American Oil and Gas Reporter - May 2023 - 20

IndustryDigest
FERC Approves
Two LNG Projects
On Texas Coast
WASHINGTON-The Federal
Energy Regulatory Commission
approved certificates for two
multibillion-dollar LNG facilities at
Port of Brownsville, Tx., at its April 20
meeting, reports the Permian Basin
Petroleum Association.
During the meeting, PBPA relates,
FERC Acting Chairman Willie Phillips
announced that Rio Grande LNG by
NextDecade and Texas LNG Brownsville
by Glenfarne Energy Transition have the
commission's approval.
Glenfarne also says FERC has issued
an order on remand to the project
following the completion of an
additional social cost of carbon and
environmental justice analysis. The
order on remand includes two modified
mitigation requirements regarding air
monitoring and emergency response
communications that Texas LNG will
incorporate into its execution plan.
Texas LNG expects to make a final
investment decision this year and begin
commercial operations in 2027.
NextDecade says Rio Grande LNG
will capture and permanently store more
than 5 million metric tonnes of carbon
dioxide a year.
According to the Houston Chronicle,
FERC's acting chairman describes the
commission's action as balanced.
" Importantly, today's order takes an
unprecedented and bipartisan step to
protect environmental justice
communities from potential concerns
about the projects' effect on air quality, "
Phillips is quoted. " The commission is
for the first time on its own accord
requiring that the project sponsors
ensure that the overlapping construction
operation of a project does not cause
any significant air quality impacts on
environmental justice communities. " ❒
Ovintiv Makes Deal To
Double Permian Output
DENVER-Ovintiv Inc. has agreed
to acquire substantially all the leasehold
interest and related assets of EnCap
Investment portfolio companies Black
Swan Oil & Gas, PetroLegacy Energy
and Piedra Resources in a cash and stock
transaction valued at $4.275 billion.
20 THE AMERICAN OIL & GAS REPORTER
Upon closing, Ovintiv says the
acquisition will add 1,050 net 10,000foot
well locations to the company's
Permian inventory and approximately
65,000 net acres in the core of the
Midland Basin that are near Ovintiv's
existing Permian operations.
" We are acquiring a unique
undeveloped asset in the Northern
Midland Basin, " describes Ovintiv
President and Chief Executive Officer
Brendan McCracken. " Located in some
of the best rock in the Permian, these
assets have demonstrated leading well
performance and are a natural fit with our
existing Martin County, Tx., acreage. "
According to the company, the
acquisition includes about 800 premium
return locations and approximately 250
high potential upside locations. It will
increase Ovintiv's Permian holdings to
approximately 179,000 net acres, the
company calculates, noting that 97% of
the acquired acreage is held by
production with an average operated
working interest of 82%. At closing, the
company estimates its pro forma
Permian oil and condensate production
will nearly double to approximately
125,000 barrels a day. ❒
Tailwater Closes Fund,
Makes First Acquisition
DALLAS-Tailwater Capital
affiliate Tailwater Royalties Fund LP
announced in early April that it had
closed its fund over target on March 1,
with more than $100 million in capital
commitments from new and existing
limited partners.
Tailwater Royalties adds that it is
acquiring 1,877 net royalty acres across
the Permian Basin, Eagle Ford and
Haynesville.
" Thanks to the strong support from
new and existing investors, we are
thrilled to have surpassed our target
fundraising goal for Tailwater
Royalties, " says Doug Prieto, chief
executive officer of Tailwater E&P
LLC. " We are excited to add minerals
and royalties to Tailwater's growing
nonoperated and operated franchises.
These platforms, along with our
energy and growth infrastructure
strategies, will continue to build upon
Tailwater's full immersion approach,
exemplifying creative and long-term
investment opportunities. "
Tailwater co-founder and Managing
Partner Edward Herring suggests the
acquisitions demonstrate the team's
energy investment acumen. " As we put
this capital to work, we expect to see
continued success as our team grows
and develops diversified positions and
balanced portfolios within the energy
space, " he says. ❒
Gas Storage Volumes
Climb Back Over 2 Tcf
WASHINGTON-Underground
natural gas storage in the United States
stood at 2.009 trillion cubic feet on
April 21, 22.2% above the five-year
average, according to the U.S. Energy
Information Administration. That was
up 156 billion cubic feet from the 1.853
Tcf in storage on March 24, and 525
Bcf more than a year ago, when gas
storage stood at 1.484 Tcf.
Gas storage in the East Region was
390 Bcf on April 21, 36.4% above the
five-year average, and 47 Bcf more
than on March 24, when storage stood
at 343 Bcf, 20.4% above the five-year
average. East Region gas storage on
April 21 increased 162 Bcf from a year
ago, EIA reports.
In the Midwest, gas storage stood at
468 Bcf on April 21, 36.0% above the
five-year average and 31 Bcf more than
the 437 Bcf in storage on March 24,
which was 26.3% above the five-year
average. April 21 Midwest gas storage
was 162 Bcf more than a year ago.
In the Mountain Region, EIA
continues, gas storage was 90 Bcf on
April 21, 3.2% below the five-year
average and 8 Bcf more than the 82 Bcf
stored on March 24, which was 7.9%
below the five-year average. April 21 gas
storage in the Mountain Region also was
90 Bcf a year ago.
The Pacific Region's gas in storage
was 90 Bcf on April 21, 51.1% below the
five-year average and 17 Bcf more than
the 73 Bcf stored on March 24, which
was 55.5% below the five-year average.
Pacific Region gas storage on April 21
was down 81 Bcf from a year ago.
In the South-Central Region, gas
storage levels on April 21 were 971 Bcf,
31.6% above the five-year average and 54
Bcf more than the 917 Bcf in storage on
March 24, which was 41.5% above the
five-year average. The April 21 gas
storage level for the South-Central Region
was up 294 Bcf from a year ago. ❒
American Oil and Gas Reporter - May 2023

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