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.


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.


New Pipeline Project Announced by Rangeland Midstream Canada

Rangeland Midstream Canada, Ltd, has announced its plans to design, construct and operate new crude oil and condensate pipelines of approximately 52.8 miles located in the Marten Hills region of north central Alberta.

With low extraction costs using modern multilateral horizontal drilling, the system will gather crude oil production from the Clearwater formation in the Marten Hills region and will deliver blended crude oil to an existing third-party takeaway pipeline which serves the Edmonton, Alberta, hub and refining market.

The company will receive the condensate from a third-party pipeline and will be delivered to production batteries for diluent blending. The system is expected to come into service in the second quarter of 2020.


Open Season Extended for Cushing to Houston 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 Service. The pipeline will transport various grades of light crude oil and condensate from Cushing, Oklahoma to Houston, Texas.

The pipeline would include construction of nearly 500 miles of 20 in. or 24 in. diameter pipeline from Magellan's terminal in Cushing to Magellan's terminal in East Houston. Binding commitments are now due by noon of 31 May 2019 CDT.

At the Cushing origin, the Voyager Pipeline would provide shippers option to originate deliveries at Cushing from the Magellan-operated Saddlehorn Pipeline serving the Rockies and Bakken production regions, Navigator's Glass Mountain Pipeline serving the Mid-Continent basin, as well as other connections within the strategic Cushing crude oil hub.

At the destination, Magellan's comprehensive Houston crude oil distribution system could further deliver the multiple grades of crude oil to the Houston and Texas City refineries or to crude oil export facilities, such as the terminal owned by Seabrook Logistics, LLC, which is owned 50% by Magellan.

The pipeline is expected to have an initial capacity of at least 300,000 bpd and it is planned to be operational in late 2020, subject to receipt of sufficient customer commitments and all necessary permits and approvals.


Nuevo Midstream Enters Deal to Buy Republic Midstream

Nuevo Midstream, a Houston pipeline operator has entered into a deal to buy Republic Midstream, an Eagle Ford Shale pipeline operator, in a statement released Wednesday morning by Nuevo Midstream. The deal is expected to close during the second quarter.

Republic Midstream owns and operates 100 miles of crude oil gathering pipeline and 300,000 barrels' storage in the Eagle Ford Shale's DeWitt and Lavaca counties. The company's network also includes a 26-mile intermediate pipeline that moves crude oil from a central delivery point to the Kinder Morgan Crude and Condensate Pipeline.

"We are very excited about this acquisition and the opportunity to expand the footprint and service offerings of the Republic system," President and Chief Executive Randy Ziebarth said. "We really like these assets and their location within the Eagle Ford. The Eagle Ford is experiencing a resurgence and is advantaged by its proximity to the Gulf. Nuevo Dos looks forward to helping producers fully participate in moving crude and condensate to market."


Buckeye Partners Announces Open Season for South Texas Gateway Pipeline

Buckeye Partners announced Friday that it has launched a binding open season to sell shipper commitments for transporting crude oil and condensate on its South Texas Gateway pipeline system.

The South Texas Gateway pipeline is designed to move from the Permian Basin to the Texas Gulf Coast and have a capacity of up to 600,000 barrels per day. It is also designed to offer customers the ability to deliver volumes from the Permian Basin and Gardendale, Texas to Corpus Christi, Ingleside, and Houston.

Buckeye Partners operates approximately 6,000 miles of pipeline and is one of the largest independent liquid petroleum products pipeline operators in the U.S. in terms of volumes delivered.


Magellan Midstream Proposes New Permian-to-Gulf-Coast Pipeline for $1 Billion

Magellan Midstream Partners has announced plans to develop an estimated $1 billion pipeline system to carry crude and condensate from the Permian and Eagle Ford to the Gulf Coast.

The project would include constructing a new pipeline that would run approximately 375 miles from Crane, Texas to Three Rivers, Texas, where shippers could then opt to deliver crude to the Houston area via a new 200-mile pipeline or to Corpus Christi via a new 70-mile pipeline.

The pipeline system would have an initial capacity of at least 350,000 barrels per day and potentially expand to 600,000 barrels per day for each destination.

Magellan said it is considering additional extensions for Texas cities Midland and Orla, which would tie into its 60-mile Delaware Basin pipeline that is being built to carry crude from Wink, Texas to Crane, Texas.

The project is expected to be operational by the end of 2019.

Houston Chronicle

Magellan Midstream to Build 60-Mile Crude Oil, Condensate Pipeline in Delaware Basin

Magellan Midstream Partners is beginning construction of a 60-mile Delaware Basin crude oil and condensate pipeline for approximately $150 million, the company announced Tuesday.

The pipeline will originate in Wink, Texas and terminate in Crane, Texas, which serves as an origin to the company's Longhorn pipeline. The Wink pipeline will begin with a capacity of 250,000 barrels per day and have the ability to expand to more than 600,000 barrels per day.

Magellan will also build a new terminal at Wink which will offer inbound and outbound pipeline access to parties that connect to the facility.

The company expected the pipeline to be operational in mid-2019. Plans to conduct an open season for commitments on the Wink pipeline system will be set at a later time.

PR Newswire

Plains All American Pipeline, Trafigura Trading Team Up to Move Permian Production Overseas

Plains All American Pipeline and Trafigura Trading are teaming up to move production from the booming Permian Basin to markets overseas.

The two companies announced a long-term agreement that will allow Trafigura to purchase crude oil and condensate from the Permian and receive it at its condensate splitters and export terminal in Corpus Christi, Texas which borders the Gulf of Mexico.

The agreement states that Trafigura can receive up to 100,000 barrels of product per day at the terminal, where it will move product to locations like China where the demand for light sweet crude is very high.

The agreement, which went into effect immediately, will offer Permian Basin producers a wide and steady customer base, according to a spokesperson for Trafigura.

Houston Chronicle

Marathon Completes Harpster-Lima Pipeline in Ohio

Marathon Petroleum Corporation completed construction of its 50-mile Harpster-Lima pipeline in Allen County, Ohio that will supply fuel to 10 Midwestern refineries.

The line, constructed by subsidiary Marathon Pipe Line, was constructed on time and under budget, according to company officials.

Harpster-Lima is one of the many pipelines that the company plans to construct as part of its $500 million investment plan to move oil and gas products in the Utica shale to refineries in the Midwest and Canada.

The pipeline will have the capacity of 50,000 barrels per day of either condensate or natural gas from the Utica shale.

Now that Harpster-Lima is complete, Marathon Pipe Line will focus on extending its network to the Canadian market.

The Courier