Cabot recently mentioned that they have been restricting production rates due to midstream limitations in the Marcellus Shale. In February, Cabot reached maximum capacity at their Teel station in Susquehanna Co. In April, they completed phase one of the Lathrop Compression Station project which allowed them to free flow gas into the Tennessee pipeline. Later this month they plan on completing the “compressor start up” phase of the Lathrop project and as soon as that phase is complete they will be able to put more gas into the Tennessee pipe allowing them to ramp up production. In their latest quarterly conference call they also mention the addition of three compressors for the Lathrop project that will be started up towards the middle of summer. They expect the addition will ramp up total capacity for the facility to 165 MMcf/d. Currently Cabot is restricting a number of wells, has 18 wells in different stages of completion and a number of wells, with a combined 50 frac stages, that are ready to be brought on line immediately once the infrastructure is in place.
Initially Cabot’s infrastructure timeline seemed reasonable but with their early success in the play they seem to be playing catch up on the midstream side. This may have temporarily slowed them down but in a recent press release Dan Dinges, President and CEO of Cabot, states, “In anticipation of the additional volumes, we have added three Firm Transportation Agreements to ensure our physical takeaway capacity keeps up with the increasing production levels.”
The following map is Cabot’s permit activity for the past 180 days from DrillingInfo.
To learn more visit the Cabot O&G folder in DI’s Marcellus Unconventional Updates.
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