Flooding Triggered to Shut Oil Pipelines in Southeastern Texas

The 750,000 barrels per day Marketlink oil pipeline, owned by TC Energy Corp was shut as flooding disrupted operations at U.S. Gulf Coast terminals, traders familiar with the matter said on Thursday. The pipeline runs from Cushing, Oklahoma, to Nederland, Texas.

Energy Transfer LP’s Nederland terminal, located between Beaumont and Port Arthur, was also shut briefly on Thursday. The terminal had a power outage but it had since been restored and operations have returned to normal, Vicki Granado, a spokeswoman for Energy Transfer said in an email.

Dangerous flash floods inundated parts of southeastern Texas on Thursday as Tropical Depression Imelda dumped the last of its rains, with the National Hurricane Center predicting rain totals up to 35 inches in some coastal areas.

Phillips 66 also shut operations at its Beaumont Terminal in Nederland, Texas, as a safety precaution due to flooding. Exxon Mobil Corp shut its 369,024 barrels per day Beaumont, Texas, crude oil refinery on Thursday because of flooding from Imelda, sources familiar with plant operations said.


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.


Plains All American to Start Pipeline Operations in Midland on November 1

Plains All American L.P. announced in a regulatory filing that operations on an expanded West Texas oil pipeline will begin on Nov. 1, helping ease the bottleneck that has affected Midland crude prices for months.

The Houston-based operator began filing its extended Sunrise pipeline, which would add 500,000 bpd from Midland to Witchita Falls, Texas after completion, with connections to the main U.S. crude storage hub in Cushing, Oklahoma.

By Oct. 31, the line will be “fully operational and capable of providing transportation services” the next day, Plains said in an Aug. 31 filing with the Federal Energy Regulatory Commission. The company announced that it would hope to start shipping crude in the fourth quarter previous to its more recent comments.

It is currently unknown how much new oil the extended Sunrise pipeline would be able to carry at the outset.

By the first quarter of 2019, the pipeline will be able to transport 360,000 bpd. That is enough new capacity to help Permian producers expand production over the following six months, a research analysts said.

“They’re doing everything they can to get this pipeline online as fast as possible to (allow shippers) take advantage of the differentials in the Permian,” she added.


Plains All American Pipeline Announces Open Season for Proposed Permian Pipeline

Plains All American Pipeline announced Tuesday that it has begun its open season for committing crude capacity on a pipeline project that will travel from the Permian Basin to Cushing, Oklahoma.

The proposed pipeline will have origin points in Midland, Texas and Colorado City, Texas and will deliver crude oil at Plains All American Pipeline's storage hub in Cushing, Oklahoma.

Depending on the amount committed to the pipeline, oil will move on a combination of new and existing pipelines.

Assuming the operator receives the needed commitments from shippers, the pipeline could move as many as 350,000 barrels per day of oil to market by mid 2019.

The open season began on April 18 and will end May 30.

Yahoo Finance

Earthquake near Cushing, Oklahoma Results in Temporary Shutdown of Pipeline Operations

Reported areas that felt the earthquake on November 6, 2016. (  Earthquake Report  )

Reported areas that felt the earthquake on November 6, 2016. (Earthquake Report)

A magnitude 5 earthquake hit near Cushing, Oklahoma on Sunday and prompted the temporary shutdown of some pipeline operations near the site as a precaution.

Pipeline operators who have assets in the area said no operations were impacted as a result of the quake. Some of these operators include Magellan Midstream, Kinder Morgan, Enterprise Products Partners, and Phillips 66.

All pipeline companies that run intrastate pipelines and fall under the jurisdiction of Oklahoma Corporation Commission shut down operations following the quake as a precaution and to check the integrity of their assets.

As a result of the quake, some gas leaks occurred but have been contained and are no longer a threat, according to Jeremy Frazier, assistant city manager of Cushing, Oklahoma. Electricity, which had temporarily gone out in parts of Cushing, is nearly completely restored.

Cushing, Oklahoma, the delivery point for West Texas Intermediate crude, has experienced a sharp increase in earthquakes to the area since 2009, which was the same year oil companies started using fracking methods to retrieve oil and gas from deep rock layers and inject the resulting wastewater into ultra-deep disposal wells.

Fuel Fix

Seaway Pipeline in Cushing Temporarily Shut After Oil Spill

Seaway Pipeline Map (  Seaway Pipeline  )

Seaway Pipeline Map (Seaway Pipeline)

Pipeline developers temporarily shut down service on an oil pipeline system in Cushing, Oklahoma after an oil spill occurred on the line late Sunday night.

An older section of the Seaway pipeline, a joint venture between Enterprise Products Partners and Enbridge that delivers oil to the Texas Gulf Coast, was shut down as a precaution after officials detected a leak of an undisclosed amount of oil that did not cause any injuries, fires, and was not a threat to the public.

According to Seaway Crude Pipeline Co., the spill occurred in an industrial area of Cushing near Linwood Avenue and Texaco Drive. The spill occurred on Enbridge property only and has been contained in a retention pond at Enbridge’s facility.

Seaway said in a news release that the company is continuing to make efficient progress in cleaning up the spill, using vacuum trucks to recover the crude.

The amount of oil spilled will not be disclosed until cleanup efforts are complete, according Enterprise Products Partners.

Yahoo Finance
The Oklahoman

Welspun Tubular Granted $47 Million to Construct Diamond Pipeline

Planned Diamond Pipeline Route via http://www.diamondpipelinellc.com/project-overview/

Welspun Tubular announced that it received a $47-million order to help construct the Diamond Pipeline, which will run for 440 miles from Cushing, Oklahoma to Memphis, Tennessee.

According to Welspun and Diamond Pipeline LLC, the order makes up about two-thirds of the pipe needed to build the entire line.

The $900-million pipeline will be able to transport 200,000 barrels per day of crude oil from Cushing to Valero’s refinery in Memphis.

Diamond Pipeline LLC is a joint venture between Plains All American Pipeline and Valero.

Welspun Tubular is a pipe manufacturer that has facilities near the Little Rock Port in Arkansas.

The pipeline construction has an anticipated completion date of 2017.

Houston Chronicle
Welspun Tubular
Diamond Pipeline