Enbridge Announced Open Seasons on Express Pipeline

Open seasons for existing and expanded capacities on the Express Pipeline Limited Partnership pipeline in Canada has been announced by Enbridge Inc. The service originates at Hardisty, Alberta and has delivery points on the Express Pipeline LLC pipeline in the US.

"Given the shortage of pipeline capacity out of the Western Canadian Sedimentary Basin, Enbridge has been exploring options to provide industry with incremental near-term capacity," said Guy Jarvis, Executive Vice President Liquids Pipelines. "The efficient expansion capacity on the Express Pipeline being offered in this open season will provide additional takeaway capacity, which we believe will be well received by the shipping community."

The open season for existing capacity will begin at 8 am MDT on 3 July 2019 and end at 12 pm MDT on 7 August 2019 and the open season for expanded capacity will begin at 8 am MDT on 3 July 2019 and end at 12 pm MDT on 23 August 2019.


$145 Million Deal to Buy Shell Canada Gas Assets by Pieridae Energy

Pieridae Energy, based in Canada will buy gas assets from Royal Dutch Shell for 145 million, Pieridae said on Wednesday. This will secure supply for Pieridae’s proposed Goldboro LNG plant in Nova Scotia, which will be Canada’s first east coast LNG project, producing 10 million tons per year.

“Not only does this deal help us secure the remaining conventional natural gas supply needed for the first train of the Goldboro LNG project, it makes Pieridae a major player in the Alberta midstream and upstream industry,” said Pieridae Chief Executive Alfred Sorensen.

All of Shell’s midstream and upstream assets in the southern Alberta Foothills area is included in the deal and these assets will produce 29,000 barrels of natural gas, natural gas liquids and condensate. Also Shell said in a statement that Pieridae will retain all site-based Shell employees and some Calgary-based employees who support the Foothills assets.

“We are pleased they (the assets) are going to a buyer with a strong focus on safety, community and environmental stewardship, and one that is well placed to take these assets to the next stage of their development,” Shell Canada President Michael Crothers said.


Trans Mountain Pipeline Expansion Project Receives Approval from Canadian Government

Canadian Prime Minister Justin Trudeau’s government approved the C$9.3 billion Trans Mountain pipeline expansion project that will link Alberta’s oil sands to a port near Vancouver, British Columbia.  

The pipeline was purchased by the government from Kinder Morgan a year ago to ensure its expansion. The pipeline project has set Canadian provinces against each other, opened rifts among its Indigenous communities and prompted major protests.

The project is a critical component of Mr. Trudeau’s longstanding position that Canada needs to maintain a strong energy industry to support its efforts to mitigate climate change.

The oil industry in Canada has increasingly turned to trains to ship its products from the oil sands, due to the pipeline bottlenecks. This method of shipment is both costly and potentially dangerous because of the risk of derailments. Due to the transportation issues, the oil industry in Alberta was forced to sell its product at a discount.


Cactus II Pipeline Tariff Waiver Request Denied

A new request to remove import tariffs on steel for Plains All American's Cactus II crude oil pipeline system got rejected by the Trump administration.

The U.S. Commerce Department had already denied Cactus II's similar request last year, citing the same reason that the waiver request was not a "complete submission". The company requested to waive import tariffs on hundreds of miles of steel pipeline imported from Greece.

The 25% steel import tariff announced in March 2018. The department has rejected waivers for 517.6K metric tons of steel, while granted waivers for 153.7K metric tons of steel, Argus reports.

Although, majority of requests from the oil and gas industry to win exemptions was lost to Department of Commerce, the department lifted the tariff on pipeline that Cheniere had proposed to import from Canada for its planned 1.4 billion cubic feet per day Midship natural gas.


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.


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.


Trump Signs Permit to Jump-Start Delayed Construction of Keystone XL

President Donald Trump signed a new presidential permit on March 29 to approve the Keystone XL pipeline project. The new permit supersedes the permit the president signed in 2017. The presidential permit allows TransCanada to “construct, connect, operate and maintain pipeline facilities at the international border of the United States and Canada at Phillips County, Montana, for the import of oil from Canada to the United States.”

“President Trump has been clear that he wants to create jobs and advance U.S. energy security and the Keystone XL pipeline does both of those things,” said Russ Girling, TransCanada’s president and CEO. He added “The magnitude of the work on this project has been extensive. The Keystone XL pipeline has been studied more than any other pipeline in history and the environmental reviews are clear - the project can be built and operated in an environmentally sustainable and responsible way.”

The American Petroleum Institute also applauded the president’s actions. “We applaud the Administration for taking a no-nonsense approach to permitting this essential critical infrastructure project,” said API’s President and CEO, Mike Sommers. “The Keystone XL Pipeline has passed every environmental review conducted over the last decade under both the Obama and Trump administrations. Every study has concluded it can be built safely, with no significant impact to the environment.”

Multiple federal and state agencies have conducted numerous environmental reviews of the project since 2008, all of which have concluded that constructing Keystone XL is in the national interest and does not pose significant environmental impacts, the API statement added. In addition, the project was approved by Congress in 2015 and the Nebraska Public Service Commission in 2017.


Part of $3.2 Billion Mountaineer Xpress Natural Gas Pipeline in West Virginia Gets Approval to Be Put into Service

The FERC authorized TransCanada’s request on Monday to commence service on part of its 170 miles Mountaineer XPress natural gas pipeline in West Virginia. The approved portion of pipeline stretches about 21 miles in Marshall and Wetzel Counties.

The 2.6-billion cbfd Mountaineer pipeline project was about 45 percent complete and expected to be completely finished in February/March, the company said earlier this month.

The company also said that it plans to put its $600 million Gulf XPress gas pipeline into service along with Mountaineer. The 0.88-bcfd Gulf project includes seven new compressor stations in Kentucky, Tennessee and Mississippi.

The Mountaineer and Gulf projects are two of several pipes designed to connect growing output in the Marcellus and Utica shale basins in Pennsylvania, West Virginia and Ohio with customers elsewhere in the United States and Canada.


$4.6 Billion Mountain Valley Natural Gas Pipeline to Be Completed by Fourth-Quarter 2019.

The 303-mile Mountain Valley Pipeline  from West Virginia to Virginia is expected to be completed in the fourth quarter of 2019 despite remaining legal challenges against the project, EQM Midstream Partners revealed on Thursday.

Mountain Valley is about 70 percent complete while it works through the project’s remaining legal challenges, including securing a Nationwide 12 Permit from the U.S. Army Corps of Engineers for stream and waterbody crossings, the company said.

The pipeline is designed to deliver 2 billion cubic feet per day and is one of the biggest pipelines under construction to connect growing output in the Marcellus and Utica shale basins in Pennsylvania, West Virginia and Ohio with customers in other parts of the United States and Canada.


TransCanada to be Renamed to TC Energy

TransCanada announced on Wednesday that it will change its name to TC Energy.

After years of building hundreds of miles of oil and gas pipelines in both the United States and Mexico, TransCanada has decided to change its name to TX Energy to better reflect its performance as a major pipeline and power generator for all of North America.

"TC Energy better reflects the breadth of our business and acknowledges our proud history of safely and responsibly delivering the energy that millions of North Americans rely on every day," said TransCanada Chief Executive Russ Girling.

The decision will require shareholder approval. TransCanada intends to continue trading under “TRP” after adopting the new name.


Enbridge's Pipeline Explosion Forces 100 to Evacuate

Enbridge’s natural gas transmission pipeline erupted into flames after a rupture occurred at around 5:30 pm on Tuesday. The explosion forced about 100 nearby locals to evacuate their homes.

Enbridge spokesman Michael Barnes said in an emailed statement that the explosion happened 13.5 kilometers from Prince George.

“Enbridge emergency crews have responded, have isolated and are currently depressurizing two natural gas transmission lines in the vicinity to contain the incident,” he said. “The incident area has been cordoned off to maintain public safety.”

Most residents were allowed back into their homes Wednesday after the evacuation zone was reduced to 1 kilometer from the explosion site.

No injuries or damage was reported beside the pipeline itself. The site is in a rural area.

National Energy Board spokesman Tom Neufeld said the fire was along Enbridge’s Westcoast main line, which falls under the board’s jurisdiction.

“NEB inspectors have been deployed to this area. They’re going to monitor and oversee the company’s response to the incident, and they’re going to determine the impact and extent of the fire and release,” Neufeld said.

The agency will work closely with the Transportation Safety Board, which is responsible for investigating the incident, he added.

The cause of the incident is still under investigation.

Financial Post

Part of Enbridge's Ohio TEAL NatGas Pipeline Now in Service

Enbridge said on Tuesday that part of its Texas Eastern Appalachian Lease (TEAL) natural gas pipeline project in Ohio has been put into service, according to a company filing with U.S. federal energy regulators.

TEAL is designed to be one of several different gas pipelines that connect growing output in the Marcellus and Utica shale basins in Pennsylvania, West Virginia and Ohio with customers in other parts of the U.S. and Canada.

FERC approved to put the 0.95-billion cubic feet per day TEAL project into service on Sept. 12. The project will serve as a supplement to the $2.6 billion NEXUS gas pipeline from Ohio to Michigan.

Enbridge projected it would be able to put both TEAL and NEXUS into service in the third quarter of 2018.


$4.8 Billion Allocated to Pipeline as Shell's Massive $31 Billion LNG Project Gets Approved

The $31 billion LNG Canada project led by Royal Dutch Shell was approved on Tuesday, making it the fuel’s first major new project to win approval in recent years.

Construction will start immediately, with first shipments expected before 2025. The aim is to feed the surging demand from Asian buyers, primarily China.

The project will deliver LNG to Asia in about half the time it would take if it was coming from the U.S. Gulf Coast, LNG Canada said.

The project’s $31 billion price tag includes the export terminal, the associated pipeline, pre-construction and site work, contingency and upstream carrying costs.

The Coastal GasLink Pipeline will be in the $4.8 billion range.

Construction on the pipeline is expected in early 2019. Pipeline operator TransCanada Corp will build the pipelines which will carry natural gas from Montney gas-producing region of British Columbia and Alberta to the LNG Canada facility.

The project owners will provide their own natural gas supply and will individually market their share of LNG.

LNG Canada is the biggest greenfield project to be approved globally since Russia’s Yamal LNG in 2013, Dulles Wang, director, North America gas at Wood Mackenzie said in an email note.

Prime Minister Justin Trudeau said that the project, which will be built in the northern community of Kitimat, British Columbia, marks the largest private-sector investment project in Canadian history.

“We can’t build energy projects like we did in the old days where the environment and the economy were seen as opposing forces,” Trudeau said. “They must go together.”


Conservatives Believe Trudeau Government not Doing Enough to Get Trans Mountain Back on Track

The Trudeau government has insisted that the Trans Mountain Pipeline project will be revived, however Conservative leader Andrew Scheer feels like the current prime minister has been stagnant in his efforts.

In an interview with Global News, Andrew Scheer shared his plans to move the project forward.

After being asked if the original plan of appealing the court ruling that quashed the government’s permits was risky, Scheer said, “What we are suggesting isn’t to just rely on the court, what we are suggesting is for this government to take swift action. It’s been also a month since this ruling, and nothing has been done to move this forward.”

Scheer shared his suggestions:

  • Repeal the carbon tax

  • Appoint a special ministerial representative to get the consultation right

  • Eliminate foreign funding in regulatory meetings

“Nobody believes you can get pipelines built anymore. The government needs to use every tool at its disposal so investors gain confidence and begin to build.” Scheer said.

He added that a representative will have personal responsibilities to the minister and will allow the consultation to be dynamic and go back and forth, allowing problems to actually be addressed.

Global also asked if Scheer would look into an alternative route that would bypass Indigenous land, however he suggested hard data be the deciding factor in the route options.

Global News Canada

Suncor Waiting for New Pipelines to Be Ready Prior to Expanding Crude Production

Suncor Energy’s Chief Executive Steve Williams announced on Wednesday that the company will not sanction further expansions of crude production until it becomes clearer when new pipelines will be ready.

Last week, a court overturned the Canadian’s government’s approval of the Trans Mountain pipeline expansion. “troubling” pipeline delays added to the decision, Williams said at an investor conference in New York.

Suncor’s production is currently being ramped up for its new Fort Hills mine in the Alberta oil sands and a decision to expand production on existing facilities won’t be made until late 2019 and early 2020, Williams said.

 “You will not see us approve those projects until we have more clarity on pipelines,” he said. “I would want to see actual, physical progress on the ground before I would commit.”


Midcoast Energy Looking for Shippers for New Natural Gas Pipeline Serving US Gulf Coast

Midcoast Energy, a midstream operator, began soliciting shippers Monday for a new natural gas pipeline that will boost its ability to move supplies to the Houston Ship Channel and US Gulf Coast markets.

Midcoast Energy was sold by Canada’s Enbridge to ArcLight Capital Partners in May. It has been seeing substantial volume growth with increased gas production from drillers in East Texas and Louisiana’s Haynesville shale.

Midcoast operates a large network of gathering, processing and pipeline assets that comprise its East Texas system. CJ Express pipeline, a new project expected to start up in mid-2020, will consist of up to 150 miles of 36-inch or larger diameter pipeline. It will stretch from Carthage in Panola County, Texas to Midcoast’s Clarity Pipeline in Hardin County, Texas, interconnecting with several Kinder Morgan, Williams, and other companies’ pipelines.

Statements from Midcoast have not specified CJ Express’ total expected capacity.

The non-binding open season began Monday and will last until September 14.

S&P Global

Cenovus to Hold Back on Heavy Crude Output Increase

Canada’s Cenovus Energy said on Thursday that it would hold back on output increases until pipeline bottlenecks have been alleviated. Other top oil and gas producers increased output to respond to higher market demand.

Heavy Canadian crude demand has risen from U.S. Gulf of Mexico refiners with Venezuelan production dropping. Despite the increase in demand, the country has not kept up the pace.

With the increase in production, pipeline constraints have occurred, resulting in Canadian heavy crude  to be traded at steep discounts to U.S. light crude as well as producers being forced to turn to a less favorable crude-by-rail option.

“Transportation bottlenecks are by far the biggest challenge for Canadian producers, mainly because the pipeline constraints won’t be alleviated until the end of 2019, at the earliest,” said Edward Jones analyst Jennifer Rowland.

She added that bottlenecks impact decisions for future production projects as well as investor sentiments towards the companies.

Despite these impacts, Cenovus said it will not want to expand production until transportation capacity catches up to production capabilities.


OPEC Urges Canada to Increase Infrastructure or Risk Losing Investments

The president of OPEC has urged Canada to further invest in its infrastructure to move oil and gas or risk losing some of their investment to the United States.

“If you don’t have the major infrastructure, investors are going to go to your neighbor, where infrastructure is not an issue,” said the OPEC president. “Act and act quickly if you want to retain those investors. I am being frank because I want to be a true friend to the Canadians.”

He added that he did not want Canada to lose opportunities.

The Canadian government agreed to buy the Trans Mountain oil pipeline as well as a related expansion project from Kinder Morgan Canada in May. The purchase highlighted the lengths it deemed necessary to overcome stiff opposition to such projects.

“The Solution is LNG and pipelines to export that natural gas. If you provide optionality for the gas, it’s going to fix itself,” the OPEC president added.

LNG Canada is a proposed C$40 billion export facility for the British Columbia coast that is being reviewed by its joint venture partners ahead of a final investment decision.


100,000 Liters of Spillage in Alberta Marsh After Pipeline Leak

A Calgary-based oil company reports that more than 100,000 liters of oil and water leaked down a hill into a Southern Alberta Marsh. Oil mixed with produced water and resulted in activation of the company’s response plan.

The company said on Monday that the spill was detected on Saturday afternoon.

The report also said that "impact on wildlife is currently being assessed by specialists on site but appears to have been minimal. Crews have physically contained the spilled fluids from causing further contamination and have already recovered a significant volume of the released fluid from the surface."

Farmland affected is currently not being used for pasture and landowners have visited the location.

The leak was detected within a few hours of when it began by staff monitoring pipeline pressure and appears to have come from where a feeder pipeline leaves oil-testing facilities, said CEO Colin Davies.

Initial estimates put the spill at 250,000 liters but was later decreased to between 100,000 and 200,000 liters.

CBC Canada


Minister Says Trans Mountain Pipeline Will Remain on Pause Until Canada Deal Closes

The Canadian government will not be able to accelerate construction on the Trans Mountain pipeline expansion until it takes ownership of the crude oil pipeline project, Canada’s natural resources minister Jim Carr said.

The deal to secure ownership of the project is not expected to close until “mid to late summer," Carr said in an interview during his visit to the World Gas Conference in Washington, D.C.

"We think that construction and staying on a schedule is important, but that will be up to Kinder Morgan as long as they are the owner of the pipeline,” Carr said.
The Canadian Government agreed to buy Kinder Morgan Canada's Trans Mountain pipeline project for C$4.5 billion (U.S.$3.4 billion) in late May in order to allow immediate work on the expansion to begin.