Articles tagged Takeaway

DeLa Express LLC took the next steps toward gaining FERC approval to construct the 2 Bcf/d interstate pipeline project to move natural gas out of the Permian Basin.

DT Midstream Inc. (DTM) has inked a deal to acquire an additional 26.25% stake in the Millennium Pipeline Co. LLC., a natural gas system, for about $552 million. 

Kinder Morgan Inc. (KMI) ramped full operation of the 2 Bcf/d Gulf Coast Express (GCX) natural gas pipeline on Wednesday, unleashing long-stranded supply from the Permian Basin.

In long-term agreements with Chevron Corp., Enterprise Products Partners on Tuesday agreed to provide more Permian Basin oil takeaway, and it pulled the trigger on a Texas offshore oil terminal.

EOG Resources Inc. CEO Bill Thomas said he believes takeaway issues in the Permian Basin will cause growth to slow temporarily, and the slower pace of development should help ensure that commodity prices don't collapse.

U.S. natural gas producers are guiding toward 4.2 Bcf/d in output gains this year versus 2017, based on a survey of 50 of the largest onshore operators, but the biggest question is whether there will be enough takeaway capacity in the country’s two largest producing regions.

Pioneer Natural Resources Co. is working to assuage investor concerns about Permian Basin pipeline constraints, noting that oil contracts to the Gulf Coast have insulated the company from price differentials, while three-quarters of its natural gas production is under firm contract to sell in Southern California.

With a bevy of larger Appalachian infrastructure projects slated to come online over the next three years to help move out nearly 20 Bcf/d, the midstream sector’s next challenge could be connecting them to more production fields in-basin, executives said last week at an industry conference in Pittsburgh.

The current slate of Marcellus and Utica shale takeaway expansions exceeds expected supply growth, a dynamic that points to shrinking Appalachian basis differentials and major upside for regional production over the next few years, according to analysts with Raymond James & Associates Inc.