Page 6 - NorthAmOil Week 47 2022
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NorthAmOil                            PIPELINES & TRANSPORT                                       NorthAmOil


       FERC completes review of




       TC Energy gas pipeline




        US NORTHWEST     THE US Federal Energy Regulatory Commis-  pipeline – known as GTN Xpress – is opposed
                         sion (FERC) has completed a review of plans  by the attorneys general of the states of Ore-
                         to expand the capacity of TC Energy’s Gas  gon, Washington and California, as well as by
                         Transmission Northwest (GTN) pipeline across  environmentalists.
                         Oregon, Washington and Idaho. The commis-  The expansion would upgrade three com-
                         sion found the project would have little adverse  pressor stations with new gas cooling bays, tur-
                         impact on the environment.           bine compressors and associated piping.
                           The expansion would increase the capacity of   But opponents say that expanding the pro-
                         GTN’s existing natural gas transmission system  ject will result in more greenhouse gas (GHG)
                         from Canada by more than 150mn cubic feet  emissions. This would lead to more than 3.47mn
                         (4.2mn cubic metres) per day between Idaho  tonnes of carbon dioxide (CO2) equivalent for
                         and Oregon. The pipeline has been operating  at least 30 years.
                         since 1961.                            The expansion will undermine West Coast
                           According to GTN, the expansion is neces-  states’ plans to reduce the pipeline’s effects on
                         sary to serve growing market demand in Wash-  climate change, said the office of Washing-
                         ington, Idaho, Oregon and California.  ton Attorney General Bob Ferguson when a
                           “The FERC staff concludes that modifying  motion to intervene at the FERC was filed in
                         and installing the project facilities would result  August.
                         in limited adverse impacts on the environment.     “This is equivalent to adding 754,000 cars
                         Most adverse environmental impacts would be  on the road each year until 2052,” he said. “This
                         temporary or short-term and would have mini-  pipeline is bad for the environment and bad for
                         mal impact on existing land use,” said the FERC  consumers.”
                         in a release.                          If this expansion is approved, emissions from
                           The regulator had come to the same conclu-  this pipeline alone will comprise 48% of the
                         sion in a draft report in June. Canada-based TC  region’s targeted total emissions from all sources
                         Energy applied to expand the pipeline in Octo-  in 2050, said his office. “That will undermine the
                         ber 2021.                            region’s efforts to reduce emissions and transi-
                           Expansion of the 1,377-mile (2,216-km)  tion to renewable energy,” it said.™


                                                     INVESTMENT

       Ranger Oil reportedly considering sale





        TEXAS            EAGLE Ford oil and gas producer Ranger Oil is  equivalent per day (boepd), while its crude sales
                         reportedly exploring a potential sale. Such a sale  exceeded the mid-point of guidance at 30,700
                         would be aimed at capitalising on high energy  barrels per day (bpd). It posted net income of
                         prices and pursuing strategic options, Reuters  $227.6mn and adjusted net income of $125.0mn.
                         reported, citing anonymous sources familiar   The company has long-term net debt of more
                         with the matter.                     than $603mn as of the end of the third quarter.
                           Ranger was formed after Penn Virginia’s   High commodity prices have encouraged
                         acquisition of Lonestar Resources US. The  both public companies and private equi-
                         shale producer operates in the Eagle Ford play  ty-backed firms to consider strategic sales, fol-
                         in South Texas. It has hired an advisor and has  lowed by or a reinvestment in their core assets,
                         started marketing itself, according to the report.  or an outright sale. This is true for smaller com-
                           The day the potential deal was reported,  panies in plays such as the Eagle Ford. Indeed,
                         Ranger’s shares rose more than 5%, giving the  the region has seen other deal activity in the last
                         company a market value of around $1.9bn. The  few months.
                         company had gained around 58% so far in 2022,   Just over three weeks ago, Marathon Oil
                         prior to the report that it was considering a sale.  agreed to acquire the Eagle Ford shale assets
                           Consultancy Rystad Energy estimates that  of Ensign Natural Resources for $3bn in cash.
                         Ranger’s upstream assets are worth $2.0-2.2bn.  The assets – in the core of the play – will nearly
                           Ranger did not comment on the story.   double Marathon’s Eagle Ford position. They
                           In the third quarter, Ranger said it had total  are located adjacent to Marathon’s existing Eagle
                         sales volumes of more than 42,600 barrels of oil  Ford wells.™



       P6                                       www. NEWSBASE .com                      Week 47   24•November•2022
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