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

Trump Heads to Houston to Boost Oil and Gas Sector

President Donald Trump will travel to Houston Wednesday to announce executive orders aimed at speeding up pipeline and other energy projects and expanding oil and natural gas production, a senior White House official said.

The president is scheduled to appear at the International Union of Operating Engineers International Training and Education Center in Crosby, a union-run training facility spread over 265 acres. There he is expected to speak about how he plans to aid the United States' booming domestic oil and gas production and further shift away from foreign imports.

For now the White House won't release the exact details of the executive orders. But the senior official said they would streamline permitting and help energy companies to ”avoid unnecessary red tape."

"American families and businesses in states with energy restrictions will be able to access affordable and reliable domestic energy resources," the official said.

Record oil and gas production, led by Texas, has played a large role in both domestic and foreign policy for the Trump administration. U.S. crude oil production now at more than 12 million barrels a day has surpassed both Saudi Arabia and Russia.

Domestically, shale drilling boom has provided a boost to the economy in generally lowering energy costs for consumer and businesses and moving the country ever closer to a once unimaginable goal of becoming a net energy exporter.

Pipeline executives have urged Trump to assert federal authority over interstate pipelines and prevent states from blocking multi-billion dollar projects that are facing increasing uncertainty from investors.

Source:
chron

$1.6 Billion Closing Deal by Targa Resources to Sell Stakes in Bakken Assets

Targa Resources confirmed on Thursday that the company has closed a $1.6 billion deal to sell a minority stake in its Bakken Shale assets in North Dakota. The deal was to sell 45 percent of its subsidiary Targa Badlands LLC to funds managed by New York-based GSO Capital Partners and Blackstone Tactical Opportunities.

 Targa Badlands owns and operates 480 miles of crude oil gathering pipelines, 260 miles of natural gas gathering pipelines, crude oil storage terminals and a natural gas processing plant in the Bakken which is spread throughout western North Dakota.

 With the deal now closed, Targa is planning to complete construction of another natural gas processing plant in the Bakken. The company plans to use proceeds from the $1.6 billion deal with GSO and Blackstone to pay down debt and fund part of its 2019 capital expenditure program.

Source:
chron

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.

Source:
worldpipelines

Minnesota PUC Confirms Enbridge Energy's Line 3 Pipeline Approval

Enbridge Energy's proposed $7 billion Line 3 crude oil pipeline replacement gets final approval from Minnesota Public Utilities Commission, the company said on Wednesday. The PUC unanimously rejected the last pending petitions for reconsideration, including one from the state Commerce Department.

“The PUC confirmed its decision to approve the conditions placed on L3R’s (Line 3 Replacement) Certificate of Need – conditions meant to protect Minnesotans – allowing this critical energy infrastructure modernization project to move forward,” Enbridge said in a statement.

Since 1960s, Line 3 has carried Canadian crude from Alberta to Wisconsin and is currently operating at half its capacity. The Line 3 replacement would allow it to return to approved capacity of 760,000 barrels per day.

The PUC initially approved Enbridge’s plan to rebuild the aging 1,031-mile pipeline in June, but that decision was challenged by Minnesota’s governor in February.

The new line would cross Alberta, a corner of North Dakota and northern Minnesota to an Enbridge terminal in Superior, Wisconsin. Besides clearing the legal challenges, Calgary-based Enbridge also needs state and federal permits, which the company hopes to secure around end of the year.

Sources:
chron
reuters

Export Auction for WTI Crude Oil to Be Held by Enterprise Products Partners

An electronic auction will be held on April 4th by Enterprise Products Partners for its domestically produced West Texas Intermediate crude oil that will be exported from its Houston Ship Channel terminal.

Enterprise has become the largest exporter of crude oil in the United States since the federal government lifted a ban on exporting crude oil less than four years ago, which accounts for nearly 40 percent of crude oil shipments abroad. Chicago-based trading firm CME Group will conduct the online auction on behalf of Enterprise.

"With the recent success of the first ever electronic auction of U.S. crude oil for export, the market has demonstrated its demand for transparency, efficiency, accurate physical pricing and access to reliable supplies of crude oil with consistent quality standards," Enterprise Senior Vice President Brent Secrest said in a Wednesday morning statement.

Using Enterprise's distribution network, the Houston futures contract has access to more than 4 million barrels per day of crude oil, 45 million barrels of crude oil storage and 18 deep-water docks.

Source:
chron

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."

Source:
chron

$2.5 Billion Crude Oil Export Terminal and 700-Mile Pipeline Project Planned in Louisiana

Kansas-based Tallgrass Energy said that it and Drexel Hamilton Infrastructure Partners are building a crude oil export terminal on the Mississippi River and a 700-mile pipeline project. The new plans will be a $2.5 billion investment and create 35 permanent jobs.

The project will be built in Plaquemines Parish.

The Advocate reports the project is designed as a public-private partnership, with the Plaquemines Port Harbor and Terminal district providing multiple deepwater docks along the Mississippi River.

The project could be fully operational by mid-2020 and will be permitted for up to 20 million barrels of crude oil storage, according to Louisiana economic development officials.

Tallgrass says it has plans to build an offshore pipeline extension that will give the terminal the capability to load very large crude carriers.

Source:
Houston Chronicle

 

ETP Announces Permian Express 3 Expansion and Possible Dakota Access Expansion

Energy Transfer Partners LP has said that it expects to expand its Permian Express oil pipeline system by up to 100,000 barrels per day and may also boost capacity on its Dakota Access crude pipeline.

ETP completed an open season during the second quarter for about 50,000 additional bbl/d on Permian Express 3, finishing the final phase of the 140,000 bbl/d project.

The Dakota Access pipeline has averaged just over 500,000 bbl/d and ETP could expand capacity by an additional 100,000 bbl/d.

There is also a new 30-inch crude oil pipeline joint venture project from the Permian Basin to the Gulf Coast expected to add at least 1 million barrels per day of capacity. Estimates have the line coming online by 2020 according to ETP statements made in May.

“Everywhere we possibly can use DRA [drag reducing agents] across the country, we are,” a senior ETP executive said.

Source:
Oil and Gas Investor

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.

Source:
Reuters

Medallion Midstream Asks for Bids for New Expansion

Irving-based Medallion Midstream announced an open season on Monday and is asking for bids as it anticipates a planned expansion.

The West Texas crude oil pipeline system will make a major expansion in the Midland Basin. The oil field is part of the larger Permian Basin, which has seen enormous growth in oil and gas production over the last few years.

Medallion said that the plan was to place new 16-inch pipes along its existing pipeline system, without specifying how many miles would be added, nor the capacity.

Currently, the system runs approximately 700 miles of six-inch diameter pipe.

The expansion comes a week after Oryx Midstream Services announced its own expansion of regional crude oil pipeline in which it will add 180 miles to its existing system.

Source:
Houston Chronicle

Oryx Midstream to Increase Capacity of its Permian Oil Pipeline to 650,000 Barrels After Expansion

Midland-based Oryx Midstream Services II is expanding an under-construction crude oil pipeline system in the Permian Basin by adding 180 miles of additional pipeline to its regional pipeline system.

After the expansion is completed, the project’s total system will consist of 400 miles of pipeline capacity, resulting in 650,000 barrels of crude oil with a total of 1.5 million barrels of crude oil storage.

It will serve West Texas’ Permian Basin in New Mexico and Texas by sending oil from the field to larger pipelines that will send the oil further east.

The pipeline is expected to be fully operating by the second quarter of 2019, with Oryx Midstream Services initially announcing the construction of the system in September with 220 miles of pipeline and 400,000 barrels of capacity.

The lack of construction and continued production remains an issue for crude oil leaving West Texas as producers work to increase construction in order to increase transportation and match output.

Source:
Houston Chronicle

ExxonMobil Requests Permit to Transport Crude Oil by Truck

ExxonMobil plans to resume production on three Santa Barbra Coast platforms by using up to 70 trucks a day via Central Coast Roads as a temporary measure to transport crude oil.

The decision comes after the onshore Plains All American pipeline ruptured in 2015 and 142,800 gallons of oil spilled out over the Refugio State Beach Coast.

Due to the pipeline rupture, ExxonMobil was unable to transport crude oil to U.S. markets, although the company has applied for a replacement transmission pipeline. Until then, permits from the Santa Barbara County will be needed to have permission to use alternative truck transportation.

If approved, ExxonMobil would transport crude oil from Las Flores Canyon facility to the Santa Maria Terminal via Hwy 101 or to Plains Pentland Terminal in Kern Country via Hwy 166. This would be a 24-hour, seven-day-a-week shift for truck transportation.

The company proposed to “restrict all site development and operational activity to existing disturbed areas."

Santa Barbra officials will hold a hearing today to weigh in on the environmental impacts as they prepare supplements for the environmental impact report. The Santa Barbara Country Board of supervisors will decide whether to grant the permit in roughly a year’s time.

Source:
Offshore technology

 

Enbridge Finds Worthy Alternatives to Prevent Pipeline Leaks in Great Lakes

Enbridge on Friday endorsed two different alternatives to replace a 4.5 mile stretch of its Line 5 pipeline that carries crude oil and natural gas liquids from Superior, Wisconsin to Sarina, Ontario.

Local officials suggested the pipeline be removed in order to prevent any spills in the surrounding lakes, but the state of Michigan proposed that Enbridge evaluate other alternatives that would keep the lines under the lake, such as placing it through a tunnel.

Enbridge concluded that using horizontal directional drilling to push pipes underground was not feasible but has honed in on two other options.

One option is a half-billion dollar project that could take five to six years to complete. It would require a concrete-lined tunnel that would be 350 feet under the lake surface. The depth would be sufficient to prevent oil leaking into the lake in the case of a pipeline spill.

Another option includes an open-cut trench that could save up to 250 million dollars compared to the first alternative and even take one or two years less than the first alternative. It would prevent spills by making a thicker second pipe around the original pipe. The outer pipe would have a leak detection system.

Both options would mean that 15 state and federal permits would be required, and the entire project would require oversight from both the U.S. Army Corps of Engineers and Michigan environmental agencies.

Source:
Reuters
 

Five-Year Cleanup of 840,000-gallon Oil Pipeline Spill Wraps Up in North Dakota

A North Dakota farm family affected by a 2013 oil spill that leaked some 840,000 gallons of oil across their wheat field is finally ready to plant for the first time after nearly five years of cleanup work.

The spill came from a pipeline owned by former Tesoro, which is now Andeavor, who said lightning may have struck the line and caused the pipeline rupture in northern North Dakota near the Canadian border in 2013.

The spill came to affect about 14 acres of land and has cost the pipeline company $93 million in cleanup efforts. The original cost estimate of cleanup was about $4 million.

The pipeline company said the spill did not affect water sources or any wildlife.

The farm family told reporters it hopes to plant a cover crop this year on the spill-affected area to put nutrients back into the soil in order to encourage a cash crop next year.

The Andeavor spill has been called one of the largest onshore spills in U.S. history.

Source:
Houston Chronicle

Minnesota Senate Passes Bill to Jumpstart Enbridge Line 3 Construction

The Minnesota Senate has voted to pass a bill that would jumpstart construction of Enbridge's proposed Line 3 replacement project across the northern part of the state.

The House passed the legislation on Monday that says Enbridge can start work on replacing the aging Line 3 crude oil pipeline, but the Senate on Wednesday made a slight amendment to it that the House must agree with before sending it to Governor Mark Dayton who has promised to veto the bill.

The bill would bypass the state's Public Utilities Commission, which is scheduled to make a decision on the pipeline proposal in June.

Enbridge says the old 1,000-mile Line 3 oil pipeline is corroding and is very costly to maintain, requiring the need for a replacement pipeline in order to boost safety and pipeline capacity.

Many against the project have threatened a repeat of the protests that occurred in North Dakota near the Standing Rock reservation that delayed construction on the Dakota Access Pipeline for several months.

Opponents of the proposed replacement project fear the impact on climate change and waterways.

Source:
PennEnergy