Nat Gas News – May 31, 2017
Nat Gas News – May 31, 2017
In the News
DCP Midstream Announces Additional Large Scale Expansion of Sand Hills Natural Gas Liquids Pipeline
DCP Midstream, LP (NYSE:DCP) today announced an additional large scale expansion of the Sand Hills natural gas liquids (NGL) pipeline, with plans to initially spend $105 million towards long-lead equipment and right-of-way. The expansion announced today is in addition to the Sand Hills Pipeline’s existing expansion to 365 MBpd, which is on target to be in service in the fourth quarter of this year. This existing expansion adds three additional pump stations and a lateral to primarily increase Permian capacity. The expansion to 365 MBpd is backed by long-term, third party plant dedications. Additionally, multiple new supply connectors are in progress and will deliver incremental NGL volumes in 2017 and beyond. Proceeds from DCP’s recent divestiture of its non-core Douglas, Wyoming natural gas gathering system will be deployed to partially fund the initial phase of this additional strategic expansion, which will provide strong, accretive, fee-based returns at lower risk. For more visit nasdaq.com or click http://bit.ly/2rllPQ1
NYMEX July gas slumps on bearish temperature outlook
Platts reports: The NYMEX July natural gas futures contract slumped Tuesday as cooler-than-average temperatures are expected over the next 10 days throughout much of the central and northeastern US, which contrasts with the most recent three-month temperature outlook from the weather service, which forecast a warmer-than-average summer for much of the US. Producers, who are using swaps to hedge their forward volume projections, have pushed open interest to their highest levels in three years. These open interest positions could put pressure on the forward curve unless the money manager and merchant sectors increase their size, as “producers continue the hedging functions,” according to Energy GPS. For more visit platts.com or click the following link http://bit.ly/2r8ClSY
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