Midland to Echo System Expansion Announced

Expansion of the Midland to ECHO crude oil pipeline system was announced by Enterprise Products Partners L.P. The company will build a pipeline that connects the partnership’s 6 million bbl Midland, Texas storage facility to its ECHO Terminal through its Eagle Ford system in South Texas.

The company said it has long-term agreements that will support the expansion. The pipeline will have an initial capacity of 450,000 barrels per day and can be expanded up to 540,000 barrels per day.

The expansion will allow Enterprise to optimize its entire Midland to ECHO system, which will be comprised of four pipelines, by moving barrels in the most cost-efficient manner. It will also enable the partnership to maximize the operational flexibility of the Seminole Red pipeline in either crude oil or natural gas liquid service based on the needs of the respective markets.

This expansion project will also allow customers with crude oil and condensate production in both the Permian Basin and the Eagle Ford to maximize the value of their contracted pipeline capacity.


Binding Open Season Launched by Explorer Pipeline

A binding open season to secure shipper commitments to support the development of a proposed extension of Explorer’s pipeline system was announced by Explorer Pipeline Company. The proposed project named as Expansion Project, when completed, shippers will be able to obtain transportation service from the U.S. Gulf Coast receipt points on Explorer’s system to the new delivery point near Melissa, Texas.

The company is also planning to construct a new terminal at the terminus of the Expansion Project near Melissa, Texas, which will be owned and operated by U.S. Oil. The binding open season started on September 10, 2019, and is scheduled to end on November 11, 2019.

According to Explorer Pipeline Company, shippers interested in becoming committed shippers on the Expansion Project must make a volume commitment of at least 2,500 barrels per day. Also shippers that make a volume commitment will have the ability to receive priority capacity, up to an amount of their volume commitments, during periods of prorationing, subject to the payment of a premium rate.

Shippers that make a volume commitment and do not receive priority capacity will be subject to discounted rates compared to the rates assessed to walk-up shippers, with the amount of the discount dependent on the level of the shipper’s volume commitment.


Plains Midstream Now Expanding Formerly Leaked Pipeline

Years after two large oil spills and a $1.3 million fine, Plains Midstream Canada has recently announced plans to expand its Rangeland crude oil pipeline that spreads from Edmonton, Alberta to the U.S. Border.

Plains Midstream Canada’s plans include doubling capacity between Edmonton and Sundre to 100,000 bpd and increasing their system that starts in Sundre and continues south to the border from 20,000 bpd to 100,000. These expansions will be subject to acquiring permits and regulatory approvals and are set to begin minor services later in 2019 and full services in 2021. The new expansions should connect to projects in Montana and Wyoming and eventually deliver crude Canadian oil to Texas.

Plains Midstream's website states that the company has spent $110 million on environmental cleanup efforts for both of their oil spills in 2011 and 2012.

Source: BNN Bloomberg

Two Expansion Projects in Texas Will Boost Exports to Mexico

Completion of a pair of expansion projects in Port Arthur and Corpus Christi by Howard Energy Partners will allow the company to do more exports of crude oil, gasoline diesel and other products to Mexico.

"Substantial expansions at our Port Arthur and Corpus Christi facilities signify HEP's commitment to designing and constructing fully-engineered facilities that are tailored to meet the exact needs of our customers," Howard Energy Partners Co-Founder and President Brad Bynum said in a statement.

The company will get 2.6 million barrels of storage in the region after the completion of the expansion projects, which recently added 12 new storage tanks, four butane bullets, two barge docks, one ship dock and a bidirectional pipeline to its 450-acre Port Arthur terminal.

The expansion projects are expected to boost the company's exports by rail and seafaring tankers, as Mexico has emerged to be one of Howard's top customers.


Canada Supports Kinder Morgan's Appeal to NEB for Pipeline Permits

Canada's federal government said it backs Kinder Morgan's second appeal to the National Energy Board over local permits for the planned Trans Mountain oil pipeline expansion.

Kinder Morgan Canada is trying to push its $5.9 billion pipeline expansion project that was federally approved last year amid strong opposition from lower governments and environmentalist and aboriginal groups.

Canada said it supports Kinder Morgan's request earlier this month to set up a process to resolve potential disagreements with provinces or municipalities over the pipeline's path to the west coast.

Kinder Morgan's appeal this month is the second one filed after it submitted a similar one last month when the company failed to obtain local permits from of Burnaby, British Columbia.

The company said it has worked in compliance with Burnaby for many months but has still yet to obtain permits, resulting in potential delays to the expansion and millions of dollars in losses.


Kinder Morgan Searches for Partner in Joint Venture of Trans Mountain Expansion Project

As Kinder Morgan continues its search for a partner to invest in a minority stake of its Trans Mountain Expansion Project, private equity firm ArcLight Capital Partners stands as one of the final bidders for the job, according to people familiar with the matter.

Houston-based Kinder Morgan is also proposing an initial public offering (IPO) to help finance the US$5.4 billion pipeline project but would prefer to pursue a joint venture and is in talks with potential partners such as ArcLight and Brookfield Asset Management.

In the proposed joint venture, Kinder Morgan would hold a majority stake and retain roughly $2.9 billion while splitting the remaining $2.5 billion, as well as any debt commitments, with its joint venture partner.

The Trans Mountain Expansion Project is designed to almost triple crude capacity from Alberta's tar sands to Canada's Pacific Coast where the crude will be shipped to the western U.S. Construction is expected to start September of this year, and the project should be completed by December of 2019.

Trans Mountain