Second Train Completed at Corpus Christi LNG Project

Train 2 of Cheniere Energy’s liquefaction project in Corpus Christi, Texas, has been declared substantially complete, Cheniere Energy announced Tuesday.

The engineering, procurement and construction partner for the project was Bechtel Oil, Gas and Chemicals. Cheniere said that the commissioning of Train 2 is complete and Bechtel has turned over care, custody and control of the facility to Cheniere.

The company now has seven liquefaction trains, five liquefaction trains in operation at its Sabine Pass LNG export terminal in Louisiana and the two at Corpus Christi. Each train is capable of liquefying about 700 MMcfd of gas.

According to the sale and purchase agreements, the first commercial delivery from the new unit is expected to occur in May 2020, Chieniere said.


$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

Tellurian's Driftwood LNG Project in Louisiana Gets Boost After Environmental Approval

Tellurian Inc’s proposed Driftwood LNG project in Louisiana took a major step forward on Friday as a final environmental report was issued by the FERC.

Now the company will await another order from the FERC to allow construction and operation of the 27.6 million tonne per annum liquefaction plant aimed at meeting growing global demand for the supercooled fuel.

A final investment decision is on track for the first half of 2019 with the first LNG expected in 2023.

Tellurian is also planning on developing pipelines to transport gas from shale formations in Texas and Louisiana to LNG terminals and other Gulf Coast customers.

Seeking Alpha

BP Discovers 1 Billion Barrels of Crude in Louisiana Gulf Coast

1 billion barrels of crude was discovered off the tip of Louisiana in the Gulf of Mexico thanks to next-generation technology.

BP, the Gulf of Mexico’s biggest producer, announced the news as well as announcing two new offshore oil discoveries and a major new investment in a nearby field.

The billion barrels of crude was discovered in an existing oilfield and will take BP from 300,000 barrels of oil equivalent per day to an expected 400,000 boepd by the middle of the next decade.

The discovery was made at the Thunder Horse field.


CenterPoint to Acquire Velocity Midstream for $442 Million

CenterPoint Energy’s pipeline company has agreed to acquire Oklahoma’s Velocity Midstream for around $440 million as they grow their crude oil pipeline gathering and processing network.

Velocity holds a large network in Oklahoma’s Anadarko Basin, which expands into the Texas Panhandle, as well as in the SCOOP and Merge shale plays in Oklahoma.

Enable also said it plans to expand its crude oil and water pipeline gathering systems in North Dakota with the uptick in activity in the region and a large number of drilled but uncompleted wells that have not yet produced oil.

"Today's announcements continue Enable's strategy of extending our reach across the midstream value chain by significantly expanding our crude business," said Enable Midstream President and CEO Rod Sailor.

Last month, Enable announced its plan to build a 165-mile gas pipeline from northwestern to southwestern Louisiana along the Texas state line. Gas would be taken from the Haynesville Shale and other regions to new liquefied natural gas export terminals in Louisiana and Texas.

That project is estimated at around $550 million.

Houston Chronicle

$2.5 Billion Crude Oil Export Terminal and 700-Mile Pipeline Project Planned in Louisiana

Kansas-based Tallgrass Energy said that it and Drexel Hamilton Infrastructure Partners are building a crude oil export terminal on the Mississippi River and a 700-mile pipeline project. The new plans will be a $2.5 billion investment and create 35 permanent jobs.

The project will be built in Plaquemines Parish.

The Advocate reports the project is designed as a public-private partnership, with the Plaquemines Port Harbor and Terminal district providing multiple deepwater docks along the Mississippi River.

The project could be fully operational by mid-2020 and will be permitted for up to 20 million barrels of crude oil storage, according to Louisiana economic development officials.

Tallgrass says it has plans to build an offshore pipeline extension that will give the terminal the capability to load very large crude carriers.

Houston Chronicle


Louisiana’s Bayou Bridge Pipeline Wins 2-1 Court Decision to Continue Construction

A divided panel of the 5th U.S. Circuit Court ruled in favor of a Louisiana oil pipeline that would cross through environmentally fragile Atchafalaya Basin Swamps on Friday. The 2-1 victory means that construction can continue and is expected to be complete by October.

District Judge Shelly Dick argued that the project had environmental damage that outweighed any economic harm that a delay would bring to the company, but two of the three judges said that the Corp’s environmental assessment was sufficient and that Dick had “misperceived the applicable regulations.”

The entire hearing comes after Bayou Bridge Pipeline Company was sued for records
last Tuesday in Baton Rouge by three environmental groups that were fighting a proposed 162-mile pipeline designed to cross southern Louisiana.

The environmental groups petitioned a state court to have the pipeline company release records regarding land it expropriated and communication with government officials regarding the matter.

The petition argued that Bayou Bridge Pipeline company used eminent domain to take land for the pipeline and is therefore subject to the state’s public records law.

Tampa Bay Times


4,200 Gallons of Crude Oil Spill into Barataria Bay

A crude oil leak occurred on Monday in an abandoned line near Lake Grande Ecaille in Barataria Bay spilling approximately 4,200 gallons of oil into open water in southwest Louisiana.

Officials with Hilcorp Energy, the owner of the affected pipeline, told the Coast Guard the oil flow from a malfunctioning valve was immediately stopped after the spill was discovered and has been contained.

The company reported in a statement that it is currently operating cleanup procedures and will keep state and federal agencies updated on the response. Hilcorp is investigating the leak but says it is too early yet to speculate a possible cause.

A spill response contractor deployed booms to contain part of the spill that affected 8 square miles of water and a patch of wetlands.

Several officials are overseeing the response of the spill, including the Coast Guard, the National Oceanic and Atmospheric Administration, the Louisiana Oil Spill Coordinators Office, and the Louisiana Department of Wildlife and Fisheries.

Houston Chronicle
The Times-Picayune