Calcasieu LNG Project Receives Notice of Schedule for Environmental Review

US Federal Energy Regulatory Commission has issued Notice of Schedule for Environmental Review for the Calcasieu LNG project, Commonwealth LNG announced. The project includes the construction of one liquefied natural gas plant, including six gas liquefaction trains and appurtenant facilities.
“We are very pleased to receive FERC’s Issuance of Notice of Schedule for Environmental Review. It confirms that our project remains on schedule to take FID in Q1 2021 and start commercial operations in Q1 2024,” said Paul Varello, Commonwealth LNG’s President and CEO.

The Calcasieu LNG project is located on the west side of the Calcasieu Ship Channel, near the entrance to the Gulf of Mexico. Each gas liquefaction train will have a liquefaction design capacity of approximately 1.4 million metric tons per annum for a total nominal liquefaction capacity of 8.4 MTPA.

The project consists of six LNG storage tanks each with a capacity of 40,000 cubic meter, one marine loading berth capable of loading LNG carriers up to a capacity of 216,000 cubic meter, and a 3.04-mile long, 30-inch diameter pipeline that will connect the LNG Facility with existing intrastate and interstate pipelines for the purpose of supplying gas to the project.


$2.25 Billion Assets in Haynesville Shale Basin Acquired by DTE Midstream

DTE Midstream has announced that it will acquire 100% of the assets from Momentum Midstream and Indigo Natural Resources. DTE Midstream has entered into an agreement to acquire a gathering system and gathering pipeline in the Haynesville shale formation of Louisiana.

As per the agreement, the purchase price will be of US$2.25 billion in cash, plus a US$400 million milestone payment upon completion of the gathering pipeline in the second half of 2020. The selling companies are the primary gas producers supplying the system.

"DTE's non-utility operations continue to grow, perform well and fit nicely into our planned utility and non-utility mix," said Jerry Norcia, president and CEO of DTE Energy. "This acquisition is highly accretive, has world-class resources, has excellent access to large markets, and is in the early- to mid-cycle development phase. It checks all of our boxes," Norcia added.

The acquisition assets includes an existing gathering system and a 150 mile gathering pipeline that is under construction and which will be in service in the second half of 2020.


Start-Up of New Crude Oil Gathering System in DJ Basin Announced

ARB Midstream, LLC has announced a key expansion of its fast-growing crude oil gathering and transportation system in the prolific DJ Basin in northeastern Colorado.

DJ South Gathering, LLC, a subsidiary of ARB Midstream is currently constructing the Badger Pipeline. The pipeline is one of three large diameter transmission lines currently being constructed by DJ South Gathering.

The Badger pipeline transports, with a throughput of 90,000 barrels per day production from southwestern Weld County and delivers into 300,000 bbls of dedicated crude oil storage at Platteville, the key crude oil hub within the DJ.

Apart from Badger pipeline, DJ South Gathering system also includes the 220,000 barrels per day Matador pipeline, the 150,000 barrels per day bi-directional Freedom pipeline, Bennet Station, and the Platteville Storage and Distribution network.


Sendero Carlsbad Gateway Project Approved by FERC

The construction of the Sendero Carlsbad Gateway natural gas project in the Permian Basin was approved by Federal Energy Regulatory Commission. The project includes a 23 miles of 24 inch diameter pipeline with 400 Mmcf per day capacity between its Carlsbad processing plant and White Water Midstream's Agua Blanca pipeline.

The pipeline will expand upon Sendero's current 70 miles of 8 to 12 inch gathering system. The project will also include a new meter station within the existing Carlsbad Plant in Eddy County, a mainline block valve at milepost 15.0 in Eddy County, and a pig receiver and mainline block valve at milepost 23.3 near a White Water Midstream, LLC meter station in Culberson County.

Gateway will own all of the gas transported on the pipeline and has no plans to provide third-party transportation service. For that reason, FERC approved the company’s request to waive some of the regulatory obligations that are typically required of interstate pipelines that provide open-access service.


Appalachia-To-Texas Ethane Pipeline Expansion Announced

The expansion of Appalachia-to-Texas pipeline, known as ATEX was announced by Enterprise Products Partners in a statement released on Monday morning. The 1,200-mile pipeline moves ethane from the Marcellus Shale and Utica Basin of Pennsylvania, West Virginia and Ohio to Enterprise's natural gas liquids storage complex just east of Houston in Mont Belvieu.

“The success of the open season reflects the demand for additional, reliable ethane takeaway capacity from the Appalachian region of the country,” Enterprise Senior Vice President Michael C. "Tug" Hanley said in a statement. “Our customers value flow assurance and reliability. The expansion of ATEX will facilitate growing production from the Marcellus/Utica Basin and will provide access to attractive markets on the Gulf Coast through Enterprise’s integrated midstream network.”

The decision came after the completion of a 30-day open season for producers to book capacity on the expansion project. The pipeline can currently move 145,000 barrels of ethane per day but the expansion project will boost that to 190,000 barrels per day. 

Estimated construction costs have not been disclosed. Through improvements and modifications to existing infrastructure, the extra capacity will be available by 2022.


Goodnight Midstream Receives $500 Million for Expansion

Dallas-based private equity firm Tailwater Capital has committed more than $500 million for Goodnight Midstream to expand its oil field water operations. Goodnight Midstream is active in Bakken Shale of North Dakota, the Permian Basin of West Texas and Eagle Ford Shale of South Texas on moving produced water or saltwater and oilfield wastewater. 

"With this capital flexibility, we will continue to meet the increasing demand from our customers for scalable produced water infrastructure solutions and remain focused on providing safe, reliable and environmentally sustainable produced water logistics services to our customers," Goodnight Midstream Co-Founder and CEO Patrick Walker said in a statement. 

"With favorable market dynamics driving further investment in the produced water midstream sector, and the company's numerous customer contract wins, our team at Tailwater has strong conviction in Goodnight's industry leadership and continued success," Tailwater Capital Co-Founder and Managing Partners Edward Herring said in a statement. 

Dozens of saltwater disposal wells and hundreds of miles of produced water pipelines are operated by Goodnight Midstream in the Bakken Shale of North Dakota, the Permian Basin of West Texas and Eagle Ford Shale of South Texas. Two pipeline systems were put into service recently in the Permian Basin that will move 600,000 barrels of wastewater from oil and natural gas wells to disposal sites.


Midland to Echo System Expansion Announced

Expansion of the Midland to ECHO crude oil pipeline system was announced by Enterprise Products Partners L.P. The company will build a pipeline that connects the partnership’s 6 million bbl Midland, Texas storage facility to its ECHO Terminal through its Eagle Ford system in South Texas.

The company said it has long-term agreements that will support the expansion. The pipeline will have an initial capacity of 450,000 barrels per day and can be expanded up to 540,000 barrels per day.

The expansion will allow Enterprise to optimize its entire Midland to ECHO system, which will be comprised of four pipelines, by moving barrels in the most cost-efficient manner. It will also enable the partnership to maximize the operational flexibility of the Seminole Red pipeline in either crude oil or natural gas liquid service based on the needs of the respective markets.

This expansion project will also allow customers with crude oil and condensate production in both the Permian Basin and the Eagle Ford to maximize the value of their contracted pipeline capacity.


Cushing Connect Joint Venture Formation Announced

The formation of a 50/50 joint venture for Cushing Connect Pipeline & Terminal LLC was announced by Holly Energy Partners, L.P. and Plains All American Pipeline.

Development and construction of a new 160,000 barrels per day crude oil pipeline will be done by the joint venture. The pipeline will connect the Cushing, Oklahoma crude oil hub to the Tulsa, Oklahoma refining complex and is expected to be in service during the first quarter of 2021.

The joint venture will also own and operate the 1.5 million bbls of crude oil storage terminal in Cushing, Oklahoma which is expected to be in service during the second quarter of 2020.

“The new Joint Venture will provide growth to HEP by insourcing logistics spend and provide the capability to supply 100% of HFC’s Tulsa Refinery crude throughput,” commented George Damiris, Chief Executive Officer of the general partner of Holly Energy Partners. “Our partnership with Plains generates HEP growth while providing HFC long-term control of a strategic asset.”

“This win-win Joint Venture aligns with our strategy of optimising existing assets to provide value-chain solutions for long-term industry partners in a capital efficient manner,” stated Jeremy Goebel, Executive Vice President – Commercial, Plains All American. “This investment expands our relationship with a key operational hub service customer and provides additional long-term alignment on movements to the Tulsa refinery.”

An affiliate of Holly Energy Partners will be given the contract to manage the construction and operation of the pipeline. Also an affiliate of Plains will manage the operation of the crude oil storage terminal in Cushing, Oklahoma.


Cheyenne Connector Pipeline Gets Approval from FERC

The final approval for the construction of Tallgrass Energy's Cheyenne Connector pipeline was given by Federal Energy Regulatory Commission.

The 70-mile, large-diameter interstate natural gas pipeline will transport natural gas from Colorado's DJ Basin to Cheyenne, Wyoming for Midwest delivery via the company's Rockies Express Pipeline.

The pipeline project will move natural gas from processing facilities in Weld County, Colorado to the Rockies Express Pipeline Cheyenne Hub also known as REX Cheyenne Hub, near the Colorado/Wyoming border.

Tallgrass has estimated that the Cheyenne Connector will be in service in the first quarter of 2020 with an expected initial design capacity of 600 MMcf/d and potential room for expansion.

Using Cheyenne Connector, producers in the DJ Basin can access interconnected pipelines and local distribution systems at the REX Cheyenne Hub as well as interconnected systems downstream of REX that reach end-users in West markets, Midwest markets such as Chicago and Detroit, the Gulf Coast and Southeast.


FERC Granted Authorization for Jacksonville LNG Export Facility

U.S. Federal Energy Regulatory Commission has issued the order granting authorization for siting and constructing the proposed on-water Jacksonville liquefied natural gas export facility in Florida, Eagle LNG Partners LLC announced.

“The FERC authorization for Eagle LNG’s Jacksonville LNG Export facility has been many years and countless hours in the making. As one of only a handful of greenfield LNG project proponents to obtain their FERC Order, and the only project devoted to provisioning small-scale LNG projects in the Caribbean basin, Eagle LNG is one large step closer to delivering clean-burning, affordable, domestically produced U.S. natural gas.” said Sean Lalani, president of Eagle LNG.

The production capacity of the LNG export facility and terminal will be approximately 1.65 million LNG-gallons per day with 12 million LNG-gallons of storage plus marine and truck loading capabilities located on-site. The approximate construction cost of the export facility will be $500 million.

Once Eagle LNG’s Jacksonville LNG Export Facility is completed and its operations combined with Eagle LNG’s Maxville LNG Facility and the Talleyrand LNG Bunker Station, Eagle LNG will be providing the lowest cost LNG for bunkering in the southeast United States.


Phase I of Touchdown Crude Oil Gathering System Completed

Touchdown Crude Oil Gathering System’s Phase I in the Northern Delaware Basin has been completed and the pipeline system will begin transporting crude oil in October for certain contracted customers in Eddy County, New Mexico, LM Energy Holdings, LLC announced.

LM Energy will be extending the Touchdown Crude Oil Gathering System and constructing the Touchdown Gas Gathering System as part of the Phase II of the project, which will begin operations in the first quarter of 2020.

Based upon current contractual commitments, the combined systems will include a total of more than 100 miles of low-and high-pressure pipelines. LM Energy Holdings, LLC was formerly known as Longhorn Midstream Holdings, LLC.

 “We are constructing our systems with new large diameter pipelines purpose-built for modern well performance. The high-rate-of return drilling, with oil-weighted economics and associated gas, is the ideal environment for a crude oil and natural gas midstream provider,” said Elliot Gerson, Managing Partner of LM Energy.


Enterprise Announces Acadian Gas Pipeline System Expansion and Extension

The plan to expand and extend the Acadian natural gas system was announced by Enterprise Products Partners L.P. This project will deliver growing volumes of natural gas from the Haynesville Shale to the liquefied natural gas market in South Louisiana.

The company announced that the project will include construction of an approximately 80-mile pipeline that will originate near Cheneyville, Louisiana on Enterprise’s Acadian Haynesville Extension to third party interconnects near Gillis, Louisiana.

The company also plans to increase capacity on the Acadian Haynesville Extension by adding horsepower at its Mansfield compressor station in De Soto Parish.

Once the expansion and extension project is completed, it will increase the Acadian system’s capability to transport Haynesville natural gas production from 1.8 billion cubic feet per day to 2.1 billion cubic feet per day. The company said that the project is supported by long-term customer contracts and is expected to begin service in mid-2021.

 “The Haynesville region currently produces approximately 11 billion ft3/d of natural gas, which is expected to grow to approximately 14 billion ft3/d by 2025,” said A.J. ‘Jim’ Teague, chief executive officer of Enterprise’s general partner. “The expansion and extension of the Acadian system enhances our capability to link supply to some of the most attractive markets in the US. Once this project is completed, our Acadian system will be able to deliver a total of 2.1 billion ft3/d of Haynesville production into the LNG market, South Louisiana industrial complex and other interconnects that serve attractive southeastern US markets.”


Two Companies Joining Forces to Build Proposed Pipeline for Rio Grande LNG

NextDecade and Enbridge signed a memorandum of understanding to develop the Rio Bravo Pipeline together, the two companies announced in a statement released early Wednesday morning. The two companies anticipate finalizing the terms of the MOU during the fourth quarter of 2019.

The partnership will build a pipeline that would move natural gas from the Agua Dulce hub near Corpus Christi to the proposed Rio Grande LNG export terminal at the Port of Brownsville. The approval is still pending from the Federal Energy Regulatory Commission.

"Enbridge is one of North America's leading energy infrastructure companies and we look forward to exploring a strong partnership in South Texas," NextDecade CEO Matt Schatzman said in a statement. "With its Texas Eastern Pipeline and recently completed Valley Crossing Pipeline, Enbridge has extensive permitting, construction, and operating experience in the State of Texas, especially in South Texas."

"We are excited to be working with NextDecade for pipeline solutions to the Rio Grande LNG facility," Enbridge President of Gas Transmission and Midstream Bill Yardley said in a statement. "Our existing infrastructure fits very well with the Brownsville location. This is a continuation of our strategy to bring our major projects execution and permitting capability to the expanding LNG export efforts in North America."


$1.3 Billion Deal to Buy SemGroup by Energy Transfer

Energy Transfer LP will buy SemGroup Corp for $1.35 billion and plans to build a 75-mile oil pipeline to strengthen its oil transportation, terminaling and export operations, Energy Transfer said on Monday.

After the purchase, Energy Transfer will gain control of SemGroup’s crude oil terminal on the Houston Ship Channel. The company plans to construct a pipeline between SemGroup’s crude oil terminal and Energy Transfer’s Nederland, Texas terminal.

Energy Transfer will also add SemGroup’s crude oil gathering assets in the DJ Basin in Colorado and the Anadarko Basin in Oklahoma and Kansas, as well as crude oil and natural gas liquids pipelines connecting the DJ Basin and Anadarko Basin with terminals in Cushing, Oklahoma.

The transaction is expected to close in late 2019 or early 2020. Including SemGroup’s debt, the enterprise value of the deal is $5 billion. The deal, which includes $6.80 in cash and 0.7275 shares of Energy Transfer for each outstanding share of SemGroup, represents a premium of 65.4% to SemGroup’s Friday close.


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.


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.


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.


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.


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.


Permian Highway Pipeline Construction Will Begin Soon

The construction on the $2 billion Permian Highway natural gas pipeline, comprised of 430 miles of 42-inch pipeline carrying up to 2.1 billion cubic feet per day of natural gas from the Waha hub in Pecos County to the Gulf Coast will start soon.

The pipeline project is a partnership between Kinder Morgan, Midland's EagleClaw Midstream and Apache Corp, and the completion is expected in the fourth quarter of 2020.

According to Allen Fore, vice president, public affairs for Kinder Morgan, the pipeline will directly generate about 2,500 local construction and 18 full-time jobs, and the new facilities that are part of the Permian Highway project will generate approximately $42 million in increased annual revenue to state and local taxing authorities.

As part of beginning the construction, stakes have been placed in the ground and pipe stacked in yards.