[en] The negotiation of gas processing fees from the perspective of the natural gas producer are summarized. Some of the topics discussed are: evaluation of fee proposals, capital cost estimates, pipeline capital fees, compressor capital fees, plant capital fees, upper and lower limits on fees, (JP-90 and JP-95), negotiation options, operating costs, production allocation, and processing agreements. Several case studies involving one or more of these items were reviewed by way of illustration. The importance of documentation of all agreements, changes to agreements, commitments, etc., was stressed

[en] Topics discussed in this paper dealing with the current investment climate for midstream gas processing assets include: (1) strategic reasons to retain or divest midstream assets, (2) available options for midstream asset divestment, (3) midstream market fundamentals, and (4) financial performance of midstream companies. There are some 700 gas plants in Alberta at present, of which about 20 per cent are owned by midstream companies . About one half of the plants are smaller than 12.5 MMCFD which represent inefficient use of resources; a clear indication that there are substantial opportunities for consolidation. 1 tab., 4 figs

[en] A means by which to finance oil and gas facilities using off balance sheet structures was presented. Off balance sheet facility financing means the sale by an oil and gas producer of a processing and/or transportation facility to a financial intermediary, who under a Management Agreement, appoints the producer as the operator of the facility. The financial intermediary charges a fixed processing fee to the producer and all the benefits and upside of ownership are retained by the producer. This paper deals specifically with a flexible off balance sheet facility financing structure that can be used to make effective use of discretionary capital which is committed to gas processing and to the construction of new gas processing facilities. Off balance sheet financing is an attractive alternative method of ownership that frees up capital that is locked into the facilities while allowing the producer to retain strategic control of the processing facility

[en] This paper reports that if you are looking for a way to create value, you may not have to look any further than your gas processing assets. Capturing value from gas processing may seem impossible, given the tough times the industry has been experiencing. But gas processing is moving into a new era and some early movers are already capitalizing on the opportunities being created. They are making real cuts in operating costs. They are not afraid of the R word (rationalization). And they are creating or strengthening attributes that give them a unique competitive advantage. What are these efforts worth? The authors estimate that they can increase the value of gas processing assets by up to 150 percent. For a typical 100 MMcfd processing facility, that could mean $100 million. If you want to make more from your gas processing assets, it is important to understand the forces that have been pushing the industry into a new era. You also need to take a closer look at what early movers are doing and the value creation opportunities for companies and the industry as a whole. All of that will provide a context for thinking about how your company can capture those opportunities

[en] A review is presented of Northstar Energy Corporation, which has cash flow of $70 million and revenues of $90 million, produces a 100,000-110,000 Mft³/d of natural gas and 3,000 bbl/d of oil and liquids. Northstar's most important 1993 highlight was the major gas discovery at Wolverine in northwest Alberta. Fifty wells have been completed at a 100% success rate, and an 85 mile gathering system and 44,000 Mft³/d plant has been constructed. Details are presented of this plant and another, the Hamburg plant which processes 28,400 Mft³/d of gas, 1000 bbl/d of condensate and 200 bbl/d of liquefied petroleum gas. Another core area is Gilby/Gull Lake, where the company's interests are in the 60% range. Allowable oil production is expected to more than double 1993 levels, and reach 1,000 bbl/d to Northstar in the fourth quarter of 1994. Northstar has a 70-72% interest in the Hangingstone/Surmont area, with volumes of 23,000 Mft³/d in 1993. In southern Alberta, the company's Turin sour gas plant is producing an average of 36,000 Mft³/d. This plant consists of inlet compression facilities, inlet header area, gas sweetening, gas refrigeration, liquids stabilization and storage

[en] The current status of various tax issues regarding ownership, operation and financing of gas processing facilities in Canada was discussed. Frequently, energy companies are not taxed because of their large pools of un-depreciated capital cost and other resource related accounts. In addition, their time horizons for taxability are being extended in line with the expansion of their businesses. However, other investors are fully taxable, hence they wish to shelter their income through the use of tax efficient investment arrangements. This paper provides a detailed description of the tax treatment of gas processing facilities, tax implications of various structures between the producer and the investor such as lease, processing fee arrangements etc., and use of 'Canadian Renewable and Conservation Expense' (CRCE) for cogeneration projects within processing plants. All these need to be considered before completing a financing transaction involving a gas processing facility, since the manner in which the transaction is completed will determine the advantages and benefits from an income tax perspective. The accounting and legal aspects must be similarly scrutinized to ensure that the intended results for all parties are achieved. 8 figs

[en] The author tells how to make more money at the bottom line by marketing propane. The key word is Market, not just ''have for sale.''

[en] Qatar Liquefied Gas Company Ltd. (QATAR GAS) was established in 1984 by an Emiri decree to build, own and operate a 6 million tonne per annum, LNG plant in Qatar using North Field gas as feedstock, and to export the products. At the time, the joint venture partners with Qatar Petroleum Corporation were TOTAL and British Petroleum (BP). QATAR GAS is responsible for the implementation and operation of the upstream project.(Author). 2 figs

[en] Changes regarding the construction, ownership and operating (CO and O) agreements for natural gas processing facilities are described. Historically, processing was a consequence of production where owners of a field built facilities for processing their own gas. Today, midstream companies make processing their core business and the declining production from existing fields has left many facilities underutilized. Since the interest of co-owners of the facility are no longer consistent, the intention underlying typical CO and O agreements changes to the point where some provisions no longer fit the current environment. New CO and O agreements should take into account the changing environment, and allow for the possibility of eventual 'midstreamer' involvement. Some of the more unique provisions of CO and O agreements involving midstreamers that could significantly change the original intent are described

[en] An overview of the current and future North American supply and demand and trends for natural gas liquids (NGLs) is presented. The current Alberta straddle plant configuration, the NGL pipeline system and product flow, and the profitability of straddle plants are described. The driving forces to increase Alberta's straddle plant capacity are also reviewed. These include: (1) increased gas production, (2) increased demand for ethane, (3) control of produced NGLs, and (4) the desire to maintain a competitive position. Highlights of the Centurion Project designed to meet the needs of Dow Chemicals and the producers by providing long-term ethane supply and physical access to a more liquid NGL market, the project's current status and 'next steps' were also summarized. tabs., figs