US gas volumes, price trajectories in focus as midstream companies ready earnings
While global natural gas demand has rebounded following the initial shocks from the coronavirus pandemic, volatility, including a bull run in Northeast Asian spot gas prices, has created uncertainty.
US gas pipeline operators and LNG exporters are warily eyeing the robust prices while preparing to release financial results for the past year and outlooks for the year ahead.
Many companies in the midstream sector are being cautious with spending on growth projects. At the same time, US gas production has surged 3 Bcf/d since October, defying market expectations of widespread production declines. Robust LNG feedgas deliveries and exports to Mexico, in tandem with stronger power burns, have helped to offset weak res/comm demand from a lack of cold weather winter-to-date, according to S&P Global Platts Analytics data.
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Kinder Morgan s Permian Highway Pipeline is now in-service. Above, construction of the pipeline in July 2020.
Daily Record photo by Lance Winter
Permian Highway Pipeline in service, lawsuit settled Thu, 01/14/2021 - 7:06pm
Dalton Sweat | The Wimberley View
Thursday, January 14, 2021
Kinder Morgan announced that the Permian Highway Pipeline is now in-service. The Trinity Edwards Spring Protection Association, in conjunction with the Wimberley Valley Watershed Association, also announced that they have settled their lawsuit with the company.
Via Getty Images I remain optimistic that the body will openly take up climate change, says state Rep. Erin Zwiener, D-Driftwood, a member of both the agriculture and environmental committees in the last House session (her first). But I think it s more likely that we address issues with infrastructure that help with climate change, such as getting more renewable energy sources to market and expanding electric vehicle infrastructure.
The obvious obstacles to sustainability in Texas remain unchanged: the power of the oil and gas industry (and, to a lesser extent, meat producers), and the weakness of state regulators across multiple agencies to protect the air, water, and soils that keep Texans alive. Zwiener and her Central Texas colleagues have prefiled bills to increase accountability for the energy sector, incentivize conservation, and toughen up the Texas Commission on Environmental Quality.
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A major pipeline to transport natural gas out of the Permian Basin to market went into service at the start of 2021, as the fossil fuel markets continued to show gradual signs of recovery from an historic collapse last spring created by the COVID-19 health crisis.
The Permian Highway Pipeline, owned by Kinder Morgan, went into full service on Jan. 1, delivering natural gas from the Waha Hub on the Texas side of the Permian to Katy, Texas near Houston with connections to the refinery and export markets on the Gulf Coast.
The pipeline was in operation for several weeks ahead of full commercial service while capacity was being commissioned by shippers.
Double E Natural Gas Pipeline Wants OK to Construct 1.35 Bcf/d Permian-to-Gulf Coast Conduit
The owners of the Double E natural gas pipeline have asked federal regulators for permission to begin construction on the 135-mile Permian Basin conduit.
In a Monday filing, Double E Pipeline LLC asked FERC to approve the start of construction by Friday. The Federal Energy Regulatory Commission authorized the pipeline in October.
Project backer Summit Midstream Partners LP sanctioned Double E in June 2019, with an eye on moving 1.35 Bcf/d from the Permian’s Delaware sub-basin to the Waha hub in West Texas and beyond.
The midstreamer moved forward with the project after securing “sufficient” binding commitments for long-term, firm transportation service. Summit Permian Transmission LLC held an open season for Double E in 2018 to test support for service to various receipt points in New Mexico’s Eddy and Lea counties and the West Texas counties of Loving, Ward, Reeves and Pecos. Fro