Oryx Midstream Services Secures $550 Million Investment

Qatar Investment Authority has acquired a $550 Million stake in Oryx Midstream Services from an affiliate of Stonepeak Infrastructure Partners. Oryx Midstream Services is the largest privately-held midstream crude operator in the Permian Basin.

"The significant investment and commitment from QIA alongside Stonepeak's strong operational and capital support will allow us to continue to grow our footprint in the Permian Basin and deliver the highest level of service to current and future customers. We are thrilled to lead Oryx in partnership with these world-class investors." said Brett Wiggs, CEO of Oryx.

"We believe that Oryx represents a strong midstream platform with tremendous growth potential, and we look forward to working with our new partners at Stonepeak. This acquisition is a further demonstration of QIA's strategy to increase the size of our US portfolio, and to invest more in major infrastructure projects." said Mansoor Al-Mahmoud, CEO of Qatar Investment Authority.

The Oryx system currently operates 500 miles of gathering pipelines and transports crude oil to market hubs for ultimate delivery to the Gulf Coast. Upon completion of the remaining 680 miles of gathering pipelines, which is currently under construction, Oryx's total transportation capacity will exceed 900,000 barrels per day.

Qatar Investment Authority has committed to invest in the development of Oryx alongside Stonepeak. While Qatar Investment Authority’s partnership and total investment in Oryx will be approximately $550 million, it plans to invest $45 billion across the US in the coming years.


Seven Companies Apply For Piper, A New Pipeline Sensor Technology

Developer Ingu, along with six other companies, have applied to use a golf ball-sized mobile sensor that will be used to detect leaks, geometric defects, and deposits in crude oil or brine pipelines.

The technology works by being placed in one end of an underground pipeline with liquid such as crude oil, brine, or others, being carried through.

The technology will be deployed next month to a unique target market that focuses on small gathering pipelines in North Dakota; however, it will be tested over three years.

Initial plans are to extend the program beyond three years based on more oil and gas companies joining the current seven companies.

The three-year program’s funding is a combined $1.6 million from NDIC’s Oil and Gas Research Program. There is also an additional $225,000 in membership fees that are paid by the oil and gas companies.

Developers want to minimize the speed of data analysis which is currently done by sending the Pipers back to Ingu to retrieve data. The startup is also working on building AI capacity to bring the data analysis speed to 72 hours.

Pricing will be based on the level of data analysis needed and not on the actual product. 

Bismarck Tribune

Gas Company Fined for Building Pipelines Outside of Permitted Areas

A natural gas company and a pipeline builder have been fined a total of $184,000 by the Pennsylvania Department of Environmental Protection for constructing gathering pipelines outside their permit boundaries.

The DEP reported that pipeline had been built several hundred feet from where the line was supposed to be constructed as well as crossed a waterway several hundred yards away from the permitted stream crossing.

The violations were found during a routine inspection in December of 2015 when DEP employees found pipelines placed outside of permitted areas as well as a gravel road and pad for a pipeline valve that were never permitted.

CNX Gas Company, a subsidiary of Consol Energy, was fined $139,000 and CONE Midstream Partners has been assessed $45,000 for violating the Clean Streams Law and Oil and Gas Act of Pennsylvania.

Although gathering lines in rural areas are not regulated by the state or federal governments, they are required to have sediment control permits and water crossing permits from the DEP.

During inspections, the department found 20 lines operated by CNX Gas and another seven owned by Cone Midstream in southwestern Pennsylvania that were all out of compliance.

The DEP says both companies are working to bring their lines back into compliance.

State Impact - NPR