Permit Received to Install Steel Supports for Line 5

U.S. Army Corps of Engineers has issued a permit to install 54 steel supports along the underwater Line 5 pipeline in Michigan’s Straits of Mackinac, Enbridge Inc., said. Line 5 is a critical part of Enbridge’s Mainline network and ships 540,000 barrels per day of light crude oil and propane.

Enbridge suggests to build a tunnel under the Straits to house the pipeline, but the state of Michigan has rejected that. Under the easements granted by the state of Michigan, the limit for each span or gap between the pipe and the lake-bed was 75 feet. In August, Enbridge identified a span exceeding 75 feet.

“Enbridge believes that the tunnel project is the best long-term solution for Line 5 moving forward. Placing the pipeline inside a tunnel, 100 feet below the lake-bed, would eliminate any span issues, and the need for supports,” said company spokesman Ryan Duffy in an emailed statement.

Duffy said that Enbridge had been waiting 17 months for the permits and upon receiving them started work immediately to install a support at that span. Work on that section is expected to be completed later this week, weather permitting, and the other steel supports will be placed at different locations along the pipeline.

Environmental campaigners, who fear the underwater portion of the 66-year-old pipeline could leak oil into the Great Lakes has shown fierce opposition and state of Michigan is suing Enbridge to have the underwater portion of Line 5 shut down and decommissioned.

Source:
reuters

Binding Open Season Announced by Medallion

Binding open season to solicit long-term, firm shipper commitments for an expansion of the crude oil pipeline system in the Midland Basin was announced by Medallion Pipeline Company, LLC. The open season began on 24 September 2019 and will end at 4.00 pm CDT, Friday 18 October 2019.

The pipeline system consists of approximately 800 miles of 6 inch diameter and larger crude oil pipeline. Medallion plans to expand two pipeline segments to transport increased quantities of crude oil, produced from acreage proximate to Medallion’s system, to downstream pipelines and markets.

Medallion also plans to construct an operational loop of its existing Howard Lateral and an expansion of its Midkiff Lateral from the Garden City Station to the Midkiff Station.

The Medallion pipeline, which consists of eight pipeline segments located in Crane, Glasscock, Howard, Irion, Martin, Midland, Mitchell, Reagan, Scurry and Upton counties, all within the state of Texas, serves as an intrabasin header system providing diversified market access to ten downstream pipelines that interconnect with the Medallion system at Medallion’s Crane Hub, Midland Hub, and Colorado City Hub.

Source:
worldpipelines

Surveys to Be Conducted by Enbridge to Move Pipeline

Enbridge Energy is considering re-routing a pipeline out of an American Indian reservation and is seeking permission to conduct land surveys in northern Wisconsin.

Wisconsin Public Radio reported that the permission is to conduct environmental surveys along a 40-mile stretch in Ashland and Iron counties to replace an existing 20-mile segment of Line 5 that runs through the Bad River Band of Lake Superior Chippewa's reservation.

Enbridge only wants access to land for surveys at this point to see which routes may be feasible, Jennifer Smith, Enbridge's community engagement manager for the upper Midwest said. She added that the company wants to reach agreements with landowners and to avoid eminent domain.

Bad River Band of Lake Superior Chippewa members sued Enbridge in July in hopes of forcing the company to remove sections of the pipeline that run across their swampy reservation just south of Lake Superior.

Line 5 carries Canadian crude and propane to eastern Michigan. The members of Bad River Band argues that it's increasingly likely the 66-year-old line will rupture and cause catastrophic damage.

Source:
chron

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

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

Binding Open Season Announced by SCM Crude

The binding open season to solicit binding commitments for priority crude oil interstate gathering and transportation service was announced by SCM Crude, LLC. SCM Crude is a wholly-owned subsidiary of Salt Creek Midstream, LLC.

The binding open season was announced on its proposed Delaware Basin crude oil gathering and transportation system. The binding open season started on 2 August 2019 at 8:00 am CT, and will end on 31 August 2019 at 5:00 pm CT. Based on the results of the open season, the final volume of capacity of the project will be determined by SCM.

An opportunity will be provided by the open season for shippers to demonstrate support for the project by making acreage dedications for priority service, thereby becoming priority shippers for the term of their crude oil gathering agreements.

With interconnects to certain takeaway pipelines, including pipelines with direct, long-haul transportation to the Midland, Texas area and the Corpus Christi, Texas area, the crude oil gathering and transportation project will be constructed and operated by SCM, across multiple segments spanning from various tank battery receipt points in Eddy and Lea Counties, New Mexico, to SCM’s Wink Terminal and Orla Terminal.

Source:
worldpipelines

TC Energy Received Probable Violation Notice from PHMSA

TC Oil Operations, the company that owns Keystone pipeline failed to provide suitable coating material at numerous locations along the pipeline, according to The Pipeline and Hazardous Material Safety Administration. A notice of probable violation was issued by PHMSA as a result of an inspection of the Keystone Pipeline’s facilities and records.

PHMSA didn’t proposed any fines as a result of the probable violation, rather proposed a compliance order that requires TC Oil to “correct deficiencies in coating material so that they are suitable for prevention of atmospheric corrosion.”

According to the notice, the company also needs to provide a “record of the location of piping with insufficient coating and the date in which the appropriate coating was applied.”

“The operator used fusion bonded epoxy as a coating on numerous locations on the pipeline at and above the air soil interface,” the notice reads. TC Energy has six months from the date of the final order to comply.

The 2,600 miles pipeline runs from eastern Alberta, Canada, to Oklahoma and Illinois, and carries crude oil.

Source:
duluthnewstribune

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

Kinder Morgan Moves Forward with South Texas Pipeline Connection

Kinder Morgan Inc., announced on Wednesday that the company will go ahead with the South Texas pipeline connection that would transport crude from Phillips 66’s Gray Oak pipeline in the Permian Basin to delivery points at the Houston Ship Channel.

“We wanted to find a way to get Permian barrels to KMCC (Kinder Morgan Crude and Condensate pipeline),” which delivers crude from the Eagle Ford Shale in South Texas to Houston Ship Channel destinations, Chief Executive Officer Steven Kean said.

Kinder Morgan and Phillips 66 began soliciting shipper commitments for the connection in February. The company plans to spend $10 million on the project this year and expects the connection could carry 100,000 barrels per day.

The service is expected to begin by the end of 2019 and has contracts to start transporting 75,000 barrels per day for up to three years. The company is also considering converting an underutilized natural gas pipeline to carry crude from the Bakken shale in North Dakota and the Denver-Julesburg basin in Colorado.

Source:
reuters

Open Season Announced for Touchdown Crude Oil Gathering System

LM Touchdown Crude II, LLC, a subsidiary of Longhorn Midstream Holdings, LLC has launched a binding open season to solicit commitments to support the development of its Touchdown Crude Oil Gathering System in the Northern Delaware Basin.

The Greenfield pipeline system will initially gather crude oil from origination points and deliver to destination points in Eddy County, New Mexico.

The binding open season process will provide potential customers with the opportunity to obtain crude oil gathering and transportation service by making commitments during the binding open season.

The binding open season for the initial phase of the gathering system commenced on 15 July, 2019 at 8 am CT. The open season is scheduled to conclude at 5 pm CT on 14 August, 2019.

Source:
worldpipelines

Binding Open Season Announced for the Keystone Pipeline

TC Energy, formerly known as TransCanada has announced an open season to solicit binding commitments for crude oil transportation services on the Keystone Pipeline System.

The pipeline runs from Hardisty, Alberta to markets on the US Gulf Coast.

Interested parties may submit binding bids for transportation capacity during the open season that will close at 12 pm MT on 19 July 2019.

Source:
worldpipelines

Open Season Announced for Bakken Crude Transportation

A binding joint tariff open season to solicit commitments for crude oil transportation service was announced by Kinder Morgan and Tallgrass Energy.

The crude oil transportation services starts from Bakken origin points on the Hiland Crude system, which is currently capable of moving approximately 88,000 barrel per day from Bakken origin points to Guernsey, WY.

Then through the Pony Express system, which is currently capable of moving approximately 375,000 barrel per day from Guernsey to Cushing, OK, connecting to three refineries along the way.

The binding open season begins July 1, 2019, at 4 p.m. Central Time and is expected to end on July 28, 2019, at 5 p.m. Central Time. Upon completion of a confidentiality agreement, additional documents and details related to the open season will be made available.

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

Two Companies Joining Forces to Construct $1.6 Billion Liberty Pipeline

A 50/50 joint venture between Phillips 66 and Bridger Pipeline LLC has formed and the companies will be proceeding with the construction of the 24 inch Liberty Pipeline. The pipeline is expected to cost approximately US$1.6 billion and will provide crude oil transportation services from the Rockies and Bakken production areas to Cushing, Oklahoma.

Subject to receipt of applicable permits and regulatory approvals, initial service on the pipeline is targeted to commence as early as the first quarter of 2021. Phillips 66 will handle both project construction and operating the pipeline.

“The Liberty Pipeline presents us with a great opportunity to serve producers in the growing Bakken and Rockies production areas,” said Greg Garland, Chairman and CEO of Phillips 66. “The pipeline adds to our integrated infrastructure network that serves the key shale oil producing regions with connectivity to major Gulf Coast market centers. Our pipeline network has strategic alignment with our Central Corridor and Gulf Coast refineries, further enhancing value across our assets.”

Source:
worldpipelines

$3.3 Million Fined for Worst Oil Spill in California

Plains All American Pipeline company was fined nearly $3.35 million on Thursday for causing the 2015 spill that sent 140,000 gallons of crude oil gushing onto Refugio State Beach in Santa Barbara County.

The spill, considered as the worst California coastal spill in 25 years caused from a corroded pipeline that blackened popular beaches for miles, killed wildlife, affected tourism and fishing, including killing marine mammals and protected sea birds.

According to federal inspectors Plains had made several preventable errors, failed to quickly detect the pipeline rupture and responded too slowly as oil flowed toward the ocean.

“We take our responsibility to safely deliver energy resources very seriously, and we are committed to doing the right thing,” the firm said in a statement Thursday and had paid $335 million for the cleanup according to the company’s 2017 annual report.

Source:
latimes

Binding Open Season for Marketlink Pipeline System launched by TransCanada

TransCanada Corporation has announced an open season to solicit binding commitments for incremental capacity on Marketlink pipeline system.

Interested parties for transportation services of crude oil from Cushing, Oklahoma to markets on the US Gulf Coast may submit binding bids that will close at 12 pm MT on 21 May 2019. Shipper information regarding the open season is available online.

Marketlink transports shipments of U.S. crude oil from Cushing, Okla., to refineries in the U.S. Gulf Coast via the Keystone Pipeline System’s Gulf Coast extension. Delivery points include Sour Lake, Houston, and Port Arthur, Texas.

Source:
worldpipelines

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.

Source:
worldpipelines