04/24 Weekly oil & gas update

Blackstone will acquire Permian midstream company for USD2 billion

In a USD2-billion deal, Blackstone Group has agreed to buy EagleClaw Midstream Ventures, a pipeline company with assets in the Permian's Delaware basin. The transaction includes more than 375 miles of natural gas gathering pipelines and 320 MMcf/d of processing capacity

ExxonMobil and SABIC pick Corpus Christi for USD10-billion ethane cracker

ExxonMobil and Saudi Arabia Basic Industries Corporation announced that they have selected a site near Corpus Christi in San Patricio County, Texas, for their world-scale ethane cracker. The ethane steam cracker will cost as much as USD10 billion and is capable of producing 1.8 million tonnes of ethylene per year

US rig count continues to rise

US rig count increased by 10 during the past week, marking the 14th week in a row that rigs have been brought back to active status. The current active rig count of 857 represents an increase of 426 rigs since April 2016

Dakota Access pipeline will begin delivering crude in May

The Dakota Access pipeline will begin delivering crude May 14, according to the US Federal Energy Regulatory Commission. The pipeline runs from the Bakken to Patoka, Illinois, to the Gulf Coast. Some East Coast refineries have already announced that they will take less Bakken crude by rail once the pipeline starts up

Iran starts new South Pars gas production phases

Iran officially inaugurated five additional gas production phases (17–21) in the super-giant, offshore South Pars gas field shared with neighboring Qatar. Phases 17–21 are part of a USD20-billion investment program to increase Iran’s South Pars gas production to 210 bcm/y—an increase of roughly 35%

Netherlands puts new cap on Groningen field gas production

To further reduce the risk of earthquakes, output from the largest European gas field will be cut by 10% to 21.6 bcm/y. The 12-month production cap will start in October and will temporarily replace the previous cap, which limited production to 24 bcm/y until 2021

Germany strikes first ever offshore wind deals without any government subsidies

Germany approved bids by Dong Energy and EnBW to build what will be the first offshore wind farms without government subsidies. The power producers count on rising electricity prices and lower future costs achieved through larger turbines placed in areas with higher average wind speeds

Accel-KKR acquires Utiligroup for an estimated USD128 million

US private equity firm Accel-KKR has acquired British software company Utiligroup for an estimated USD128 million. Utiligroup creates software that helps new utility companies enter competitive markets with established players, and it has also developed solutions enabling the integration of smart meters

US energy storage capacity deployment doubled in 2016

Led by a surge of 230 MWh in Q4 2016, US energy storage capacity deployment doubled when compared to 2015 and now totals 336 MWh. The utility-scale segment made up the bulk of the deployed capacity, while the remaining part mainly came from California’s commercial storage systems

Average weekly oil & gas prices

Brent (USD/bbl): 53.63  (-2.36)
WTI (USD/bbl): 51.08  (-2.11)
Henry Hub (USD/mmbtu): 3.15 ▼ (-0.05)
TTF (USD/mmbtu): 5.09 ▲ (0.24)


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