Joint Venture to Expand Footprint in Colorado's DJ Basin

Black Diamond Gathering has entered into a pair of deals that will expand its oilfield footprint in Colorado's DJ Basin to 243,000 acres. Black Diamond Gathering is a joint venture between Noble Midstream Partners and Greenfield Midstream.

Recently Black Diamond and Noble Energy agreed to ship crude oil on the Saddlehorn Pipeline. The Saddle horn pipeline is a project led by Magellan Midstream Partners that connects shale basins in Powder River Basin Wyoming and DJ Basin in Colorado to storage terminals in Cushing, Oklahoma.

"This opportunity is a natural expansion of Black Diamond's strategic footprint, with the ability to realize economics further down the crude oil value chain while enhancing the all-in value proposition for our customers," Noble Midstream Partners CEO Brent Smolik said in a statement.

Noble Midstream Partners and Greenfield Midstream owns 54.4 percent and 45.6 percent of Black Diamond respectively. The joint venture owns and operates 240 miles of pipeline and has 390 million barrels of crude oil storage capacity.

Black Diamond's deal with Magellan gives the joint venture an option to buy a 20 percent stake in the Saddlehorn Pipeline. The 15-year deal expands Black Diamond's presence by 85,000 acres, giving the joint venture a 243,000-acre footprint in the DJ Basin.

Source:
chron

Construction on $100M Alberta Oil Pipeline Will Be Start Soon

Inter Pipeline Ltd., said that its new $100-million crude oil pipeline project, Viking Connector will commence immediately. The pipeline will connect Inter Pipeline’s Throne Station on its Bow River pipeline system near Coronation to its Central Alberta pipeline system near Stettler.

Once the 47-mile (75-kilometer), eight-inch diameter Viking Connector project is completed, the company forecasts throughput volume of 10,000 to 15,000 barrels per day. The project is expected to be completed in the first half of 2020 and approximately one third of forecast shipments are currently secured for a 10-year term.

Inter Pipeline CEO Christian Bayle said in a statement that the new connection will provide economical access to the Edmonton market hub, which historically has been a premium market for Alberta light oil products. He added “Producers in the Alberta Viking and surrounding plays are currently limited to pipeline services to the Hardisty hub or costly trucking alternatives.”

Source:
pipelinenewsnorth

Commercial Service on Cactus II Pipeline Will Start Next Week

The new Cactus II crude oil pipeline, owned by Plains All-American, is mechanically complete and will begin commercial service next week, CEO Willie Chiang said. The pipeline will have the capacity to transport 670,000 barrels per day of crude oil from the Permian Basin to the Gulf Coast.

"As of today, the line is approximately 50% filled with crude, and we anticipate entering initial commercial service sometime next week," Chiang said during a conference call with investors to discuss the company's second-quarter financial results. "We expect to have direct Cactus II connectivity to Corpus (Christi) in service by the end of the first quarter 2020."

In-order to ease the bottlenecks that developed as a result of the fast-rising Permian Basin production, Cactus II is one of three new crude oil pipelines scheduled to enter service before the end of the year.

The other two pipelines scheduled for completion this year are the EPIC Crude Oil Pipeline from Orla, Texas, to Corpus Christi and Phillips 66 Gray Oak Pipeline.

According to Chiang, the company has also added new investors to its proposed Wink-to-Webster pipeline and expects to start operations on the project in the first quarter of 2021.

Source:
pgjonline

Cactus II Pipeline’s Unused Space Will Be Given to Committed Shippers

Unused space on Cactus II crude pipeline will be allocated to committed shippers if spot shipments fall below the 10% of capacity set aside for those shipments, Plains All American LP said on Wednesday.

A source familiar with the matter told Reuters last month that once the line fill is complete, full contractual volumes will be shipped by commodities merchant Trafigura. Last year a long-term agreement with Plains was signed by Trafigura to transport a total of 300,000 barrels per day of crude and condensate on the Cactus II pipeline from the Permian basin to the port of Corpus Christi.

Market sources have said that Plains has been scooping up crude barrels in recent weeks to fill the line ahead of the pipeline’s start up. Cactus II project is on track for initial service by the end of the third quarter of 2019, Plains said in June. The 670,000 barrel-per-day Cactus II oil pipeline system runs from the Permian basin to the Corpus Christi, Texas, area. 

Source:
pgjonline

Altus Midstream Acquires 33% Stake in Shin Oak Pipeline

Altus Midstream acquired 33% equity interest in the 658-mile Shin Oak natural gas liquids pipeline owned by Enterprise Products Partners L.P. Both companies announced the closing yesterday.

The pipeline transports growing NGL production from multiple basins, including the Permian and will ultimately have capacity to transport up to 550000 barrels per day of NGLs by the fourth quarter of 2019.

“We are very pleased to have Altus as a partner in the Shin Oak Pipeline, which facilitates continued growth of Permian Basin NGLs that are expected to more than double by 2025,” said A.J. “Jim” Teague, chief executive officer of Enterprise’s general partner.

“Altus is pleased to partner with Enterprise on the Shin Oak Pipeline,” said Clay Bretches, CEO of Altus Midstream.

With a long-term NGL sales agreement committing 100% of NGLs for Shin Oak system’s, the natural gas liquids are sourced primarily from Enterprise’s Orla natural gas processing complex in Reeves County, Texas, as well as Apache Corporation’s Alpine High play.

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

Cactus II Oil Pipeline to Begin Line Fill in a Week

Plains All American Pipeline LP’s Cactus II oil pipeline system will commence line fill within a week, a source with direct knowledge of the matter said. The Cactus II has the capacity of 670,000 barrel per day and runs from Permian Basin to the Corpus Christi, Texas area.

Cactus II project is progressing on schedule for initial service by the end of the third quarter of 2019, the pipeline operator said last month. Commodities merchant Trafigura signed a long-term agreement with Plains last year to transport a total of 300,000 bpd of crude and condensate on the Cactus II pipeline.

“We have over 90% of the pipe in the ground and we’re working diligently toward completion,” a company executive said during its investor day about two weeks ago. Concho Resources Inc., and Anadarko Petroleum Corp are the other two shippers on the Cactus II line.

Source:
pgjonline

Energy Transfer Partners Plans to Double the Pipeline Capacity

Energy Transfer Partners plans to double the Dakota Access pipeline's capacity from more than 500,000 barrels per day to as much as 1.1 million barrels, The Bismarck Tribune reported.

The pipeline carries oil from North Dakota through South Dakota and Iowa to a shipping point in Illinois. The expansion will meet growing demand without additional pipelines or rail shipments, the company told North Dakota Public Service Commission in a letter on Wednesday.

Before the pipeline was completed and began moving oil in 2017, it sparked massive protests near the Standing Rock Indian reservation. The company said last year that it was planning to ship more crude to the Gulf Coast.

Source:
chron

Phillips 66 Plans to Build an Offshore Crude Oil Export Terminal

Phillips 66 plans to seek permission to build an offshore crude oil export terminal near Corpus Christi. The plan is to build two offshore buoys about 27 miles east of Port Aransas, which will be supported by two underwater 30-inch crude oil pipeline. If approved, Phillips 66 would be the operator of the proposed project.

As per the plan, Bluewater Texas Terminal LLC, a Phillips 66 subsidiary, started contacting public officials about the offshore project earlier this month. The offshore terminal will be able to accommodate Very Large Crude Carriers, or VLCCs, which can haul up to 2 million barrels of crude oil in a single shipment.

The proposed project would require approval from the U.S. Maritime Administration, Texas Commission on Environmental Quality and other agencies, and in a statement, Phillips 66 reported that it is working with the Port of Corpus Christi to develop the project.

"Phillips 66 has decades of experience safely and responsibly operating similar single point mooring systems and other marine loading facilities," the company said in a statement. "Bluewater Texas would provide U.S. oil producers another outlet for their increasing volumes while also potentially reducing the need for reverse lightering and the environmental impact that those operations have on a regional level."

Source:
Chron

Two Expansion Projects in Texas Will Boost Exports to Mexico

Completion of a pair of expansion projects in Port Arthur and Corpus Christi by Howard Energy Partners will allow the company to do more exports of crude oil, gasoline diesel and other products to Mexico.

"Substantial expansions at our Port Arthur and Corpus Christi facilities signify HEP's commitment to designing and constructing fully-engineered facilities that are tailored to meet the exact needs of our customers," Howard Energy Partners Co-Founder and President Brad Bynum said in a statement.

The company will get 2.6 million barrels of storage in the region after the completion of the expansion projects, which recently added 12 new storage tanks, four butane bullets, two barge docks, one ship dock and a bidirectional pipeline to its 450-acre Port Arthur terminal.

The expansion projects are expected to boost the company's exports by rail and seafaring tankers, as Mexico has emerged to be one of Howard's top customers.

Source:
chron

Natural Gas Pipeline Expansion Receives Construction Approval from FERC

Transco’s Northeast Supply Enhancement project received approval for construction from FERC. The pipeline expansion project will carry natural gas from the shale fields of Pennsylvania to New York, and will expand on the company’s existing pipeline infrastructure in New Jersey, New York, and Pennsylvania.

The project will add approximately 36 miles of new pipeline and add two new natural gas compressors at exiting compressor stations. The NSE project will replace the use of 900 thousand barrels of heating oil annually in the region with 400,000 dekatherms per day of natural gas by converting about 8,000 customers per year from heating oil to natural gas in the Northeast.

By displacing oil with cleaner burning natural gas, the project would result in the reduction of a variety of air pollutants in the region and could result in lower greenhouse gas emissions overall, since natural gas emits less carbon dioxide than oil on a volume basis when burned.

“After carefully balancing the need for the project and its environmental impacts, I find the project is in the public interest,” Cheryl LaFleur, a Democratic appointee said in her remarks while approving the project’s certificate of construction.

Source:
heartland

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

Court Rules Against Enbridge’s Line 3 Replacement Project

Minnesota State Court of Appeals ruled on Monday that the environmental assessment done on Enbridge’s Line 3 pipeline replacement project was inadequate. The ruling is just the opposite of Minnesota Public Utilities Commission’s decision, which approved the environmental impact statement for the pipeline replacement.

The proposed replacement pipeline will have the capacity to move 370,000 barrels of oil per day. The company plans to replace its existing 282 miles of 34 inch pipeline with 337 miles of 36 inch pipe. The project has faced numerous legal challenges and has been approved and disapproved several times over.

The startup date for the pipeline replacement project was originally supposed to be at the end of 2019.  As per the court, the Commission made a mistake when it approved the plan, and found that Enbridge’s environmental impact statement lacked in details about where it deals with oil spills in relation to Lake Superior.

Source:
oilprice

Alaskan Pipeline Project Receives Federal Permit

Alaska’s Energy Desk reported that Oil Search, a Papua New Guinea-based company announced that it had received a permit from the U.S. Army Corps of Engineers for a large oil project on Alaska’s North Slope.

The company said it received the permit for its Pikka development, which is planned west of Prudhoe Bay, an area seen as a new hot spot for oil activity on the western North Slope. According the company the project could produce about 120,000 barrels of oil per day.

Since the Pikka development would be as close as seven miles to the village of Nuiqsut, questions have been raised about how the project will affect subsistence hunting and fishing for Nuiqsut residents.

“The company is committed to close collaboration with the people and organizations of Nuiqsut.” Oil Search Alaska President Keiran Wulff said in a statement.

Source:
pgjonline

Joint Venture to Extend Ethylene Pipeline Network in South Texas

Enterprise Products Partners announced on Tuesday that under a joint venture with Lavaca Pipeline Co., they are planning to construct a 90 mile Baymark pipeline. The pipeline will carry ethylene and will run from Bayport area southeast of Harris County to Markham, Texas.

The Baymark pipeline will link to Enterprises’ Mont Belvieu complex, a 600 million-pound ethylene storage well. The pipeline will also link to Enterprises' ethylene export terminal at Morgan Point near La Porte, Texas.

As the petrochemical export boom rolls on, U.S. ethane production is projected to increase nearly 60 percent to 2 million barrels a day by 2021, up from 1.26 million barrels a day in 2016. U.S producers are taking advantage of the soaring ethane production unleashed by the shale boom to produce ethylene at a relatively cheaper cost.

"The U.S. petrochemical industry is experiencing unprecedented growth with production of ethylene expected to exceed 100 billion pounds per year by 2025," said A.J. "Jim" Teague, chief executive officer of Enterprise's general partner in a statement. "This growth in the petrochemical sector is creating additional opportunities for Enterprise to grow our midstream petrochemical services. The Baymark Pipeline further extends our petrochemical value chain, providing producing and consuming customers with enhanced access to the largest liquids storage hub in North America at Mont Belvieu, as well as linking them to growing domestic and international markets."

Source:
houstonchronicle

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

Line 3 Replacement Project Could Exceed C$9 Billion

Delays to permits in the United States will cause Line 3 replacement project cost to exceed previous cost estimate of C$9 billion ($6.71 billion), Enbridge Inc, said on Friday.

The company said in March that the in-service date would be the second half of 2020 and reason for the delay is of slower-than-expected permitting in the U.S. state of Minnesota. Line 3 will carry 760,000 barrels per day of western Canadian crude to U.S. markets, once completed.

“The late schedule likely means higher costs on the U.S. side although we are running under budget in Canada,” Enbridge chief executive Al Monaco said, adding that returns remained “very robust” and the company did not expect any cost overruns to be material to its financial outlook.

Source:
reuters

Trans Mountain Oil Pipeline Expansion Likely to Proceed

The controversial expansion of Trans Mountain oil pipeline will be proceeded by the Canadian government. Justin Trudeau’s federal cabinet will meet to discuss the expansion on June 18 and the plan is to double the pipeline flow out of Alberta to the west coast in British Columbia, Bloomberg reported.

The expansion would add 590,000 barrels of daily shipping capacity and will be a boon for Canadian oil drillers struggling from a lack of pipelines. British Columbia has been strongly opposing the project, which forced Kinder Morgan to reconsider its commitment to expand the Trans Mountain pipeline, and to sell the project to the Canadian government in August 2018.

The leaders advocating for the pipeline expansion is conducting consultations with First Nations regarding the project, in an attempt to address all possible concerns that opponents may have. Work on the project could start fairly quickly if the outcome of the consultations are positive.

Source:
oilprice
bloomberg