A new joint pipeline project is helping move more natural gas south out of the Williston Basin to markets in the Rockies.
Kinder Morgan (KMI) and WBI Energy have teamed up on the 94 MMcf/d project. In the company’s 4Q23 earnings, KMI said Phase 1 of its Bakken xPress project began service in November 2023. The KMI project coincides with the start of the Grasslands South project on WBI Energy Transmission.
Grasslands South is a 15.3-mile pipeline running from ONEOK’s (OKE) Bear Creek natural gas processing plant to a new
interconnect with KMI’s Big Horn Gas Gathering in northeastern Wyoming. The gas delivered to the Big Horn system will travel south to KMI’s Fort Union Gas Gathering and then onto the Wyoming Interstate (WIC) system (see map).
While WBI spent the capital to build the lateral, WIC has executed 92 MMcf/d of leases on Big Horn and Fort Union to move volumes through those pipeline systems. The pathway provides access from the Bakken to the Cheyene and CIG hubs in the Rockies.
East Daley’s Bakken Supply and Demand Forecast includes impacts of the KMI/WBI projects on flows and egress. While WBI spent the capital to build the Grasslands lateral, WIC has executed 92 MMcf/d of leases on Big Horn and Fort Union to move volumes through those pipeline systems. The pathway provides access to the Cheyene and CIG market hubs in the Rockies. We believe the new Grassland South pipeline will help producers in the Williston
and indirectly, Western Canada as well.
The November in-service of the projects can be seen in pipeline samples from the Bear Creek plant. The Grasslands lateral began sending gas to WBI Energy Transmission at the start of November. The new pipe had been flowing close to full capacity of 94 MMcf/d prior to the mid-January winter storm, when cold weather reduced volumes in the Williston. Flows have since recovered in late January (see figure). The joint projects provide more runway for Bakken production to grow and open new markets to sell gas. – Zach Krause Tickers: KMI, OKE.
Join East Daley for mid-winter Natural Gas Update
East Daley will review updates to our natural gas forecast and discuss the market outlook in a new online webinar on Wednesday, February 7. In “A Disjointed Winter Gives Way to a Volatile 2024,” EDA’s Natural Gas team looks at the effects of another mild winter on the gas market, and the potential for upside ahead from new LNG projects and higher power generation demand. How long will oversupply last? Join us Wednesday, February 7 to discuss the road ahead for natural gas.
Dirty Little Secrets is Now Available
Dirty Little Secrets is now available. East Daley held our Dirty Little Secrets annual webinar on Wednesday, December 13. In “Volatility Will Continue Until Morale Improves,” we reviewed the factors likely to drive volatility ahead in oil, natural gas and NGL markets. We review the outlook for these markets and the midstream sector. Review the Dirty Little Secrets webinar here.
East Daley, Hart Bring NEW Gas & Midstream Weekly
East Daley is teaming up with Hart Energy on the NEW Gas & Midstream Weekly newsletter. This new report combines the strengths of Hart Energy's journalistic reporting and analysis on natural gas, LNG, midstream energy and deal-making with EDA's deep research and intelligence of hydrocarbons, storage and transportation.
Published every Thursday morning, this new powerhouse newsletter is an interactive and enlightening read highlighting breaking news, exclusive interviews, videos, charts, maps and more. The newsletter utilizes East Daley's Energy Data Studio tools for natural gas predictive analytics with Hart Energy's Rextag mapping tools to present a holistic view of pricing triggers, infrastructure growth, pipeline and processing bottlenecks, regulatory and legal hurdles, and the inevitable solutions.
Energy Data Studio
East Daley Analytics has launched Energy Data Studio, a platform for our industry-leading midstream data and commodity production forecasts. All clients have access to the new client portal. If you have not yet logged in, please fill out the form to request a registration email be resent.
Energy Data Studio leverages our G&P data set for insights into midstream assets across every major oil and gas basin in North America. Users can navigate detailed visual dashboards by region, pipeline, or individual asset to understand crude oil, natural gas and NGL supply at the most granular level.
Energy Data Studio is available through data downloads from the visual interface, in Excel files, or as a direct feed delivered into subscribers’ workflow via secure file transfer. To learn more about Energy Data Studio, please contact insight@eastdaley.com.
The Daley Note
Subscribe to The Daley Note (TDN) for midstream insights delivered daily to your inbox. The Daley Note covers news, commodity prices, security prices and EDA research likely to affect markets in the short term.
