Noble Energy Inc.
) 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
EPL Oil & Gas Inc.
Stone Energy Corp.
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
NOBLE ENERGY (NBL): Free Stock Analysis
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