Start-Up of New Crude Oil Gathering System in DJ Basin Announced

ARB Midstream, LLC has announced a key expansion of its fast-growing crude oil gathering and transportation system in the prolific DJ Basin in northeastern Colorado.

DJ South Gathering, LLC, a subsidiary of ARB Midstream is currently constructing the Badger Pipeline. The pipeline is one of three large diameter transmission lines currently being constructed by DJ South Gathering.

The Badger pipeline transports, with a throughput of 90,000 barrels per day production from southwestern Weld County and delivers into 300,000 bbls of dedicated crude oil storage at Platteville, the key crude oil hub within the DJ.

Apart from Badger pipeline, DJ South Gathering system also includes the 220,000 barrels per day Matador pipeline, the 150,000 barrels per day bi-directional Freedom pipeline, Bennet Station, and the Platteville Storage and Distribution network.

Source:
worldpipelines

Cheyenne Connector Pipeline Gets Approval from FERC

The final approval for the construction of Tallgrass Energy's Cheyenne Connector pipeline was given by Federal Energy Regulatory Commission.

The 70-mile, large-diameter interstate natural gas pipeline will transport natural gas from Colorado's DJ Basin to Cheyenne, Wyoming for Midwest delivery via the company's Rockies Express Pipeline.

The pipeline project will move natural gas from processing facilities in Weld County, Colorado to the Rockies Express Pipeline Cheyenne Hub also known as REX Cheyenne Hub, near the Colorado/Wyoming border.

Tallgrass has estimated that the Cheyenne Connector will be in service in the first quarter of 2020 with an expected initial design capacity of 600 MMcf/d and potential room for expansion.

Using Cheyenne Connector, producers in the DJ Basin can access interconnected pipelines and local distribution systems at the REX Cheyenne Hub as well as interconnected systems downstream of REX that reach end-users in West markets, Midwest markets such as Chicago and Detroit, the Gulf Coast and Southeast.

Source:
pgjonline

Oxy Selling Stake in Plains All American for $650 Million

Occidental Petroleum is in the process of cutting costs and focusing on debt reduction after buying Anadarko Petroleum for $30 billion and is now planning to sell its stake in Plains All American Pipeline for $650 million.

The company previously agreed to sell Anadarko's Africa assets to the French energy major Total for $8.8 billion, including a massive liquefied natural gas development and export project in Mozambique. It is also considering to sell assets in the deepwater Gulf or in Colorado's DJ Basin, where Anadarko was the leading producer, energy analysts said.

Oxy is taking on roughly $40 billion in debt to complete this deal, including loans and Anadarko's existing debt load, while making a bet on relatively healthy oil prices going forward. Anadarko is also considering selling at least a stake in Anadarko's pipeline spinoff firm, Western Gas Partners and Oxy's stake in Western is estimated at $7 billion or so.

Source:
chron

$1.3 Billion Deal to Buy SemGroup by Energy Transfer

Energy Transfer LP will buy SemGroup Corp for $1.35 billion and plans to build a 75-mile oil pipeline to strengthen its oil transportation, terminaling and export operations, Energy Transfer said on Monday.

After the purchase, Energy Transfer will gain control of SemGroup’s crude oil terminal on the Houston Ship Channel. The company plans to construct a pipeline between SemGroup’s crude oil terminal and Energy Transfer’s Nederland, Texas terminal.

Energy Transfer will also add SemGroup’s crude oil gathering assets in the DJ Basin in Colorado and the Anadarko Basin in Oklahoma and Kansas, as well as crude oil and natural gas liquids pipelines connecting the DJ Basin and Anadarko Basin with terminals in Cushing, Oklahoma.

The transaction is expected to close in late 2019 or early 2020. Including SemGroup’s debt, the enterprise value of the deal is $5 billion. The deal, which includes $6.80 in cash and 0.7275 shares of Energy Transfer for each outstanding share of SemGroup, represents a premium of 65.4% to SemGroup’s Friday close.

Source:
reuters

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

Saddlehorn Pipeline Announced Capacity Expansion

Saddlehorn Pipeline’s successful open season during July and the subsequent increased volume commitments from shippers allowed Saddlehorn Pipeline Company, LLC to announce a further expansion on its pipeline. The pipeline’s capacity will be increased by a total of 100,000 barrels per day to a new total capacity of approximately 290,000 barrels per day.

Magellan Midstream Partners, L.P., Plains All American Pipeline, L.P. and Western Midstream Partners, L.P. jointly owns the Saddlehorn pipeline. The pipeline is currently capable of transporting 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.

Following the addition of incremental pumping and storage capabilities, the higher capacity is expected to be available in late 2020.

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

Noble Midstream Forms Joint Venture to Buy Saddle Butte Pipeline for $625 Million

Noble Midstream Partners is forming a new joint venture with Greenfield Midstream to purchase Colorado's Saddle Butte Pipeline for $625 million.

The purchase will help Noble Midstream to expand in Colorado's DJ Basin and capitalize on the region's growing oil production.

Noble Midstream and Greenfield Midstream will split the purchase in half, but Noble will operate the joint venture and own 54.4 percent of it.

The Saddle Butte system includes 160 miles of pipelines in operation with 300,000 barrels per day of crude capacity. It also has about 210,000 barrels of oil storage capacity.

Source:
Fuel Fix