Trans Mountain Pipeline Expansion May Start in September

The construction on Trans Mountain pipeline expansion project could begin in September, Trans Mountain Chief Executive Ian Anderson said on Wednesday. The project was stalled a year ago after a Canadian court ruled that the federal government, which owns the pipeline, failed to adequately consult indigenous groups.

Prime Minister Justin Trudeau on Tuesday re-approved the $5.56 billion expansion project which could ease the congestion on pipelines and will link Alberta’s oil sands to a port near Vancouver, British Columbia.

“If things go according to plan, I can see shovels in the ground as early as September,” said Trans Mountain Chief Executive Ian Anderson on a conference call. “... Getting started is the most critical thing.” He added that the construction could take 30 to 34 months and oil could flow through the twinned pipeline by the second or third quarter of 2022, assuming the next regulatory steps go smoothly.

Canadian Finance Minister Bill Morneau said that the effort to obtain building permits started on Wednesday. Although supporters say it is an important step to help Canadian oil reach higher-priced international markets, opponents including environmental, indigenous groups and some municipalities, argue the risk of a spill.

Source:
reuters

Phillips 66 Plans to Build an Offshore Crude Oil Export Terminal

Phillips 66 plans to seek permission to build an offshore crude oil export terminal near Corpus Christi. The plan is to build two offshore buoys about 27 miles east of Port Aransas, which will be supported by two underwater 30-inch crude oil pipeline. If approved, Phillips 66 would be the operator of the proposed project.

As per the plan, Bluewater Texas Terminal LLC, a Phillips 66 subsidiary, started contacting public officials about the offshore project earlier this month. The offshore terminal will be able to accommodate Very Large Crude Carriers, or VLCCs, which can haul up to 2 million barrels of crude oil in a single shipment.

The proposed project would require approval from the U.S. Maritime Administration, Texas Commission on Environmental Quality and other agencies, and in a statement, Phillips 66 reported that it is working with the Port of Corpus Christi to develop the project.

"Phillips 66 has decades of experience safely and responsibly operating similar single point mooring systems and other marine loading facilities," the company said in a statement. "Bluewater Texas would provide U.S. oil producers another outlet for their increasing volumes while also potentially reducing the need for reverse lightering and the environmental impact that those operations have on a regional level."

Source:
Chron

Mountain Valley Pipeline Timing Delayed, Raised Estimated Cost

Due to the ongoing legal and regulatory challenges, EQM Midstream Partners LP has raised the estimated cost of its Mountain Valley natural gas pipeline and also delayed the project completion time, Reuters reported.

The initial estimate when EQM started construction on Mountain Valley was about $3.5 billion and to be completed by the end of 2018. But those estimates were raised and now the estimated cost has been raised from $4.6 billion to $4.8 - $5 billion. Also the target to complete the project was delayed from the fourth quarter of 2019 to mid-2020.

The 303 mile Mountain Valley natural gas pipeline extends from West Virginia to Virginia and is designed to deliver 2 billion cubic feet per day of natural gas. EQM commented that it had submitted a land exchange proposal to the federal government in an effort to enable the pipe to cross the Appalachian Trail.

The company’s land exchange proposal would grant the federal government full ownership of private lands crossed by the Appalachian Trail, including certain private land located adjacent to the Jefferson National Forest and in exchange, the government would grant Mountain Valley a right-of-way to cross the trail using the pipeline’s previously planned underground method at an existing crossing location approved by the FERC in 2017.

Source:
worldpipelines

Trans Mountain Pipeline Expansion Project Receives Approval from Canadian Government

Canadian Prime Minister Justin Trudeau’s government approved the C$9.3 billion Trans Mountain pipeline expansion project that will link Alberta’s oil sands to a port near Vancouver, British Columbia.  

The pipeline was purchased by the government from Kinder Morgan a year ago to ensure its expansion. The pipeline project has set Canadian provinces against each other, opened rifts among its Indigenous communities and prompted major protests.

The project is a critical component of Mr. Trudeau’s longstanding position that Canada needs to maintain a strong energy industry to support its efforts to mitigate climate change.

The oil industry in Canada has increasingly turned to trains to ship its products from the oil sands, due to the pipeline bottlenecks. This method of shipment is both costly and potentially dangerous because of the risk of derailments. Due to the transportation issues, the oil industry in Alberta was forced to sell its product at a discount.

Source:
nytimes

New Permit Applications Submitted by Williams for Raritan Bay Pipeline

Williams has filed new permit applications with the New Jersey Department of Environmental Protection to build its proposed Northeast Supply Enhancement Project. The project includes a natural gas pipeline under Raritan Bay to New York and a new compressor station in Franklin Township.

"We strongly believe the discrete technical issues raised by the DEP on June 5 were addressed in our previous application and, in this application, we have provided additional information showing that these issues have been addressed," Christopher Stockton, a Williams spokesperson, said in a statement.

The company's initial application was denied by the DEP and a similar rejection by New York regulators in May. An environmental group has already criticized the company's action for filing new permit application.

"New Jersey’s denial outlined the serious violations of laws and regulations, in particular the lack of need, the impact from toxic contaminated sediments, and the failure to prove that this project is in the public interest. It is clear that as long as the door is left open they will continue to try and push this pipeline through" Peter Blair, policy attorney for Clean Ocean Action, said in a statement.

Source:
mycentraljersey

$40 Million Pre-Construction Work on Line 5 Tunnel Will Start Soon

Enbridge Energy will drill for rock and soil samples from a barge in the Straits of Mackinac this week. The company obtained a permit from the U.S. Army Corps of Engineers for the rock and soil sampling. The geotechnical work is part of the scope of work allowed through a permit issued in January, a spokesman for the Department of Environment, Great Lakes and Energy said.

By moving its previously land-based boring operation onto the actual waterway, Enbridge said, “preserves the schedule to complete the tunnel at the earliest possible date,” which is expected to be five years from now in 2024. Enbridge said on Monday that it received written affirmation from the state last week that allowed it to continue collecting geotechnical samples.

The company plans to spend $40 million this year on the beginning phases of its $500 million utility corridor project, and the geotechnical work is part of its beginning phase. Drilling and sampling will begin from a small barge this week just west of the Mackinac Bridge and a larger, specialized barge will drill in the deepest sections of the passage later in July, Enbridge spokesman Ryan Duffy said.

The geotechnical work “will gather information to inform the detailed engineering and permit application efforts that are part of advancing our commitment to the tunnel that will house a replacement pipeline for Line 5 at the Straits of Mackinac,” the company said in a statement.

Source:
detroitnews

LNG Limited to Boost Production Capacity at Louisiana Export Terminal

LNG Limited, an Australian company has been seeking permission from federal regulators to boost the production at its proposed Magnolia LNG export terminal in Louisiana. The company has already been authorized to produce 8 million metric tons of liquefied natural gas per day, but has made a request to increase the capacity to 8.8 million metric tons per year.

"LNG Limited is committed to building the safest low-cost and most efficient LNG export facility on the U.S. Gulf Coast," LNG Limited Chief Executive Greg Vesey said in statement. "We thank FERC for their previous diligence on Magnolia and are ready for the continued engagement as the agency performs analysis on Magnolia's capacity increase best answered through the preparation of a supplemental EIS."

A notice of intent to prepare a supplemental environmental impact statement for the production capacity increase was issued by Federal Energy Regulatory Commission on last Monday. The company is still waiting on its first supply contracts and a final investment decision on the Magnolia LNG project.

Source:
chron

Two Expansion Projects in Texas Will Boost Exports to Mexico

Completion of a pair of expansion projects in Port Arthur and Corpus Christi by Howard Energy Partners will allow the company to do more exports of crude oil, gasoline diesel and other products to Mexico.

"Substantial expansions at our Port Arthur and Corpus Christi facilities signify HEP's commitment to designing and constructing fully-engineered facilities that are tailored to meet the exact needs of our customers," Howard Energy Partners Co-Founder and President Brad Bynum said in a statement.

The company will get 2.6 million barrels of storage in the region after the completion of the expansion projects, which recently added 12 new storage tanks, four butane bullets, two barge docks, one ship dock and a bidirectional pipeline to its 450-acre Port Arthur terminal.

The expansion projects are expected to boost the company's exports by rail and seafaring tankers, as Mexico has emerged to be one of Howard's top customers.

Source:
chron

Delaware Basin Gathering System Extension Announced by Brazos Midstream

Gathering and processing agreements have been executed between Brazos Midstream and ‘Shell Exploration & Production’ to construct a new natural gas gathering system located in the core of the Delaware Basin.

16 miles of high-pressure pipeline will be constructed by Brazos which will extend from the company’s existing gathering and processing systems. It can be expanded further to support multi-well pad development by current producer customers, as well as other producers in the area.

“We are very pleased to announce the expansion of our relationship with Shell Exploration and Production, one of world’s premier oil and gas companies, as well as the completion of our Comanche III processing plant,” said Brad Iles, Brazos Chief Executive Officer. “These projects are a testament to the strength of our operating team and demonstrate our commitment to aggressively expand our asset base in support of our upstream customers.”

Brazos’ Comanche III plant, a 200 million cubic feet per day cryogenic natural gas processing plant was recently commissioned and is the third plant in Brazos’ natural gas processing complex. The company is anticipating further expansion with a new 200 million cubic feet per day processing plant called Comanche IV and expects to begin construction as early as 2020.

Source:
worldpipelines

NJ Joins NY in Rejecting the Northeast Supply Enhancement Project

New Jersey rejected the plans for Northeast Supply Enhancement pipeline project to move more natural gas to New York City by the winter of 2020-2021, Kallanish Energy reports.

A similar decision was taken last month by New York regulators. The New Jersey Department of Environmental Protection has denied the water-quality certification needed by Williams for the project.

The agency said the project could “adversely impact surface water quality.” Williams is planning to resubmit the application. They have also refiled the permit application to New York regulators and is pending.

The Northeast Supply Enhancement project includes 10 miles of pipeline loops in Pennsylvania, three in New Jersey, 23 miles offshore in New Jersey and New York, a new compressor station in New Jersey and additional horsepower at an existing compressor station in Pennsylvania.

The project is being developed by Transcontinental Gas Pipe Line Co., a Williams’ subsidiary and in New York, the pipeline would stretch under New York Bay to the Queens area of New York City.

National Grid, the largest distributor of natural gas in the northeast U.S said the project is crucial because pipeline capacity to New York is at capacity and natural gas demand in the New York City region is projected to grow by 10% in the next 10 years.

Source:
kallanishenergy

Two Companies Joining Forces to Construct $1.6 Billion Liberty Pipeline

A 50/50 joint venture between Phillips 66 and Bridger Pipeline LLC has formed and the companies will be proceeding with the construction of the 24 inch Liberty Pipeline. The pipeline is expected to cost approximately US$1.6 billion and will provide crude oil transportation services from the Rockies and Bakken production areas to Cushing, Oklahoma.

Subject to receipt of applicable permits and regulatory approvals, initial service on the pipeline is targeted to commence as early as the first quarter of 2021. Phillips 66 will handle both project construction and operating the pipeline.

“The Liberty Pipeline presents us with a great opportunity to serve producers in the growing Bakken and Rockies production areas,” said Greg Garland, Chairman and CEO of Phillips 66. “The pipeline adds to our integrated infrastructure network that serves the key shale oil producing regions with connectivity to major Gulf Coast market centers. Our pipeline network has strategic alignment with our Central Corridor and Gulf Coast refineries, further enhancing value across our assets.”

Source:
worldpipelines

Philips 66 Enters Joint Venture to Build $2.5 Billion Red Oak Pipeline

Phillips 66 has teamed up with Plains All American Pipeline LP to construct the $2.5 billion Red Oak Pipeline system that will deliver crude oil from Cushing, Oklahoma, and the Permian Basin in West Texas to Corpus Christi, Ingleside, Houston and Beaumont, Texas.

The plan is to build a 30-inch pipeline from Cushing to Wichita Falls and Sealy, Texas. It also will build a 30-inch pipeline segment from Sealy to Corpus Christi and Ingleside and a 20-inch pipeline segment from Sealy to Houston and Beaumont.

The company expects to commence initial service as early as the first quarter of 2021. As per the release, Plains will handle project construction and Phillips 66 will operate the pipeline.

“Red Oak represents a capital-efficient industry solution that will utilize existing assets and provide pull-through benefits to our systems,” Willie Chiang, CEO of Plains All American, said in the release. “We look forward to working closely with Phillips 66 and our committed shippers to bring Red Oak into service and further optimize our assets upstream and downstream of the new pipeline system. We also look forward to creating jobs and supporting economic growth in Oklahoma and Texas.”

Source:
bizjournals

Joint Venture to Construct 475 Mile Whistler Pipeline

A final investment decision to design and construct the proposed Whistler pipeline was taken by MPLX, WhiteWater Midstream and Stonepeak Infrastructure Partners/West Texas Gas, Inc.

The 475 mile long pipeline from the Permian Basin in West Texas to the state’s Coastal Bend region will be built by the joint venture, MPLX reported late Wednesday.

The pipeline will be designed to carry approximately 2 billion cubic feet per day of gas through a 42 inch diameter pipe from Waha, Texas, to the Agua Dulce area in South Texas.

The majority of available capacity on the proposed pipeline has been subscribed and committed by long-term transportation agreements and the remaining capacity will be fully subscribed in the coming months.

“The decision to move forward with this project after securing sufficient commitments from shippers demonstrates our disciplined approach to investing,” MPLX President Michael J. Hennigan said in a written statement. “Whistler is expected to provide reliable residue gas transportation out of the Permian Basin, which is vital to our growing gas processing position and producers in the region.”

The pipeline is expected to begin service during the third quarter of 2021, subject to pending regulatory and other approvals.

Source:
rigzone

Binding Open Season Announced for Thunder Creek NGL Pipeline

A binding open season to secure volume dedications for the proposed construction and development on its existing Thunder Creek NGL Pipeline system was announced by Meritage Midstream. The binding open season started at 8:00 AM MT on June 10, 2019 and is scheduled to conclude at 5:00 PM MT on July 10, 2019.

The pipeline will transport NGLs from two processing plants in Campbell and Converse counties, Wyoming, to an interconnection point with ONEOK's Bakken Pipeline in Converse County.

Meritage said the open season seeks to obtain volume dedications from shippers to the following proposed new movements:

1. Originating from Thunder Creek Gas Services' 50 Buttes Process Plant in Campbell County with a destination at an interconnection with ONEOK Bakken Pipeline in Converse County, and

2. Originating from Thunder Creek's Steamboat I Natural Gas Plant in Converse County, with a destination at an interconnection with ONEOK Bakken Pipeline in Converse County, Wyoming.

The proposed new origin and destination points will allow potential shippers to move product from Thunder Creek plants in the Powder River Basin to a newly established interconnect with ONEOK Bakken Pipeline at Well Draw in Converse County.

It will then provide access to ONEOK’s Niobrara Lateral, which will ultimately access newly created capacity on ONEOK’s Elk Creek expansion. The new movements is expected to be completed in the third quarter of 2019, subject to shipper demand.

Source:
pgjonline

Louisiana Sabine Pass 6 LNG Export Train to Be Built by Cheniere

The biggest supplier of U.S. LNG is planning to build a sixth liquefaction train at its Sabine Pass LNG export terminal in Louisiana, Cheniere Energy said on Monday.

The company has a $2.5 billion contract with Bechtel, the lead contractor building its LNG terminals. It gave Bechtel the notice to proceed with the construction of Sabine 6 and expects the unit to enter service in 2023.

Cheniere’s subsidiary, Cheniere Energy Partners LP has entered into five-year, $1.5 billion senior secured credit facilities with 29 banks and financial institutions to fund a portion of Sabine 6 and a third LNG berth at the plant.

Also all remaining necessary regulatory approvals for the project is expected to receive by the end of 2019, the company said.

Source:
pgjonline

Natural Gas Pipeline Expansion Receives Construction Approval from FERC

Transco’s Northeast Supply Enhancement project received approval for construction from FERC. The pipeline expansion project will carry natural gas from the shale fields of Pennsylvania to New York, and will expand on the company’s existing pipeline infrastructure in New Jersey, New York, and Pennsylvania.

The project will add approximately 36 miles of new pipeline and add two new natural gas compressors at exiting compressor stations. The NSE project will replace the use of 900 thousand barrels of heating oil annually in the region with 400,000 dekatherms per day of natural gas by converting about 8,000 customers per year from heating oil to natural gas in the Northeast.

By displacing oil with cleaner burning natural gas, the project would result in the reduction of a variety of air pollutants in the region and could result in lower greenhouse gas emissions overall, since natural gas emits less carbon dioxide than oil on a volume basis when burned.

“After carefully balancing the need for the project and its environmental impacts, I find the project is in the public interest,” Cheryl LaFleur, a Democratic appointee said in her remarks while approving the project’s certificate of construction.

Source:
heartland

Open Season Extended for the Proposed Voyager Pipeline

An extension of the open season to solicit commitments from shippers for the proposed Voyager Pipeline was announced by Magellan Midstream Partners, L.P. and Navigator Energy Services. The pipeline will transport crude oil from Cushing, Oklahoma and Midland, Texas to Houston.

The proposed Voyager Pipeline would include construction of 20 inch diameter pipelines from both Magellan’s Cushing and Midland terminals to Magellan’s terminal in Frost, Texas and a 24 inch diameter pipeline would be constructed from Frost, Texas to Magellan’s terminal in East Houston.

The Pipeline is expected to have an initial capacity of up to 400,000 barrels per day, with the ability to expand if necessary by industry demand. It is expected to be operational in early 2021, subject to receipt of sufficient customer commitments and all necessary permits and approvals. Binding commitments are now due by 12:00 pm CDT on 30 August 2019.

Source:
worldpipelines

Construction Starts on Wyoming Natural Gas Pipeline

The construction work has started on a new 4.5 mile natural gas pipeline that will support the city of Laramie and the University of Wyoming. The pipeline will run from West Lyon Street to East Harney Street in the City of Laramie.

“The City of Laramie and the University of Wyoming are experiencing a great deal of growth, and this project provides reliability for our expanding community,” Rachael Sisneros, Supervisor of Gas Operations in Laramie, said. “The investment is necessary for Black Hills Energy to continue to provide our customers with safe and reliable natural gas service.”

Although the construction will impact residents throughout the area, natural gas service will not be interrupted during construction. The pipeline construction will be handled by TRC Construction, Inc.

Source:
dailyenergyinsider

Plains Cactus II Crude Pipeline Rate Structure Receives Partial Approval

The rate structure and terms of service for Plains All American Pipeline LP’s Cactus II crude line recieved partial approval from U.S. energy regulators on Monday. The Cactus II crude pipeline runs from the Permian basin to the Corpus Christi, Texas area.

The regulators approved most conditions put forth by Plains. However they declined to approve a request for the option to hold another open season to solicit shipper commitments for up to 90 percent of the pipeline’s capacity upon the expiration or early termination of service agreements.

The 585,000 barrels per day Cactus II line is expected to begin service in the third quarter and will connect the Permian basin to the Gulf Coast.

Source:
reuters

Court Rules Against Enbridge’s Line 3 Replacement Project

Minnesota State Court of Appeals ruled on Monday that the environmental assessment done on Enbridge’s Line 3 pipeline replacement project was inadequate. The ruling is just the opposite of Minnesota Public Utilities Commission’s decision, which approved the environmental impact statement for the pipeline replacement.

The proposed replacement pipeline will have the capacity to move 370,000 barrels of oil per day. The company plans to replace its existing 282 miles of 34 inch pipeline with 337 miles of 36 inch pipe. The project has faced numerous legal challenges and has been approved and disapproved several times over.

The startup date for the pipeline replacement project was originally supposed to be at the end of 2019.  As per the court, the Commission made a mistake when it approved the plan, and found that Enbridge’s environmental impact statement lacked in details about where it deals with oil spills in relation to Lake Superior.

Source:
oilprice