CenterPoint to expand gathering, treating in Haynesville
Warren R. True
OGJ Chief Technology Editor—LNG/Gas Processing
HOUSTON, May 3--CenterPoint Energy Field Services Inc., Houston, will add more gathering and treating for Haynesville shale gas production being developed by subsidiaries of Encana and Shell.
The 250-MMcfd expansion on the company’s Magnolia system, announced last week, along with 750 MMcfd announced in September 2009 and currently under construction, will add 1 bcfd covered under long-term agreements executed in September 2009 between CenterPoint Field Services and those subsidiaries.
The agreements are with Encana Oil & Gas (USA) Inc., an indirect, wholly-owned subsidiary of Encana Corp., and SWEPI LP, an indirect wholly-owned subsidiary of Royal Dutch Shell PLC.
CenterPoint Field Services’ announcement cited 200 MMcfd and its 2009 announcement 700 MMcfd. Responding to questions from OGJ, however, CenterPoint Field Services’ Kerri Selsor, vice-president of engineering and construction, revised those target volumes to actual volumes of 250 MMcfd and 750 MMcfd.
Fivefold increase
The company’s total gathering and treating for DeSota and Red River parishes will reach 1.2 bcfd when all expansions are in service by mid-2011.
CenterPoint estimates the cost for the 250 MMcfd expansion will be $50-$70 million and includes 1,000 gpm of amine treating at the company’s Magnolia plant, an additional 5 miles looping, and about 8,000 hp at its Hall Summit compressor station, all on the east side of the Red River.
As part of expansion announced in September 2009, CenterPoint Field Services is installing about 25 miles of pipe east of the Red River and another 30 miles on the west side, also in Red River Parish.
The work is also installing about 3,000 gpm of additional amine treating for the 750 MMcfd incremental volumes: 2,000 gpm at the Magnolia plant east of the river and 1,000 gpm at CenterPoint Field Services Clear Lake plant west of the river. All the work is in Red River parish.
And the project announced last year is installing about 30,000 hp of additional compression, 20,000 hp at the Hall Summit station east of the river, and 10,000 hp at the Clear Lake plant on the west side.
CenterPoint’s latest announcement said construction of the 750 MMcfd is running ahead of schedule with “substantial volumes flowing” and will be in service be yearend.
CenterPoint Field Services is an indirect, wholly-owned gathering and treating unit of CenterPoint Energy Inc., Houston. It gathers and processes about 1.6 bcfd and holds more than 400 MMcfd of processing capacity throughout its gathering system, directly or through its 50% interest joint venture with Martin Midstream Partners LP, Kilgore, Tex., in the Waskom Gas Processing Co.
It owns and operates about 3,800 miles of gathering pipelines and processing plants that collect, treat, and process natural gas from about 150 separate systems in major producing fields in Arkansas, Louisiana, Oklahoma, and Texas.
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OGJ Chief Technology Editor—LNG/Gas Processing
HOUSTON, May 3--CenterPoint Energy Field Services Inc., Houston, will add more gathering and treating for Haynesville shale gas production being developed by subsidiaries of Encana and Shell.
The 250-MMcfd expansion on the company’s Magnolia system, announced last week, along with 750 MMcfd announced in September 2009 and currently under construction, will add 1 bcfd covered under long-term agreements executed in September 2009 between CenterPoint Field Services and those subsidiaries.
The agreements are with Encana Oil & Gas (USA) Inc., an indirect, wholly-owned subsidiary of Encana Corp., and SWEPI LP, an indirect wholly-owned subsidiary of Royal Dutch Shell PLC.
CenterPoint Field Services’ announcement cited 200 MMcfd and its 2009 announcement 700 MMcfd. Responding to questions from OGJ, however, CenterPoint Field Services’ Kerri Selsor, vice-president of engineering and construction, revised those target volumes to actual volumes of 250 MMcfd and 750 MMcfd.
Fivefold increase
The company’s total gathering and treating for DeSota and Red River parishes will reach 1.2 bcfd when all expansions are in service by mid-2011.
CenterPoint estimates the cost for the 250 MMcfd expansion will be $50-$70 million and includes 1,000 gpm of amine treating at the company’s Magnolia plant, an additional 5 miles looping, and about 8,000 hp at its Hall Summit compressor station, all on the east side of the Red River.
As part of expansion announced in September 2009, CenterPoint Field Services is installing about 25 miles of pipe east of the Red River and another 30 miles on the west side, also in Red River Parish.
The work is also installing about 3,000 gpm of additional amine treating for the 750 MMcfd incremental volumes: 2,000 gpm at the Magnolia plant east of the river and 1,000 gpm at CenterPoint Field Services Clear Lake plant west of the river. All the work is in Red River parish.
And the project announced last year is installing about 30,000 hp of additional compression, 20,000 hp at the Hall Summit station east of the river, and 10,000 hp at the Clear Lake plant on the west side.
CenterPoint’s latest announcement said construction of the 750 MMcfd is running ahead of schedule with “substantial volumes flowing” and will be in service be yearend.
CenterPoint Field Services is an indirect, wholly-owned gathering and treating unit of CenterPoint Energy Inc., Houston. It gathers and processes about 1.6 bcfd and holds more than 400 MMcfd of processing capacity throughout its gathering system, directly or through its 50% interest joint venture with Martin Midstream Partners LP, Kilgore, Tex., in the Waskom Gas Processing Co.
It owns and operates about 3,800 miles of gathering pipelines and processing plants that collect, treat, and process natural gas from about 150 separate systems in major producing fields in Arkansas, Louisiana, Oklahoma, and Texas.
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Tags: CenterPoint, Haynesville, expand, gathering, in, to, treating
Views: 543
Replies to This Discussion
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Permalink Reply by Jack Blake on
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Jack did not cypher out that aspect. Can you transport poison gas in 24' lines through communities? A leak could be disasterous.
Jack never worked on sour gas platforms and does not want to. Jack knows lots of folks who have worked them and Jack knows no one who was killed by sour gas. Jack knows one guy who fell our from it though. He lived.
Jack don't want to think about sour gas.......................
Jack Blake has thunk..........................
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Permalink Reply by Les Bamburg on -
Jack, the level of H2S in Haynesville Shale production (+/- 4 ppm) is not sufficient to be classified as "poison" gas. It is only technically classified as "sour" gas in some areas because it can be marginally above the 4 ppm H2S interstate pipeline limit.
By the way 4 ppm is equivalent to 0.0004%. Gas production in some other plays can be significantly higher than this level. For instance, Edwards Trend production in South Texas has 600 ppm H2S and some Norphlet wells in the Mobile Bay area contain 2-3% H2S.
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Permalink Reply by Jack Blake on
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Jack knows folks who have/are working in Norphlet and Mobile Bay on production platforms. Thanks for the explanation on the HS sour gas. Jack don't know Jack about sour gas.
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Permalink Reply by adubu on
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Les B and Jack Blake-- on topic of "Sour Gas" high H2S in some the Haynesville Shale wells Can they "sweeten" the gas at well head processing or does it have to be transported to a processing plant elsewhere and if so I guess would require it's separate pipeline. How much does H2S gas cost to process therefore decreasing net value per mmbtu
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Permalink Reply by Les Bamburg on
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Adubu, in theory you could treat at the unit production facility but it is much more efficient to utilize centralized treating facilities (not processing plants) installed at aggregation points of the gathering system. Separate pipelines are not required and blending can sometimes actually lower the level of treating required. I will guestimate a cost of 10 - 20 cents per MMBtu for treating. Some treating may be required anyway just to lower the CO2 content.
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Permalink Reply by stephen c. robinson on
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encana is drilling on my property and centerpoint has contacted me for a gathering line. i am ignorant of how to proceed and what to expect, i have been reading this site and there is way more info than i can digest, what should i expect to get for the row and how should i proceed with this? do i need a lawyer? a lease ? what negotiation is the centerpoint man talking about? how much should i expect to be paid for the line and then do i lease the row to him ? does he pay me for the gas coming off the well, and if so does that effect the ogml i have with encana?
help!!
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Permalink Reply by Les Bamburg on
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Stephen, you may want to post this question on the main board to get more input.
The Centerpoint Field Services gathering line would require a ROW agreement with CFS and is separate from your current mineral lease with EnCana. CFS will not be the party buying your natural gas and EnCana will still be the party responsible for making the royalty payments to you.
I do not have any experience with ROW agreements so maybe someone else can give you some advice. There have been some previous discussions regarding that topic on this board that you may be able to locate.
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Permalink Reply by Jack Blake on
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My name is Jack Blake. I sent you a friend request, so I can send private message. I have negotiated two pipeline ROW's for my own property in the last 4 months and was paid well for both deals. The second deal was with CenterPoint. Jack Blake could be your best source of info. Jack paid Lawyer big money to review the first deal, got a good deal and I learned alot. I learned alot more on my second deal and got an even better deal and did not consult an Attorney. Jack knows alot about CenterPoint and what they are currently paying for gathering line ROW's.I can advise u well on this.
Long live the HS and long live ROW deals that are favorable to the landowner cried Jack Blake!
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Permalink Reply by Les Bamburg on
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Jack Blake does know Jack about pipelines!
Long Live Jack Blake!!!
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Permalink Reply by Jack Blake on
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Les B taught Jack some things and Jack is currently really into learning about marketing gas and what is current HS market price and what is HS price at the wellhead. This will help Jack figure out what he should get if Matthew Murray #21 hits. Jack Blake has been told by many experts that the gas is there. Jack just hopes Shell (and I believe Nabors) do a good job and make a well.
Jack
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