Nustar Energy Expects Crude Loadings to Double This Month

San Antonio-based NuStar Energy LP’s Corpus Christi, Texas, export terminal will double the crude loading by month’s end, Danny Oliver, a NuStar senior vice president, said in an interview. According to consultancy RBN Energy, the monthly average was 200,000 barrels per day this year and it reached to 280,000 barrels per day last week.

As new shale pipelines to the U.S. Gulf Coast opened last month, the crude arriving on EPIC Midstream and Plains All American Pipeline LP lines from the Permian Basin of West Texas and New Mexico increased.

NuStar expects loadings to reach up to 500,000 barrels per day by month’s end and up to 700,000 barrels per day by year-end. Last week, overall crude loadings at the Corpus Christi, Texas, export hub hit a record 1 million barrels per day.

“With our existing assets, we’ve been able to get 500,000-700,000 bpd with very little new capital,” Oliver said. “We have room to grow into our full capacity, it would just take building more barrels of storage.”

NuStar is set to finish constructing 600,000 barrels of new storage at the terminal by year-end. It may add another 1.5 million barrels of storage over about 15 months, with a total capacity of 5.4 million barrels.

Source:
pgjonline

Phase 1 of Largest Water Gathering System in South Texas Completed

EVX Midstream Partners, a Houston-based pipeline operator has completed the first phase of construction of oilfield wastewater gathering system in the Eagle Ford Shale of South Texas. It is touted as the largest wastewater gathering system in South Texas shale play.

"EVX is positioned to be the largest gatherer of produced water in the Eagle Ford basin," CEO Herb Chambers IV said in the statement. "We have recently completed over 300 miles of large diameter water gathering systems and have pipe connected many of our 20-plus saltwater disposal wells to provide our producer customers and trucking companies unprecedented operational flexibility”.

Oilfield wastewater, also known as produced water, is treated to be used again in drilling or hydraulic fracturing operations but most of it is pumped into deep underground reservoirs known as saltwater disposal wells.

The company owns and operates 26 saltwater disposal wells throughout the Eagle Ford Shale that are permitted to inject up to 600,000 barrels of water per day. Produced water was traditionally hauled by 18-wheelers to disposal sites, though the trucks are increasingly replaced by pipelines.

Source:
chron

Binding Open Season Launched by Explorer Pipeline

A binding open season to secure shipper commitments to support the development of a proposed extension of Explorer’s pipeline system was announced by Explorer Pipeline Company. The proposed project named as Expansion Project, when completed, shippers will be able to obtain transportation service from the U.S. Gulf Coast receipt points on Explorer’s system to the new delivery point near Melissa, Texas.

The company is also planning to construct a new terminal at the terminus of the Expansion Project near Melissa, Texas, which will be owned and operated by U.S. Oil. The binding open season started on September 10, 2019, and is scheduled to end on November 11, 2019.

According to Explorer Pipeline Company, shippers interested in becoming committed shippers on the Expansion Project must make a volume commitment of at least 2,500 barrels per day. Also shippers that make a volume commitment will have the ability to receive priority capacity, up to an amount of their volume commitments, during periods of prorationing, subject to the payment of a premium rate.

Shippers that make a volume commitment and do not receive priority capacity will be subject to discounted rates compared to the rates assessed to walk-up shippers, with the amount of the discount dependent on the level of the shipper’s volume commitment.

Source:
pgjonline

Dismissal of Lawsuit over Keystone XL Pipeline Requested by US Attorneys

The Trump administration attorneys wanted a U.S. judge to throw out a lawsuit from Native American tribes in Montana and South Dakota. The lawsuit is blocking TC Energy’s proposed Keystone XL oil pipeline that would carry up to 830,000 barrels per day from Canada to Nebraska.

A Thursday hearing on the government's attempt to dismiss the case will be presided over by U.S. District Judge Brian Morris. The judge blocked the line in November, saying more environmental studies were needed. But Trump circumvented that ruling in March by issuing a new permit for the $8 billion, 1,184-mile project.

According to the administration, Trump's approval applies only to a 1-mile section of pipeline along the U.S.-Canada border and not the rest of the line, but the tribes argue that Trump's permit applies to the entire pipeline.

The tribes fears that a spill could damage a South Dakota water supply system that serves more than 51,000 people including residents of the Rosebud, Pine Ridge and Lower Brule Indian reservations. Also they say that President Donald Trump approved the pipeline without considering potential damage to cultural sites from spills and construction.

Source:
chron

49% Stake Acquired by Harvest Alaska in Taps and Alyeska

BP Transportation Alaska's ownership in all midstream interests in Alaska will be acquired by Harvest Alaska. This will include 49% interest in the 800-mile Trans-Alaska Pipeline System (TAPS), 49% of Alyeska Service Company and other related midstream interests.

"The Trans-Alaska Pipeline System is an icon of Alaska's energy industry and a monument to Alaskan ingenuity and will power. It's also a critical piece of infrastructure for America's energy future," said Jason Rebrook, Chief Executive Officer of Harvest Midstream. "We are proud to partner with Alyeska and the other members of the TAPS family to ensure a bright future for the system, for Alaskans, and for American energy independence."

Trans-Alaska Pipeline System is one of the largest pipelines in the world which transports approximately 2 million barrels per day of oil. The pipeline runs from the Prudhoe Bay oilfield to the Valdez Marine Terminal in Alaska. The operation of the pipeline will be continued by Alyeska Service Company and has transported over 17 billion barrels of product to date.

"TAPS is an engineering marvel that has played a critical role in the history of the energy industry," said Sean Kolassa, President of Harvest Midstream. "It will continue to play a very important role and we look forward to being a key partner in its future with focus on safety, the environment and the communities it connects."

Source:
worldpipelines

Saddlehorn Pipeline Announced Capacity Expansion

Saddlehorn Pipeline’s successful open season during July and the subsequent increased volume commitments from shippers allowed Saddlehorn Pipeline Company, LLC to announce a further expansion on its pipeline. The pipeline’s capacity will be increased by a total of 100,000 barrels per day to a new total capacity of approximately 290,000 barrels per day.

Magellan Midstream Partners, L.P., Plains All American Pipeline, L.P. and Western Midstream Partners, L.P. jointly owns the Saddlehorn pipeline. The pipeline is currently capable of transporting 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.

Following the addition of incremental pumping and storage capabilities, the higher capacity is expected to be available in late 2020.

Source:
worldpipelines

Trans Mountain Pipeline Construction Work Restarts

A year after the project’s latest regulatory setback, construction on parts of the Trans Mountain pipeline is restarting, Trans Mountain Corp said on Wednesday. The pipeline was bought last year by the Canadian government to help ensure the completion of the expansion to 890,000 barrels of oil per day after years of delay and strong disapproval by environmental and some indigenous groups.

“We are very happy that people will be in the field, digging the ground and installing the pipe,” Canada’s Minister of Natural Resource Amarjeet Sohi said at a news conference in Edmonton.

In the fourth quarter of 2019, approximately 4,200 workers are expected to be employed along the pipeline corridor and the company has issued notices to some contractors to mobilize construction equipment and crews, Trans Mountain Chief Executive Ian Anderson said in a statement.

Work is restarting at the Burnaby storage terminal where the pipeline terminates, and the Westridge marine terminal, where crude is loaded onto tankers. It will also soon begin in communities along the pipeline’s right-of-way in Alberta between Edmonton and Edson, and in the Greater Edmonton area.

Given a reason that the company failed to adequately consult indigenous groups, last year a Canadian court overturned the federal government’s 2016 approval of the project. But after a new regulatory review that gave a huge relief to Canada’s oil industry, Justin Trudeau’s Liberal government re-approved the pipeline in June.

Source:
reuters

New Permian Pipeline to Gulf Coast Ships First Crude

San Antonio-based EPIC Midstream Holdings Inc., began shipping crude oil on its 400,000 barrel per day pipeline from the Permian Basin to the U.S. Gulf Coast on Thursday. EPIC is the second pipeline operator this year to open a major line from the top U.S. oil field to the Corpus Christi, Texas, area.

Plains All American Pipeline LP’s 670,000 barrel per day Cactus II pipeline stated its initial operations this week. Both new pipelines will help alleviate a crude oil bottleneck that has weighed on prices in the Permian of West Texas and New Mexico for more than a year.

Terminal operator Moda Midstream LLC confirmed it would be accepting the Permian crude from the EPIC line at its facility in Ingleside, Texas, by Friday. Oil prices in Midland, the heart of the Permian shale field, rallied to 50 cents per barrel over U.S. crude futures.

Source:
reuters

Permian Crude Shipment Started on Cactus II Pipeline

Crude oil shipments started from Permian basin to the Buckeye Texas Partners oil hub in Corpus Christi through the new Cactus II pipeline system, Global commodities trader Trafigura AG said on Monday.

A long-term agreement between Trafigura and the pipeline operator, Plains All American Pipeline LP was signed last year to transport a total of 300,000 barrels per day of crude and condensate on the Cactus II pipeline, which has a capacity of 670,000 barrels per day.

The Cactus II pipeline is expected to alleviate a bottleneck that had depressed regional prices for more than a year. Also the pipeline is first of three large pipelines expected to start up this year from the Permian Basin and the biggest in the United States.

Source:
reuters

Oryx Midstream Services Secures $550 Million Investment

Qatar Investment Authority has acquired a $550 Million stake in Oryx Midstream Services from an affiliate of Stonepeak Infrastructure Partners. Oryx Midstream Services is the largest privately-held midstream crude operator in the Permian Basin.

"The significant investment and commitment from QIA alongside Stonepeak's strong operational and capital support will allow us to continue to grow our footprint in the Permian Basin and deliver the highest level of service to current and future customers. We are thrilled to lead Oryx in partnership with these world-class investors." said Brett Wiggs, CEO of Oryx.

"We believe that Oryx represents a strong midstream platform with tremendous growth potential, and we look forward to working with our new partners at Stonepeak. This acquisition is a further demonstration of QIA's strategy to increase the size of our US portfolio, and to invest more in major infrastructure projects." said Mansoor Al-Mahmoud, CEO of Qatar Investment Authority.

The Oryx system currently operates 500 miles of gathering pipelines and transports crude oil to market hubs for ultimate delivery to the Gulf Coast. Upon completion of the remaining 680 miles of gathering pipelines, which is currently under construction, Oryx's total transportation capacity will exceed 900,000 barrels per day.

Qatar Investment Authority has committed to invest in the development of Oryx alongside Stonepeak. While Qatar Investment Authority’s partnership and total investment in Oryx will be approximately $550 million, it plans to invest $45 billion across the US in the coming years.

Source:
pgjonline

Grand Prix NGL Pipeline started up from Permian to Houston

The $1.4 billion Grand Prix natural gas liquids pipeline project that stretches from Permian Basin to the Houston area has been started up, Targa Resources said on Thursday. The pipeline can currently move 300,000 barrels per day, which can be expanded to 500,000 barrels daily.

"Our Grand Prix NGL pipeline recently commenced deliveries into Mont Belvieu, realizing the long-run strategic goal of integrating our leading gathering and processing position with our premier NGL logistics, fractionation and export platform," said Targa Chief Executive Joe Bob Perkins.

The pipeline system is also getting expanded to stretch into Oklahoma and that effort is under construction. The company also plans to expand the western portion of the Grand Prix pipeline into New Mexico.

Natural gas liquids products like propane, butane and ethane will flow through the pipeline from Permian Basin and will be separated into their individual components at processing facilities, called fractionators, in Mont Belvieu.

Source:
chron

Enbridge Open to Re-Route Line 5 After Legal Action

Enbridge Inc. stated that the company is willing to consider rerouting a section of Line 5 pipeline around the Bad River Reservation in northern Wisconsin. Line 5 carries 540,000 barrels per day of Canadian crude and propane to eastern Michigan.

Bad River Band of Lake Superior Chippewa, a Native American tribe in Wisconsin sued the company on Tuesday seeking to shut the pipeline and remove sections of its Line 5 pipeline that run across their reservation due to the risk of a leak.

According to the Bad River Band, it's increasingly likely that the 66-year-old line will rupture and cause catastrophic damage. In 2017, the tribe decided not to renew easements that runs across 12 miles of the Bad River Band of Lake Superior.

“The vast majority of the easements through the reservation extend until 2043; those in question affect only a small fraction of the twelve miles of Line 5 within the reservation. Enbridge has considered re-routing Line 5, and as discussed with the Bad River Band, remains open to this option as a solution,” Enbridge spokeswoman Juli Kellner said in a statement. 

Source:
reuters

Blue Mountain Announces Crude Oil Gathering Agreement

Blue Mountain Midstream LLC has announced that one of its subsidiaries has entered into a definitive agreement with Roan Resources LLC., to gather Roan Resources’ crude oil in the prolific Merge play. The agreement will provide a 10-year term covering an 89,000 net acre dedicated area in nine townships in central Oklahoma.

“Blue Mountain continues to grow our relationship with Roan Resources while expanding our scale and capabilities with this fully fee-based business line. By adding crude gathering, Blue Mountain can now provide our E&P customers a full suite of midstream services complementing our existing gas gathering and processing and water management services. We are excited to provide another commercial service that will positively impact the community by significantly reducing high volume trucking associated with Oklahoma’s oil production,” said Greg Harper, President and CEO of Blue Mountain.

According to Blue Mountain, the plan is to construct an initial crude system consisting of approximately 50 miles of gathering pipelines and be capable of transporting up to 60,000 barrels per day of crude oil. Also there will be two downstream interconnections providing anchor shipper Roan Resources with direct access to the Cushing market.

Source:
worldpipelines

Plains Cactus II Crude Pipeline Rate Structure Receives Partial Approval

The rate structure and terms of service for Plains All American Pipeline LP’s Cactus II crude line recieved partial approval from U.S. energy regulators on Monday. The Cactus II crude pipeline runs from the Permian basin to the Corpus Christi, Texas area.

The regulators approved most conditions put forth by Plains. However they declined to approve a request for the option to hold another open season to solicit shipper commitments for up to 90 percent of the pipeline’s capacity upon the expiration or early termination of service agreements.

The 585,000 barrels per day Cactus II line is expected to begin service in the third quarter and will connect the Permian basin to the Gulf Coast.

Source:
reuters