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Rocky Mountain Midstream Assets
The exploration and production industry is excited about the prospects for oil and gas, from both conventional and unconventional resource basins, in the Rocky Mountain area. Many companies are also expanding and building infrastructure to handle the increased production expected from this area over the next few years. This includes pipelines along with gathering and processing facilities to handle the hydrocarbons.
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Expanding Capacity
Williams Partners (NYSE:WPZ) recently completed expansion of its Echo Springs natural gas processing plant in Wyoming. The company added a fourth cryogenic processing train at the facility, adding capacity to process 350 million cubic feet per day of natural gas and 30,000 barrels per day of natural gas liquids. (To learn more, see Natural Gas Industry: An Investment Guide.)
This expansion increases the total capacity of this plant and the Opal facility, also owned by Williams Partners, to 2.1 billion cubic feet per day of natural gas and 130,000 barrels per day of natural gas liquids.
Another large operator of midstream assets in the Rocky Mountain area is QEP Resources (NYSE:QEP). The company owns assets in the Green River, Vermillion and Uinta Basins and is currently constructing two cryogenic processing plants.
TransCanada's Bison Pipeline
TransCanada (NYSE:TRP) just finished building the Bison pipeline. This pipeline is 302 miles long and is designed to bring natural gas from the Powder River Basin to markets in the Midwestern United States. The Bison pipeline was supposed to start up service in December 2010, but it has been delayed until January 2011 due to weather issues.
TransCanada designed the Bison pipeline to initially carry 477 million cubic feet per day of natural gas, but the pipeline can be expanded to transport 1 billion cubic feet per day when supply from the region increases.
Kern River Pipeline Expansion
Another project recently completed in the Rocky Mountain area was an expansion of the Kern River Pipeline, which came on line in April 2010. The expansion increased the pipeline's capacity by 145 million cubic feet to 1.9 billion cubic feet per day. The Kern River pipeline is owned by a subsidiary of MidAmerican Energy Holdings Co., which is part of the Berkshire Hathaway (NYSE:BRK.A) family of companies.
MidAmerican Energy plans another expansion of the pipeline. The Apex expansion will add another 266 million cubic feet per day of capacity and will be complete by November 2011.
Ruby Pipeline
Another project coming on line in the Rocky Mountains in 2011 is the Ruby Pipeline, which is owned by El Paso Corp. (NYSE:EP). The Ruby Pipeline will run 680 miles from the Opal Hub in Wyoming to Oregon and will have initial capacity of 1.5 billion cubic feet per day of natural gas.
Ground Zero For Oil And Gas Development
The Rocky Mountain area is ground zero for oil and gas development, and the industry is moving to build the pipelines and other infrastructure needed to get these hydrocarbons to end users.
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IN PICTURES: 5 Tips For Reading A Balance Sheet
Expanding Capacity
Williams Partners (NYSE:WPZ) recently completed expansion of its Echo Springs natural gas processing plant in Wyoming. The company added a fourth cryogenic processing train at the facility, adding capacity to process 350 million cubic feet per day of natural gas and 30,000 barrels per day of natural gas liquids. (To learn more, see Natural Gas Industry: An Investment Guide.)
This expansion increases the total capacity of this plant and the Opal facility, also owned by Williams Partners, to 2.1 billion cubic feet per day of natural gas and 130,000 barrels per day of natural gas liquids.
Another large operator of midstream assets in the Rocky Mountain area is QEP Resources (NYSE:QEP). The company owns assets in the Green River, Vermillion and Uinta Basins and is currently constructing two cryogenic processing plants.
TransCanada's Bison Pipeline
TransCanada (NYSE:TRP) just finished building the Bison pipeline. This pipeline is 302 miles long and is designed to bring natural gas from the Powder River Basin to markets in the Midwestern United States. The Bison pipeline was supposed to start up service in December 2010, but it has been delayed until January 2011 due to weather issues.
TransCanada designed the Bison pipeline to initially carry 477 million cubic feet per day of natural gas, but the pipeline can be expanded to transport 1 billion cubic feet per day when supply from the region increases.
Another project recently completed in the Rocky Mountain area was an expansion of the Kern River Pipeline, which came on line in April 2010. The expansion increased the pipeline's capacity by 145 million cubic feet to 1.9 billion cubic feet per day. The Kern River pipeline is owned by a subsidiary of MidAmerican Energy Holdings Co., which is part of the Berkshire Hathaway (NYSE:BRK.A) family of companies.
MidAmerican Energy plans another expansion of the pipeline. The Apex expansion will add another 266 million cubic feet per day of capacity and will be complete by November 2011.
Ruby Pipeline
Another project coming on line in the Rocky Mountains in 2011 is the Ruby Pipeline, which is owned by El Paso Corp. (NYSE:EP). The Ruby Pipeline will run 680 miles from the Opal Hub in Wyoming to Oregon and will have initial capacity of 1.5 billion cubic feet per day of natural gas.
Ground Zero For Oil And Gas Development
The Rocky Mountain area is ground zero for oil and gas development, and the industry is moving to build the pipelines and other infrastructure needed to get these hydrocarbons to end users.
Use the Investopedia Stock Simulator to trade the stocks mentioned in this stock analysis, risk free!
by
Eric Fox
Eric J. Fox, CFA, is a freelance financial writer and has previous experience working in the asset management industry as an equity analyst and portfolio manager on the buy side. His favorite area to write on is the energy sector and he keeps current on the industry by reading Haynesville Shale, Permian Oil and Gas and various other blogs.
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