Joint Venture to Construct 475 Mile Whistler Pipeline

A final investment decision to design and construct the proposed Whistler pipeline was taken by MPLX, WhiteWater Midstream and Stonepeak Infrastructure Partners/West Texas Gas, Inc.

The 475 mile long pipeline from the Permian Basin in West Texas to the state’s Coastal Bend region will be built by the joint venture, MPLX reported late Wednesday.

The pipeline will be designed to carry approximately 2 billion cubic feet per day of gas through a 42 inch diameter pipe from Waha, Texas, to the Agua Dulce area in South Texas.

The majority of available capacity on the proposed pipeline has been subscribed and committed by long-term transportation agreements and the remaining capacity will be fully subscribed in the coming months.

“The decision to move forward with this project after securing sufficient commitments from shippers demonstrates our disciplined approach to investing,” MPLX President Michael J. Hennigan said in a written statement. “Whistler is expected to provide reliable residue gas transportation out of the Permian Basin, which is vital to our growing gas processing position and producers in the region.”

The pipeline is expected to begin service during the third quarter of 2021, subject to pending regulatory and other approvals.

Source:
rigzone

Kinder Morgan’s Steel Tariff Waiver Request Denied by Trump Administration

The Department of Commerce denied two requests from Kinder Morgan to buy tariff-free steel pipes from Turkish manufacturer Borusan Mannesmann in order to build the $1.75 billion Gulf Coast Express Pipeline in Permian Basin.

The company have a target service date of October 2019 for the 514-mile pipeline to move 2 billion cubic feet of natural gas per day from the Permian Basin of West Texas to the Agua Dulce hub near Corpus Christi.

Trump imposed a 25 percent import tax on steel and a 10 percent import tax on aluminum on most countries and extended them in June to Mexico, Canada and the European Union, in a decision taken on March 2018.

The company argued that the Gulf Coast Express Pipeline would boost exports, unlock more oil production in the Permian Basin. They also added that it will strengthen ties to Turkey, a key U.S. ally in the Middle East, but according to the Department of Commerce officials, there is a reasonable amount of pipeline available in the United States with "satisfactory quality" for the project.

Source:
chron

Enbridge Authorized to Place Cross-Border NatGas Pipeline into Service

Enbridge recently received an order from The Federal Energy Regulatory Commission on Thursday for the permission to put the cross-border natural gas pipeline into service.

Enbridge has received permission to put the cross-border natural gas pipeline into service after the FERC provided an order on Thursday.

The 165-mile Valley Crossing pipeline begins near the Agua Dulce hub near Corpus Christi and ends under the seafloor in the Gulf of Mexico just a few miles east of the mouth of the Rio Grande. The pipeline is designed to move 2.6 bcfd of natural gas.

Texas-Tuxpan Pipeline, a project that will move natural gas from the border to the Mexican state of Veracruz is also nearing completion.

The Valley Crossing Pipeline has been mechanically complete since October and has been awaiting the Mexican pipeline’s completion, an Enbridge spokesman confirmed.

Once the Texas-Tuxpan Pipeline and The Valley Crossing Pipeline are in operation, they will deliver natural gas from Texas to power plants in Mexico's interior.

Source:
Chron

Kinder Morgan Allocates $2.3 Billion in Discretionary Budget to Natural Gas Projects

Kinder Morgan’s Vice President and Chief Financial Officer David Michels gave a peek at the 2019 budget, announcing that nearly $2.3 billion of Kinder Morgan’s $3.1 billion discretionary budget will be allocated to natural gas projects.

Two of their biggest projects are pipelines that will move natural gas from the Permian Basin of West Texas to the Gulf Coast.

Kinder Morgan is leading a joint venture with three other companies to bring the Gulf Coast Express Pipeline into service by October.

The cost of the 42-inch pipeline is $1.75 billion and will move 2 billion cubic feet of natural gas per day from the Waha Hub in the Permian Basin to the Agua Dulce hub near Corpus Christi.

The company is also a lead developer in another 42-inch pipeline, the $2.1 billion Permian Highway Pipeline. It is expected to come into service in Oct. 2020 and move 2 billion cubic feet of natural gas from the Waha Hub to the Katy Hub near Houston.
 
Kinder Morgan is also eyeing projects to boost its natural gas exports to Mexico and develop other pipelines to support the growing liquefied natural gas industry along the Gulf Coast.

The company plans to put its own Elba Island KNG export terminal near Savannah, Georgia into service by the end of the first quarter.

Source:
Chron