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Natural Gas Factbox: Production back to near pre-Harvey levels

Houston (Platts)--5 Sep 2017 527 pm EDT/2127 GMT


Offshore US Gulf of Mexico natural gas production continued to return to pre-Hurricane Harvey levels as crews returned to platforms Tuesday, while onshore producers and midstream companies said they were seeing little long-term impact on their operations from the storm that slammed into the Texas coast late August 25.

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In its final report on the impacts of Harvey, the US Bureau of Safety and Environmental Enforcement on Monday estimated that about 259.19 MMcf/d, or about 8% of Gulf of Mexico gas production of 3.22 Bcf/d remained shut-in as a result of the storm.

BSEE estimates 121,000 b/d of oil remained shut-in, representing about 7% of current US Gulf production of 1.75 million b/d.

Based on the data from offshore operator reports submitted as of 11:30 CDT Monday, personnel remained evacuated from 14 production platforms, which represents about 2% of the 737 manned platforms in the Gulf of Mexico, BSEE said. In addition, personnel have returned to all five of the previously evacuated non-dynamically positioned (DP) rigs in the Gulf, BSEE said.

None of the 21 DP rigs currently operating in the Gulf moved off location out of the storm's path.

"Everything is coming back online," a BSEE spokeswoman said in an interview Tuesday.

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PIPELINES


* Williams reported 125 MMcf/d of gas from offshore Gulf producers feeding Transcontinental Gas Pipe Line remained shut-in Tuesday. The company is continuing to conduct facility assessments and no significant issues have been discovered, spokesman Christopher Stockton said in an email.

* Natural Gas Pipeline Co. of America said Tuesday it continues to conduct repairs on Compressor Station 300, and is maintaining a force majeure declaration on its Gulf Coast system at the compressor in Victoria County, Texas, which is Segment 22 of NGPL's South Texas Zone, due to significant damage caused by Harvey.

* Tennessee Gas Pipeline said it is maintaining a force majeure declaration in South Texas and several operational flow orders, including a Critical Day 1 for all areas south of Station 25 for under-deliveries into the system and over-takes.

The pipeline company has also issued a daily action alert OFO for Zone 1, Zone 2, and Zone 3 for under-deliveries into the system and over-takes, and a Daily Critical Day 1 OFO for Zones 4, 5 and 6 for all balancing parties for over-deliveries into the system and undertakes out of the system.


MIDSTREAM


* Pipeline and gas processing operator Enterprise Products Partners said Tuesday it had "made significant progress in restoring service at substantially all of its major assets impacted by Hurricane Harvey."

In a statement Enterprise said its Mont Belvieu, Texas, gas processing and petrochemical complex had resumed commercial service, including its eight natural gas liquids fractionators, six propylene splitters, isomerization facility and octane-enhancement unit.

While NGL storage remains operational and brine containment has stabilized, the company said it continues to carefully monitor the situation, adding it had not curtailed NGL fractionation or storage services.

* Enterprise said its marine terminals have largely returned to service, as port restrictions remain in place at certain facilities. Enterprise's two marine terminals on the Houston Ship Channel have resumed commercial service as loadings of ethane, liquefied petroleum gas (LPG) and polymer-grade propylene ships have resumed.

* In South Texas, the partnership's eight natural gas processing plants and two NGL fractionators have resumed full operations. In addition, Enterprise's gas, NGL and crude pipelines in South Texas are in commercial service.

* Seaway's marine terminals in Texas City and Freeport have resumed service. The partnership's Beaumont marine terminals are also operational, but are not currently receiving ships since the port remains closed to traffic.


ONSHORE E&P


* Carrizo Oil and Gas on Tuesday said its oil and gas producing assets and facilities in the Eagle Ford Shale of South Texas sustained no damage as a result of Harvey.

The company had suspended its drilling and completions operations in the play prior to the storm, but its crews were able to return to the field last week and all of the company's operated Eagle Ford rigs have resumed operations.

Sales volumes from the play were temporarily reduced as a result of downtime at third-party midstream facilities and Gulf Coast refineries, however, the company said it was able to secure some storage capacity, which has partially mitigated the impact on its production.


OTHER IMPACTS


* In light of widespread flooding and historic levels of rainfall in Houston, BP's US headquarters will be closed until further notice and reopen only when safe for employees to return to work, it said Tuesday.

The company said that despite disruptions from refinery outages on the Gulf Coast, BP has been able to meet the needs of its wholesale customers, but expects intermittent terminal supply outages to continue.

--Jim Magill, jim.magill@spglobal.com

--Edited by Keiron Greenhalgh, keiron.greenhalgh@spglobal.com



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