Houston Company Receives Funding to Build New 1 Million Bpd Pipeline

The Jupiter Pipeline, a new 1 million barrel a day crude oil pipeline from West Texas to Brownsville, has received the funding required to be built last week.

The pipeline is under development by Houston-based JupiterMLP and is receiving funding commitments from Charon System Advisors. Charon System Advisors is an affiliate of Houston-based private investment firm Spinel Investment Company.

JupiterMLP has secured permits to build more than 2.8 million barrels of storage and has given governmental and regulatory permits to load and unload vessels that can carry up to 65,000 deadweight tons.

Pipelines from the Permian to the Corpus Christi region are also being developed by San Antonio-based EPIC Midstream and Houston's Phillips 66 and Plains All American.


600-Mile Permian Gulf Coast Pipeline to Cost Nearly $2 Billion

Magellan Midstream Partners LP projected on Wednesday it would spend nearly $2 billion to construct a proposed crude oil pipeline from the Permian Basin in West Texas to the U.S. Gulf Coast. 

"We have binding commitments that give us very attractive economics. But what we don't know is the full demand," which would dictate the project’s final cost, Magellan's chief executive Michael Mears said at the Barclays energy conference in New York. 

The project cost for the Permian Gulf Coast pipeline won’t be made clear until after shippers commit to volume capacity during the open season, Mears said. The bidding process for additional shipper commitments will be launched later this week.

The new partnership by Magellan, Energy Transfer Partners, and others adds another project to the race to build crude oil pipelines from West Texas’ booming Permian Basin to refining and export hubs in Houston, Corpus Christi, and Beaumont.

Due to the lack of pipelines carrying oil, Permian oil drilling and well completions are slowing down. Until new pipelines start coming in the middle of 2019, companies are relying on trucks and trains to move crude.

The pipeline would come online in mid-2020 and would stretch to Magellan’s East Houston terminal and to Energy Transfer’s Nederland terminal near Beaumont.


Oxy to Sell Ingleside and Crude Oil Infrastructure to Moda and Lotus Midstream

Moda Midstream, LLC announced on Wednesday that it has entered into a definitive agreement to acquire the Oxy Ingleside Energy Center (IEC) and certain crude oil and LPG infrastructure form Occidental Petroleum Corporation. The transaction is expected to close in the third quarter of 2018, subject to customary closing conditions.

Strategically located in Ingleside, Texas, IEC resides near the mouth of Corpus Christi Ship Channel with minimal transit times to the Gulf of Mexico.

Oxy is also selling the Centurion pipeline system to Lotus Midstream. The pipeline extends from the Permian to an oil storage and transportation hub in Cushing, Oklahoma.

The combined $2.6 billion transaction are part of an effort for Oxy to focus on its growing production in the Permian. Oxy is easily one of the largest producer’s in the Permian.

Chief Executive Vicki Hollub emphasized the company’s focus on the Permian

“The Permian is now the foundation and the growth of our company,” Hollub said. “The bulk of our growth capital will continue to go to the Permian Resources business.”

The transactions by Moda and Lotus are the largest in their companies’ history.

Houston Chronicle
World Pipelines

Final Phase of EPIC Natural Gas Liquids Pipeline to Begin Construction

The 700-mile EPIC Natural Gas Liquids Pipeline that will flow from New Mexico to Corpus Christi has entered the third and final phase of construction, company officials say.

The pipeline will be side-by-side with the previously announced 730-mile EPIC Crude Oil Pipeline for most of its route.

The NGL pipeline will have a throughput capacity of more than 440,000 barrels per day with different origin points in the Delaware and Midland Basins, and the crude oil pipeline will carry 550,000 barrels per day from the Permian to the Eagle Ford Basins.

The NGL project started in December and finished its first construction phase 3 months ago.

Caller Times