Kinder Morgan Moves Forward with South Texas Pipeline Connection

Kinder Morgan Inc., announced on Wednesday that the company will go ahead with the South Texas pipeline connection that would transport crude from Phillips 66’s Gray Oak pipeline in the Permian Basin to delivery points at the Houston Ship Channel.

“We wanted to find a way to get Permian barrels to KMCC (Kinder Morgan Crude and Condensate pipeline),” which delivers crude from the Eagle Ford Shale in South Texas to Houston Ship Channel destinations, Chief Executive Officer Steven Kean said.

Kinder Morgan and Phillips 66 began soliciting shipper commitments for the connection in February. The company plans to spend $10 million on the project this year and expects the connection could carry 100,000 barrels per day.

The service is expected to begin by the end of 2019 and has contracts to start transporting 75,000 barrels per day for up to three years. The company is also considering converting an underutilized natural gas pipeline to carry crude from the Bakken shale in North Dakota and the Denver-Julesburg basin in Colorado.

Source:
reuters

Ozark Crude Pipeline to Be Restarted After Damaging Storms

MPLX LP will restart its 360,000 barrels per day Ozark pipeline that runs from storage area in Cushing, Oklahoma to refineries in the Midwest, the company said last Wednesday.

Since Oklahoma has recently suffered from flooding and storms, the Ozark system was shut down last Tuesday after an operational check, the company said. Upon restart the company expects the pipeline to operate at full capacity.

Due to the bad weather and flooding in central Oklahoma, Tallgrass Energy LP was also prompted to halt all deliveries to destinations on the Pony Express Pipeline. They had to shut down the pipeline's south end segment, which runs from Sterling, Colorado, to Cushing, because of flooding on the Cimarron River.

Until the risk of flooding has been diminished, operations had been temporarily stopped at the HollyFrontier Corp refinery in Tulsa, Oklahoma, the company said in a statement.

Source:
pgjonline

Temporary Embargo of Deliveries for Pony Express Pipeline Segment

The south end of Pony Express pipeline system has been shut down due to an extensive flooding on the Cimarron River in Oklahoma, Tallgrass Energy LP said on Thursday.

The company has provided notice of a temporary embargo of deliveries for the shut segment that runs from Sterling, Colorado through to Cushing, Oklahoma, a Tallgrass Energy spokeswoman said.

The Pony Express pipeline has a capacity of 320,000 barrels per day and starts in Guernsey, Wyoming, and flows southeast to Cushing, Oklahoma.

“We will restart operations as soon as the weather permits,” she added.

Source:
reuters

$68K Fined for Byproduct Spills

For three spills of an oil and gas byproduct in southwestern Colorado, BP America Production Co. has been fined $68,000.

Produced water and other substances from cracked pipelines caused the gas byproduct to be released in the county.  State records shows the spills occurred in April 2018, November 2018 and April 2019.

BP has agreed to spend about $12.5 million by 2022 to repair or replace 17 miles of pipelines in La Plata County, reported by The Durango Herald on Wednesday.

‘Pipelines are cracking as a result of the stress of ground movement,’ BP attorney told the state Oil and Gas Conservation Commission this week.

Source:
chron

Open Season Announced for an Additional 30 Mile Expansion on Pony Express Pipeline

Tallgrass Energy, LP, has announced an open season for the new 30-mile 12 inch pipeline expansion, the Hereford Lateral, which will connect crude oil gathering facilities and/or terminal facilities near Hereford, Colorado, with existing Pony Express facilities located near the Pawnee origin facility in Weld County.

The company is expecting the expansion to be in-service by July 2019, and the expansion capacity on the existing Pony Express system to be in-service by May 2020. These both are ahead of the larger Pony Express system expansion announced Jan. 22, 2019.

A limited open season will run from May 1, 2019, to May 15, 2019 to allow interested parties the opportunity to commit to the Hereford Project is launched by Pony Express.

Source:
worldpipelines

Open Season Announced for Bayou Bridge Pipeline System

Bayou Bridge Pipeline, LLC, a joint venture owned by subsidiaries of Energy Transfer and Phillips 66 Partners recently announced a non-binding expansion open season that commenced at 1 pm CT on 22 April 2019 to solicit shipper interest for expanded joint tariff transportation service received from certain connecting carriers onto the Bayou Bridge Pipeline System.

Energy Transfer owns 60% and Phillips 66 Partners owns 40% of the Bayou Bridge Pipeline system. It is operated by a wholly owned subsidiary of Energy Transfer Operating, L.P. Bayou Bridge is evaluating joint tariff service from origin points in the Bakken/Three Forks Region in North Dakota; Patoka, Illinois; the Powder River Basin in Wyoming; the DJ Basin in Colorado; Cushing, Oklahoma; and the Permian Basin.

Bayou Bridge also continues to evaluate additional Southern Louisiana destination points to increase options for shippers on the system,in addition to the routes that are the subject of this non-binding expansion open season. Bayou Bridge will hold a binding expansion open season to finalize committed subscriptions, following the confirmation of shipper interest.

Source:
worldpipelines

Open Season Extended for Tallgrass Energy’s Pony Express Pipeline

Tallgrass Energy, LP has announced that it has extended and expanded its open season soliciting shipper commitments for crude oil transportation services.

The open season, initially announced on 13 November 2018, has been extended to 14 April 2019. This is to reflect updated rates and contracting options to accommodate newly secured commitments.

The 760-mile Pony Express crude oil pipeline originates in Guernsey, Wyo., and runs through Colorado, Nebraska and Kansas, connecting with three refineries before terminating in Cushing, Okla.

Placed in service in 2014, Pony Express has a design capacity of 320,000 barrels a day, and based on a number of factors has the capacity to transport additional barrels.

Sources:
worldpipelines
tallgrassenergylp

Discovery Midstream Bought for $1.2 Billion by Joint Venture of KKR and Williams Cos

Private equity firm KKR and Co said on Monday that it will form a joint venture with Williams Cos Inc and buy Discovery Midstream from TPG Growth for around $1.2 billion.

Discovery Midstream’s assets include a 60 million cubic feet per day gas processing plant in Colorado’s Denver-Julesburg Basin, along with an extra 200 MMcf/d plant that is under construction and expected to be in service by the end of 2018.

KKR will own 60 percent of the assets while the remaining will be held by Williams when the deal closes. The deal is expected to close in the third quarter of this year.

When required, Williams will fund additional capital to bring its total ownership to 50 percent. KKR said the deal will be funded primarily through its energy and infrastructure funds.

TPG Growth bought oil and gas producer Discovery Midstream last year.

Source:
Reuters