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Researched by Industrial Info Resources (Sugar Land, Texas)--Heavy production of natural gas in U.S. shale plays, particularly the Permian Basin, is expected to continue in the near term, and a swath of construction projects slated to start from October through December will offer more processing capacity for the fossil fuel. Industrial Info is tracking more than $15.4 billion worth of gas-processing projects that are set to begin construction in the U.S. and Canada during the fourth quarter, the largest number of which are geared toward Y-Grade natural gas liquids (NGL) production.
Click on the image at right for a heat map of gas-processing projects slated to kick off from October through December, from Industrial Info's Geolocator tool.
"Y-Grade" refers to NGL recovered after processing, prior to fractionation. It generally includes propane and heavier NGLs. Two such projects are nearing construction in the Permian Basin: Energy Transfer LP (NYSE:ET) (Dallas, Texas), through subsidiary ETC Texas Pipeline Limited, expects to begin construction on the $250 million Bear Natural Gas Processing Plant in Orla, Texas, which will process 220 million standard cubic feet per day, while Enterprise Products Partners LP (NYSE:EPD) (Houston, Texas), through subsidiary Navitas Midstream Midland Basin LLC, will begin work in the $225 million Bear Plant No. 6 in Greenwood, Texas, which will process 350 million standard cubic feet per day.
"In the second quarter, our Permian Basin plant inlet processing volumes were approximately 2.2 billion cubic feet per day, which is a new record," said Tom Long, the chief financial officer of Energy Transfer, in a recent earnings-related conference call. "Due to significant producer demand and continued growth around the Permian Basin gathering and processing assets, we are adding additional capacity to meet increasing production from the basin."
Jim Teague, the co-chief executive officer of Enterprise Products, echoed the enthusiasm for the Permian in another earnings-related call: "Our Permian processing plants are running at capacity. We have two processing plants under construction, one in the Delaware [area], one in the Midland [area], and we've approved two more, one in each of those basins. When this build-out is complete, we'll have 15 processing plants in the Permian, producing 530,000 barrels a day of liquids, which will take us to 36 processing plants as a company, producing over 900,000 barrels a day."
Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Project Database can read detailed reports on the projects from Energy Transfer and Enterprise.
Although Texas gets most of the attention, southeastern New Mexico holds a substantial number of assets from the Permian Basin as well. Lucid Energy Group LLC (Dallas, Texas), which is being acquired by Targa Resources Corporation (NYSE:TRGP) (Houston), is expanding its Roadrunner Processing Plant in Loving, New Mexico, which roughly will double the facility's total inlet capacity to between 400 million and 460 million standard cubic feet per day. Lucid's 1.4 billion cubic feet per day of gas-processing capacity (in service or under construction) will complement Targa's 4.7 billion cubic feet per day capacity across the entire Permian.
Subscribers can learn more from Industrial Info's detailed project report, and read more about Targa's acquisition in the June 20, 2022, article - Targa Resources Grows Delaware Basin Holdings with $3.5 Billion Purchase.
The Niobrara-Denver-Julesburg Basin, which straddles Wyoming, Nebraska and Colorado, also is seeing some activity. Roaring Fork Midstream LLC (Denver, Colorado) is planning a second train at its gas-processing plant in Cheyenne, Wyoming, which would double the facility's capacity to 60 million standard cubic feet per day. Subscribers can read more in a detailed project report.
Canada's roughly US$2.4 billion worth of fourth-quarter gas-processing kickoffs include ConocoPhillips' (NYSE:COP) (Houston) addition of a second train at a sour gas plant in Wonowon, British Columbia, in the western half of the Montney Shale. The refrigeration train will have an NGL production capacity of 6,800 barrels per day (BBL/d). The plant is located in the liquids-rich Inga-Fireweed area, 140,000 net acres of which were acquired by Conoco from Kelt Exploration Limited in mid-2020--when WTI oil prices were at significantly lower levels amid the early phases of the COVID-19 pandemic. Subscribers can learn more from Industrial Info's project report.
Subscribers to Industrial Info's GMI Project Database can click here for a full list of detailed reports for projects mentioned in this article, and click here for a full list of related plant profiles.
Subscribers can click here for a full list of gas-processing projects that are set to begin construction in the U.S. and Canada during the fourth quarter.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).
Click on the image at right for a heat map of gas-processing projects slated to kick off from October through December, from Industrial Info's Geolocator tool."Y-Grade" refers to NGL recovered after processing, prior to fractionation. It generally includes propane and heavier NGLs. Two such projects are nearing construction in the Permian Basin: Energy Transfer LP (NYSE:ET) (Dallas, Texas), through subsidiary ETC Texas Pipeline Limited, expects to begin construction on the $250 million Bear Natural Gas Processing Plant in Orla, Texas, which will process 220 million standard cubic feet per day, while Enterprise Products Partners LP (NYSE:EPD) (Houston, Texas), through subsidiary Navitas Midstream Midland Basin LLC, will begin work in the $225 million Bear Plant No. 6 in Greenwood, Texas, which will process 350 million standard cubic feet per day.
"In the second quarter, our Permian Basin plant inlet processing volumes were approximately 2.2 billion cubic feet per day, which is a new record," said Tom Long, the chief financial officer of Energy Transfer, in a recent earnings-related conference call. "Due to significant producer demand and continued growth around the Permian Basin gathering and processing assets, we are adding additional capacity to meet increasing production from the basin."
Jim Teague, the co-chief executive officer of Enterprise Products, echoed the enthusiasm for the Permian in another earnings-related call: "Our Permian processing plants are running at capacity. We have two processing plants under construction, one in the Delaware [area], one in the Midland [area], and we've approved two more, one in each of those basins. When this build-out is complete, we'll have 15 processing plants in the Permian, producing 530,000 barrels a day of liquids, which will take us to 36 processing plants as a company, producing over 900,000 barrels a day."
Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Project Database can read detailed reports on the projects from Energy Transfer and Enterprise.
Although Texas gets most of the attention, southeastern New Mexico holds a substantial number of assets from the Permian Basin as well. Lucid Energy Group LLC (Dallas, Texas), which is being acquired by Targa Resources Corporation (NYSE:TRGP) (Houston), is expanding its Roadrunner Processing Plant in Loving, New Mexico, which roughly will double the facility's total inlet capacity to between 400 million and 460 million standard cubic feet per day. Lucid's 1.4 billion cubic feet per day of gas-processing capacity (in service or under construction) will complement Targa's 4.7 billion cubic feet per day capacity across the entire Permian.
Subscribers can learn more from Industrial Info's detailed project report, and read more about Targa's acquisition in the June 20, 2022, article - Targa Resources Grows Delaware Basin Holdings with $3.5 Billion Purchase.
The Niobrara-Denver-Julesburg Basin, which straddles Wyoming, Nebraska and Colorado, also is seeing some activity. Roaring Fork Midstream LLC (Denver, Colorado) is planning a second train at its gas-processing plant in Cheyenne, Wyoming, which would double the facility's capacity to 60 million standard cubic feet per day. Subscribers can read more in a detailed project report.
Canada's roughly US$2.4 billion worth of fourth-quarter gas-processing kickoffs include ConocoPhillips' (NYSE:COP) (Houston) addition of a second train at a sour gas plant in Wonowon, British Columbia, in the western half of the Montney Shale. The refrigeration train will have an NGL production capacity of 6,800 barrels per day (BBL/d). The plant is located in the liquids-rich Inga-Fireweed area, 140,000 net acres of which were acquired by Conoco from Kelt Exploration Limited in mid-2020--when WTI oil prices were at significantly lower levels amid the early phases of the COVID-19 pandemic. Subscribers can learn more from Industrial Info's project report.
Subscribers to Industrial Info's GMI Project Database can click here for a full list of detailed reports for projects mentioned in this article, and click here for a full list of related plant profiles.
Subscribers can click here for a full list of gas-processing projects that are set to begin construction in the U.S. and Canada during the fourth quarter.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).
