Flooding Triggered to Shut Oil Pipelines in Southeastern Texas

The 750,000 barrels per day Marketlink oil pipeline, owned by TC Energy Corp was shut as flooding disrupted operations at U.S. Gulf Coast terminals, traders familiar with the matter said on Thursday. The pipeline runs from Cushing, Oklahoma, to Nederland, Texas.

Energy Transfer LP’s Nederland terminal, located between Beaumont and Port Arthur, was also shut briefly on Thursday. The terminal had a power outage but it had since been restored and operations have returned to normal, Vicki Granado, a spokeswoman for Energy Transfer said in an email.

Dangerous flash floods inundated parts of southeastern Texas on Thursday as Tropical Depression Imelda dumped the last of its rains, with the National Hurricane Center predicting rain totals up to 35 inches in some coastal areas.

Phillips 66 also shut operations at its Beaumont Terminal in Nederland, Texas, as a safety precaution due to flooding. Exxon Mobil Corp shut its 369,024 barrels per day Beaumont, Texas, crude oil refinery on Thursday because of flooding from Imelda, sources familiar with plant operations said.


Kinder Morgan Adds Exxon Mobil as Major Customer for Permian Highway Pipeline

Kinder Morgan has added on Exxon Mobil as a major customer for its planned $2 billion Permian Highway Pipeline that will carry natural gas from West Texas to the Houston region.

Exxon is looking for more outlets to transport its natural gas from the rapidly increasing Permian Basin production. A lot of valuable associated gas comes out of the Permian despite crude oil being the main focus of production.

Kinder Morgan proposed the Permian Highway Pipeline project in June as they partnered with Midland-based EagleClaw Midstream. Eagle claw is financially backed by the private equity giant Blackstone Group out of New York.

The goal is to have the pipeline open by the end of 2020. Route details are still being finalized, but the main uses for the project include supplying gas for electricity generation in Texas and Mexico as well as supplying new liquefied natural gas export complexes currently under construction in Freeport and Corpus Christi.

Houston Chronicle

Exxon Mobil, Plains All American Plan Pipeline Project in Permian

Exxon Mobil is planning to build hundred of miles of pipeline in a joint venture with Houston’s Plains All American Pipeline that would stretch from west of Midland to the Houston and Beaumont areas.

The multibillion dollar pipeline network will be designed to deliver crude oil from the Permian Basin to refining and port hubs near Houston.

This news comes after an early 2018 statement by Exxon that said it plans to triple production in the Permian by 2025.

Despite the proposed project, lack of pipelines in the prolific Permian is creating increasing bottlenecks in the area and could hamper growth as well as cause discounts on Permian-produced oil.

With Permian oil production at a record high and rapidly increasing, Plains and Oklahoma-based Magellan Midstream Partners expanded their BridgeTex oil pipeline from West Texas to the Houston region.