Lake Charles LNG Construction Bid Announced by Energy Transfer and Shell

Energy Transfer and Shell have issued an invitation tender for an engineering, procurement and construction contract to convert Energy Transfer's already existing liquefied natural gas import terminal in Lake Charles into an export terminal.

"We are excited to announce this major milestone in the development of the Lake Charles LNG liquefaction project," Lake Charles LNG President Tom Mason said in a statement. "The prospective bidders are world-class EPC contractors who will bring extensive LNG experience to bear as they develop their bids."

The facility was originally developed as an LNG import terminal in 2006 by Energy Transfer but later in 2015, FERC gave permission to build an export terminal at the site shortly after the shale revolution.

Once the export terminal project is completed, it is estimated to create up to 5,000 local jobs during construction and 200 full-time positions when fully operational. In 2016, Shell entered into a 50-50 joint venture with Energy Transfer to develop the liquefaction plant that can produce up to 16.45 million metric tons of LNG per year.


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.


Lake Charles LNG: Final Investment Decision Taken by Energy Transfer and Shell

Energy Transfer and Shell announced that they had signed a project framework agreement to advance the proposed Lake Charles LNG export terminal and that they plan to issue an invitation to tender for engineering, procurement and contracting companies to start bidding on the project, in a joint statement released on Tuesday morning.

“We are pleased to be moving forward with Shell in progressing this major LNG export project," Lake Charles LNG President Tom Mason, President said in a statement. "We believe the combination of our assets and Shell's LNG experience will create a platform for exporting natural gas from the U.S. Gulf Coast to the global marketplace that is unmatched."

Shell entered into a 50-50 joint venture with Energy Transfer in 2016 to develop a liquefaction plant that can produce up to 16.45 million metric tons of LNG per year. Under the terms of their joint venture, Energy Transfer will own and finance the proposed liquefaction facility while Shell will oversee engineering, design and construction work as well as operate the terminal once it is complete.

"Lake Charles presents a material, competitive liquefaction project with the potential to provide Shell with an operated LNG export position on the U.S. Gulf Coast by the time global supply is expected to tighten in the mid-2020's," Shell Vice President Frederic Phipps said in a statement.

If built, the export terminal project is estimated to create up to 5,000 local jobs during construction and 200 full-time positions when fully operational. Shortly after the shale revolution in 2015 that created a surplus of natural gas in the United States, Energy Transfer got permission from Federal Energy Regulatory Commission to build an export terminal at the site in 2015. The facility site was originally developed as an LNG import terminal in 2006.


Energy Transfer’s Natural Gas Pipeline Ruptures in Missouri

Panhandle Eastern’s fiery rupture of a natural gas line lit up the early-morning sky about one mile north of Mexico, Missouri on Sunday. This will limit the capacity while repairs are being done, Energy Transfer said in a notice.

The rupture took place downstream from the Centralia Compressor Station and occurred about 120 miles from St. Louis. Although the rupture didn’t cause serious injuries, it did interrupt power to several homes, the Audrain County Sheriff’s Office noted in a Facebook post.

It took about 40 minutes for the fire to burn the remaining gas and extinguish itself. The flames were so intense that the crews weren't able to battle the blaze when they first arrived, said Little Dixie Fire Protection District Fire Chief Steve Gentry.

In order to clear the debris blown into the air by the explosion, Missouri 15 highway was closed for several hours. The highway was repaired and utility crews replaced several poles and lines. The cause of the explosion is unknown.


Energy Transfer's Dakota Access Pipeline to Expand to 570,000 bpd

The Dakota Access pipeline system’s capacity has been boosted to 570,000 barrels per day as production in the Bakken shale basin has climbed to record highs, Energy Transfer LP said on Thursday.

Due to the surge in demand, Energy Transfer said it is considering more expansions on the system and it would be able to add capacity by increasing horsepower to boost throughput.

The shale revolution has helped propel the United States to the position of world’s biggest crude oil producer. In North Dakota’s Bakken region, shale production is estimated to rise about 13,000 bpd to a record 1.45 million bpd in March. The U.S. total crude production has climbed to a weekly record of 11.9 million bpd.


Pennsylvania Not Happy with Energy Transfer, Mariner East 2X Permits on Hold

Energy Transfer had its construction permits in Pennsylvania halted due to a list of problems not being solved after an explosion last year. The governor said on Friday that the company failed to respect the state’s laws and the communities affected.

The Department of Environmental Protection imposed $13 million in fines as well as several temporary shutdown orders on Energy Transfer projects. They also demanded documents from the company.

"There has been a failure by Energy Transfer and its subsidiaries to respect our laws and our communities," Gov. Tom Wolf said in a statement Friday. "This is not how we strive to do business in Pennsylvania, and it will not be tolerated."

One home in Beaver County was destroyed due to the methane gas explosion last September along the Beaver-to-Butler County pipeline. Energy Transfer blamed the blast on "earth movements in the vicinity of the pipeline."

As per the DEP, the company was ordered in October to stabilize the soil and erosion around its Revolution pipeline in western Pennsylvania, which hasn’t been done yet.

The permits for the 16-inch Mariner East 2X which has yet to start operating are now on hold, as per DEP spokesman, Neil Shader. 

Penn Live

Sunoco Pipeline to Pay Over $5 Million After Three Oil Spills

Sunoco Pipeline will pay more than $5.4 million to settle with the state of Louisiana and the federal government after three oil spills occurred in Texas, Louisiana, and Oklahoma.

In a Thursday agreement to pay civil penalties and state enforcement costs, the company hopes to resolve the alleged violations of the Clean Water Act from the three oil spills that occurred between 2012 and 2015. Pipeline corrosion was the cause of the spills.

550 barrels of oil in Tyler County, Texas spilled in 2013. 4,500 barrels in Caddo Parish, La. In 2015, and then 40 barrels in Grant County, Okla in 2015.

The settlement includes agreements for Sunoco to perform inspections related to corrosion.


Energy Transfer To Attend Hearing Regarding Mariner East 2

Energy Transfer LP representatives will be attending a hearing on Thursday to defend the company’s plan to put the Sunoco Mariner East 2 natural gas liquids pipe into service by year end.

The company wants to temporarily connect an existing 12-inch pipe from the 1930’s to the part of its long-delayed 20-inch Mariner East 2 pipeline that has been already completed in order to start transporting liquids for customers.

Customers have been waiting for more than a year to ship liquids on Mariner East 2. The original planned service date for the $2.5 billion project that began in February 2017 was third quarter of that same year.

Mariner East 2 has been under scrutiny for being one of two Energy Transfer projects that have amassed over 800 state and federal permit violations while being built.


30 Houses Evacuated After Energy Transfer 24-Inch Pipeline Explosion

Police say a gas pipeline in Center Township exploded early Monday morning forcing close to 30 homes to be evacuated.

The explosion was on Energy Transfer Partner’s 24-inch natural gas gathering line in Beaver County, Pennsylvania. Reports suggested that the pipeline explosion occurred shortly before 5 a.m.

“It took time… to burn the gas that was remaining in the lines out,” police said.

Center Township Police Chief added that there were also some evacuees that required medical assistance because of their medical condition and not injuries sustained by the actual explosion.

Power lines and other towers fell, blocking a road, and closing an interstate in both directions.
The Central Valley School District – which includes Center and Potter townships and Monaca – closed all of its schools Monday due to the explosion.

Although no injuries were reported, several homes in the area were evacuated after the fire broke out, the company said in an emailed statement. The cause of the explosion is still unknown.

The fire was extinguished around two hours after the initial fire. later that morning, the company reported.

Biz Journal

Enbridge Acquires All of Spectra Energy's Outstanding Shares for $3.3 Billion

Spectra Energy Partners LP will sell all its outstanding shares to Enbridge Inc. in an agreement made last week as Enbridge aims to streamline its corporate structure in the wake of U.S. tax changes.
Based on Thursday’s closing prices of Enbridge shares in New York trading, the agreement to acquire its master limited partnership is valued at $3.3 billion.

The acquisition follows the Calgary-based company’s acquisition of Spectra Energy Corp. for $28 billion, creating the largest energy pipeline and storage company in all of North America.

Williams Cos. And Energy Transfer Partners LP have ditched the MLP model after losing a key federal tax benefit in March. Enbridge cited the “significant weakening of MLP capital markets” and how it affects forward growth for the unit.

“We view this as a positive step toward reducing corporate complexity,” Tudor, Pickering, Holt & Co. said in a note by analysts on Friday.

The transaction is scheduled to close in the fourth quarter of 2018.

Houston Chronicle

Third Pipeline Company Reports Data System Shutdown Due to Potential Cyberattack

Pipeline company Oneok Inc. reported Tuesday that its electronic system for communicating with customers has stopped working, the third company to report a similar shutdown this week due to potential cyberattacks.

The cyberattack did not affect flow on Oneok's natural gas pipelines, which span across the Permian Basin in Texas and the Rocky Mountain region.

Energy Transfer Partners and Boardwalk Pipeline Partners reported similar breakdowns to their communication systems on Monday but noted that their pipeline operations have not been affected in any way.

The systems that have been hit by potential cyberattacks help pipeline customers communicate their needs with operators via digital document exchanges.

Rae McQuade, president of the North American Energy Standards Board in Houston, said that although the attacks are not affecting the operations of pipelines or public safety, they are causing companies to have to find a workaround for communication.

The Department of Homeland Security said Monday that it is gathering information on the latest potential intrusion and shutdown.

Fuel Fix

Energy Transfer Partners Offers to Relocate Families Affected by Sinkholes From Mariner East 2 Pipeline Construction

Pipeline developer Energy Transfer Partners said it would relocate five Philadelphia families affected by sinkholes in their backyards that formed last month during construction for the Mariner East 2 natural gas liquids pipeline.

After the sinkholes were reported, the Pennsylvania Public Utilities Commission ordered a temporary halt to Energy Transfer's Sunoco Mariner East 1 pipeline, which runs parallel to the Mariner East 2 that is currently under construction, while Energy Transfer and regulators assess the integrity of East 1.

The 87-year-old Mariner East 1 carries as much as 70,000 barrels of natural gas liquids daily across Pennsylvania to Marcus Hook.

The families have been offered relocation for up to six weeks as well as reimbursement for food while Energy Transfer conducts geotechnical studies in their backyards related to the sinkholes.

The $2.5 billion Mariner East 2 pipeline is designed to run for 350 miles spanning Ohio, West Virginia, and Pennsylvania and will carry propane, butane, and ethane from the Marcellus Shale formation to the Marcus Hook facility near Philadelphia for both domestic distribution and export.

NBC Philadelphia

Democrats Ask FERC for Briefing On Environmental Concerns Related to Rover Pipeline Construction

House and Senate Democrats are asking FERC to provide them with a briefing on the environmental practices of pipeline company Energy Transfer Partners who is constructing the Rover Pipeline in Ohio.

In a request to FERC, Democratic representatives wrote that they would like a briefing to more fully understand issues of operating in full compliance and minimizing environmental risk during pipeline construction as it relates to Energy Transfer Partner's activities.

Writers of the letter seem to be concerned with Energy Transfer Partners' water quality management when it comes to building the 713-mile Rover Pipeline, which is designed to carry up to 3.25 billion cubic feet per day of natural gas from the Marcellus and Utica shale fields in Pennsylvania, Ohio, and West Virginia to the Midwest and Ontario, Canada.

The letter to FERC cited an occurrence where FERC last month ordered Energy Transfer Partners to halt horizontal drilling near the Tuscarawas River in Ohio after the pipeline company lost drilling fluid down the hole. The letter also noted that this was not the first time FERC had raised issues over the pipeline's construction.

In the rare request, the Democratic representatives wrote that they are concerned over Energy Transfer's "lack of urgency in addressing environmental risks" during its construction of the Rover Pipeline.

Energy Transfer wrote on its Rover Pipeline website that it continues to work closely with FERC in regard to Rover and seeks to maintain environmental stewardship.

Washington Examiner

Phillips 66 Partners Announces $2.4 Billion Acquisition, its Largest to Date

Phillips 66 Partners LP announced Friday that it is buying assets from its refiner parent company Phillips 66 for $2.4 billion, the company's largest acquisition to date.

Phillips 66 Partners will buy a 25 percent interest in two of Phillips 66' Bakken Pipeline joint ventures and a 100 percent interest in Merey Sweeny LP, which is the owner of fuel-grade coke processing units at the Phillips 66 Sweeny Refinery.

The Bakken Pipeline assets include 1,926 combined pipeline miles and 520,000 barrels per day of crude oil capacity that is expandable to 570,000, Phillips 66 Partners said in its statement.

The deal is expected to be immediately accretive to Phillips 66 Partners and its unitholders and should close in early October 2017.

Phillips 66 Partners

Analysts Say Setback for Dakota Access Pipeline Most Likely Temporary

November 15, 2016: People protesting the Dakota Access Pipeline stand in the street with signs and banners. By Pax Ahimsa Gethen - Own work, CC BY-SA 4.0,

November 15, 2016: People protesting the Dakota Access Pipeline stand in the street with signs and banners. By Pax Ahimsa Gethen - Own work, CC BY-SA 4.0,

Despite the federal government’s decision to deny the easement needed for the Dakota Access Pipeline, analysts and Republican leaders believe protestors’ celebrations will be short-lived and the pipeline will be completed once President-elect Donald Trump takes office in January.

On Sunday, the U.S. Army Corps of Engineers announced that it would not grant an easement for the construction of the Dakota Access Pipeline under Lake Oahe just north of the Standing Rock Reservation, a decision that sparked victory for the Standing Rock Sioux Tribe and other protestors who have been fighting the pipeline for months.

But instead of a win for the pipeline-opposed, some believe the decision is merely a delay for the project once again until it is passed into the hands of the next administration, who will most likely approve the project.

Trump has expressed support for pipelines like the Dakota Access Pipeline and the Keystone XL pipeline and has indicated he would approve the easement needed for the completion of the Dakota Access Pipeline, which is done save for the small contested section that would travel underneath a reservoir of the Missouri River in southern North Dakota.

Protestors say the pipeline would contaminate water supply and destroy sacred burial sites. Those in support for the pipeline say it would help cut costs, make oil transport safer, and bring in jobs and positive development to the economy.

Energy Transfer Partners owns the pipeline with Sunoco Logistics and Phillips 66. Marathon Petroleum and Enbridge Energy Partners own a minority stake in the pipeline.

Fuel Fix

Federal Corps Deny Easement for Dakota Access Pipeline, Protestors Celebrate Win for Now

The Army Corps of Engineers announced Sunday that it will not grant the easement needed to construct the Dakota Access Pipeline underneath Lake Oahe in North Dakota, an announcement that the Standing Rock Sioux Tribe and other protestors found was a cause for celebration after protesting the oil pipeline for months.

A decision on the easement under the Missouri River reservoir had been delayed in November as the Corps spent more time to consult the tribe and study the route that would travel near Standing Rock reservation and underneath the tribe’s water supply.

Jo-Ellen Darcy, the Army’s assistant secretary for civil works, said in the statement Sunday that the decision to deny the easement came after many discussions with the tribe and with the company building the pipeline, after which the Corps decided that the best way to complete the project was to explore alternate routes for the pipeline crossing.

Protestors have responded victoriously to the decision but are aware that the fight is not over. Pipeline owner Energy Transfer Partners may fight the decision as it said in recent weeks that it would not reroute the pipeline, and president-elect Trump who has vowed to support pipelines like the Dakota Access Pipeline will take office in just over a month.

Energy Transfer Partners responded to the decision saying it was one made where laws were abandoned in order to rule in favor of a “narrow and extreme political constituency.”

The Corps said the best way to consider alternate routes for the Dakota Access Pipeline would be to conduct a thorough environmental impact with full public input. This process could take several months, and Energy Transfer recently stated the company would lose approximately $84 million for every month the pipeline is delayed after the start of the year.

Construction on the 1,172-mile Dakota Access oil pipeline is complete except for the approximate mile that would have traveled underneath Lake Oahe.

Washington Post
Dallas News

Energy Transfer Says No to Slowing Construction of Dakota Access Pipeline

Despite a statement released by the U.S. Army Corps of Engineers that said otherwise, Energy Transfer Partners stated on Tuesday that it does not plan to slow construction on its Dakota Access pipeline.

A statement released on Monday by the Army Corps stated that the pipeline company had agreed to slow construction on the pipeline, but Energy Transfer said this statement is false and that the Corps intends to rescind it.

Although asked to voluntarily halt construction on the Dakota Access pipeline, Energy Transfer decided to continue on where it could, bringing construction equipment to the last stretch of the pipeline route under Lake Oahe even though federal regulators have not yet given easements for the land.

The pipeline company’s decision not to slow construction comes amid pressure from many financing sources who have considered pulling their support. Citigroup, Inc. and Norwegian bank DNB, both who help finance the pipeline, said they would reconsider their participation and urged Energy Transfer to reach out to the Native Americans' concerns.

Energy Transfer said it is confident that the Army Corps will grant the easement for the last stretch of construction and expects no delays in its plan to drill underneath Lake Oahe.


Dakota Access Pipeline Protestors Attempt to Cross Creek to Reach Private Land Despite Warnings from Law Enforcement

The red marker indicates the location of Cantapeta Creek where protestors attempted to cross the water Wednesday in order to reach Cannon Ball Ranch to continue their protest. The land is privately owned, and law enforcement warned that those who crossed would be arrested for criminal trespass. (  Google Maps  )

The red marker indicates the location of Cantapeta Creek where protestors attempted to cross the water Wednesday in order to reach Cannon Ball Ranch to continue their protest. The land is privately owned, and law enforcement warned that those who crossed would be arrested for criminal trespass. (Google Maps)

Protestors of the Dakota Access pipeline on Wednesday attempted to construct a bridge across Cantapeta Creek near the Missouri River in order to gain access to the private land of Cannon Ball Ranch, where they would continue to protest the pipeline.

State officers saw protestors building the bridge to cross the creek early Wednesday, according to a news release from the Morton County Sheriff’s Department. The department was then ordered by the U.S. Army Corps of Engineers to remove the bridge and arrest any protestors trying to cross it with criminal trespass.

Officers removed the bridge and told protestors that if they attempted to cross the river, they would be arrested. Despite the warning, several protestors began swimming across the creek to reach the private land. Some protestors were also in canoes or boats. Several protestors who reached the other side of the creek were pushed back by officers guarding the private property, and some were sprayed with pepper spray.

After several hours of back-and-forth between officers and protestors, the protestors left and returned back to their main camp.

Media reports state that pipeline owner Energy Transfer purchased 6,000 acres of land on Cannon Ball Ranch through which the pipeline is supposed to run. Protestors believe the pipeline will destroy ancient artifacts and burial sites as well as contaminate water supply. Some protestors also worry about greenhouse gas emissions.

Views of the clash at Cantapeta Creek on Wednesday ranged according to protestors and law officers. Some protestors claim they were there to share love toward the officers and explain their reason for being there. In contrast, Sheriff Paul Laney from North Dakota said he had never seen “such an absolute disregard for the law or other people’s rights because of someone else’s ideology” in his 27 years of being in law enforcement.


Law Enforcement Forces Pipeline Protestors Off Private Land in North Dakota

Law enforcement on Thursday evicted protestors on private land in North Dakota, a site for the Dakota Access pipeline, after dozens of protestors moved to the company-owned property that will be used for a portion of the Dakota Access pipeline route.

The evacuation took nearly six hours as hundreds of armed police officers and members of the National Guard moved onto the land on foot and in military vehicles firing bean bags and pepper spraying protestors after they refused to leave voluntarily.

At least 117 protestors were arrested during the eviction. Protestors set four large pieces of construction equipment on fire, and two other cars were also seen burning. No injuries were reported.

Hundreds of protestors had set up camp on the private land last week, placing their encampment directly in the pipeline’s pathway for the first time. Pipeline developer Energy Transfer released a statement soon after stating the protestors were trespassing and should, by law, move immediately.

Energy Transfer recently purchased the private land on Cannonball Ranch, but Native Americans and other protestors claim the land belongs to Native Americans under a more than century-old treaty.

The 1,170-mile, four-state oil pipeline is almost complete, and Energy Transfer aims to finish it by the end of the year.


Energy Transfer Asks Pipeline Protestors to Leave North Dakota Land

Dakota Access pipeline developer Energy Transfer said in a statement Tuesday that the protestors camped on the company-owned land in North Dakota are trespassing and must vacate the property immediately.

“Alternatively and in coordination with local law enforcement and county/state officials, all trespassers will be prosecuted to the fullest extent of the law and removed from the land,” the company wrote in the statement.

Energy Transfer recently purchased the private land in southern North Dakota, but protestors claim the land belongs to Native Americans under a treaty signed over a century ago.

Dozens of protestors on Monday moved their encampment to the private land, placing their camp directly in the pipeline’s path for the first time.

“We never ceded this land,” said protest organizer Joye Braun in a statement Monday.

The private land is located just a mile from the Missouri River. Pipeline crews have done preparation on the land, but no pipeline has been built there yet.