Nustar Energy Expects Crude Loadings to Double This Month

San Antonio-based NuStar Energy LP’s Corpus Christi, Texas, export terminal will double the crude loading by month’s end, Danny Oliver, a NuStar senior vice president, said in an interview. According to consultancy RBN Energy, the monthly average was 200,000 barrels per day this year and it reached to 280,000 barrels per day last week.

As new shale pipelines to the U.S. Gulf Coast opened last month, the crude arriving on EPIC Midstream and Plains All American Pipeline LP lines from the Permian Basin of West Texas and New Mexico increased.

NuStar expects loadings to reach up to 500,000 barrels per day by month’s end and up to 700,000 barrels per day by year-end. Last week, overall crude loadings at the Corpus Christi, Texas, export hub hit a record 1 million barrels per day.

“With our existing assets, we’ve been able to get 500,000-700,000 bpd with very little new capital,” Oliver said. “We have room to grow into our full capacity, it would just take building more barrels of storage.”

NuStar is set to finish constructing 600,000 barrels of new storage at the terminal by year-end. It may add another 1.5 million barrels of storage over about 15 months, with a total capacity of 5.4 million barrels.

Source:
pgjonline

Phase 1 of Largest Water Gathering System in South Texas Completed

EVX Midstream Partners, a Houston-based pipeline operator has completed the first phase of construction of oilfield wastewater gathering system in the Eagle Ford Shale of South Texas. It is touted as the largest wastewater gathering system in South Texas shale play.

"EVX is positioned to be the largest gatherer of produced water in the Eagle Ford basin," CEO Herb Chambers IV said in the statement. "We have recently completed over 300 miles of large diameter water gathering systems and have pipe connected many of our 20-plus saltwater disposal wells to provide our producer customers and trucking companies unprecedented operational flexibility”.

Oilfield wastewater, also known as produced water, is treated to be used again in drilling or hydraulic fracturing operations but most of it is pumped into deep underground reservoirs known as saltwater disposal wells.

The company owns and operates 26 saltwater disposal wells throughout the Eagle Ford Shale that are permitted to inject up to 600,000 barrels of water per day. Produced water was traditionally hauled by 18-wheelers to disposal sites, though the trucks are increasingly replaced by pipelines.

Source:
chron

Binding Open Season Launched by Explorer Pipeline

A binding open season to secure shipper commitments to support the development of a proposed extension of Explorer’s pipeline system was announced by Explorer Pipeline Company. The proposed project named as Expansion Project, when completed, shippers will be able to obtain transportation service from the U.S. Gulf Coast receipt points on Explorer’s system to the new delivery point near Melissa, Texas.

The company is also planning to construct a new terminal at the terminus of the Expansion Project near Melissa, Texas, which will be owned and operated by U.S. Oil. The binding open season started on September 10, 2019, and is scheduled to end on November 11, 2019.

According to Explorer Pipeline Company, shippers interested in becoming committed shippers on the Expansion Project must make a volume commitment of at least 2,500 barrels per day. Also shippers that make a volume commitment will have the ability to receive priority capacity, up to an amount of their volume commitments, during periods of prorationing, subject to the payment of a premium rate.

Shippers that make a volume commitment and do not receive priority capacity will be subject to discounted rates compared to the rates assessed to walk-up shippers, with the amount of the discount dependent on the level of the shipper’s volume commitment.

Source:
pgjonline

Dismissal of Lawsuit over Keystone XL Pipeline Requested by US Attorneys

The Trump administration attorneys wanted a U.S. judge to throw out a lawsuit from Native American tribes in Montana and South Dakota. The lawsuit is blocking TC Energy’s proposed Keystone XL oil pipeline that would carry up to 830,000 barrels per day from Canada to Nebraska.

A Thursday hearing on the government's attempt to dismiss the case will be presided over by U.S. District Judge Brian Morris. The judge blocked the line in November, saying more environmental studies were needed. But Trump circumvented that ruling in March by issuing a new permit for the $8 billion, 1,184-mile project.

According to the administration, Trump's approval applies only to a 1-mile section of pipeline along the U.S.-Canada border and not the rest of the line, but the tribes argue that Trump's permit applies to the entire pipeline.

The tribes fears that a spill could damage a South Dakota water supply system that serves more than 51,000 people including residents of the Rosebud, Pine Ridge and Lower Brule Indian reservations. Also they say that President Donald Trump approved the pipeline without considering potential damage to cultural sites from spills and construction.

Source:
chron

$367 Million Deal to Buy Mississippi Gas Storage

New Jersey Resources, a natural gas company in New Jersey said it will buy Leaf River Energy Center, a Mississippi natural gas storage facility from Macquarie Infrastructure Partners for $367 million.

New Jersey Resources said that the southeast Mississippi facility has three salt dome caverns and there's room to expand the storage facility. The facility connects to six interstate gas pipelines.

The purchase is expected to be completed later this year and buying the storage facility is as part of a long-term effort to increase profits, New Jersey Resources said.

New Jersey Resources best-known business is a natural gas utility serving more than 500,000 customers in parts of central New Jersey. The company said it could borrow up to $350 million to finance the purchase.

Source:
chron

Surveys to Be Conducted by Enbridge to Move Pipeline

Enbridge Energy is considering re-routing a pipeline out of an American Indian reservation and is seeking permission to conduct land surveys in northern Wisconsin.

Wisconsin Public Radio reported that the permission is to conduct environmental surveys along a 40-mile stretch in Ashland and Iron counties to replace an existing 20-mile segment of Line 5 that runs through the Bad River Band of Lake Superior Chippewa's reservation.

Enbridge only wants access to land for surveys at this point to see which routes may be feasible, Jennifer Smith, Enbridge's community engagement manager for the upper Midwest said. She added that the company wants to reach agreements with landowners and to avoid eminent domain.

Bad River Band of Lake Superior Chippewa members sued Enbridge in July in hopes of forcing the company to remove sections of the pipeline that run across their swampy reservation just south of Lake Superior.

Line 5 carries Canadian crude and propane to eastern Michigan. The members of Bad River Band argues that it's increasingly likely the 66-year-old line will rupture and cause catastrophic damage.

Source:
chron

FERC Pipeline Decision Will Be Challenged by New York Agency

Federal Energy Regulatory Commission's recent decision to allow construction of a 125-mile-long natural gas pipeline that would stretch from northern Pennsylvania to Schoharie County, west of Albany, will be challenged by the New York State Department of Environmental Conservation.

According to the Department of Environmental Conservation, the FERC decision sides with the fossil fuel industry over protecting the environment. But the Tulsa, Oklahoma-based pipeline firm says that the 30-inch-wide pipeline would have the capacity to serve 3 million homes and can help stabilize New York energy prices.

Environmentalists claim these lines will only serve to further the dependence on fossil fuels. The Army Corp of Engineers must approve plans before construction begins.

Source:
chron

New Challenges to Trans Mountain Expansion Allowed

The long-delayed Trans Mountain pipeline has again ran into legal obstacles. On Wednesday Canada's Federal Court of Appeal agreed to hear six challenges to the Canadian government's earlier approval of an expansion of the Trans Mountain oil pipeline.

The court said that the six challenges related to the government's duty to consult aboriginals, called First Nations and that they must proceed on strict, short deadlines.

"The applicants do acknowledge that the Government of Canada introduced some new initiatives to assist consultation and added some conditions on the project approval that was ultimately given," the court said in its decision. "But to them this is just window-dressing, box-ticking and nice-sounding words, not the hard work of taking on board their concerns, exploring possible solutions, and collaborating to get to a better place."

As some indigenous groups fear spills and the continued expansion of Alberta's oil sands, projects to expand or build new Canadian pipelines have become deeply contentious in recent years.

"The (project) has already undergone a lengthy, thorough and extensive regulatory review process, including extensive consultation with all stakeholders," Canadian Association of Petroleum Producers Chief Executive Tim McMillan said in a statement.

Source:
reuters

Commonwealth LNG Permit Application Accepted by FERC

The permit application filed by Commonwealth LNG to build an export terminal in southwest Louisiana was formally accepted by Federal Energy Regulatory Commission on Tuesday morning.

The project is expected to be in service by the second quarter of 2023 as per the timeline submitted in Commonwealth LNG's application. The proposed export terminal will receive 390.6 billion cubic feet of natural gas per day from a pipeline to make 8.4 million metric tons of LNG per year.

The company is seeking permission to build six liquefied natural gas production units known as trains on a 393-acre property along the Calcasieu Ship Channel about 50 miles south of Lake Charles.

FERC's formal acceptance of the permit application is an important step in moving the proposed project closer to a final investment decision, said Commonwealth LNG President and CEO Paul Varello in a statement.

Source:
chron

Second Train Completed at Corpus Christi LNG Project

Train 2 of Cheniere Energy’s liquefaction project in Corpus Christi, Texas, has been declared substantially complete, Cheniere Energy announced Tuesday.

The engineering, procurement and construction partner for the project was Bechtel Oil, Gas and Chemicals. Cheniere said that the commissioning of Train 2 is complete and Bechtel has turned over care, custody and control of the facility to Cheniere.

The company now has seven liquefaction trains, five liquefaction trains in operation at its Sabine Pass LNG export terminal in Louisiana and the two at Corpus Christi. Each train is capable of liquefying about 700 MMcfd of gas.

According to the sale and purchase agreements, the first commercial delivery from the new unit is expected to occur in May 2020, Chieniere said.

Source:
pgjonline

Rivervale South to Market Project Completed

Rivervale South to Market project has been successfully placed into full service, Williams said. The project is an expansion of the existing Transco natural gas pipeline system to meet growing heating and power generation demand for northeastern consumers.

“The demand for clean, reliable natural gas is at an all-time high, particularly in the northeastern markets where it has had a direct impact on significantly improving regional air quality,” said Alan Armstrong, president and CEO of Williams. “The Rivervale South to Market project will continue this progress in a manner that minimizes environmental impacts by enhancing and expanding our existing Transco pipeline infrastructure.”

The construction on the Rivervale South to Market project began in early 2019. A portion of the Rivervale South to Market project (140,000 dekatherms per day) was placed into service on July 1, 2019. The remaining portion of the project (50,000 dekatherms per day) was placed into service on Sept. 1, 2019.

The project will provide 190,000 dekatherms of firm natural gas service by uprating 10.3 miles of existing Transco pipeline, adding less than a mile of new pipeline looping, and upgrading or modifying existing facilities, all in New Jersey. With this expansion, the Transco pipeline’s system-design capacity is increased to 17.2 million dekatherms per day.

Source:
pgjonline

Joint Venture to Expand Footprint in Colorado's DJ Basin

Black Diamond Gathering has entered into a pair of deals that will expand its oilfield footprint in Colorado's DJ Basin to 243,000 acres. Black Diamond Gathering is a joint venture between Noble Midstream Partners and Greenfield Midstream.

Recently Black Diamond and Noble Energy agreed to ship crude oil on the Saddlehorn Pipeline. The Saddle horn pipeline is a project led by Magellan Midstream Partners that connects shale basins in Powder River Basin Wyoming and DJ Basin in Colorado to storage terminals in Cushing, Oklahoma.

"This opportunity is a natural expansion of Black Diamond's strategic footprint, with the ability to realize economics further down the crude oil value chain while enhancing the all-in value proposition for our customers," Noble Midstream Partners CEO Brent Smolik said in a statement.

Noble Midstream Partners and Greenfield Midstream owns 54.4 percent and 45.6 percent of Black Diamond respectively. The joint venture owns and operates 240 miles of pipeline and has 390 million barrels of crude oil storage capacity.

Black Diamond's deal with Magellan gives the joint venture an option to buy a 20 percent stake in the Saddlehorn Pipeline. The 15-year deal expands Black Diamond's presence by 85,000 acres, giving the joint venture a 243,000-acre footprint in the DJ Basin.

Source:
chron

Enbridge Announced Line 3 Replacement Pipeline Agreement

A commercial agreement with shippers to place the Canadian portion of the Line 3 replacement pipeline into service has been reached, announced Enbridge Inc. The pipeline will be put into service by the end of this year.

This agreement reflects the importance of this safety-driven maintenance project to protecting our environment and ensuring the continued safe and reliable operation of the pipeline well into the future.

Enbridge will be filing a tariff with the Canada Energy Regulator for a temporary surcharge with a proposed effective date of 1 December 2019. This tariff will be superseded by the full negotiated Line 3 tariff upon completion of the US segment of the pipeline.

Source:
worldpipelines

Five-Year Extension Requested to Build Lake Charles LNG Export Terminal

A five-year extension to build the proposed Lake Charles LNG export terminal was submitted to federal regulators by Energy Transfer. As per the federal permit that was received in December 2015, the 240-acre liquefied natural gas export terminal project was supposed be operational by December 2020.

The LNG export terminal project got delayed and never got built due to complex international contract negotiations for the delay, Energy Transfer said in a letter. The company asked the Federal Energy Regulatory Commission to extend that deadline until December 2025.

"The project sponsors are eager to continue to move forward with the project and receipt of the requested extension is a necessary step," Energy Transfer Chief Regulatory Officer Michael Langston wrote in the letter.

Energy Transfer is not expected to make a final investment decision on Lake Charles LNG until early 2020, Langston explained in his letter. The proposed export terminal is authorized to produce 16.45 million metric tons of LNG year.

Source:
chron

49% Stake Acquired by Harvest Alaska in Taps and Alyeska

BP Transportation Alaska's ownership in all midstream interests in Alaska will be acquired by Harvest Alaska. This will include 49% interest in the 800-mile Trans-Alaska Pipeline System (TAPS), 49% of Alyeska Service Company and other related midstream interests.

"The Trans-Alaska Pipeline System is an icon of Alaska's energy industry and a monument to Alaskan ingenuity and will power. It's also a critical piece of infrastructure for America's energy future," said Jason Rebrook, Chief Executive Officer of Harvest Midstream. "We are proud to partner with Alyeska and the other members of the TAPS family to ensure a bright future for the system, for Alaskans, and for American energy independence."

Trans-Alaska Pipeline System is one of the largest pipelines in the world which transports approximately 2 million barrels per day of oil. The pipeline runs from the Prudhoe Bay oilfield to the Valdez Marine Terminal in Alaska. The operation of the pipeline will be continued by Alyeska Service Company and has transported over 17 billion barrels of product to date.

"TAPS is an engineering marvel that has played a critical role in the history of the energy industry," said Sean Kolassa, President of Harvest Midstream. "It will continue to play a very important role and we look forward to being a key partner in its future with focus on safety, the environment and the communities it connects."

Source:
worldpipelines

Williams Partners NG Pipeline to Move Forward Despite New York’s Objections

New York’s denial of a water quality permit that had blocked Williams Partners natural gas pipeline project was cleared by Federal Energy Regulatory Commission. The regulators ruled last Wednesday that the state Department of Environmental Conservation missed a one-year deadline when it rejected the permit in 2016.

After New York rejected a water quality permit over concerns for 250 streams, Williams appealed to federal courts. But after losing court challenges, Williams appealed to FERC. The 124-mile, 30-inch-wide pipeline would run from Pennsylvania’s shale gas fields to eastern New York.

The project still needs a permit from the U.S. Army Corps of Engineers, Williams spokesman Christopher Stockton said. He added that the project sponsors are evaluating their next steps.

Source:
pgjonline

Saddlehorn Pipeline Announced Capacity Expansion

Saddlehorn Pipeline’s successful open season during July and the subsequent increased volume commitments from shippers allowed Saddlehorn Pipeline Company, LLC to announce a further expansion on its pipeline. The pipeline’s capacity will be increased by a total of 100,000 barrels per day to a new total capacity of approximately 290,000 barrels per day.

Magellan Midstream Partners, L.P., Plains All American Pipeline, L.P. and Western Midstream Partners, L.P. jointly owns the Saddlehorn pipeline. The pipeline is currently capable of transporting 190,000 barrels per day of crude oil and condensate from the DJ and Powder River Basins to storage facilities in Cushing, Oklahoma owned by Magellan and Plains.

Following the addition of incremental pumping and storage capabilities, the higher capacity is expected to be available in late 2020.

Source:
worldpipelines

5.6 Billion Deal to Sell BP’s Assets in Alaska

Anchorage-based Hilcorp Alaska will buy BP’s entire business in Alaska for a total consideration of US$5.6 billion, BP announced. The transaction is expected to be completed in 2020, subject to state and federal regulatory approval.

Under the terms of the agreement, the sale will include BP's entire upstream and midstream business in the state, including BP Exploration (Alaska) Inc., which owns all of BP's upstream oil and gas interests in Alaska, and BP Pipelines (Alaska) Inc.'s interest in the Trans Alaska Pipeline System (TAPS).

"Alaska has been instrumental in BP's growth and success for well over half a century and our work there has helped shape the careers of many throughout the company. We are extraordinarily proud of the world-class business we have built, working alongside our partners and the State of Alaska, and the significant contributions it has made to Alaska's economy and America's energy security.” said BP group chief executive Bob Dudley.

Source:
worldpipelines

Keystone XL Route Approval Affirmed by Nebraska Supreme Court

Nebraska Supreme Court has affirmed the November 2017 decision that approved the Keystone XL Pipeline route through the state which was taken by the Nebraska Public Service Commission, TC Energy Corp. announced on August 23.

“The Supreme Court decision is another important step as we advance towards building this vital energy infrastructure project,” said Russ Girling, TC Energy’s President and Chief Executive Officer. “We thank the thousands of government leaders, landowners, labor unions and other community partners for their continued support through this extensive review process.  It has been their unwavering support that has advanced this project to where it is today.”

The pipeline project still faces obstacles after a November 2018 ruling by U.S. District Court Judge Brian Morris to block construction activities in Montana. But in March, President Donald Trump issued a new Presidential Permit for Keystone XL, superseding the one he issued in 2017.

The Nebraska Public Service Commission on November 20, 2017 gave approval to TC Energy (then TransCanada) to build the Keystone XL pipeline using the Mainline Alternative Route. But environmental groups had challenged the Nebraska Public Service Commission decision to approve the project.

Source:
napipelines

Open Season announced for ATEX Ethane Pipeline

Binding open season was announced by Enterprise Products Partners on the partnership’s 1,200-mile Appalachia-to-Texas (“ATEX”) ethane pipeline to determine demand for expanded capacity on the pipeline. The open season started at 9 a.m. CDT on August 26, 2019 and continues until 5 p.m. CDT on September 25, 2019.

The company would add up to 50,000 barrels per day of incremental capacity through a combination of pipeline looping, hydraulic improvements and modifications to existing infrastructure. This is subject to sufficient customer commitments during the open season. The company is expecting that the expanded capabilities would be in service by 2022.

The pipeline transports ethane from the Marcellus/Utica Basin of Pennsylvania, West Virginia and Ohio to Enterprise’s natural gas liquids storage complex in Mont Belvieu, Texas, and features pipeline access to petrochemical plants along the Gulf Coast.

Source:
pgjonline