Appalachia-To-Texas Ethane Pipeline Expansion Announced

The expansion of Appalachia-to-Texas pipeline, known as ATEX was announced by Enterprise Products Partners in a statement released on Monday morning. The 1,200-mile pipeline moves ethane from the Marcellus Shale and Utica Basin of Pennsylvania, West Virginia and Ohio to Enterprise's natural gas liquids storage complex just east of Houston in Mont Belvieu.

“The success of the open season reflects the demand for additional, reliable ethane takeaway capacity from the Appalachian region of the country,” Enterprise Senior Vice President Michael C. "Tug" Hanley said in a statement. “Our customers value flow assurance and reliability. The expansion of ATEX will facilitate growing production from the Marcellus/Utica Basin and will provide access to attractive markets on the Gulf Coast through Enterprise’s integrated midstream network.”

The decision came after the completion of a 30-day open season for producers to book capacity on the expansion project. The pipeline can currently move 145,000 barrels of ethane per day but the expansion project will boost that to 190,000 barrels per day. 

Estimated construction costs have not been disclosed. Through improvements and modifications to existing infrastructure, the extra capacity will be available by 2022.


Gulf Coast Express Pipeline Placed in Service

Kinder Morgan’s Gulf Coast Express Pipeline which is fully subscribed under long-term contracts will begin full commercial in-service ahead of schedule, the company announced. The pipeline will help relieve natural gas takeaway constraints and reduce flaring in the Permian Basin.

The pipeline can transport 2 billion cubic feet of natural gas per day and will deliver natural gas from the Waha area of the Permian Basin in the West Texas to Aqua Dulce, near the Texas Gulf Coast.

“We are pleased to place GCX in service safely and ahead of schedule for our customers, helping to unlock tremendous value for the State of Texas. I am very proud of our team’s ability to execute. We had over 3,000 contractors deployed at times and more than six million contractor hours worked – all without a major safety incident during the construction phases of the project,” said Kinder Morgan Natural Gas Midstream president Sital Mody.

Kinder Morgan Texas Pipeline is the operator of the pipeline and owns a 34 percent interest in Gulf Coast Express Pipeline. Other equity holders include Altus Midstream, DCP Midstream and an affiliate of Targa Resources.


Open Season announced for ATEX Ethane Pipeline

Binding open season was announced by Enterprise Products Partners on the partnership’s 1,200-mile Appalachia-to-Texas (“ATEX”) ethane pipeline to determine demand for expanded capacity on the pipeline. The open season started at 9 a.m. CDT on August 26, 2019 and continues until 5 p.m. CDT on September 25, 2019.

The company would add up to 50,000 barrels per day of incremental capacity through a combination of pipeline looping, hydraulic improvements and modifications to existing infrastructure. This is subject to sufficient customer commitments during the open season. The company is expecting that the expanded capabilities would be in service by 2022.

The pipeline transports ethane from the Marcellus/Utica Basin of Pennsylvania, West Virginia and Ohio to Enterprise’s natural gas liquids storage complex in Mont Belvieu, Texas, and features pipeline access to petrochemical plants along the Gulf Coast.


Commercial Service on Cactus II Pipeline Will Start Next Week

The new Cactus II crude oil pipeline, owned by Plains All-American, is mechanically complete and will begin commercial service next week, CEO Willie Chiang said. The pipeline will have the capacity to transport 670,000 barrels per day of crude oil from the Permian Basin to the Gulf Coast.

"As of today, the line is approximately 50% filled with crude, and we anticipate entering initial commercial service sometime next week," Chiang said during a conference call with investors to discuss the company's second-quarter financial results. "We expect to have direct Cactus II connectivity to Corpus (Christi) in service by the end of the first quarter 2020."

In-order to ease the bottlenecks that developed as a result of the fast-rising Permian Basin production, Cactus II is one of three new crude oil pipelines scheduled to enter service before the end of the year.

The other two pipelines scheduled for completion this year are the EPIC Crude Oil Pipeline from Orla, Texas, to Corpus Christi and Phillips 66 Gray Oak Pipeline.

According to Chiang, the company has also added new investors to its proposed Wink-to-Webster pipeline and expects to start operations on the project in the first quarter of 2021.


Two Companies Joining Forces to Construct $1.6 Billion Liberty Pipeline

A 50/50 joint venture between Phillips 66 and Bridger Pipeline LLC has formed and the companies will be proceeding with the construction of the 24 inch Liberty Pipeline. The pipeline is expected to cost approximately US$1.6 billion and will provide crude oil transportation services from the Rockies and Bakken production areas to Cushing, Oklahoma.

Subject to receipt of applicable permits and regulatory approvals, initial service on the pipeline is targeted to commence as early as the first quarter of 2021. Phillips 66 will handle both project construction and operating the pipeline.

“The Liberty Pipeline presents us with a great opportunity to serve producers in the growing Bakken and Rockies production areas,” said Greg Garland, Chairman and CEO of Phillips 66. “The pipeline adds to our integrated infrastructure network that serves the key shale oil producing regions with connectivity to major Gulf Coast market centers. Our pipeline network has strategic alignment with our Central Corridor and Gulf Coast refineries, further enhancing value across our assets.”


Kinder Morgan Seeks Dismissal of Permian Highway Pipeline Lawsuit

The lawyers representing Kinder Morgan filed a motion on Tuesday asking a state district judge in Travis County to throw out the lawsuit against the pipeline operator’s Permian Highway Pipeline route. They assert that the Texas Constitution and state law uphold the company's rights.

Opponents filed a lawsuit stating that the pipeline route unfairly runs through residential areas of Kyle, about 20 miles south of Austin, near the Lyndon B. Johnson National Historical Park in Stonewall and less than a mile away from Jacob's Well, a popular summertime swimming hole near Wimberley.

"The lawsuit is a prime example of why eminent domain exists – to allow important infrastructure projects that provide significant public benefits," Kinder Morgan said in a statement.

The 423-mile pipeline project will move 2 billion cubic feet of natural gas per day from the Permian Basin of West Texas to the Gulf Coast. Kinder Morgan maintains that the project will unlock production bottlenecks in the Permian Basin. But members of Texas Real Estate Advocacy and Defense Coalition, or TREAD contend that no alternative routes were presented to the public or considered.



$6.5B Deal to Sell Buckeye Partners to an Investment Firm

Buckeye Partners, a Houston pipeline operator which had struggled financially, decided to sell itself to an Australian investment firm focused on pipelines, terminals, roads and other infrastructure for $6.5 billion.

"Buckeye's Board recently reviewed strategic options for the business and determined that IFM's proposal to acquire Buckeye is in the best interest of Buckeye," said Buckeye Chairman and Chief Executive Clark Smith.

"This acquisition is aligned with IFM's focus on investing in high quality, essential infrastructure assets that underpin the economies in which they operate," said Julio Garcia, head of North American infrastructure for IFM.

The pipeline operator owns about 6,000 miles of petroleum pipelines, 115 terminals and a large supply of storage tanks focused primarily along the East Coast and Gulf Coast, and IFM is a global firm with a U.S. headquarters in New York that is owned by a group of Australian pension funds for nonprofit firms.


Open Season Announced for CJ Express Pipeline Expansion

In order to finalize the CJ Express pipeline expansion project, Midcoast Energy, LLC has announced a binding open season that will run through 17 May 2019 and expects to expeditiously complete negotiations with additional shippers.

The company has already entered into commercial agreements with an anchor shipper and one of the leading producers in the Haynesville for this project. The pipeline will include up to 107 miles of 36 inch pipeline and a 39,000 horse power compressor station.

The pipeline is expected to provide incremental delivery capacity for up to 1.0 billion cubic feet per day of natural gas produced in the Haynesville into premium demand markets along the US Gulf Coast markets.

The company expects the expansion project to have an in-service date in early 2021. CJ Express will connect Midcoast's existing pipeline assets in San Augustine County, Texas, and growing production in the Carthage and Shelby Trough area of the Haynesville Shale, to Midcoast's Clarity pipeline near Silsbee, Texas.


Plains’ Capline Pipeline Reversal to Begin Service in Third Quarter 2020

Plains All American’s Capline crude pipeline is expected to begin service in the third quarter of 2020, according to an announcement by the company on Tuesday.

The U.S. Midwest to Gulf Coast pipeline has the target in-service date for light oil service in third quarter 2020 while heavy oil service is expected in early 2022.

“The capacity from Cushing, Okla. down to St. James, Lou. should be available on a quicker time frame than heavy moving down from Illinois,” Chief Executive Officer Willie Chiang said on the call.

The Cushing to St. James shipment would include 200,000 barrels a day of expansion, pending a successful open season, and a modest extension of the Diamond JV pipeline that will connect to Capline, Plains said.

Currently, Capline is the largest crude pipeline running from the Gulf Coast to refineries in the Midwest. Volume on Capline have sharply declined as the U.S. shale boom pushed inland crude to East Coast and Gulf Coast.


Kinder Morgan Allocates $2.3 Billion in Discretionary Budget to Natural Gas Projects

Kinder Morgan’s Vice President and Chief Financial Officer David Michels gave a peek at the 2019 budget, announcing that nearly $2.3 billion of Kinder Morgan’s $3.1 billion discretionary budget will be allocated to natural gas projects.

Two of their biggest projects are pipelines that will move natural gas from the Permian Basin of West Texas to the Gulf Coast.

Kinder Morgan is leading a joint venture with three other companies to bring the Gulf Coast Express Pipeline into service by October.

The cost of the 42-inch pipeline is $1.75 billion and will move 2 billion cubic feet of natural gas per day from the Waha Hub in the Permian Basin to the Agua Dulce hub near Corpus Christi.

The company is also a lead developer in another 42-inch pipeline, the $2.1 billion Permian Highway Pipeline. It is expected to come into service in Oct. 2020 and move 2 billion cubic feet of natural gas from the Waha Hub to the Katy Hub near Houston.
Kinder Morgan is also eyeing projects to boost its natural gas exports to Mexico and develop other pipelines to support the growing liquefied natural gas industry along the Gulf Coast.

The company plans to put its own Elba Island KNG export terminal near Savannah, Georgia into service by the end of the first quarter.


Cheniere Energy Requests Permission to Bring Billion Dollar Midship NatGas Pipeline in Oklahoma Into Service

Cheniere Energy Inc asked U.S. energy regulators on Friday for permission to start working on their $1.025 billion Midship natural gas pipeline in Oklahoma.

The company asked the FERC for authorization to start building the proposed 234-mile pipeline in three segments. The project is expected to be complete by early 2019, Cheniere said.

Midship is designed to deliver 1.44 billion cubic feet per day (bcfd) of gas from the Anadarko basin to existing pipelines near Bennington, Oklahoma to transport liquefied natural gas to Gulf Coast and Southeast markets.

Expectation of total U.S. LNG export capacity should rise to 8.3 bcfd by the end of 2019 and 9.6 bcfd by the end of 2020 from 3.8 bcfd now.

Most of the U.S. LNG export terminals are located or being built along the Gulf of Mexico in Louisiana and Texas


$550 Million Pipeline Project Proposed by CenterPoint in Louisiana and Texas

A $550 million natural gas pipeline project is being proposed by a pipeline company backed by Houston’s CenterPoint energy to feed the liquefied natural gas exporting business along the Gulf Coast.

Oklahoma-based Enable Midstream Partners said the proposed 165-mile gas pipeline will stretch across the Texas state line from northwestern Louisiana to southwestern Louisiana, taking gas from the Haynesville shale and other regions to be shipped down to new LNG export terminals in Louisiana and Texas.

"We are excited about this opportunity to diversify and expand Enable's transportation footprint to connect directly to U.S. Gulf Coast markets," said Enable Chief Executive Rod Sailor.

The goal is to complete the project as early as 2022.

Houston Chronicle

Enable Midstream Launches Nonbinding Open Season for New Gulf Coast Gas Pipeline

Enable Midstream Partners out of Oklahoma City, launched a nonbinding open season to gather additional interest for natural gas transportation capacity on the Gulf Run Pipeline, a planned interstate transportation project designed to connect US gas supplies to LNG export markets on the Gulf Coast.

The project is backed by an unnamed cornerstone shipper for a 20-year, 1.1 bcfd of firm capacity service, according to the Oil & Gas Journal.

Up to an estimated 165 miles of large-diameter pipeline will be constructed from northern Louisiana to Gulf Coast markets.

The project is designed to utilize the company’s transportation system to provide access to gas-producing regions, including the Haynesville, Marcellus, Utica, and Barnett shales as well as the Midcontinent region.

The project is expected to be placed into service in 2022.

The open season continues through Oct. 26.

Oil & Gas Journal
Seeking Alpha

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

Marathon Petroleum Buys Andeavor for More than $23 Billion

Marathon Petroleum Corporation last week said it would buy Andeavor for more than $23 billion to become the largest independent U.S. refiner by capacity at a time when U.S. crude production is at record-high levels.

Marathon will acquire all of Andeavor's refineries, including those located in Alaska, California, Minnesota, New Mexico, North Dakota, Texas, Utah, and Washington. The acquisition will complement Marathon's Midwest and Gulf Coast operations.

The combined company will have the ability to process about 3.1 million barrels per day along with a large network of filling stations and oil and natural gas pipelines.

Marathon CEO Gary Heminger, who will run the combined company, said the acquisition enhances its "midstream footprint in the Permian Basin and creates a nationwide retail and marketing portfolio."


Enterprise Products Partners to Convert NGL Pipeline in Permian Basin to Crude Oil Service

Enterprise Products Partners is converting one of its natural gas liquids pipelines in the Permian Basin to crude oil service, bringing Enterprise's total crude oil pipeline capacity to more than 650,000 barrels per day from the Permian Basin to its crude oil hub in the Houston area.

The conversion is expected to be complete in the first half of 2020.

The conversion is the company's response to a "strong demand for crude oil transportation, storage, and marine terminal services for crude oil production from the Permian Basin," said CEO of Enterprise Jim Teague.

Enterprise is constructing its Shin Oak NGL pipeline that will take NGL volumes from one of the company's current NGL pipelines in the Permian Basin so that it can be used for crude transportation. Enterprise is currently evaluating which of its three current NGL pipelines in the area to repurpose.

Business Wire

Magellan Midstream Proposes New Permian-to-Gulf-Coast Pipeline for $1 Billion

Magellan Midstream Partners has announced plans to develop an estimated $1 billion pipeline system to carry crude and condensate from the Permian and Eagle Ford to the Gulf Coast.

The project would include constructing a new pipeline that would run approximately 375 miles from Crane, Texas to Three Rivers, Texas, where shippers could then opt to deliver crude to the Houston area via a new 200-mile pipeline or to Corpus Christi via a new 70-mile pipeline.

The pipeline system would have an initial capacity of at least 350,000 barrels per day and potentially expand to 600,000 barrels per day for each destination.

Magellan said it is considering additional extensions for Texas cities Midland and Orla, which would tie into its 60-mile Delaware Basin pipeline that is being built to carry crude from Wink, Texas to Crane, Texas.

The project is expected to be operational by the end of 2019.

Houston Chronicle

American Midstream to Acquire Southcross Energy Partners

American Midstream is acquiring Dallas-based Southcross Energy Partners, forming a $3 billion partnership, as a way to bolster its natural gas pipeline footprint in Texas and the Gulf Coast.

The deal also includes additional assets from Southcross Holdings, which allows American Midstream to capture the "full midstream value chain in the very prolific Eagle Ford basin," said President and CEO of Ameircan Midstream Lynn Bourdon III.

After the transaction, American Midstream will own and operate approximately 8,000 miles of crude, natural gas, and NGL pipelines among other complementary infrastructure.

Since relocating from Denver to Houston last year, American Midstream has also purchased JP Energy Partners and the Gulf of Mexico pipelines of Panther Asset Management.

Houston Chronicle

SemGroup Restores Operations at Texas Gulf Coast Terminal

As oil operations in southeastern Texas and Louisiana begin to resume after Hurricane Harvey, SemGroup Corporation announced that it has fully restored operations at its 16.8 million barrels-per-day terminal on the Houston Ship Channel.

The restoration comes after the reopening of the Houston Ship Channel, which is currently open to vessels with a 40-foot draft on a 24-hour basis, according to SemGroup.

Inbound and outbound facilities at subsidiary Houston Fuel Oil Terminal Company's 330-acre terminal are operating at normal. SemGroup is receiving ships and barges through the Houston Ship Channel as well as sending and receiving deliveries via pipeline, truck, and rail.

Hurricane Harvey did not do any significant damage to SemGroup's Maurepas pipeline na other installations, according to the company.

The terminal, which SemGroup acquired when it acquired Houston Fuel Oil Terminal Company in July, is currently executing growth projects like a ship dock, a pipeline and associated connections, and an additional 1.45 million barrels-per-day of crude oil storage.

Oil & Gas Journal

Eagle Ford Oil Production Slowly Coming Back Online After Harvey Floods

Oil production in the 400-mile Eagle Ford Shale field is resuming operations after Hurricane Harvey two weeks ago forced production of hundreds of thousands of daily barrel output to stop while the Gulf Coast braced itself for a hard hit.

200,000 barrels a day of oil production still remained offline more than a week after the storm flooded Southeast Texas.

In preparation for the storm, oil producers in the region shut in as much as 500,000 of the field's 1.3 million daily barrel output and evacuated employees.

Crews have now been trying to resume operations in the field, spending several days mending the eastern side of the field that received significant river flooding.

Houston Chronicle