Noble to Build LNG Plant in Colorado - Analyst Blog
22 Marzo 2013 - 6:50PM
Zacks
Noble Energy Inc. (NBL) is all set to construct
a large-scale liquefied natural gas (“LNG”) facility in Weld
County, Colorado. The LNG plant, the first in the state, will have
a processing capacity of 30 million cubic feet (“MMcf”) and a
production capability of 100,000 gallons per day.
The LNG plant valued at $45.0 million will serve as a major fuel
supplier to Noble’s rig drilling operations and to other equipments
in the Denver/Julesburg (“DJ”) Basin. It also plans to sell
the residual fuel quantities to other energy operators in the
region.
The new LNG complex is a part of the company’s existing Keota
natural gas plant and will come into service just after the Keota
facility begins operations in the latter half of 2014. Noble has
contracted with Houston-based Audubon Engineering Co. to overlook
the engineering and design of the plant.
Noble’s LNG plant is a strategic move to meet the stringent
environmental regulations regarding reduction in carbon dioxide,
nitrogen oxide and volatile organic compound emissions. The company
is also contemplating to substitute its compressed natural gas
assets with LNG in the future.
Noble Energy is expected to invest around $1.7 billion in its
entire Colorado operations in 2013. Also, as much as $10.0 billion
is estimated to be allocated for ensuring safe and eco-friendly
development of oil and gas prospects in the DJ Basin in the next
five years. This speaks for the company’s efforts to explore
high-growth prospects without compromising on safety norms and
environmental ethics.
We believe the LNG plant will complement Noble’s active presence
in the resource-rich DJ Basin, which will further boost near-term
output and contribute to revenues. Besides DJ Basin, the company is
also pursuing prospects in Nevada and is likely to gain from its
New Ventures exploration program in the region.
Furthermore, the company’s international business looks
encouraging given the recent increase in resource estimates in the
Leviathan play, offshore Israel. Presently, Noble Energy carries a
Zacks Rank #3 (Hold).
We, however, prefer Zacks Rank #1 (Strong Buy) operators,
Range Resources Corporation (RRC), EPL Oil
& Gas Inc. (EPL) and Stone Energy
Corp. (SGY).
Based in Houston, TX, Noble Energy, an independent energy
company, engages in the acquisition, exploration, development,
production, and marketing of crude oil, natural gas, and natural
gas liquids in the United States and worldwide.
EPL OIL&GAS INC (EPL): Free Stock Analysis Report
NOBLE ENERGY (NBL): Free Stock Analysis Report
RANGE RESOURCES (RRC): Free Stock Analysis Report
STONE ENERGY CP (SGY): Free Stock Analysis Report
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