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: 559
Replies to This Discussion
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Permalink Reply by Crunchy on
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This is one of the reasons Swepi is sitting on their wells. Now maybe that they got some one else to do the work it might actually get done.
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Permalink Reply by R B on
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Hello-Is there any sort of map of the proposed expansion available to go with this report?
thanks,
R B
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Permalink Reply by RAZORBACK on
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No map mentioned in the article. You might try CenterPoint Energy Wep site.
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Permalink Reply by Les Bamburg on -
RB, unfortunately unregulated pipeline systems such as Centerpoint Field Services tend not to publicize maps of their gathering sytems. Whereas you always find maps of the interstate gas pipelines.
I should mention the Texas RRC shows all gathering systems on their interactive mapping system.
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Permalink Reply by Jack Blake on
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Jack Blake just typed a big note on this and lost communications and my note. I'll write again........only not as much detail.
Aside from the article above Jack Blake knows more about what Centerpoint is doing and will divulge some of what is important to Jack..............................
CenterPoint is going to build an amine treating system in Natchitoches parish-fact
CenterPoint is handling alot of gas gathering for Encans ans SWEPI (as article above states)
Jack may get to see some maps and aquire more info. soon. Jack is interested in CenterPoint P/L systems, amine systems, compression (how much horsepower and exactly where it'll be) in north eastern Sabine Parish and the western part of central Natchitoches Parish.
CenterPoint will make it happen and help many folks begin getting royalty checks cried Jack Blake!!!!!!!!!!!!!!!!!!!!! Up with CenterPoint is Jack Blakes cheer of the day!!!!!!!!!!!!!!!!!!!!!!!!!!!!J
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Permalink Reply by The_Baron on
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double edged sword. Centerpoint typically uses its marketing power to reduce the $$$ you get for your gas.
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Permalink Reply by Jack Blake on
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Hmmmmmmmmmmmmm............................Jack Blake will have to chew on that one..........
Jack did not have to chew long......................Nope jack will have to chew some more..........
Jack's lease states Jack gets 25%
It also states in the ROYALTY CLAUSE,
"Royalties are based on the higher of market value or gross proceeds recieved by lessee at the point of sale. Lessors royalty shall be calculated free and clear of all costs, expenses and deductions for exploration, drilling, developement and production, including, but not limited to the costs of transportation, dehydration, storage, production-related compression, separation by mechanical means, and stabilization of hydrocarbons at the well, but said royalty shall bear its proportionate share of ad valorem, production, and severance taxe".
Jack always thought "market value is the price on the home page of GHS likr the market price of oil.
Will CHK (my lease holder even though SWEPI is drilling the well) say market value is whatever CenterPoint will pay or will I get paid royalties based on the gas price on the front page of GHS?
All of this hard sypherin will help keep Jack Blake's mind working and is this good for jack.
GO HAYNESVILLE SHALE HOWLED JACK BLAKE!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
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Permalink Reply by The_Baron on
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you get paid based on the price paid at the wellhead (The point of Sale), you do have a cost free royalty though.
A wel in on section could receive a different $$$ from a well just a few sections away.
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Permalink Reply by Jack Blake on
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Baron,
The price at the well head is "market value"?
Are you 100% sure of this or should I call the $175.00/hr lawyer that talks shit, before getting me the answer and charges me $2.91 cents a minute?
Also, What kind of price do you think CenterPoint may negotiate to pay at the wellhead in a market like now where the gas price you see in the paper or internet is running about $4.00 per 1000 cfp/d.
Thanks,
Jack
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Permalink Reply by The_Baron on
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typically, an operator will sell the gas into a sales line. This will be to a third party. This will be the price you get. The price you get is not the posted price, but somewhere below that. The price will be set each month fo the entire months production.
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Permalink Reply by Henry on
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Baron,
Would you mind giving a mini-tutorial on what happens to the gas once it leaves the well? Where do the gathering lines take it? Where is it treated? Why might it be transported somewhere besides the nearest pipeline? And what costs might the owner of the gas have to cover, depending on the terms of his lease?
Also, you say the wellhead is the point of sale. Is that point of sale before treatment/transportation? Or is it after? I'm confused! -
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