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.


Open Season Announced for Regional Energy Access Expansion

A binding open season for Regional Energy Access from March 8 to April 8, 2019 has been announced by Williams today. Regional Energy Access is an incremental expansion of the Transco interstate pipeline to provide firm natural gas transportation capacity to markets in the northeastern United States as early as November 2022.

Regional Energy Access is being designed to provide up to one million dekatherms per day. "Regional Energy Access is a cost-effective expansion along an existing Transco corridor that will ultimately deliver more than a billion cubic feet of new natural gas supply with minimal environmental footprint,” said Scott Hallam, senior vice president of Williams’ Atlantic-Gulf Operating Area.

This expansion minimizes environmental impacts by maximizing the use of existing Transco pipeline infrastructure and rights of way. It is anticipated that the project will include approximately 34 miles of pipeline looping and additional compression along existing Transco facilities.

The preliminary design of the project consists of additional compression and selected pipeline loop segments along the existing Transco pipeline corridor. Although the final capacity, scope and cost of the project will be determined by the results of the open season.


Phase II Construction of Hillabee Expansion Project Kicks Off

Construction on the second phase of Williams’ Hillabee Expansion project in Chilton County, Alabama has officially started. This includes contractor mobilization, environmental training and site preparation at the location of a nearly seven-mile pipeline loop known as the Rock Springs Loop.

The second phase construction also includes horsepower modifications to two existing Transco compressor facilities. It is anticipated to be placed into service next summer and will increase the Transco pipeline’s capacity by an additional 206,000 dekatherms of natural gas per day.

Another work on nearly four-mile Verbena Loop in Choctaw County, Alabama is scheduled to begin in April.

The first phase of the Hillabee project was successfully placed into service in July 2017. This increased Transco pipeline’s capacity in Alabama by 818,410 dekatherms per day and supplied Florida power generators via the new Sabal Trail pipeline.


67 Miles of New Pipeline to Be Constructed by WBI Energy in North Dakota

WBI Energy, Inc. is planning on approximately 67 miles of new pipeline construction, compression and ancillary facilities to transport natural gas from core Bakken production areas in western North Dakota to an interconnection point with Northern Border Pipeline.

The proposed North Bakken Expansion Project would provide 200 million cubic feet per day of natural gas transportation capacity.

Construction on the project is expected to begin in early 2021 and be completed late that year, depending on regulatory and environmental permitting and finalization of transportation agreements with customers.

The project is estimated to cost $220 million and will be designed using 20-inch diameter pipeline.

"We are excited to grow our pipeline system to meet the natural gas transportation needs in the Bakken region," said Trevor J. Hastings, President and CEO of WBI Energy. "We are working with our customers to meet these needs as the industry focuses on reducing natural gas flaring while growing production volumes."

The project will start near Tioga, North Dakota, and will extend to a new connection with Northern Border Pipeline in McKenzie County, North Dakota.

Once completed, the project could be expanded to provide transportation capacity of up to 375 million cfd.

World Pipelines

William Cos. Proposes $500 Million Project to Expand NatGas Pipe

Williams Cos. is set to invest $500 million in a project that will increase the amount of Marcellus Shale natural gas that can be transported from wells in the northern and western parts of Pennsylvania.

Seneca Resources Co., Cabot Oil & Gas and UGI Utilities have given Williams their commitment for the Transco pipeline to expand its capacity by 582,400 dekatherms (1 dekatherm is equivalent to about 1,000 cubic feet).

Williams will need to submit an application to FERC by next summer to begin construction in early 2021.

The project includes:

  • Replacement of 6.09 miles of Transco's existing 24-inch pipe with a 36-inch line and install a 2.46-mile, 32-inch loop, both in northwestern Clinton County.

  • Installation of a 42-inch, 3.55-mile loop in Lycoming County near the Columbia County line.

  • Updates to a compressor station in Columbia County and one in western Schuylkill County, both on the Central Penn South line.

  • Updates to a compressor station in Wyoming and one in Luzerne County on the Central Penn North line.

  • A loop is new pipe connected to and placed adjacent to an existing pipeline in the same easement.

Penn Live

Exxon Starts Groundwork for Texas Refinery's Shale Oil Expansion

Exxon Mobil has begun groundwork at a Texas refinery that would become the largest in the U.S. in advance of a final decision on the expansion, three sources familiar with Exxon’s plans said.

The company has also began hiring and training staff to operate the distillation unit, which would be the third of its kind at the site. The expansion would increase crude processing capacity at its Beaumont, Texas, refinery by at least 300,000 barrels per day from the current 365,644 bpd, the sources said.

Crude oil would be converted from Texas shale fields into refined products such as diesel and gasoline. The plan is to triple daily crude production in the Permian Basin of West Texas and New Mexico by 2025.

After a final investment decision is made, the crude unit is scheduled to start next year, with processing beginning by 2022, a spokeswoman confirmed in an email this week.

Eight operators were added to the refinery and are gaining experience working on the two existing crude units. After the new processing unit is built, they will move over, sources said.


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.


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.

Oil and Gas Investor

Trans Mountain Pipeline Expansion to Increase Costs by Almost $2 Billion

According to Kinder Morgan Canada documents, expanding the Trans Mountain pipeline would cost the federal government an additional $1.9 billion on top of the company’s original construction estimates. It would also add on another year of work before the project is complete.

The information was provided in a document filed on Tuesday with the United States Security and Exchange Commission discussing the plans to sell the pipeline to the Canadian government for $4.5 billion.

In order to triple capacity by adding a second pipeline parallel to the first, cost would climb to $7.4 billion. Financial documents also show a number of different construction cost scenarios with one option costing $9.3 billion. The documents also suggest that the project won’t be complete until December 2021.

Finance Minister Bill Morneau has not talked about how much final costs would be after the deal is finalized.

Officials say that the numbers do not specifically reflect how much the final project will actually cost, however an independent economist suggested that Kinder Morgan would not evaluate costs that did not represent realistic figures when evaluating the fairness of the sale.

Morneau concluded that as soon as construction contracts were in place, the government would release official cost updates, something he expects to happen no later than next winter.



Enterprise Products Partners Looking at 100,000 Bpd Expansion

Enterprise Products Partners LP said on Wednesday that they have plans for their Seaway crude pipeline system capacity to increase to about 950,000 barrels per day from 850,000 bpd.

The company will add drag reducing agents (DRAs) to boost capacity on the Seaway 2 line by about 100,000 bpd by September. The Seaway system moves crude from Crushing, Oklahoma, to Gulf Coast refineries.

Enterprise said that they are carefully evaluating options to convert natural gas liquids pipelines to crude oil in order to alleviate pipeline constraints in the Permian Basin, among other expansion options.

Enterprise was planning on developing an offshore crude oil export terminal, according to statements made in July. The terminal would load Very Large Crude Carriers (VLCCs) off the Texas Gulf Coast.

U.S. producers and international customers are interested in the project, according to the company.


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.

Houston Chronicle

Minister Says Trans Mountain Pipeline Will Remain on Pause Until Canada Deal Closes

The Canadian government will not be able to accelerate construction on the Trans Mountain pipeline expansion until it takes ownership of the crude oil pipeline project, Canada’s natural resources minister Jim Carr said.

The deal to secure ownership of the project is not expected to close until “mid to late summer," Carr said in an interview during his visit to the World Gas Conference in Washington, D.C.

"We think that construction and staying on a schedule is important, but that will be up to Kinder Morgan as long as they are the owner of the pipeline,” Carr said.
The Canadian Government agreed to buy Kinder Morgan Canada's Trans Mountain pipeline project for C$4.5 billion (U.S.$3.4 billion) in late May in order to allow immediate work on the expansion to begin.


Canada Most Likely to Buy Kinder Morgan's Trans Mountain Oil Pipeline and Expansion Project

Canada's federal government is likely to buy Kinder Morgan's Trans Mountain oil pipeline and expansion that is currently under fierce opposition in order to ensure that the project gets built, according to a person familiar with the discussions.

Many options have been discussed about how to move the project forward amid legal uncertainty and rising protests, but the most probable option for Canada is to buy the entire project. Canada is likely to purchase both the existing Trans Mountain oil pipeline and the proposed US$5.7 billion expansion and then sell it once the project is guaranteed to be built.

The deal, which has not yet been publicly reported, could be announced as soon as Tuesday in Ottawa.

Canada has been working with Kinder Morgan since the pipeline operator set a May 31 deadline for Ottawa to give certainty on the project's completion amid opposition from aboriginal groups and the provincial government in British Columbia who is worried about the increased tanker traffic and possible oil spills in the Pacific Coast.

The 600-mile Trans Mountain pipeline expansion would nearly triple capacity of the current line to 890,000 barrels per day of oil running from Alberta to the coast in British Columbia.


Cheniere Decides to Move Forward with Third LNG Unit in Corpus Christi

Cheniere Energy is moving forward with building a third unit to process liquefied natural gas at its export facility that is currently under construction in Corpus Christi.

Cheniere said this will be the first commitment to build new U.S. liquefaction capacity since 2015.

Bechtel is Cheniere's builder for this third unit and had started limited construction on it last year.

Two long-term deals to sell LNG to PetroChina International sparked Cheniere's decision to construct the third processing unit. The sale contracts extend through 2043.

Cheniere has been exporting natural gas through its Sabine Pass facility in Louisiana since 2016 and continues to expand in order to support more production and exports.

The number of foreign markets that receive LNG imports from the U.S. has been increasing. Freeport LNG and Kinder Morgan are scheduled to begin exporting LNG later this year.

Fuel Fix

Magellan Midstream to Expand Part of its Texas Refined Products Pipeline Following Successful Open Season

Magellan Midstream Partners said it plans to expand the western leg of its Texas refined products pipeline system to 150,000 barrels per day after a successful open season.

The additional 50,000-barrel-per-day expansion will handle incremental shipments of gasoline and diesel fuel to demand centers in Abilene, Midland, and El Paso, Texas as well as to New Mexico and will be accomplished by an increased pipeline size along the existing route.

The expansion also includes connectivity to the ExxonMobil Pipeline Company's terminal in Wink, Texas.

Magellan expects to spend about $300 million on the project and said the expanded capacity is estimated to be available mid-2020.

Yahoo Finance

Enterprise Products Announces Two Pipeline Expansion Projects

Enterprise Products Partners on Thursday announced two pipeline expansions that will bring natural gas liquids from Colorado to a storage facility in Texas.

Enterprise Products' 435-mile Front Range pipeline expansion will move liquids from northeastern Colorado to Skellytown in North Texas and expand the original pipeline by an additional 100,000 barrels per day.

The second expansion will connect Skellytown to Mont Belvieu with another natural gas liquids pipeline, adding 90,000 barrels per day to a line that will stretch 583 miles.

Both expansions are expected to be in service by middle of 2019.

Together, both expansion projects will make up a natural gas liquids network that will stretch from Colorado to the Gulf Coast.

Fuel Fix

New York Denies Water Quality Permit for Transco Pipeline Expansion

New York regulators rejected a needed permit for a proposed pipeline expansion project that would increase natural gas deliveries to New York City.

The Department of Environmental Conservation denied a state water quality permit for a proposed expansion of the Transco pipeline that extends from Texas to the Northeast coast saying the project shows potentially significant environmental impacts.

The Northeast Supply Enhancement project would be a 17-mile extension of 26-inch-diameter underwater pipe from New Jersey to Queens.

Williams Partners, the developer of Transco, says it will resubmit its application and work with the Department of Environmental Conservation in ways required to receive the needed water permit.

Houston Chronicle

Canada's Federal Government to Help Fund Trans Mountain Pipeline Expansion

Canadian Prime Minister Justin Trudeau last week said he has told his finance minister to talk with Kinder Morgan and remove the uncertainty over the Trans Mountain Pipeline expansion project that has been facing ongoing legal challenges. 

The pipeline project has been suspended until Kinder Morgan receives reassurance from Ottawa that the project will be able to go forward.

Canada's federal government approved the project in 2016, but the project has since been strongly opposed by British Columbia's New Democrat government.

Trudeau wants to see the major pipeline expansion completed as the country needs more infrastructure to move its growing oil sands production. The project would nearly triple the flow of oil from Canada's oil sands to the Pacific Coast.

However, the British Columbia government has been fighting the project in courts in efforts to stop the inevitable increase of the number of oil tankers traveling the waters between Canada and Washington state.

Amid the legal challenges against the pipeline expansion, Trudeau also announced last week that legislation is coming that will "reassert and reinforce" the federal government's power to approve the Trans Mountain pipeline expansion and ensure it moves forward.


Alliance Pipeline Proposes System Expansion in North Dakota

Alliance Pipeline is seeking commitments to expand its pipeline system, which runs through North Dakota, by 25 percent.

The expansion would require three more compressor stations in North Dakota and expects to put the expanded pipeline into service by the end of 2021.

The proposed expansion comes as North Dakota oil and gas regulators are encouraging an increase in infrastructure investment due to rising volumes of natural gas production.

The expansion, which would also include developing more gathering pipelines and processing plants, would help to reduce natural gas flaring, said Justin Kringstad, director of the North Dakota Pipeline Authority.

The Alliance Pipeline is a natural gas transmission system that runs 2,391 miles from the Western Canadian Sedimentary Basin and Williston Basin to the Chicago market hub, with 967 miles existing in the U.S.

Alliance Pipeline is owned by affiliates of Enbridge and Pembina Pipeline Corp.

ABC News
Alliance Pipeline

Burnaby, British Columbia to Take Trans Mountain Expansion Fight to Supreme Court of Canada

A British Columbia city is continuing its fight against Kinder Morgan's Trans Mountain pipeline expansion by requesting a hearing from the Supreme Court of Canada after its challenge was rejected by lower courts and Canada's energy regulator.

The city of Burnaby intends to ask the Supreme Court of Canada to hear its challenge against a decision made by the National Energy Board in December that said Kinder Morgan is not required to comply with two sections of Burnaby's bylaws on land and tree clearances.

The US$5.9 billion Trans Mountain pipeline expansion is designed to triple the amount of diluted bitumen and other oil products to 890,000 barrels a day from Edmonton, Alberta to ports in British Columbia.

Burnaby in February applied for an appeal against the NEB decision but was rejected by the Federal Court of Appeals.

Burnaby Mayor Derek Corrigan says the NEB ruling is a threat to the autonomy of the province and that it will "inevitably lead to a constitutional crisis."

The Trans Mountain expansion's operational start date is anticipated for December 2019 but could be pushed back due to the time taken to obtain provincial permits in Burnaby among other reasons, Kinder Morgan said.

CBC News