For all the general malaise settling over the oil and gas industry, utility companies are still moving forward with E&P and midstream projects to accommodate growing demand for natural gas.
National Fuel Gas Company is a diversified energy company with $6.2 billion in assets distributed among the following five operating segments: Exploration and Production, Pipeline and Storage, Gathering, Utility, and Energy Marketing.
Such is the case of Pa.-based National Fuel, which transports gas to more than 740,000 customers through local distribution systems in western N.Y., and northwestern Pa., via its 245-mile Empire Pipeline originating from the Canadian border. The utility has recently announced a $541 million deal to acquire “a one-of-a-kind opportunity” from Royal Dutch Shell in the form of 200,000 net acres of natural gas fields in the Marcellus and Utica, 142 miles of gathering pipelines, and 100 miles of water pipelines that support Shell’s Tioga County production operations. Net proved developed natural gas reserves are estimated at 710 BCF. Gathering connections include numerous interstate pipelines as well as National Fuel’s Empire system. The transaction essentially doubles National Fuel’s drillable acreage.
National Fuel provides interstate natural gas transmission and storage by way of its integrated pipeline system that extends more than 2,300 miles from the Canadian border through N.Y., and Pa. The utility’s subsidiary, Seneca Resources, explores, develops, and produces natural gas and oil in Calif., and the Marcellus and Utica basins.
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