Chesapeake's Midstream Sale Not Affecting Columbiana/Harrison Processing Plant Plans

By -
From Business Journal Daily:

Chesapeake Energy Corp.’s $4 billion deal to sell its pipeline interests isn’t likely to derail plans to build a natural gas processing network in the Utica shale of eastern Ohio, executives say. 
“There doesn’t appear to be any change in their plans,” says George Passela, executive vice president and CFO of M3 Midstream/Momentum, Houston, Texas. Passela is referring to Chesapeake’s agreement, announced June 8 hours before its turbulent annual shareholders meeting, to sell its subsidiaries, Chesapeake Midstream Partners LP and Chesapeake Midstream Development LP, to Global Infrastructure Partners for $4 billion. 
“We are moving rapidly to the point where we will begin construction. I think we anticipate that will kick off in August,” Passela says. 
Chesapeake, Momentum and EV Energy Partners announced in March the formation of a joint venture to construct two processing plants in Columbiana and Harrison counties at a cost of $900 million. The Columbiana project, planned for a site in Kensington just across the Carroll County border, would be a processing plant that separates dry gas from natural gas liquids. The liquid gas would then be piped to the proposed Harrison County fractionation complex, which would separate the wet gas into specific products such as ethane, propane and butane. 
“We’ve acquired several parcels of land, and we are obtaining the necessary permits to begin construction,” Passela reports. 
Passela confirms that the Utica shale processing system is among the assets included in the sale of Chesapeake Midstream Development LP to Global. Under the terms of the proposed sale, there is a 45-day exclusive negotiating period and a 45-day extension period if the parties agree on a purchase price they’ve made progress toward closing the deal.

Read the rest of this article here.

Visit our Forum!

Connect with us on Facebook and Twitter!

Popular posts from this blog

Fracktivist in Dimock Releases Carefully Edited Video, Refuses to Release the Rest

By -
Image
From Energy in Depth: There is something very strange going on along Carter Road, in Dimock, Pennsylvania, and I’m not speaking of natural gas, methane migration, contamination, litigation or even the extensive water testing there by the EPA and others.  No, I’m talking about a new “Watergate” conspiracy, complete with 18 minutes of missing tape (well, video, actually). It seems the ever-present Green Party member and  naturist   Vera Scroggins  (a/k/a  Vera Duerga ) has posted a video of Craig Sautner meeting with the EPA.  Mysteriously, the video is but 14 seconds in length, cutting off conversation in what is obviously mid-stream.  It raises a question Craig Sautner, like  Ronald Reagan in Kings Row , might have asked, “Where’s the rest of me?’  Carter Road, isn’t Kings Row, of course, (at least not until you arrive at  the mansion Scott Ely, one of the Dimock litigants, is building with his royalty money ), but there appears to be a whole lot of film editing going on there to fi
Read more

The Second Largest Oil and Gas Merger - Cabot and Cimarex

By -
Image
       Due to investor pressure, the U.S shale drillers are being pushed to improve financial and operational performance after a few years of poor returns. Even though the industry has improved its numbers, when compared to last year, investors still want more to be done for them to earn more money.      That's why two mid-tier shale drillers, Cabot and Climarex, have decided to merge in order to eliminate $100 million in annual costs, which means more money for the investors. This all-stock transaction is valued at about $7.4 billion, which is relatively high for the oil and gas sector.      The new entity will be renamed and the headquarters located in Houston, Texas. Cabot shareholders will own 49.5 percent of the new entity, and Climarex the rest.       The Cimarex-Cabot merger will address the investor's demand for a higher amount of returning cash. The initial plan is to pay a 50-cent-per-share special dividend on closing the deal while offering a quarterly variable div
Read more

Is a Strong Oil Demand Expected This Year?

By -
Image
  According to the world's largest oil traders, global oil demand is set for a rebound. Between now and the end of 2022, global consumption is expected to increase by up to 8 million barrels each day. Vitol Group, the world's largest oil trader, supports this statement.  In an interview with Bloomberg, Vitol's chief executive Russell Hardy said, "We'll need all eight cylinders to get through 2022". This, of course, is due to the lower than average demand for oil at the moment. Reopening economies and Asian markets will create a strong demand rebound by the end of this year and in 2022.  Although the demand for jet fuel will slowly increase, it will still be below average at the end of the year. Nevertheless, a surge in petrochemicals will offset the expected delay in jet fuel demand. Last year, the oil surplus reached a record of 1 billion barrels. This excess is already more than halfway drained, and experts believe it will be depleted by the third quarter th
Read more