South Louisiana natural gas activities buck the trend

As drilling activity continues to slow in many North American shale plays, conventional deep gas resources located in South Louisiana are providing rich gas reserve growth opportunities. Macro industry trends indicate shale gas drilling activity will continue its draw back in the near term, but that does not seem to affect the Louisiana independent deep gas drillers. The prize of large rich gas reserve additions for each successful well completion has spurred significant activity over the past few years and is expected to continue. At the centre of this rich gas resource play focused in Louisiana’s Vermilion Parish sits PSI Midstream’s owned midstream assets providing producers with midstream infrastructure including a recently expanded gathering system and cryogenic gas processing plant (the Kaplan Gas Plant). In addition, PSI also owns the Cameron Meadows Gas Plant west of Vermilion Parish in the adjacent Cameron Parish.

“In conjunction with growth in production of gas and associated liquids in PSI’s operating area, PSI has recently completed an expansion of our Kaplan gas processing facility providing our producers with access to a second cryogenic NGL recovery train and two additional gas turbine driven compressors that will allow PSI to process up to 225 million ft3/d at the Plant”, says Lee Powell, PSI’s President. “The plant cryogenic processing capacity can be further expanded to 300 million ft3/d with additional compression as demand dictates”. Current Kaplan processed gas volumes are 170 million ft3/d. An estimated incremental 30 million ft3/d sourced from the recently announced PetroQuest operated Thunder Bayou Prospect discovery well is expected in May 2015. Plant gas volume throughput is expected to continue to increase with the exploitation of additional deep gas prospects located both onshore and in coastal shallow waters by other active producers in this operating area. “In today’s climate, it’s exciting to be part of this significant growth and success story happening in South Louisiana”, continued Powell.

Written by Mike Hillerman, PSI Midstream Partners, LP. Edited for web by Cecilia Rehn.

Published on 28/04/2015

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