$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

Williams and Targa to Construct Nearly 300 Mile of NGL Pipe in New $600 Million Investment

Williams and Targa Resources Corp. have announced that they will be working on a new NGL pipeline. The agreement will have the project link the Conway, Kansas, and Mont Belviue, Texas NGL markets.

The 188 mile Bluestem Pipeline will be built by Williams from its fractionator in Conway, Kansas and the terminus of Overland Pass Pipeline to an interconnect with Targa’s Grand Prix NGL Pipeline in Kingfisher County, Oklahoma.

Targa will be responsible for construction a 110 mile extension of Grand Prix which will connect southern Oklahoma and the Sooner Trend oilfield, the Anadarko basin, as well as Canadian and Kingfisher counties in Central Oklahoma where it will finally connect with Williams’ new Bluestem Pipeline.

“Expanding our NGL pipeline business to interconnect with Targa’s strategically-positioned Grand Prix Pipeline will provide Williams and our customers with access to Mont Belvieu while opening up additional markets for Conway,” said Alan Armstrong, President and Chief Executive Officer of Williams.

 “The further expansion of our Grand Prix NGL Pipeline into the STACK is an attractive extension of a highly strategic asset for Targa and will direct significant incremental NGLs over the long-term from Williams and other third parties to Grand Prix and to our downstream assets in Mont Belvieu and Galena Park,” said Joe Bob Perkins, Chief Executive Officer of Targa.

An expected investment of $350 million to $400 million will be made by Williams in these NGL logistics projects, and an expected cost of $200 million will be made by Targa’s Grand Prix extension, which will have an initial capacity of approximately 120,000 bpd.

For both the Grand Prix extension and the new Bluestem Pipeline, the target in-service date set is first quarter of 2021, according to Targa and Williams.

Williams also plans to expand the DJ Lateral of the Overland Pass Pipeline and make improvements at its Conway NGL Storage facility, as part of this project.

World Pipelines

Portion of TransCanada’s Keystone Pipeline Remains Shut as Leak Investigations Continue

A portion of TransCanada Corp’s Keystone oil pipeline remained shut on Thursday for investigation.

TransCanada shut a portion of the TransCanada Corp’s Keystone oil pipeline as they investigate a possible leak on its right-of-way near St. Louis, Missouri, a company spokesman said.

The pipeline was shut down on Wednesday, and remains shut on Thursday as investigations go on.

Crews were dispatched to assess the situation which seems to have occurred between Steele City, Nebraska and Patoka, Illinois.

The Keystone pipeline has a 590,000 bpd output and is a critical part of Alberta to U.S. refinery crude.

The release of oil gas stopped on Wednesday and all that remains is finding the actual leak.


67,000 Left Without Natural Gas After Tulsa Pipeline Ruptures

A Tulsa gas line explosion near 21st and Memorial prompted immediate evacuation within a 3-mile radius of the incident as emergency crews rushed to respond.

The 16-inch gas line was capped around 8:00 pm, and police say that the area has been deemed safe.

There were no crews working at the exact moment of the incident, however police have stated that a truck hit the line.

Tulsa police reported that around 67,000 customers were left without natural gas.

News on 6

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

$23 Million Marketing Effort Intends to Bolster Trans Mountain Pipeline Expansion Among Albertans

Alberta’s government is ramping up their Trans Mountain pipeline expansion marketing efforts through a $23.4 million effort.

The campaign is called “Keep Canada Working”, and is aimed at getting people to support the project by educating them of the economic benefits.

“It is a win to make sure that more Canadians understand it (Trans Mountain) better than maybe they did a few years ago,” Notley said Thursday.

 “It is actually about the economic prosperity and security of Canadians from across this country.”

 Alberta’s United Conservative Party Opposition says the market campaign is too late. A spokeswoman from the party says merits of the project should have been promoted earlier.

The Federal Court of Appeal quashed Ottawa’s approval of the project in August on the basis of the NEB’s failure to fully examine the project’s effects on ocean ecosystem, including endangered killer whales.

It also found Canada failed to meaningfully consult with First Nations.


Louisiana Receives More Good News as Phillips 66 and Harvest Midstream Team Up for Ace Pipeline System

Houston’s Phillips 66 Partners LP is leading a joint venture to develop the ACE Pipeline System in Louisiana.

Phillips 66 Partners, Harvest Midstream Company and PBF Logistics LP announced the project in a joint statement issued on Monday morning.

The ACE Pipeline System will have an initial throughput capacity of 400,000 barrels per day and move crude from the market hub in St. James, Louisiana to refining destinations in Belle Chasse, Meraux, and Chalmette.

Harvest Midstream’s CAM Pipeline will contribute to the ACE Pipeline System. A new-build segment will connect the St. James market center.

The pipeline system is expected to be placed in service in second half of 2020, subject to regulatory approvals.


Epic Pipeline’s 700-Mile Project Will Use U.S. Steel to Move Crude and Remain on Original Schedule

Epic Midstream Holdings is still on track to start moving crude oil from West Texas’s Permian Basin to the port of Corpus Christi by this fall and will use steel sourced by U.S. mills.

The plan, which was originally announced in October, will have the company temporarily using its natural gas liquids pipeline to ship crude oil starting the third quarter.

All the needed mainline right of way has been secured for the construction of a separate crude oil pipeline along the route of natural gas liquids pipeline.

Delivery of the 30-inch pipeline required to build the 700-mile project is expected to take place later this month.

The Epic Crude Oil Pipeline runs from Orla, Pecos, Saragosa, Cane, Wink and Midland in the Permian Basin to Gardendale and Helena in the Eagle Ford Shale to the Port of Corpus Christi.

Shortly after delivery, construction of the pipeline is expected to begin and be completed by January 2020.


Cheniere’s Corpus Christi Train 2 Gets Approval to Start Operating

Cheniere’s request to introduce gas and begin operation for the Corpus Christi LNG’s Train 2 fuel gas system has been approved by the FERC.

FERC noted that the approval does not grant Cheniere the authority to introduce hazardous fluids into other facilities at the LNG terminal.

The facility in Corpus Christi consists of three large-scale LNG production units and supporting infrastructure. Seven additional smaller trains have also been proposed.

Train 2 is expected to reach substantial completion in the second half of 2019 with Train 3 to follow in the second half of 2021.

LNG World News

PG&E Explores Bankruptcy After Fatal Wildfires and Falsifying Pipeline Safety Records

Following fatal wildfires in 2018 and 2017, California utility company PG&E is exploring filing some or all its business for bankruptcy protection. The company faces billions of dollars in liabilities related to those fires and the California Public Utilities Commission opened proceedings to consider penalties against the company for falsifying pipeline safety records for over five years.

The bankruptcy filing is not certain, however amid all the potential lawsuits, the company is considering the move as a contingency to combat the significant financial charges it would be hit with.

There is a possibility that the company could receive financial help through legislation that would let it pass on to customer’s costs associated with fire liabilities, however bankruptcy preparations are still being made.


Kinder Morgan Announces Successful Open Season on Roanoke Expansion Projects

Kinder Morgan announced a successful open season on its Roanoke Expansion project for the Plantation Pipe Line System, which received long-term committed volumes of 20,000 bpd.

“We are pleased with the successful Plantation Pipe Line open season and the opportunity to invest expansion capital to serve the Roanoke area’s needs with reliable transportation and storage services in projects that meet our investment criteria,” said Kinder Morgan’s president of Products pipelines.

Plantation Pipe Line will submit the Petition for Declaratory Order to the FERC for approval of commercial terms for the project. Pending all regulatory approvals, the project is expected to be in full service by April 1, 2020.

Business & Industry Connection

U.S. Achieves New "Net Petroleum Exporter" Status for First Time in 70 Years - Loses It One Week Later

The United States has lost its newly acquired status of being a net petroleum exporter in as quick as a week after achieving the status in the end of November.

It had been almost 70 years since the U.S. last shipped out more combined crude oil and refined petroleum products than it imported. The federal government made waves when it revealed last week that it had achieved that feat again.

Exports fell in the first week of December, returning the U.S. to its prior status.

Crude exports fell from a record weekly high of 3.2 million barrels a day to 2.3 million barrels a day last week.

The fall resulted in the U.S. going from an overall petroleum net exporter of 211,000 barrels a day to a net importer of 1.3 million barrels a day.

The U.S. is expected to eventually become a sustained net exporter.


Energy Transfer To Attend Hearing Regarding Mariner East 2

Energy Transfer LP representatives will be attending a hearing on Thursday to defend the company’s plan to put the Sunoco Mariner East 2 natural gas liquids pipe into service by year end.

The company wants to temporarily connect an existing 12-inch pipe from the 1930’s to the part of its long-delayed 20-inch Mariner East 2 pipeline that has been already completed in order to start transporting liquids for customers.

Customers have been waiting for more than a year to ship liquids on Mariner East 2. The original planned service date for the $2.5 billion project that began in February 2017 was third quarter of that same year.

Mariner East 2 has been under scrutiny for being one of two Energy Transfer projects that have amassed over 800 state and federal permit violations while being built.


$1 Billion Worth of Pipeline Projects Halted in Central Mexico Due to Alleged Extortion

TransCanada has halted their combined $1 billion pipeline projects in Central America. The company cited numerous delays, runaway costs and alleged acts of extortion for their two natural gas pipelines.

The construction was halted in the state of Hidalgo on the Tuxpan-Tula Pipeline and the Tula-Villa de Reyes Pipeline, an open letter published in several Mexican newspapers by the company’s Mexican subsidiary said.

"The social and legal uncertainty that prevails in this state makes the continuity of our investments impossible," the company wrote in the statement. "On multiple occasions, social groups have made irrational requests that border on extortion and have performed acts outside the law."

As a part of the two nation’s historic energy reforms, TransCanada won contracts with the Mexico state-owned power company to build two pipelines – both consisting of $500 million contracts each. The initial contract was for the 163-mile Tuxpan-Tula Pipeline that would move natural gas from the coastal state of Veracruz to power plants in Hidalgo. In the following months, the company received an April 2016 contract to build another pipeline to move natural gas from Tula to the State of San Luis Potosi.

TransCanada also reported that it is facing legal uncertainty and higher than expected costs to obtain permits from various municipalities.

A clause in the contract permits TransCanada to collect revenue on the pipeline as long as delays are not from TransCanada’s doing.

Houston Chronicle

Tallgrass Energy Scheduling Open Season for Pony Express

Tallgrass Energy has scheduled an open season for crude oil shipping commitments for their Pony Express system. It began on Friday and will extend to January 18.

Crude oil will move from Guernsey, Wyoming to refinery deliver points along the Pony Express and Cushing, Oklahoma.

Depending on the results, the pipeline could expand an additional 300,000 bpd beyond the expected year-end capacity of 400,000 bpd. Full service is expected in the third quarter of 2020.

Tallgrass’s other new pipeline project, Iron Horse, is expected to start commercial operations in early 2019. The pipe will initially have approximately 100,000 bpd and could expand to around 200,000 bpd.

Pipeline & Gas Journal

Enbridge's Line 3 Approval Gets Reconfirmation

Minnesota regulators have reconfirmed their support for Enbridge’s Line 3 replacement that crosses northern Minnesota.

The company is looking to replace its aging crude oil pipeline, but is faced with fierce opposition.

The Public Utilities Commission on Monday rejected a motion by opponents to reconsider its previous decision to grant a certificate of need for the project.

The commissioners agreed that Enbridge met several additional conditions imposed in June, including requirements for insurance coverage against spills and financial assurance for covering costs of removing pipeline after the end of its life.

Environmental and tribal groups upsettingly walked out of the hearing and marched to the office of Gov. Elect Tim Walz after the decision was made.

CBS Minnesota - WCCO


Cheniere Energy To Begin Exporting LNG to Corpus Christi

Cheniere Energy will export its first shipment of liquefied natural gas from Corpus Christi. The company will receive natural gas from the Eagle Ford Shale, Permian Basin and other sources through pipeline, and then liquefy the gas and use tankers to export it to customers in Europe, Latin America and Asia.

Although the first shipment’s destination is not yet clear, the export terminal’s customers will hail from Europe, Asia, and Australia.

The company expects a second processing unit known as Train 2 to be completed during the first quarter of 2019 in Corpus Christi.

Crews with general contractor Bechtel began constructing a third processing unit known as Train 3 during the summer.

Houston Chronicle

Energy Transfer's 713-Mile Pipeline Gets Final Two Laterals Approved

Energy Transfer’s 713-mile Rover Pipeline received approvals for the final two laterals of the project from the Federal Energy Commission last week.

Rover has been operational since August 2017, however additional receipt and delivery points for natural gas production in West Virginia were provided with the approval of the Sherwood Lateral, CGT Lateral and associated compression and metering facilities.

The project transports natural gas from processing plants in West Virginia, Eastern Ohio and Western Pennsylvania to the Midwest Hub near Defiance, Ohio, for delivery to markets across the U.S., as well as to the Union Gas Dawn Storage Hub in Ontario, Canada.

Pipeline and Gas Journal

Energy Transfer Crude Pipe to Resume After Spill Kept it Down for 3 Weeks

Energy Transfer LP completed testing on its West Texas Gulf Crude pipeline which is expected to resume Tuesday, a spokeswoman told Reuters in an emailed statement on Monday.

A spill extended maintenance work on the line which resulted in a prolonged outage that pressured regional crude prices in West Texas as the region grappled with limited pipeline takeaway capacity.

The spill involved an undisclosed amount of water and contained “a very small amount of residual crude oil,” the Dallas pipeline operator said in an email.

The West Texas Gulf pipeline runs from Colorado City to Longview, Texas. Originally, maintenance was scheduled for about 10 days starting on October 10, however a spill delayed the normal return of operations by over a week.

Julie Dermansky

President Trump Likely to Push for Pipeline Growth After Meeting with Permian Energy Executive

After a Wednesday meeting with an executive from an unnamed energy company that drills in the Permian Basin in Texas and New Mexico, President Trump is likely to push for pipeline growth next year, his top economic adviser said Thursday.

“He’s got more than he knows what to do with. They’re burning it off, flaring,” Kudlow said of the unnamed executive.

Larry Kudlow said that oil and natural gas pipeline growth will be a continuation of Trump’s aggressive energy deregulation streak and his ongoing infrastructure agenda.

 “We need infrastructure, including pipelines,” Kudlow said. “We need east to west, we need west to east.”

Thanks to the boom in fracking and horizontal drilling, production of gas is surpassing pipeline capacity, and the need for pipeline in the natural gas industry is essential for the continual growth of the industry.

Trump’s push is likely to include federal actions that would override states that have blocked pipelines.

“The states have some problems. But we also have some leverage at the federal government,” Kudlow replied.

The Hill