Tuesday, September 17, 2013

Update On Additional Natural Gas Takeaway Capacity For Burke, Mountrail Counties; Aux Sable's Prairie Rose Pipeline, and Summit Midstream's Alliance Pipeline; Increases Local Takeaway Capacity By Almost 50%

Related headlines:
More takeaway capacity for North Dakota natural gas identified.

The Prairie Rose Pipeline, owned by Aux Sable, Calgary, with origins in Burke and Mountrail County, will feed natural gas from these two counties into the Alliance Pipeline, owned by Summit Midstream Partners; this pipeline is 2,300 miles long and runs from western Canada to the Chicago hub.

Capacity:
  • Current agreement: 17 million cubic feet/day
  • New agreement: 25 million cubic feet/day
 That's almost a 50% increase in one pipeline system.

According to the September, 2013, Director's Cut, North Dakota produces slightly less than 1 million-thousand OR 1 billion cubic feet/day. So, if I did the math correctly (and that's a huge "if), the 25 million cubic feet represents about 2.5% of the total amount of natural gas produced in North Dakota on a daily basis. Again, I make a lot of math errors, and millions/billions cubic feet of natural gas continues to confuse me.

The Bismarck Tribune is reporting:
Calgary-based Aux Sable Midstream LLC and Summit Midstream Partners LP of Dallas said up to 25 million cubic feet of natural gas daily will be sent from Burke and Mountrail counties along a 2,300-mile pipeline system. Alliance Pipeline Ltd.'s pipeline runs from western Canada to the Chicago hub, where the gas is sold to Midwest and East Coast markets. In North Dakota, the pipeline is fed by the Prairie Rose Pipeline owned by Aux Sable.
Summit spokesman Marc Stratton said about 17 million cubic feet of North Dakota natural gas is being shipped at present under an existing pact that has been in place since late 2011. Stratton said work is being done by Summit to bump the gathering capacity of natural gas in western North Dakota to about 30 million cubic feet daily by mid-2014.