Cushing Connect Joint Venture Formation Announced

The formation of a 50/50 joint venture for Cushing Connect Pipeline & Terminal LLC was announced by Holly Energy Partners, L.P. and Plains All American Pipeline.

Development and construction of a new 160,000 barrels per day crude oil pipeline will be done by the joint venture. The pipeline will connect the Cushing, Oklahoma crude oil hub to the Tulsa, Oklahoma refining complex and is expected to be in service during the first quarter of 2021.

The joint venture will also own and operate the 1.5 million bbls of crude oil storage terminal in Cushing, Oklahoma which is expected to be in service during the second quarter of 2020.

“The new Joint Venture will provide growth to HEP by insourcing logistics spend and provide the capability to supply 100% of HFC’s Tulsa Refinery crude throughput,” commented George Damiris, Chief Executive Officer of the general partner of Holly Energy Partners. “Our partnership with Plains generates HEP growth while providing HFC long-term control of a strategic asset.”

“This win-win Joint Venture aligns with our strategy of optimising existing assets to provide value-chain solutions for long-term industry partners in a capital efficient manner,” stated Jeremy Goebel, Executive Vice President – Commercial, Plains All American. “This investment expands our relationship with a key operational hub service customer and provides additional long-term alignment on movements to the Tulsa refinery.”

An affiliate of Holly Energy Partners will be given the contract to manage the construction and operation of the pipeline. Also an affiliate of Plains will manage the operation of the crude oil storage terminal in Cushing, Oklahoma.

Source:
worldpipelines

Open Season Announced for Pony Express Crude Oil Pipeline

Tallgrass Energy has launched a binding open season on its Pony Express Pipeline to solicit shipper commitments for crude oil transportation. The open season began at noon on Oct. 1, 2019.

The Pony Express pipeline is owned and operated under a joint tariff between Pony Express Pipeline and the Iron Horse Pipeline.

The pipeline transports crude oil from the Powder River Basin to Guernsey, Wyoming and from there it connects with Pony Express for delivery to three refineries and Cushing, Oklahoma.

Source:
pgjonline

Scoop-To-North-Texas Gas Gathering Pipeline System Ready for Service

SCOOP-to-North-Texas (SCOOP-NORTHTX) rich gas gathering pipeline system is open for commercial service after multiple upgrades to the pipeline system, Candor Midstream, LLC announced. The company purchased the system in January 2019 and consists of approximately 100 miles of 20 inch rich gas gathering pipeline with an initial operational capacity of up to 200 million cubic feet per day.

Candor constructed multiple risers for commercial rich gas receipts, upgraded equipment and added pipeline monitoring capabilities that exceed industry standards. The company has successfully completed comprehensive hydrostatic testing to certify its safe return to commercial service.

“The SCOOP-NORTHTX pipeline debottlenecks the region and offers rich gas gathering solutions and expansion opportunities that are specifically tailored to meet producers’ individual needs in this unique area of Oklahoma and Texas,” said Candor President and CEO Darrel L. Hagerman.

He added, “Our goal is to provide producers working in southern Oklahoma with safe and reliable long-term service that gathers their rich gas to premium markets in North Texas.”

The pipeline system originates in northern Carter County, Oklahoma and extends south across the Oklahoma-Texas border before it terminates near processing facilities located at the market center in Bridgeport, Texas.

“The SCOOP-NORTHTX pipeline gives Candor the ability to provide unparalleled flow assurance with competitive and reliable processing and, most importantly, access to premium gas and NGL markets, which provide our customers with superior producer netbacks,” said Candor Chief Commercial Officer Derek Gonseaux.

Source:
worldpipelines

$1.3 Billion Deal to Buy SemGroup by Energy Transfer

Energy Transfer LP will buy SemGroup Corp for $1.35 billion and plans to build a 75-mile oil pipeline to strengthen its oil transportation, terminaling and export operations, Energy Transfer said on Monday.

After the purchase, Energy Transfer will gain control of SemGroup’s crude oil terminal on the Houston Ship Channel. The company plans to construct a pipeline between SemGroup’s crude oil terminal and Energy Transfer’s Nederland, Texas terminal.

Energy Transfer will also add SemGroup’s crude oil gathering assets in the DJ Basin in Colorado and the Anadarko Basin in Oklahoma and Kansas, as well as crude oil and natural gas liquids pipelines connecting the DJ Basin and Anadarko Basin with terminals in Cushing, Oklahoma.

The transaction is expected to close in late 2019 or early 2020. Including SemGroup’s debt, the enterprise value of the deal is $5 billion. The deal, which includes $6.80 in cash and 0.7275 shares of Energy Transfer for each outstanding share of SemGroup, represents a premium of 65.4% to SemGroup’s Friday close.

Source:
reuters

FERC Pipeline Decision Will Be Challenged by New York Agency

Federal Energy Regulatory Commission's recent decision to allow construction of a 125-mile-long natural gas pipeline that would stretch from northern Pennsylvania to Schoharie County, west of Albany, will be challenged by the New York State Department of Environmental Conservation.

According to the Department of Environmental Conservation, the FERC decision sides with the fossil fuel industry over protecting the environment. But the Tulsa, Oklahoma-based pipeline firm says that the 30-inch-wide pipeline would have the capacity to serve 3 million homes and can help stabilize New York energy prices.

Environmentalists claim these lines will only serve to further the dependence on fossil fuels. The Army Corp of Engineers must approve plans before construction begins.

Source:
chron

Saddlehorn Pipeline Announced Capacity Expansion

Saddlehorn Pipeline’s successful open season during July and the subsequent increased volume commitments from shippers allowed Saddlehorn Pipeline Company, LLC to announce a further expansion on its pipeline. The pipeline’s capacity will be increased by a total of 100,000 barrels per day to a new total capacity of approximately 290,000 barrels per day.

Magellan Midstream Partners, L.P., Plains All American Pipeline, L.P. and Western Midstream Partners, L.P. jointly owns the Saddlehorn pipeline. The pipeline is currently capable of transporting 190,000 barrels per day of crude oil and condensate from the DJ and Powder River Basins to storage facilities in Cushing, Oklahoma owned by Magellan and Plains.

Following the addition of incremental pumping and storage capabilities, the higher capacity is expected to be available in late 2020.

Source:
worldpipelines

Grand Prix NGL Pipeline started up from Permian to Houston

The $1.4 billion Grand Prix natural gas liquids pipeline project that stretches from Permian Basin to the Houston area has been started up, Targa Resources said on Thursday. The pipeline can currently move 300,000 barrels per day, which can be expanded to 500,000 barrels daily.

"Our Grand Prix NGL pipeline recently commenced deliveries into Mont Belvieu, realizing the long-run strategic goal of integrating our leading gathering and processing position with our premier NGL logistics, fractionation and export platform," said Targa Chief Executive Joe Bob Perkins.

The pipeline system is also getting expanded to stretch into Oklahoma and that effort is under construction. The company also plans to expand the western portion of the Grand Prix pipeline into New Mexico.

Natural gas liquids products like propane, butane and ethane will flow through the pipeline from Permian Basin and will be separated into their individual components at processing facilities, called fractionators, in Mont Belvieu.

Source:
chron

TC Energy Received Probable Violation Notice from PHMSA

TC Oil Operations, the company that owns Keystone pipeline failed to provide suitable coating material at numerous locations along the pipeline, according to The Pipeline and Hazardous Material Safety Administration. A notice of probable violation was issued by PHMSA as a result of an inspection of the Keystone Pipeline’s facilities and records.

PHMSA didn’t proposed any fines as a result of the probable violation, rather proposed a compliance order that requires TC Oil to “correct deficiencies in coating material so that they are suitable for prevention of atmospheric corrosion.”

According to the notice, the company also needs to provide a “record of the location of piping with insufficient coating and the date in which the appropriate coating was applied.”

“The operator used fusion bonded epoxy as a coating on numerous locations on the pipeline at and above the air soil interface,” the notice reads. TC Energy has six months from the date of the final order to comply.

The 2,600 miles pipeline runs from eastern Alberta, Canada, to Oklahoma and Illinois, and carries crude oil.

Source:
duluthnewstribune

Blue Mountain Announces Crude Oil Gathering Agreement

Blue Mountain Midstream LLC has announced that one of its subsidiaries has entered into a definitive agreement with Roan Resources LLC., to gather Roan Resources’ crude oil in the prolific Merge play. The agreement will provide a 10-year term covering an 89,000 net acre dedicated area in nine townships in central Oklahoma.

“Blue Mountain continues to grow our relationship with Roan Resources while expanding our scale and capabilities with this fully fee-based business line. By adding crude gathering, Blue Mountain can now provide our E&P customers a full suite of midstream services complementing our existing gas gathering and processing and water management services. We are excited to provide another commercial service that will positively impact the community by significantly reducing high volume trucking associated with Oklahoma’s oil production,” said Greg Harper, President and CEO of Blue Mountain.

According to Blue Mountain, the plan is to construct an initial crude system consisting of approximately 50 miles of gathering pipelines and be capable of transporting up to 60,000 barrels per day of crude oil. Also there will be two downstream interconnections providing anchor shipper Roan Resources with direct access to the Cushing market.

Source:
worldpipelines

Kinder Morgan Announces Pipeline Expansion in North Dakota

Kinder Morgan announced that the company is evaluating how much more capacity it will need to expand the Hiland Crude system based on the level of interest and the volume commitments it secures.

It's the third announcement of a major pipeline project in the state over the past month for carrying more Bakken oil out of North Dakota.

Currently, Hiland Crude system carries 88,000 barrels of oil each day from McKenzie County to Wyoming. From a hub there, Tallgrass Express transports up to 375,000 barrels per day to three refineries and a terminal in Oklahoma with its Pony Express Pipeline.

Tallgrass may also consider expanding the Pony Express line, Kinder Morgan spokeswoman Katherine Hill told the Bismarck Tribune.

Source:
chron

Open Season Announced for Saddlehorn Pipeline Expansion

Saddlehorn Pipeline Company, LLC has announced the expansion of Saddlehorn pipeline and has launched an open season to solicit long-term commitments for capacity on the pipeline system. The company will also add the new Ft. Laramie origin by leasing capacity on third-party pipelines.

The pipeline’s current transportation capacity is 190,000 barrels per day of crude oil and condensate from the DJ and Powder River Basins to storage facilities in Cushing, Oklahoma owned by Magellan and Plains. The expansion will increase pipeline’s capacity by up to 100,000 barrels per day, which will mark a new total capacity of 290,000 barrels per day.

Following the addition of incremental pumping and storage capabilities, the higher capacity is expected to be available in late 2020. The company announced that interested customers must submit binding commitments by 12:00 p.m. Central Time on 31 July, 2019.

Source:
worldpipelines

Open Season Announced for Bakken Crude Transportation

A binding joint tariff open season to solicit commitments for crude oil transportation service was announced by Kinder Morgan and Tallgrass Energy.

The crude oil transportation services starts from Bakken origin points on the Hiland Crude system, which is currently capable of moving approximately 88,000 barrel per day from Bakken origin points to Guernsey, WY.

Then through the Pony Express system, which is currently capable of moving approximately 375,000 barrel per day from Guernsey to Cushing, OK, connecting to three refineries along the way.

The binding open season begins July 1, 2019, at 4 p.m. Central Time and is expected to end on July 28, 2019, at 5 p.m. Central Time. Upon completion of a confidentiality agreement, additional documents and details related to the open season will be made available.

Source:
pgjonline

Philips 66 Enters Joint Venture to Build $2.5 Billion Red Oak Pipeline

Phillips 66 has teamed up with Plains All American Pipeline LP to construct the $2.5 billion Red Oak Pipeline system that will deliver crude oil from Cushing, Oklahoma, and the Permian Basin in West Texas to Corpus Christi, Ingleside, Houston and Beaumont, Texas.

The plan is to build a 30-inch pipeline from Cushing to Wichita Falls and Sealy, Texas. It also will build a 30-inch pipeline segment from Sealy to Corpus Christi and Ingleside and a 20-inch pipeline segment from Sealy to Houston and Beaumont.

The company expects to commence initial service as early as the first quarter of 2021. As per the release, Plains will handle project construction and Phillips 66 will operate the pipeline.

“Red Oak represents a capital-efficient industry solution that will utilize existing assets and provide pull-through benefits to our systems,” Willie Chiang, CEO of Plains All American, said in the release. “We look forward to working closely with Phillips 66 and our committed shippers to bring Red Oak into service and further optimize our assets upstream and downstream of the new pipeline system. We also look forward to creating jobs and supporting economic growth in Oklahoma and Texas.”

Source:
bizjournals

Open Season Extended for the Proposed Voyager Pipeline

An extension of the open season to solicit commitments from shippers for the proposed Voyager Pipeline was announced by Magellan Midstream Partners, L.P. and Navigator Energy Services. The pipeline will transport crude oil from Cushing, Oklahoma and Midland, Texas to Houston.

The proposed Voyager Pipeline would include construction of 20 inch diameter pipelines from both Magellan’s Cushing and Midland terminals to Magellan’s terminal in Frost, Texas and a 24 inch diameter pipeline would be constructed from Frost, Texas to Magellan’s terminal in East Houston.

The Pipeline is expected to have an initial capacity of up to 400,000 barrels per day, with the ability to expand if necessary by industry demand. It is expected to be operational in early 2021, subject to receipt of sufficient customer commitments and all necessary permits and approvals. Binding commitments are now due by 12:00 pm CDT on 30 August 2019.

Source:
worldpipelines

Ozark Crude Pipeline to Be Restarted After Damaging Storms

MPLX LP will restart its 360,000 barrels per day Ozark pipeline that runs from storage area in Cushing, Oklahoma to refineries in the Midwest, the company said last Wednesday.

Since Oklahoma has recently suffered from flooding and storms, the Ozark system was shut down last Tuesday after an operational check, the company said. Upon restart the company expects the pipeline to operate at full capacity.

Due to the bad weather and flooding in central Oklahoma, Tallgrass Energy LP was also prompted to halt all deliveries to destinations on the Pony Express Pipeline. They had to shut down the pipeline's south end segment, which runs from Sterling, Colorado, to Cushing, because of flooding on the Cimarron River.

Until the risk of flooding has been diminished, operations had been temporarily stopped at the HollyFrontier Corp refinery in Tulsa, Oklahoma, the company said in a statement.

Source:
pgjonline

Two Companies Joining Forces to Expand Red River Pipeline

Plains All American Pipeline has entered into a joint venture with Delek US, a Tennessee refining company, to increase the capacity of its 350 mile Red River Pipeline in Oklahoma and northeast Texas, the company said in a statement.

The pipeline runs between Cushing, Okla., and Longview, Texas. The plan is to boost pumping capacity along the pipeline from 150,000 barrels per day to approximately 235,000 barrels per day by the first half of 2020.

Delek is already a customer of the Red River Pipeline and is boosting its capacity on the Red River system from the current level of 35,000 barrels per day to 100,000 barrels per day. It agreed to pay $128 million to buy a 33 percent stake in a new joint venture named Red River Pipeline Co.

"This is a win-win deal that fits our strategy of optimizing and expanding existing systems while exercising capital discipline," Plains All American Executive Vice President Jeremy Goebel said in a statement. "This transaction expands long-term alignment with a natural shipper, supports and funds the expansion of the system, increases Plains' net committed annual cash flow, and provides proceeds to fund our capital program or lower debt."

Source:
chron

Temporary Embargo of Deliveries for Pony Express Pipeline Segment

The south end of Pony Express pipeline system has been shut down due to an extensive flooding on the Cimarron River in Oklahoma, Tallgrass Energy LP said on Thursday.

The company has provided notice of a temporary embargo of deliveries for the shut segment that runs from Sterling, Colorado through to Cushing, Oklahoma, a Tallgrass Energy spokeswoman said.

The Pony Express pipeline has a capacity of 320,000 barrels per day and starts in Guernsey, Wyoming, and flows southeast to Cushing, Oklahoma.

“We will restart operations as soon as the weather permits,” she added.

Source:
reuters

Howard Energy Partners Made Deals to Enter into Natural Gas Gathering System in Oklahoma

Howard Energy Partners, a San Antonio pipeline operator has announced on Tuesday that the company had made a deal with a major North American oil and gas producer to enter Oklahoma market. They plan to build, own and operate a new natural gas gathering located in Sooner State's prolific STACK shale play that needs more pipeline capacity.

Although the financial terms of the deal were not disclosed, Howard's new pipeline system will be anchored by fee-based, long-term acreage dedications totaling approximately 10,000 acres in Dewey and Custer counties in central Oklahoma.

The service is expected to begin by the end of the third quarter of this year with an initial capacity of 110 million cubic feet of natural gas per day, which can be expanded to support more wells and companies in the area. Gathering pipelines are used to move natural gas from individual wells to high-capacity and large transmission pipelines.

Source:
chron

 

Binding Open Season for Marketlink Pipeline System launched by TransCanada

TransCanada Corporation has announced an open season to solicit binding commitments for incremental capacity on Marketlink pipeline system.

Interested parties for transportation services of crude oil from Cushing, Oklahoma to markets on the US Gulf Coast may submit binding bids that will close at 12 pm MT on 21 May 2019. Shipper information regarding the open season is available online.

Marketlink transports shipments of U.S. crude oil from Cushing, Okla., to refineries in the U.S. Gulf Coast via the Keystone Pipeline System’s Gulf Coast extension. Delivery points include Sour Lake, Houston, and Port Arthur, Texas.

Source:
worldpipelines

Open Season Announced for Bayou Bridge Pipeline System

Bayou Bridge Pipeline, LLC, a joint venture owned by subsidiaries of Energy Transfer and Phillips 66 Partners recently announced a non-binding expansion open season that commenced at 1 pm CT on 22 April 2019 to solicit shipper interest for expanded joint tariff transportation service received from certain connecting carriers onto the Bayou Bridge Pipeline System.

Energy Transfer owns 60% and Phillips 66 Partners owns 40% of the Bayou Bridge Pipeline system. It is operated by a wholly owned subsidiary of Energy Transfer Operating, L.P. Bayou Bridge is evaluating joint tariff service from origin points in the Bakken/Three Forks Region in North Dakota; Patoka, Illinois; the Powder River Basin in Wyoming; the DJ Basin in Colorado; Cushing, Oklahoma; and the Permian Basin.

Bayou Bridge also continues to evaluate additional Southern Louisiana destination points to increase options for shippers on the system,in addition to the routes that are the subject of this non-binding expansion open season. Bayou Bridge will hold a binding expansion open season to finalize committed subscriptions, following the confirmation of shipper interest.

Source:
worldpipelines