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

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.

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

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

Philips 66 Enters Joint Venture to Build $2.5 Billion Red Oak Pipeline

Phillips 66 has teamed up with Plains All American Pipeline LP to construct the $2.5 billion Red Oak Pipeline system that will deliver crude oil from Cushing, Oklahoma, and the Permian Basin in West Texas to Corpus Christi, Ingleside, Houston and Beaumont, Texas.

The plan is to build a 30-inch pipeline from Cushing to Wichita Falls and Sealy, Texas. It also will build a 30-inch pipeline segment from Sealy to Corpus Christi and Ingleside and a 20-inch pipeline segment from Sealy to Houston and Beaumont.

The company expects to commence initial service as early as the first quarter of 2021. As per the release, Plains will handle project construction and Phillips 66 will operate the pipeline.

“Red Oak represents a capital-efficient industry solution that will utilize existing assets and provide pull-through benefits to our systems,” Willie Chiang, CEO of Plains All American, said in the release. “We look forward to working closely with Phillips 66 and our committed shippers to bring Red Oak into service and further optimize our assets upstream and downstream of the new pipeline system. We also look forward to creating jobs and supporting economic growth in Oklahoma and Texas.”

Source:
bizjournals

Open Season Extended for the Proposed 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 Services. The pipeline will transport crude oil from Cushing, Oklahoma and Midland, Texas to Houston.

The proposed Voyager Pipeline would include construction of 20 inch diameter pipelines from both Magellan’s Cushing and Midland terminals to Magellan’s terminal in Frost, Texas and a 24 inch diameter pipeline would be constructed from Frost, Texas to Magellan’s terminal in East Houston.

The Pipeline is expected to have an initial capacity of up to 400,000 barrels per day, with the ability to expand if necessary by industry demand. It is expected to be operational in early 2021, subject to receipt of sufficient customer commitments and all necessary permits and approvals. Binding commitments are now due by 12:00 pm CDT on 30 August 2019.

Source:
worldpipelines

Ozark Crude Pipeline to Be Restarted After Damaging Storms

MPLX LP will restart its 360,000 barrels per day Ozark pipeline that runs from storage area in Cushing, Oklahoma to refineries in the Midwest, the company said last Wednesday.

Since Oklahoma has recently suffered from flooding and storms, the Ozark system was shut down last Tuesday after an operational check, the company said. Upon restart the company expects the pipeline to operate at full capacity.

Due to the bad weather and flooding in central Oklahoma, Tallgrass Energy LP was also prompted to halt all deliveries to destinations on the Pony Express Pipeline. They had to shut down the pipeline's south end segment, which runs from Sterling, Colorado, to Cushing, because of flooding on the Cimarron River.

Until the risk of flooding has been diminished, operations had been temporarily stopped at the HollyFrontier Corp refinery in Tulsa, Oklahoma, the company said in a statement.

Source:
pgjonline

Two Companies Joining Forces to Expand Red River Pipeline

Plains All American Pipeline has entered into a joint venture with Delek US, a Tennessee refining company, to increase the capacity of its 350 mile Red River Pipeline in Oklahoma and northeast Texas, the company said in a statement.

The pipeline runs between Cushing, Okla., and Longview, Texas. The plan is to boost pumping capacity along the pipeline from 150,000 barrels per day to approximately 235,000 barrels per day by the first half of 2020.

Delek is already a customer of the Red River Pipeline and is boosting its capacity on the Red River system from the current level of 35,000 barrels per day to 100,000 barrels per day. It agreed to pay $128 million to buy a 33 percent stake in a new joint venture named Red River Pipeline Co.

"This is a win-win deal that fits our strategy of optimizing and expanding existing systems while exercising capital discipline," Plains All American Executive Vice President Jeremy Goebel said in a statement. "This transaction expands long-term alignment with a natural shipper, supports and funds the expansion of the system, increases Plains' net committed annual cash flow, and provides proceeds to fund our capital program or lower debt."

Source:
chron

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

Open Season Announced for Bayou Bridge Pipeline System

Bayou Bridge Pipeline, LLC, a joint venture owned by subsidiaries of Energy Transfer and Phillips 66 Partners recently announced a non-binding expansion open season that commenced at 1 pm CT on 22 April 2019 to solicit shipper interest for expanded joint tariff transportation service received from certain connecting carriers onto the Bayou Bridge Pipeline System.

Energy Transfer owns 60% and Phillips 66 Partners owns 40% of the Bayou Bridge Pipeline system. It is operated by a wholly owned subsidiary of Energy Transfer Operating, L.P. Bayou Bridge is evaluating joint tariff service from origin points in the Bakken/Three Forks Region in North Dakota; Patoka, Illinois; the Powder River Basin in Wyoming; the DJ Basin in Colorado; Cushing, Oklahoma; and the Permian Basin.

Bayou Bridge also continues to evaluate additional Southern Louisiana destination points to increase options for shippers on the system,in addition to the routes that are the subject of this non-binding expansion open season. Bayou Bridge will hold a binding expansion open season to finalize committed subscriptions, following the confirmation of shipper interest.

Source:
worldpipelines

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

Open Season on Magellan Midstream's 500-Mile Voyager Pipeline to Be Extended

Magellan Midstream Partners LP and Navigator Energy Services are extending the open season to book capacity on the proposed Voyager Pipeline after they announced a significant rise in interest.

Binding commitments are now due on March 29.

The Voyager Pipeline is a proposed 500 mile pipeline project that will move crude oil and condensate from storage terminals in Cushing, Oklahoma to refineries and export terminals in Houston.

This project is a joint venture project that would include the construction of a 20-inch or 24-inch pipeline, which could move up to 300,000 barrels of crude oil and condensate per day from Magellan's terminal in Cushing to the company's terminal in East Houston.

At the Houston terminal destination, Magellan's pipeline network would be able to deliver crude oil and condensate to all refineries in the Houston and Texas City area or to crude oil export facilities.

Magellan said the Voyager Pipeline could be operational by late 2020, if approved by regulators and the project receives enough interest.

Source:
Chron

Tallgrass and Kinder Morgan Agreement to Include 200 Miles of New Pipeline Construction to Oklahoma

Tallgrass Energy and Kinder Morgan announced an agreement on Tuesday to jointly develop a solution that would increase existing crude oil takeaway capacity in the growing Powder River and Denver- Julesburg basins while adding incremental capacity to the Williston Basin and portions of Western Canada.

The proposed venture would include both existing and newly constructed assets. Tallgrass would contribute its Pony Express Pipeline System while Kinder Morgan would contribute portions of its Wyoming intrastate Company and Cheyenne Plains Gas Pipeline. The company then intends on beginning the process of abandonment and conversion of those assets to crude oil service.

200 miles of new pipeline will also need to be constructed to provide crude oil deliveries into Cushing, Okla.

The combined project is expected to provide initial service as early as the second half of 2020, however completion of the transaction between Tallgrass and Kinder Morgan remains subject to conditions such as receipt of applicable state and federal regulatory approvals, among other items.

Source:
Business Wire

Environmental Group Pushes to Stop Oil, Gas Leases in Oklahoma After Sunday Earthquake

The Center for Biological Diversity is proposing that the Bureau of Land Management (BLM) withdraw 11 proposed oil and gas leases in Oklahoma after another alleged human-induced earthquake rocked the state on Sunday.

The Center for Biological Diversity claimed Monday that fracking and wastewater injection are posing risks to people and property and should not be allowed to continue. However, the BLM continues to refuse to analyze the potential impacts its oil and gas lease approvals are making on people’s safety, according to the Center for Biological Diversity.

Sunday’s earthquake was the third quake at 5.0 magnitude or more in Oklahoma this year, with there being more than 20 earthquakes that shook the state in the past week, according to an Associated Press report.

Studies have linked the increase in earthquakes in the area to human activity like fracking and wastewater injection, according to a U.S. Geological Survey study.

Source:
EcoWatch