New Permian Pipeline to Gulf Coast Ships First Crude

San Antonio-based EPIC Midstream Holdings Inc., began shipping crude oil on its 400,000 barrel per day pipeline from the Permian Basin to the U.S. Gulf Coast on Thursday. EPIC is the second pipeline operator this year to open a major line from the top U.S. oil field to the Corpus Christi, Texas, area.

Plains All American Pipeline LP’s 670,000 barrel per day Cactus II pipeline stated its initial operations this week. Both new pipelines will help alleviate a crude oil bottleneck that has weighed on prices in the Permian of West Texas and New Mexico for more than a year.

Terminal operator Moda Midstream LLC confirmed it would be accepting the Permian crude from the EPIC line at its facility in Ingleside, Texas, by Friday. Oil prices in Midland, the heart of the Permian shale field, rallied to 50 cents per barrel over U.S. crude futures.

Source:
reuters

Oryx Midstream Services Secures $550 Million Investment

Qatar Investment Authority has acquired a $550 Million stake in Oryx Midstream Services from an affiliate of Stonepeak Infrastructure Partners. Oryx Midstream Services is the largest privately-held midstream crude operator in the Permian Basin.

"The significant investment and commitment from QIA alongside Stonepeak's strong operational and capital support will allow us to continue to grow our footprint in the Permian Basin and deliver the highest level of service to current and future customers. We are thrilled to lead Oryx in partnership with these world-class investors." said Brett Wiggs, CEO of Oryx.

"We believe that Oryx represents a strong midstream platform with tremendous growth potential, and we look forward to working with our new partners at Stonepeak. This acquisition is a further demonstration of QIA's strategy to increase the size of our US portfolio, and to invest more in major infrastructure projects." said Mansoor Al-Mahmoud, CEO of Qatar Investment Authority.

The Oryx system currently operates 500 miles of gathering pipelines and transports crude oil to market hubs for ultimate delivery to the Gulf Coast. Upon completion of the remaining 680 miles of gathering pipelines, which is currently under construction, Oryx's total transportation capacity will exceed 900,000 barrels per day.

Qatar Investment Authority has committed to invest in the development of Oryx alongside Stonepeak. While Qatar Investment Authority’s partnership and total investment in Oryx will be approximately $550 million, it plans to invest $45 billion across the US in the coming years.

Source:
pgjonline

Texas Eastern Pipeline Remains Shut after Kentucky Blast

The section of Texas Eastern pipeline that got damaged in a fatal explosion near Danville, Kentucky on last Thursday remains shut. The company is working with federal and state officials to investigate the incident. 

U.S. National Transportation Safety Board assumed control of the incident site and the company is supporting the investigation, Enbridge said. According to the Refinitiv data, about 1.7 billion cubic feet of gas was flowing through the damaged section of pipe toward the Gulf Coast at the time of the blast, from the Marcellus and Utica shale in Pennsylvania, Ohio and West Virginia.

The company said that Texas Eastern has three lines, Line 10, 15 and 25, between its Danville and Tompkinsville compressors in Kentucky and the blast occurred on Line 15. The three lines make up its 30-inch pipeline system.

Enbridge has not estimated when the damaged section of pipe will return to service at this time and has restricted north-to-south gas flows through the Danville compressor to zero.

Source:
pgjonline

Binding Open Season Announced for the Keystone Pipeline

TC Energy, formerly known as TransCanada has announced an open season to solicit binding commitments for crude oil transportation services on the Keystone Pipeline System.

The pipeline runs from Hardisty, Alberta to markets on the US Gulf Coast.

Interested parties may submit binding bids for transportation capacity during the open season that will close at 12 pm MT on 19 July 2019.

Source:
worldpipelines

Energy Transfer Partners Plans to Double the Pipeline Capacity

Energy Transfer Partners plans to double the Dakota Access pipeline's capacity from more than 500,000 barrels per day to as much as 1.1 million barrels, The Bismarck Tribune reported.

The pipeline carries oil from North Dakota through South Dakota and Iowa to a shipping point in Illinois. The expansion will meet growing demand without additional pipelines or rail shipments, the company told North Dakota Public Service Commission in a letter on Wednesday.

Before the pipeline was completed and began moving oil in 2017, it sparked massive protests near the Standing Rock Indian reservation. The company said last year that it was planning to ship more crude to the Gulf Coast.

Source:
chron

Plains Cactus II Crude Pipeline Rate Structure Receives Partial Approval

The rate structure and terms of service for Plains All American Pipeline LP’s Cactus II crude line recieved partial approval from U.S. energy regulators on Monday. The Cactus II crude pipeline runs from the Permian basin to the Corpus Christi, Texas area.

The regulators approved most conditions put forth by Plains. However they declined to approve a request for the option to hold another open season to solicit shipper commitments for up to 90 percent of the pipeline’s capacity upon the expiration or early termination of service agreements.

The 585,000 barrels per day Cactus II line is expected to begin service in the third quarter and will connect the Permian basin to the Gulf Coast.

Source:
reuters

Altus Midstream Acquires 27% Stake in Permian Highway Pipeline

Altus Midstream Processing LP decided to acquire an approximately 26.7% equity interest in the estimated US$2.1 billion Permian Highway Pipeline.

The pipeline is expected to have approximately 2.1 billion cubic feet per day of natural gas transportation capacity. It runs from the Waha area in northern Pecos County, Texas, to the Katy, Texas area, with connections to Texas Gulf Coast and other markets.

“We are very excited to participate in the Permian Highway Pipeline,” said Clay Bretches, Altus Midstream Chief Executive Officer and president. “This is a high-quality project supported by take-or-pay contracts with creditworthy counterparties.”

In September 2018, the final investment decision to proceed with the project was made and the pipeline is expected to enter service in October 2020. Altus Midstream Processing, Kinder Morgan and EagleClaw Midstream Ventures, each owns approximately 26.7% of the pipeline. The remaining 20% is owned by an anchor shipper affiliate.

Source:
worldpipelines

Lake Charles LNG: Final Investment Decision Taken by Energy Transfer and Shell

Energy Transfer and Shell announced that they had signed a project framework agreement to advance the proposed Lake Charles LNG export terminal and that they plan to issue an invitation to tender for engineering, procurement and contracting companies to start bidding on the project, in a joint statement released on Tuesday morning.

“We are pleased to be moving forward with Shell in progressing this major LNG export project," Lake Charles LNG President Tom Mason, President said in a statement. "We believe the combination of our assets and Shell's LNG experience will create a platform for exporting natural gas from the U.S. Gulf Coast to the global marketplace that is unmatched."

Shell entered into a 50-50 joint venture with Energy Transfer in 2016 to develop a liquefaction plant that can produce up to 16.45 million metric tons of LNG per year. Under the terms of their joint venture, Energy Transfer will own and finance the proposed liquefaction facility while Shell will oversee engineering, design and construction work as well as operate the terminal once it is complete.

"Lake Charles presents a material, competitive liquefaction project with the potential to provide Shell with an operated LNG export position on the U.S. Gulf Coast by the time global supply is expected to tighten in the mid-2020's," Shell Vice President Frederic Phipps said in a statement.

If built, the export terminal project is estimated to create up to 5,000 local jobs during construction and 200 full-time positions when fully operational. Shortly after the shale revolution in 2015 that created a surplus of natural gas in the United States, Energy Transfer got permission from Federal Energy Regulatory Commission to build an export terminal at the site in 2015. The facility site was originally developed as an LNG import terminal in 2006.

Source:
chron

FERC Approves $680M Project: 200-Mile Pipeline Moving NatGas from Oklahoma to Gulf Coast Will Connect to Kinder & Boardwalk Pipe

Cheniere Energy and a Washington D.C. private equity firm have received approval from the Federal Energy Regulatory Commission on Wednesday to build the 200-mile Midship Pipeline. The project will move natural gas from Oklahoma to destinations along the Gulf Coast and southeastern United States in Oklahoma.

In a statement issued by the companies, $680 million in financing was secured for the 36-inch diameter natural gas pipeline and a notice was issued for contractors Strike LLC, M.G. Dyess, TRC Pipeline Services and Cenergy LLC to proceed with construction.

The Midship Pipeline is designed to move 1.4 billion cubic feet of natural gas per day from Oklahoma's SCOOP and STACK shale plays to delivery point just north of the Red River near Bennington, Oklahoma. The project is expected to be placed in service by the end of the year.

The pipeline will connect to Kinder Morgan's Midcontinent Express Pipeline and the Boardwalk Pipeline Partners-owned Gulf Crossing Pipeline, allowing natural gas from Oklahoma to move to the TexOk Hub near Atlanta, Texas and the Perryville Hub near Tallulah, Louisiana.

Source:
chron

Environmentalists Voice Concern About TransCanada Energy East Pipeline

Proposed route of TransCanada's Energy East Pipeline as of November, 2015.
Note: The route as not yet been finalized.

Environmentalists are expressing their concern to TransCanada, the company that owns the controversial Keystone XL pipeline, but this time over another pipeline project: The Energy East Pipeline, which would transfer crude oil across Canada from Alberta to the east coast.

The Energy East Pipeline project is a 4,600-kilometer pipeline that would transport approximately 1.1 million barrels of crude oil per day from Alberta and Saskatchewan to the refineries of Eastern Canada and a marine terminal in New Brunswick. From there, oil would be transported by super tankers to refineries along the Gulf Coast. The project involves converting 3,000 kilometers of existing natural gas pipeline to crude oil service and new construction of 1,600 kilometers of pipeline.

Environmentalist groups, including the Natural Resources Defense Council and the Sierra Club, are concerned about possible spills of tar sands diluted bitumen along the route in Canada that goes over thousands of rivers, streams, and lakes. They are also concerned about a possible spill along the Atlantic Ocean that could be devastating for communities that depend on tourism and fisheries.

TransCanada said their project would strictly adhere to safety standards and that they are responsible for the pipeline but not the for transportation of oil across the seaboard; that responsibility lies in the hands of those who operate the ships for the delivery of oil. Safety remains TransCanada’s top priority, according to TransCanada spokesman Jonathan Abecassis, who also said the New Brunswick port “will have a number of preventative safety measures.”

The project is currently being reviewed by the National Energy Board in Canada. Environmentalists hope the U.S. will voice its opposition to the project during this review process and enact a ban on the shipment of tar sands in its waters.

Source:
ABC News
Energy East Pipeline