necessary from the pigging process. For more information, see Industrial Info's reports on the first, second and third of these projects.

Pigging projects are crucial to the long-term health of pipeline systems across the country, including Enbridge Incorporated's (NYSE:ENB) (Calgary, Alberta) Line 78 in Indiana. Enbridge is planning a brief turnaround to perform pigging on about 179 miles, running from its Griffith Crude Oil Terminal to its Stockbridge Crude Oil Pump Station, as well as any repairs deemed necessary. This is expected to be the highest-valued of the fourth-quarter maintenance projects in the U.S. Oil & Gas Industry. For more information, see Industrial Info's project report.

Other high-profile companies preparing for maintenance turnarounds include Chevron Corporation (NYSE:CVX) (San Ramon, California), which is planning to inspect the emergency shutdown and hazardous substance-removal systems at its 100 million-standard-cubic-foot-per-day cryogenic gas-processing plant in McKittrick, California, and ONEOK Incorporated (NYSE:OKE) (Tulsa, Oklahoma), which is inspecting the compressor drive at its NGL-processing complex in Medford, Oklahoma. For more information, see Industrial Info's reports on the Chevron and ONEOK projects.

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle™, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com/.