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ENERGY TECH
Wood Mac: Few infrastructure constraints for N.D. oil
by Daniel J. Graeber
Washington DC (UPI) Apr 02, 2014


Cheniere signs LNG export deal from Texas terminal
Washington DC (UPI) Apr 02, 2014 - Spanish energy company Endesa signed an agreement to take on 1.5 million tons of LNG from an export facility being developed in Texas, Cheniere Energy said.

Cheniere, which is planning a facility near Corpus Christi, Texas, that can export 13.5 million tons of liquefied natural gas per year, said it signed a sale and purchase agreement with Endesa Genercion.

The deal is the second for Cheniere. In December, it signed a similar arrangement with Indonesian state-owned company PT Pertamina.

Charif Souki, chairman and chief executive officer of Cheniere, said Wednesday his company expects to have the regulatory and investment decisions made to start construction at the LNG export terminal by early next year.

The U.S. Federal Energy Regulatory Commission needs to give consent to LNG exports to countries without a free-trade agreement with the United States. Endesa is a leading utility company in Spain, but has active operations in Latin America.

The agreement with Endesa is for 20 years with an option to extend it for another 10 years. First deliveries of LNG are expected by 2018.

Infrastructure constraints shouldn't inhibit production from oil-producing basins in North Dakota, analysis from Wood Mackenzie finds.

Energy consultant group Wood Mackenzie said it expects production from the Bakken and Three Forks areas, two fields situated in the northern Williston Basin, should produce a combined average of 1.1 million barrels per day this year.

The Bakken field is now producing more oil than any other unconventional play in the world, the group said Wednesday, and industry officials said the output from the entire region is straining existing pipeline capacity.

"We do not believe infrastructure constraints will impact the pace of the play's development," the analysis finds.

More than 70 percent of the crude oil leaving the region is delivered by rail.

About 950 barrels of oil spilled in North Dakota when two trains operated by BNSF Railway collided and derailed in a January accident

The Pipeline and Hazardous Materials Safety Administration issued a safety alert in early January saying the type of crude oil in the Bakken reserve area in the state may be more flammable than other grades.

U.S. safety regulators said older DOT-111 cars, some of which were involved in recent derailments, may be more vulnerable to leaks or explosions than other types of rail cars.

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