Posted on 10/07/2014 5:31:22 AM PDT by thackney
Drilling companies in the booming Permian Basin may soon have an option to power their heavy-duty equipment with the same stuff they’re pumping from the ground.
Stabilis Energy, a Beaumont-based company that has been marketing liquefied natural gas to oil field companies, plans to partner with Flint Hills Resources to build a LNG plant in Odessa tailored toward providing fuel for high horsepower engines in drilling rigs and pressure pumpers.
The companies did not disclose the cost of the project, which is expected to have a capacity of about 100,000 gallons of LNG per day. Pending final approval by the companies, construction could begin early next year with production starting in 2016.
“It’s an excellent location from which to serve customers in the Permian Basin and the property allows for future growth,” Darren Tiemstra, general manager of LNG for Flint Hills Resources said in a statement.
Stabilis has been pushing LNG as a clean fuel source for heavy duty oil field equipment, arguing that it reduces costs and improves environmental performance.
The shale boom unlocked a glut of cheap natural gas, making it an attractive replacement for diesel, but companies that want to power their equipment with natural gas have to pay to have it trucked in from plants sometimes hundreds of miles away.
Installing LNG plants in active shale plays reduces the need to transport the supercooled gas to the oil patch and saves drillers money, Jim Reddinger, chief financial officer and chief operating officer of Stabilis Energy said in an interview with Fuel Fix.
“To have efficient operations, these facilities need to be where the drillers are,” Reddinger said.
The Odessa plant would be the latest by the privately held company, which has been supplying LNG to oil field companies working in the Eagle Ford, Permian, DJ Basin, Utica and Marcellus shale plays.
A similar plant is under construction in the Eagle Ford Shale. Stabilis Energy last week installed storage tanks and a cold box at the George West plant and is expected to begin operations in January, the company announced Monday.
The facility will have the ability to liquefy about 100,000 gallons per day. The George West plant is the first of five natural gas liquefiers proposed for construction by the joint venture between Stabilis and Flint Hills.
....and as a result we have an explosion of caribou!..............
Ya know, that myth doesn’t hold any more truth than ones the caribou were going to all die.
That pipeline is well insulated. The snow doesn’t easily melt off of it. It doesn’t feel warm to the touch. It certainly doesn’t radiate enough heat to warm the area around it. If it did do that, the waxes in the oil would plug up long before it got to the second pump station.
Then somebody must have been feeding Viagra to the caribou!....................
They did cut back on the hunting around the newly built oil production facilities. Oil companies frown on rifles used around the piping.
Also gravel roads and facility pads raised several feet above the tundra made movement easier, predators could be seen a a member of the herd from a farther distance away.
And they allowed the very young a chance to get out incredible mosquitoes in the tundra. It is hard to describe just how bad that sometimes was.
good luck on being a lessor.
My wife enjoys well production already.
The property has been in the family since at least the 1840s. I’ve got copies of leases going back to 1930s, over multiple decades.
In the 1960s they drilled 3 wells, none became producers.
South of the Haynesville, In the the Austin Chalk near the TX/LA border.
Claimed they were interested in the James Lime. No wells drilled in the last couple years within miles...
I dream big, but only dreaming...
My wife’s royalty derives from her family’s property that is almost 100 years old.
family had to wait 90 years before royalty came in recently.
Not too far away as well tested the James Lime at 2mmcfd but the liquids in the Edwards caused it to be completed there.
The Eagleford is marching east, sometimes known as the Eaglebine as it is a combo-play with the Woodbine, although it becomes skinny that way. In time, they will have to go after it as it does contain hydrocarbons.
Thanks, it would need to go east quite a bit to reach us in Sabine Parish.
Recent Eaglebine info at:
https://rbnenergy.com/we-heard-it-through-the-eaglebine-new-takeaway-capacity-heralds-production-growth
My wife also has family mineral interests in this play.
Good luck to ya. Remember FR if it comes in big...
big is relative.
Big to industry is not the same as to an individual which can use that mailbox paycheck every month, especially a retiree like me in his first month.
If it feels big to you then.
Cheers!
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