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

Open Season Extended for Cushing to Houston 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 Service. The pipeline will transport various grades of light crude oil and condensate from Cushing, Oklahoma to Houston, Texas.

The pipeline would include construction of nearly 500 miles of 20 in. or 24 in. diameter pipeline from Magellan's terminal in Cushing to Magellan's terminal in East Houston. Binding commitments are now due by noon of 31 May 2019 CDT.

At the Cushing origin, the Voyager Pipeline would provide shippers option to originate deliveries at Cushing from the Magellan-operated Saddlehorn Pipeline serving the Rockies and Bakken production regions, Navigator's Glass Mountain Pipeline serving the Mid-Continent basin, as well as other connections within the strategic Cushing crude oil hub.

At the destination, Magellan's comprehensive Houston crude oil distribution system could further deliver the multiple grades of crude oil to the Houston and Texas City refineries or to crude oil export facilities, such as the terminal owned by Seabrook Logistics, LLC, which is owned 50% by Magellan.

The pipeline is expected to have an initial capacity of at least 300,000 bpd and it is planned to be operational in late 2020, subject to receipt of sufficient customer commitments and all necessary permits and approvals.

Source:
worldpipelines

Williams Seeks Approval for 187-Mile Kansas to Oklahoma Pipeline

The Wichita Eagle reported that the Williams Companies Inc. met with Sedgwick County officials Wednesday about the 187-mile Bluestem pipeline that would carry volatile gas liquids and run from McPherson County, Kansas, to Kingfisher County, Oklahoma.

The line would carry 225,000 barrels a day of pressurized gas liquids such as propane and butane, which are byproducts of natural gas production. The volatile liquids would be separated from natural gas at the company's plant in Conway.

The proposed pipeline would connect the Kansas plant to the Targa Grand Prix pipeline in Oklahoma, so that the liquids could move to refineries along the Gulf of Mexico.

The pipeline will across mostly farmland in Sedgwick County, according to pipeline officials. Sedgwick County officials would need to issue permits for the Bluestem pipeline to cross county roads. The company hopes to obtain permits along the pipeline route by January and to complete construction in November 2020.

Source:
chron

Open Season Extended for Tallgrass Energy’s Pony Express Pipeline

Tallgrass Energy, LP has announced that it has extended and expanded its open season soliciting shipper commitments for crude oil transportation services.

The open season, initially announced on 13 November 2018, has been extended to 14 April 2019. This is to reflect updated rates and contracting options to accommodate newly secured commitments.

The 760-mile Pony Express crude oil pipeline originates in Guernsey, Wyo., and runs through Colorado, Nebraska and Kansas, connecting with three refineries before terminating in Cushing, Okla.

Placed in service in 2014, Pony Express has a design capacity of 320,000 barrels a day, and based on a number of factors has the capacity to transport additional barrels.

Sources:
worldpipelines
tallgrassenergylp

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

Open Season Launched for Phillips 66 Proposed Pipelines

Phillips 66 launched open seasons for the newly proposed Red Oak pipeline and Liberty pipeline.

Both projects will be joint ventures with Bridger Pipeline LLC and will deliver crude oil to the Texas Gulf Coast.

The Liberty Pipeline will start in the Rocky Mountains and Bakken Formation production areas and end in Corpus Christi, Texas and will have an initial throughput capacity of 350,000 barrels per day with potential to expand further depending on shipper interest, per the release.

The Red Oak Pipeline will run from Cushing, Oklahoma, to Corpus Christi, Houston and Beaumont, Texas and will have 400,000 bpd capacity while also possibly expanding depending on interest.

Source:
Biz Journals

Magellan's Open Season for 500 Mile Pipeline Announced as Possibilities of New Houston to Corpus Christi Pipeline is Evaluated

Magellan Midstream Partners and Navigator Energy Services announced the launch of a binding open season on Monday to gauge customer interest in a pipeline project designed to ship light crude and condensate from Cushing, Oklahoma to Houston, Texas.

According to Magellan, the proposed Voyager pipeline would compromise of nearly 500 miles of 20-inch diameter pipe linking the company’s terminals in Cushing and East Houston. Once it reaches Houston, the pipe would link to refineries in the region as well as crude oil export facilities.

The open season documentation states that a new entity called “Magellan Navigator” would operate Voyager. Initial capacity is said to be at least 250,000 barrels per day and would handle up to four light crude and condensate grades.

Magellan also said that the company is evaluating a potential crude oil pipeline from Houston to Corpus Christi as well as a crude export terminal on Harbor Island with capabilities of loading very large crude carriers.

The open season ends January 31, 2019 with the pipeline beginning service by the end of 2020 pending a successful open season and regulatory process.

Source:
Rig Zone

Cheniere Energy Requests Permission to Bring Billion Dollar Midship NatGas Pipeline in Oklahoma Into Service

Cheniere Energy Inc asked U.S. energy regulators on Friday for permission to start working on their $1.025 billion Midship natural gas pipeline in Oklahoma.

The company asked the FERC for authorization to start building the proposed 234-mile pipeline in three segments. The project is expected to be complete by early 2019, Cheniere said.

Midship is designed to deliver 1.44 billion cubic feet per day (bcfd) of gas from the Anadarko basin to existing pipelines near Bennington, Oklahoma to transport liquefied natural gas to Gulf Coast and Southeast markets.

Expectation of total U.S. LNG export capacity should rise to 8.3 bcfd by the end of 2019 and 9.6 bcfd by the end of 2020 from 3.8 bcfd now.

Most of the U.S. LNG export terminals are located or being built along the Gulf of Mexico in Louisiana and Texas

Source:
Reuters

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.

Source:
Houston Chronicle

Train Accident Spills 230,000 Gallons of Oil, Service Resumed

BNSF Railway Co stated on Monday that service will be resumed Tuesday on tracks in northwestern Iowa where a train left the track and spilled crude oil from derailed cars.

The derailing occurred near Doon, Iowa on Friday, sending 32 rail cars off the track with an estimated 230,000 gallons of spilled oil into flood waters including a nearby river.

The train included close to 58,000 barrels of crude oil traveling from Western Canada to Stroud, Oklahoma for oil producer ConocoPhillips, a Conoco spokesman said. The oil company said it doesn’t expect any serious disruption to its shipments due to the accident.

BNSF said in a statement that the crew is nearly finished removing the oil damage from the incident as well as repairing the tracks.

Booms have been placed “approximately five miles downstream to capture any oil that may have traveled with floodwaters through nearby fields.” said the railroad company.

BNSF has not said what caused the train accident. No injuries or fire resulted from the incident.

Source:
Reuters