Apache to market own U.S. natural gas on growing production

Petroleum News Houston staff

Exploration and production independent Apache has grown so rapidly during the past five years that it has decided to market its own natural gas in the United States, rather than have a third party continue doing it for the company.

Consequently, Apache and the marketing and trading arm of Cincinnati-based Cinergy have agreed to terminate their business relationship and also dismissed pending arbitration between the companies, Apache said June 24.

During the past year, Houston-based Apache has increased natural gas production to more than 1 billion cubic feet per day from 500,000 million cubic feet per day.

“Today, with more than 1 billion cubic feet per day of gas production in North America and significant changes in the gas marketing arena, it is time for Apache to market its own gas,” said Steven Farris, Apache’s chief executive officer.

Apache has marketed its international oil and production, Canadian gas and North American liquid hydrocarbons for some time. The company said it would begin marketing its U.S. gas beginning with July production.

Including gas from other producers, Apache actually will market about 1.2 bcf per day in North America, about 830,000 million cubic feet per day in the United States and 420,000 million cubic feet per day in Canada.

Apache also said it has established an oil and gas marketing department headed by Janine McArdle, a corporate vice president with an energy marketing background.

“In this new era of gas marketing, we believe more direct interaction between producers and customers is good for both ends of the energy chain,” McArdle said.