Energy Transfer Plans to Build VLCC Capable Crude Export Facility

Energy Transfer LP was in discussions with potential shippers to build an offshore crude oil export facility in Texas capable of handling Very Large Crude Carriers (VLCCs), which can transport about 2 million barrels of crude in a single shipment, the company said on Thursday.

Chief Financial Officer Thomas Long said during a quarterly earnings call for the company that the future export facility would be connected to its Nederland, Texas, crude terminal and a final investment decision has not yet been made. The company said it expects to take at least two or three years to begin construction on the VLCC project.

"We're very excited about this," Energy Transfer President Mackie McCrea said. "It's going to be a great market opportunity for our Nederland and Permian Express systems but also more importantly, for our customers bringing volume into Nederland." The company's next step is expected to be filing for a permit with the U.S. Maritime Administration.

Data from last week showed that U.S. crude exports jumped to a monthly record of 3.16 million barrels per day in June as South Korea bought record volumes and China ramped up purchases.


Caliber Midstream Expands Operations in North Dakota

Caliber Midstream Holdings, L.P. acquired assets previously owned by American Midstream Partners, L.P, in North Dakota. With the acquisition, Caliber now owns and operates 368 miles of pipeline across its four service lines in McKenzie County, North Dakota.

The acquired assets will widen Caliber’s area of operations within McKenzie County, North Dakota that includes a FERC-regulated 47-mile pipeline and related facilities with the ability to transport crude oil to the Tesoro High Plains Pipeline and the Energy Transfer Dakota Access Pipeline.

“This bolt-on acquisition is another step in executing our growth strategy. Our goal is to become a top-tier midstream company,” said Caliber Chief Executive Officer and President Daniel Werth. The company is scheduled to add 11 miles to its crude gathering and transmission system by year end.


$16 Billion LNG Project by Energy Transfer Being Strongly Considered

Energy Transfer is seriously considering pursuing a major import-to-export LNG conversion project near Lake Charles, Louisiana by 2020. The cost is estimated to be $16.45 billion.

The company ultimately envisions having three LNG trains at the site capable of exporting 16.45 million metric tons of LNG per year.

Energy Transfer LP owns and operates plenty of natural gas pipeline networks and storage facilities, but the company has yet to build its own export terminal.

Energy Transfer LP is inching closer and closer towards throwing its hat into the liquefied natural gas exporting ring at a time when the most underutilized assets within Energy Transfer’s operations is its liquefied natural gas import terminal in Lake Charles, Louisiana.

Seeking Alpha

Energy Transfer's 713-Mile Pipeline Gets Final Two Laterals Approved

Energy Transfer’s 713-mile Rover Pipeline received approvals for the final two laterals of the project from the Federal Energy Commission last week.

Rover has been operational since August 2017, however additional receipt and delivery points for natural gas production in West Virginia were provided with the approval of the Sherwood Lateral, CGT Lateral and associated compression and metering facilities.

The project transports natural gas from processing plants in West Virginia, Eastern Ohio and Western Pennsylvania to the Midwest Hub near Defiance, Ohio, for delivery to markets across the U.S., as well as to the Union Gas Dawn Storage Hub in Ontario, Canada.

Pipeline and Gas Journal

North Dakota Asks Dakota Access to Explain Cannonball Ranch Purchase

A North Dakota attorney is requesting that Energy Transfer Partners, owner of Dakota Access LLC, explain its recent purchase of the Cannonball Ranch that tribal groups claim contains ancient artifacts and burial grounds.

The Cannonball Ranch is over 6,000 acres and has been a controversial part of the Dakota Access pipeline route. For an undisclosed amount, pipeline developer Energy Transfer purchased the private land last week, gaining effective control over this disputed part of the pipeline route.

According to an anti-corporate farming law enacted in North Dakota in the 1930s, corporations are restricted from owning land that is usable for agricultural production unless that land is owned by a farm family.

Energy Transfer has 30 days to prove that its purchase of the land complies with North Dakota’s anti-corporate farming law.

Dallas News
National Agricultural Law Center

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Opposition Rises Against Dakota Access Pipeline in North Dakota, Iowa



American Indians on Wednesday blocked construction crews working on the Dakota Access Pipeline in North Dakota, and Iowa landowners have asked a judge to stop the work in their state until they are heard in court.

Law enforcement was called to the scene to maintain peace between the protestors and the armed security guards that were hired by Energy Transfer as construction crews worked on an area just north of the Standing Rock Sioux reservation.

Both the Standing Rock Tribe and landowners in Iowa have gone to court regarding the pipeline. The Tribe sued the U.S. Army Corps of Engineers last month for approving permits for the line, and Iowa landowners say the Iowa Utilities Board misinterpreted a state law that bans agricultural land from being taken for private project via eminent domain.

No arrests have been reported during the peaceful protests, but crews had been blocked earlier in the day.

Energy Transfer said in an email that it is continuing construction in Iowa on schedule.

The controversial $3.8 billion oil pipeline planned by Energy Transfer will run 1,172 miles starting in North Dakota and ending in Illinois, passing through both South Dakota and Iowa.

The Seattle Times

Energy Transfer and Williams Merger Fails; Six Williams Board Members Resign

Just a day after Energy Transfer backed out of the $33 billion acquisition of Williams, nearly half of Williams’ board members resigned after a failed attempt to oust Williams’ CEO Alan Armstrong.

Former board member Eric Mandelblatt stated in a public letter that he and five other board members quit Thursday after the current board members were against pushing out Armstrong who Mandelblatt said is “incapable” of increasing shareholder value and “lacks the necessary judgment and character” that is needed to lead Williams after the turmoil with Energy Transfer.

The merger of Energy Transfer and Williams would have created one of the country’s largest pipeline companies. As the oil and gas prices continued to plummet last year and into this year, Energy Transfer no longer found the merger feasible and formally called off its deal to buy Williams on Wednesday.

Believing Energy Transfer is breaching contract by ending the deal, Williams will seek damages against the company that could be up to $10 billion.


Bakken Oil Pipeline Will Run Underneath Sacred Tribal Grounds in Iowa

Dakota Access Pipeline (Bakken Oil Pipeline) Map By Dakota Access LLC [CC0], via Wikimedia Commons

Iowa state officials have approved construction of the Dakota Access Bakken oil pipeline to run underneath a sacred American Indian burial ground in northwest Iowa, despite opposition from tribal officials.

Texas-based Dakota Access, a subsidiary of Energy Transfer, has been granted an amendment to its sovereign lands construction permit by the Iowa Department of Natural Resources. Instead of digging a trench for a pipeline route through the Big Sioux River Wildlife Management Area in Lyon County, the pipeline will run 85 feet underground using special boring equipment.

The pipeline project has caused increasing opposition from several Sioux communities and tribes due to its proposed route to run through an area of “rich historical and cultural significance." A stop-work order on the project had originally been put in place in May to halt construction on lands that the Sioux Indians had ceded to the federal government through a treaty signed in 1851.

Although Iowa state officials lifted the stop-work order on the Bakken oil pipeline, tribal officials believe several landowners, tribes, and other citizens will stand against the pipeline construction and make sure it does not get built.

The Iowa section of the Bakken oil pipeline has approval from the state but still waits for permits from the Army Corps of Engineers in order to go forward with construction.

Read more from the source:
Des Moines Register