Plains' Canadian Pipeline Expansion Will Connect To Texas

Plains All American has proposed pipeline expansions in Canada, Montana and Wyoming in order to connect to the $2.5 billion Red Oak pipeline system that Houston’s Phillips 66 and Plains are building from Oklahoma to Houston, Beaumont and Corpus Christi. While the Keystone XL pipeline project is still fighting legal battles, these expansions, set to complete in 2021, would allow more Canadian crude oil to reach Houston and the Gulf Coast.

Tyler Rimbey, executive Vice President for Canadian Plains stated, “We remain focused on leveraging our existing systems in creative ways to meet the growing needs of our customers.”

The reasonably priced expansions include Plains’ Western Corridor pipeline in Montana and Wyoming to grow as well as their Rangeland Pipeline, running from Edmonton to the U.S./Canadian border, to increase by 2X.

The Red Oak pipelines will be located from an oil storage hub in Cushing, Oklahoma to Wichita Falls, Texas and handle a mix of Canadian and Texas crude oil. From Wichita Falls, the pipelines should connect to systems from the Permian Basin, then lead towards Sealy and onwards to different refining and port hubs in Corpus Christi, Ingleside, Houston and Beaumont.

Houston Chronicle

Best Selling Author and Former U.S. Navy SEAL Officer to Give Leadership Workshop for Pipeliners

Leif Babin, a former U.S. Navy SEAL officer and co-author of #1 New York Times bestseller Extreme Ownership: How U.S. Navy Seals Lead and Win, will be in Stafford, TX at Blue Sky University (BSU).

Leif will be in attendance with Mike Bajema, a retired U.S. Army officer who also served in Iraq. Both will be giving workshops and keynote presentations.

“BSU, is a pipeline leadership conference that connects the entire industry”, said CEO of Blue Sky Evolution.

“It’s our way of saying thank you to the industry while giving the next generation of leaders a platform to learn from the best leaders out there.”

“There will be industry leaders as usual. We’re talking some very experienced presenters. We just wanted to do something different in our sixth year, so we made sure we brought in five-star leaders from outside the industry too.”

The conference is set to start on April 23 and end on April 25th. It will take place in Stafford, TX at the Stafford Centre.

“We’re excited. It’s a healthy mix of the latest and best technology, and the best leadership advice for everyone in the industry.”

BSU Pipeline

Kinder Morgan Responds to Alleged Lawsuit, Looks to Remediate Damages

Kinder Morgan responded to a proposed class action lawsuit claiming that there were numerous misstatements in the filed petition.

The company faces a proposed class action lawsuit claiming that one of their divisions emitted chemicals and toxic gas causing damage to property and resulting in the deaths of animals.

Kinder Morgan said that they will continue working with the landowners to remediate any impacts to their property, however an emailed statement says that its unit was aware of seven landowners in close proximity that were affected by the “mist” rather than the petition’s alleged “thousands of people” being impacted.

The petition was filed on Dec. 17 by a Texas-based resident who also requested class certification against the company and its Tennessee Gas Pipeline Company Unit, all while petitioning other land owners.

The plaintiff claims that the pipeline, which transports natural gas from Louisiana to the northeast section of the United States, released at least 565,000 cubic feet of toxic gas and other chemicals.

According to the petition, the plaintiffs are seeking compensation of at least $5 million.


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


Kinder Morgan Drops Its Utica Marcellus Gas Pipeline Project

Kinder Morgan said in a financial report that it has decided to cancel its Utica Marcellus Texas Pipeline project as it shifts focus to its existing Tennessee Gas Pipeline, which transports natural gas from Gulf Coast in Louisiana to the northeast.

The UMTP was supposed to transport natural gas liquids from the Utica and Marcellus shale regions to the Gulf Coast in Texas. Kinder Morgan filed with the FERC in 2015 to abandon the TGP project in favor of the UMTP, which would have had a design capacity of 430,000 barrels daily.

The TGP will instead have the flow reversed by the company as it looks for producer commitments for the route between Appalachia and the Gulf Coast.

The most recent abandonment of a project comes after Kinder Morgan abandoned another, more prominent, project earlier this year. The Trans Mountain oil pipeline in Ottawa was sold to the federal government after it became clear to Kinder Morgan that the same government could not guarantee that the project would go through.

Oil Price

Plains All American Controls Fire and Resumes Operations of Wichita Falls Crude Storage Tank

Plains All American Pipeline said on Wednesday that the fire on a crude storage tank east of Wichita Falls, Texas was extinguished. Initially, the company did not specify if other operations were affected by the fire but the terminal and connecting pipelines have resumed operations.

Tuesday morning’s fire broke out on a roof seal of a crude oil storage tank at the Wichita Falls Station and was extinguished around midnight, the company said in a statement.

Wichita Falls is a crude injection point in north Texas along Plain’s Basin Pipeline. It runs from the Permian Basin to the oil storage hub at Cushing, Okla.

The pipeline was flowing at a rate of nearly 409,000 barrels per day at the time it was shut after decreasing in power consumption around 7:00 A.M. ET on Tuesday. It has a capacity of 450,000 bpd.


Flames Break Out at Plains All American Wichita Falls Station

A single crude storage tank at the Plains All American Pipeline Wichita Falls Station broke out into flames on Tuesday morning, the company said.

Personnel and contractors were accounted for, according to the company. It is unclear whether or not there have been any injuries despite first responders being on site.

The company did not specify if other operations were affected by the fire.

Wichita Falls is a crude injection point in north Texas along Plain’s Basin Pipeline. It runs from the Permian Basin to the oil storage hub at Cushing, Okla.

The pipeline was flowing at a rate of nearly 409,000 barrels per day at the time it was shut after decreasing in power consumption around 7:00 A.M. ET, market intelligence firm Genscape said in a notice.

The Basin pipeline has a capacity of 450,000 bpd, Genscape said.

“Plains really hasn’t said much to the shippers so unless it’s going to be shut for a while, I don’t think there’ll be much market impact,” said one trader who buys oil off the pipeline.

Plains did not respond to a request for comment on the Basin pipeline closure.


Oxy to Sell Ingleside and Crude Oil Infrastructure to Moda and Lotus Midstream

Moda Midstream, LLC announced on Wednesday that it has entered into a definitive agreement to acquire the Oxy Ingleside Energy Center (IEC) and certain crude oil and LPG infrastructure form Occidental Petroleum Corporation. The transaction is expected to close in the third quarter of 2018, subject to customary closing conditions.

Strategically located in Ingleside, Texas, IEC resides near the mouth of Corpus Christi Ship Channel with minimal transit times to the Gulf of Mexico.

Oxy is also selling the Centurion pipeline system to Lotus Midstream. The pipeline extends from the Permian to an oil storage and transportation hub in Cushing, Oklahoma.

The combined $2.6 billion transaction are part of an effort for Oxy to focus on its growing production in the Permian. Oxy is easily one of the largest producer’s in the Permian.

Chief Executive Vicki Hollub emphasized the company’s focus on the Permian

“The Permian is now the foundation and the growth of our company,” Hollub said. “The bulk of our growth capital will continue to go to the Permian Resources business.”

The transactions by Moda and Lotus are the largest in their companies’ history.

Houston Chronicle
World Pipelines

Targa Resources and Partners to Compete with Kinder Morgan, Plans for 600-Mile Permian Pipeline

Targa Resources, a Houston Pipeline firm, said it would be teaming up with multiple partners to build a 600-mile natural gas pipeline system from West Texas’s Permian Basin to Corpus Christi and Houston regions.

The partnership would put Targa in direct competition with Kinder Morgan and other companies’ massive gas pipelines in the race to build crude oil pipelines and serve the record levels of production from the Permian. Kinder Morgan recently announced plans for a 430-mile Permian Highway Pipeline project to transport natural gas to Houston and Corpus hubs.

Targa said on Friday that its aim is to build the Whistler Pipeline project with Florida’s NextEra Energy, Ohio’s MPLX and some private equity investors as partners.

The project would transport 2 billion cubic feet of gas per day through 42 inch pipelines stretching 450-miles from Waha, Texas to just west of Corpus Christi. A 30-inch pipeline would transport the shipment an additional 170-miles to Wharton County.

Houston Chronicle


Medallion Midstream Asks for Bids for New Expansion

Irving-based Medallion Midstream announced an open season on Monday and is asking for bids as it anticipates a planned expansion.

The West Texas crude oil pipeline system will make a major expansion in the Midland Basin. The oil field is part of the larger Permian Basin, which has seen enormous growth in oil and gas production over the last few years.

Medallion said that the plan was to place new 16-inch pipes along its existing pipeline system, without specifying how many miles would be added, nor the capacity.

Currently, the system runs approximately 700 miles of six-inch diameter pipe.

The expansion comes a week after Oryx Midstream Services announced its own expansion of regional crude oil pipeline in which it will add 180 miles to its existing system.

Houston Chronicle

Enterprise Products Partners to Build Massive Billion Dollar Export Terminal

Enterprise Products Partners announced on Tuesday that it is planning to construct a $1 billion to $2 billion oil and export terminal off the Texas coastline to accommodate the world’s largest crude-carrying vessels.

A sea based terminal solves a critical problem for very large crude carriers, or VLCCs, which have recently been heading to Texas instead of the Panama Canal due to recent widening of the canal.

Regardless, Texas ports aren’t able to have ships fill at capacity due to water depth, so Enterprise plans on building pipelines to run about 80 miles from its Houston-area network to an offshore terminal where water is naturally deeper.

It is a project that could take years to be completed. Enterprise expects the state and federal permitting process could take roughly a year before construction can even begin.

“Enterprise is making sure U.S. production doesn’t get gridlocked at the Gulf Coast,” said Colton Bean, an energy analyst with Tudor, Pickering, Holt & Co. in Houston. “The refining system isn’t really expanding much in North America, so exports are your one key relief valve.”

Houston Chronicle

Oryx Midstream to Increase Capacity of its Permian Oil Pipeline to 650,000 Barrels After Expansion

Midland-based Oryx Midstream Services II is expanding an under-construction crude oil pipeline system in the Permian Basin by adding 180 miles of additional pipeline to its regional pipeline system.

After the expansion is completed, the project’s total system will consist of 400 miles of pipeline capacity, resulting in 650,000 barrels of crude oil with a total of 1.5 million barrels of crude oil storage.

It will serve West Texas’ Permian Basin in New Mexico and Texas by sending oil from the field to larger pipelines that will send the oil further east.

The pipeline is expected to be fully operating by the second quarter of 2019, with Oryx Midstream Services initially announcing the construction of the system in September with 220 miles of pipeline and 400,000 barrels of capacity.

The lack of construction and continued production remains an issue for crude oil leaving West Texas as producers work to increase construction in order to increase transportation and match output.

Houston Chronicle

Kinder Morgan to Join EagleClaw Midstream, Apache Corporation in Permian Highway Pipeline Project

Kinder Morgan Texas Pipeline LLC, EagleClaw Midstream Ventures, and Apache Corporation made an announcement yesterday that they signed a letter of intent to develop the proposed Permian Highway Pipeline Project (PHP Project).

The PHP Project will serve as an additional outlet for the increase in natural gas production that links the Permian Basin to the growing markets that stretch across the Texas Gulf Coast.

The project would transport a maximum of 2 billion ft^3/d of natural gas that crosses 430 miles of 42 inch pipeline from the Waha, Texas area to US Gulf Coast and Mexico markets.

Kinder Morgan is also looking at the feasibility of a 48-inch pipeline to increase transportation capacity. 

The project is expected to be in service in late 2020.

World Pipes


Permian Nearing Shut Ins Due to Production Capacity

The Permian is 3 to 4 months from reaching its production capacity and some producers could be forced to shut in wells.

“Some companies will have to shut in production, some companies will move rigs away, and some companies will be able to continue growing because they have firm transportation,” Pioneer’s chairman Scott Sheffield told Bloomberg in an interview outside an OPEC conference in Vienna.

Oil production is the Permian is growing by 800,000 bpd annually, with the current rate of production at 3.3 million bpd. The total capacity is 3.6 million bpd. Producers who don’t have firm pipeline transportation deals will be halted by limits of takeaway capacity.

By July, the Permian pipeline is expected to produce 3.350 million bpd, according to EIA’s latest Drilling productivity Report.

New pipelines are in the progress of being planned and approved, however they are not expected to be up and running before the second half of 2019.

Oil Price

Howard Energy Enters $563 Million Joint Venture for New Pipeline System in Permian Basin

Howard Midstream Energy Partners announced Tuesday it is entering a $563 million partnership with WPX Energy to build a 50-mile crude oil pipeline and processing system in the Permian Basin.

Once the company completes construction, the pipeline system will have the capacity to transport and process 400 million cubic feet of natural gas per day in the Permian's Delaware Basin.

Calling it the most prolific basin in the nation, Howard Energy CEO Mike Howard said in the release that the joint venture shows that the company can differentiate among its competitors and raise significant capital for large-scale infrastructure projects.

Howard Energy is based out of San Antonio, Texas and owns and operates pipeline and storage infrastructure in both Texas and Pennsylvania.

Houston Chronicle

Enterprise Announces Natural Gas Plant Project for Delaware Basin

A Natural Gas Processing Facility By ReAl (Own work) [CC BY-SA 3.0 (], via Wikimedia Commons

Enterprise Products Partners announced yesterday that they plan to construct a “new cryogenic natural gas processing facility and associated natural gas and natural gas liquids (NGL) pipeline infrastructure to facilitate growth of NGL-rich natural gas production in the Delaware Basin of West Texas and southeastern New Mexico.”

The processing plant, whose site location is currently undetermined, will have a nameplate capacity of 300 million cubic feet per day and the capability to extract more than 40,000 barrels per day of natural gas liquids. The plant is expected to begin operations mid 2018.

The announcement of this natural gas processing plant makes Enterprise’s third announced project in the region within the last 2 years. The South Eddy facility started operations earlier this year, and the Waha joint venture plant will begin operations late this year. These initiatives along with the third project announced today complement Enterprise’s ongoing growth in the region, bringing their processing capability in the Delaware Basin from 40 million cubic feet per day in 2012 to 800 million cubic feet per day.

Construction of the new natural gas processing plant also includes natural gas gathering lines, a residue pipeline to Waha, and an NGL pipeline to Enterprise’s Mid-America Pipeline system.

Enterprise Products Partners

Spectra Energy Awarded $1.5 Billion Pipeline Project in Mexico to Meet Growing Natural Gas Needs

Houston-based Spectra Energy announced Monday that its subsidiary Valley Crossing has been awarded $1.5 billion for a pipeline project by Mexico’s state-owned power company Comisión Federal de Electricidad (CFE) to provide natural gas transportation services from Texas that will meet Mexico’s growing electric generation needs.

The structure will provide clean-burning and reliable natural gas to support Mexico as it shifts from fuel oil to LNG. The pipeline project will add to Spectra’s strong asset portfolio, connect them to another key-demanding market, and add to their goal of securing $35 billion in capital expansion projects by 2020.

Spectra’s subsidiary will construct and operate a header system of more than 5 billion cubic feet per day near Nueces County, Texas and a 2.6/bcf/d pipeline starting at that same header and going into Brownsville, Texas. In Brownsville the pipeline will connect with the Sur de Texas-Tuxpan pipeline contracted by TransCanada that will extend to Mexico.

Spectra Energy

Magellan Suspends Pipeline Service Due to Houston Flooding

Magellan Midstream Partners reported Friday that it has temporarily closed a portion of its petroleum pipeline system in Houston as a safety precaution due to flooding in the area.

The pipeline runs through Spring Creek near Spring, Texas and provides transportation services for gasoline, diesel, and jet fuel from the Gulf Coast refineries to central, northern, and west Texas distribution terminals.

Affected areas from the temporary closure include areas north of the facility, particularly the Dallas area and other areas in West Texas such as Odessa and El Paso. Alternative routes are being sought while the closure is in effect.

Read more from the source:
Fuels News

Railroad Commission of Texas to Host 2016 Pipeline Safety Conference in San Antonio, Texas

The Railroad Commission of Texas (RRC) is hosting its 2016 Pipeline Safety Conference on August 24-26 in San Antonio, Texas.

The purpose of this conference is to educate the pipeline industry on both federal and state regulations. During the conference, attendees will have the opportunity to meet with RRC Pipeline Safety staff and inspectors, learn about safety changes at the RRC and how they will affect the industry, hear the new regulations that are coming from the federal and state levels, learn about services and products that will contribute to more efficient systems, and exchange ideas and best practices with peers in the industry.

Accommodations have been reserved at the Embassy Suites River Walk. For more information on rates and reservations, visit the Texas Gas Association website. The registration form and information on fees will also be available on their website.

For more information about the conference, visit Railroad Commission of Texas.

Mysterious Burst in Texas Water Pipeline Raises Serious Concern

A water pipeline running from Lake Conroe to The Woodlands mysteriously burst last Tuesday, causing flooding at the intersection of Grogan’s Mill Road and Woodlands Parkway.

The pipeline, which was installed by San Jacinto River Authority one year ago, was expected to have a lifespan of 30 years. Stumped by the unexpected break, Groundwater Reduction Plan Division Manager Mark Smith said he plans to bring representatives from the pipe’s manufacturer to the area to investigate the cause of the burst.

The broken pipeline is part of a 50-mile project installed as a response to the state’s directive to reduce the county’s dependence on groundwater. Because the entire project is comprised of the same type of pipe, the unexpected break has raised definite concern over the integrity of the rest of the pipeline as the cause of the break remains a mystery.

The affected pipeline will remain out of service for the next week while investigations continue.

Read more from the source:
Houston Chronicle
The Woodlands Villager