Hart Energy’s Post

Kinetik Signs Pacts, Sells Pipeline Stake to Grow its Permian Presence   https://ift.tt/V6NFlu9 Kinetik Holdings Inc. entered agreements for around $1 billion to expand its New Mexico operations and footprint in Permian’s Delaware sub-basin. The Permian Basin pure-play agreed to acquire Durango Midstream LLC for $315 million, with up to $75 million contingent on the final cost of Durango’s Kings Landing project in Eddy County, NM. The 200 MMcf/d greenfield gas processing complex is currently under construction and has a scheduled completion date of April 2025.  [Inside the Political Firestorm: NGI sits down with Neil Chatterjee, a former FERC chairman and commissioner, to discuss the impacts of President Biden’s LNG pause on authorizing new liquefied natural gas export projects in the U.S. Tune into NGI’s Hub & Flow podcast now.] Separately, Kinetik executed a new 15-year low-pressure and high-pressure gas gathering and processing (G&P) agreement with one of its largest customers. Kinetik said the unnamed customer has a substantial presence throughout Eddy County. The Midland, TX-based operator was created last year in an all-stock transaction between EagleClaw Midstream and Altus Midstream. The combination created the third largest gas processor in the Permian and the largest in the Delaware, with 2 Bcf/d processing capacity, more than 470,000 hp of compression capacity and 90,000 bbl of crude storage. When the deal is finalized, Kinetik would own and operate more than 2.4 Bcf/d of processing capacity in the Delaware and about 4,600 miles of pipelines across eight counties. The Durango assets are in Eddy, Lea and Chaves counties in New Mexico. Additionally, the Durango acquisition and G&P agreement offer full control of plant products, including over 350 MMcf/d of residue gas and over 60,000 b/d of natural gas liquids.  These would provide “significant additional upside value via system optimization, modifications to existing commercial contracts, and integration with our pipeline transportation segment,” CEO Jamie Welch said. This series of strategic transactions “further our expansion into New Mexico and significantly increase our footprint across the Northern Delaware Basin,” Welch said. Kinetik also plans to sell its 16% stake in the Gulf Coast Express pipeline (GCX) for $540 million to fund a portion of the acquisition.  The post Kinetik Signs Pacts, Sells Pipeline Stake to Grow its Permian Presence   appeared first on Natural Gas Intelligence EXEDRA via Daily GPI – Natural Gas Intelligence https://ift.tt/lGvt20S May 13, 2024 at 02:36PM

Canadian pipeline operator Enbridge announced the formation of a joint venture with I Squared Capital, WhiteWater, and MPLX GP LLC to enhance natural gas supplies from the Permian Basin to the U.S. Gulf Coast, aiming to meet the booming LNG export demand. Enbridge holds a 19% stake in the venture, WhiteWater and I Squared together have a majority 50.6% stake, and MPLX possesses 30.4%. This strategic collaboration, set to finalize in the second quarter, underscores the United States' position as a leading LNG exporter, with expectations for several export facilities to become operational by the decade's end. The venture encompasses complete interests in Enbridge's Rio Bravo Pipeline, connecting to the Rio Grande LNG project in Texas and the Whistler pipeline and facilitating natural gas transportation from the Permian. Additionally, it includes significant stakes in the proposed ADCC pipeline, aimed at the Corpus Christi LNG export facility, and a 50% interest in the Waha Gas storage. Enbridge commits to funding the first $150 million for completing the Rio Bravo project and providing $350 million in cash to the venture, signifying a significant expansion of its capacity in the Permian Basin. https://lnkd.in/gAFhzayv

Love is in the air, even in the oilfields! ❤️ Learn how the Diamondback-Endeavor deal is igniting new sparks in the Permian Basin. "The tie-up between Diamondback Energy and Endeavor Energy—two of the Permian’s top oil producers—is expected to create a new 'super-independent' E&P with a market value north of $50 billion" Learn how this landmark deal is poised to drive operational efficiencies and enhance shareholder value in the article below. #OilandGas #PermianBasin #IndustryInsights"

Thanks to Travis Stice for joining us today. When asked about Diamondback Energy's future plans on the tails of a successful merger with Endeavor Energy Resources, LP, Mr. Stice made the company's intentions clear: "The tank we call the Permian Basin is the best basin in the world. As a capital allocator, why would we divert away from that now? Never say never but for now we’re 100% focused on our Permian operations." #permian #permianbasin #oil # gas #upstream #CEO #leadership

Big news in New Mexico. Investments continue to be made in the Land of Enchantment, home to some of the most economically-favorable peteoliferious strata in the world. “Additionally, as producers explore different benches, such as the Avalon and Bone Spring, and further expand the boundaries of the Delaware Basin, treating and blending is becoming critical to managing the elevated levels of H2S and CO2 that we are seeing in the gas stream.” #energy #newmexico #delaware #basin #gas #oil #environment https://lnkd.in/gVTEBvtt

The U.S. oil and gas industry undergoes a seismic shift, echoing the consolidation wave of the late '90s and early 2000s, with the Permian emerging as a juggernaut, dominating with $103B in transactions. #MergersAndAcquisitions #Energy #Evolution

𝙈𝙖𝙩𝙩𝙚𝙧𝙝𝙤𝙧𝙣 𝙀𝙭𝙥𝙧𝙚𝙨𝙨 𝙋𝙞𝙥𝙚𝙡𝙞𝙣𝙚 𝘽𝙤𝙤𝙨𝙩𝙨 𝙋𝙚𝙧𝙢𝙞𝙖𝙣 𝘽𝙖𝙨𝙞𝙣 𝙂𝙖𝙨 𝙎𝙪𝙥𝙥𝙡𝙮 The newly operational Matterhorn Express Pipeline is channeling natural gas into Williams Cos.’s Transco pipeline, enhancing the midstream infrastructure in the Permian Basin. This pipeline currently transports about 0.3 billion cubic feet of gas per day and has a total capacity of 2.5 billion cubic feet per day. Stretching approximately 580 miles from the Waha hub in West Texas to the Houston area, Matterhorn connects to Transco and other pipelines, supporting domestic consumption and liquefied natural gas export facilities on the Gulf Coast. The initiation of the Matterhorn Pipeline is a critical development for the Permian Basin, America's most prolific oil and natural gas region. Gas output has frequently exceeded local pipeline capacity, sometimes driving local prices negative. With this additional pipeline capacity, the price spread between the Waha Hub and the Henry Hub has tightened, easing supply pressures. #EnergySector #NaturalGas #PermianBasin #Infrastructure #MatterhornPipeline #OilAndGasIndustry https://lnkd.in/gYGYv3s2

The Permian needs more gas gathering and processing capacity pronto, and one of the last privately held midstream companies there is stepping up in a big way with the buildout of an entirely new — and very expandable — network in the Midland Basin. In today’s RBN blog, we discuss the impending startup of a new Brazos Midstream processing plant in Martin County, TX, the company’s plans for another Midland-area plant and its already expansive midstream holdings in the Delaware Basin. https://lnkd.in/gS7S4tq3

From RBN Energy, LLC, Taylor Noland: "A big part of EPIC Crude’s success can be attributed to its destination — Corpus Christi — which has become a preferred export location, in part because of the ability of both the Enbridge Ingleside Energy Center (EIEC) and Gibson’s South Texas Gateway (STG) to receive and partially load Very Large Crude Carriers (VLCCs). In fact, all four Corpus-bound pipelines combined (Cactus I, Cactus II and Gray Oak — plus EPIC) have been above 90% utilization most months since late 2022." https://lnkd.in/gFXiGeYu

Great move in my eyes. Strategically, it seems it allows Enbridge to expand its footprint in the ever growing and demanding LNG export market but also allows us to leverage our expertise in pipeline operations to facilitate the transportation of natural gas to said export facilities. But! The move also mitigates risk typically associated with large scale infrastructure projects by collaborating with reputable partners. Strengthening its position in the energy market and enhancing long-term sustainability. 👏🏽👏🏽👏🏽 #enbridge #sustainability #LNG