Calcasieu LNG Project Receives Notice of Schedule for Environmental Review

US Federal Energy Regulatory Commission has issued Notice of Schedule for Environmental Review for the Calcasieu LNG project, Commonwealth LNG announced. The project includes the construction of one liquefied natural gas plant, including six gas liquefaction trains and appurtenant facilities.
“We are very pleased to receive FERC’s Issuance of Notice of Schedule for Environmental Review. It confirms that our project remains on schedule to take FID in Q1 2021 and start commercial operations in Q1 2024,” said Paul Varello, Commonwealth LNG’s President and CEO.

The Calcasieu LNG project is located on the west side of the Calcasieu Ship Channel, near the entrance to the Gulf of Mexico. Each gas liquefaction train will have a liquefaction design capacity of approximately 1.4 million metric tons per annum for a total nominal liquefaction capacity of 8.4 MTPA.

The project consists of six LNG storage tanks each with a capacity of 40,000 cubic meter, one marine loading berth capable of loading LNG carriers up to a capacity of 216,000 cubic meter, and a 3.04-mile long, 30-inch diameter pipeline that will connect the LNG Facility with existing intrastate and interstate pipelines for the purpose of supplying gas to the project.


Williams Seeks Approval for 187-Mile Kansas to Oklahoma Pipeline

The Wichita Eagle reported that the Williams Companies Inc. met with Sedgwick County officials Wednesday about the 187-mile Bluestem pipeline that would carry volatile gas liquids and run from McPherson County, Kansas, to Kingfisher County, Oklahoma.

The line would carry 225,000 barrels a day of pressurized gas liquids such as propane and butane, which are byproducts of natural gas production. The volatile liquids would be separated from natural gas at the company's plant in Conway.

The proposed pipeline would connect the Kansas plant to the Targa Grand Prix pipeline in Oklahoma, so that the liquids could move to refineries along the Gulf of Mexico.

The pipeline will across mostly farmland in Sedgwick County, according to pipeline officials. Sedgwick County officials would need to issue permits for the Bluestem pipeline to cross county roads. The company hopes to obtain permits along the pipeline route by January and to complete construction in November 2020.


Kinder Morgan Sells Stake in the Proposed Texas COLT

Kinder Morgan confirmed in a Monday afternoon statement that the company has sold its stake in a proposed offshore crude oil export terminal in the Gulf of Mexico known as Texas COLT to Enbridge, the lead developer in the project.

"Given the ongoing commitment required to move this project forward through the regulatory phase and, after an internal review within Kinder Morgan, it was determined that continuing with the project does not align with our strategic priorities," the company said in a statement.

Texas COLT was launched as a joint venture of Enbridge, Kinder Morgan and German marine terminal operator Oiltanking to accommodate Very Large Crude Carriers, or VLCCs. It was proposed to be built in an area of the Gulf of Mexico about 40 miles south of Freeport.

Enbridge officials said in a statement that the joint venture is moving forward without Kinder Morgan and will still be able to provide multiple varieties of U.S. crude oil for export.

"The COLT partnership, which combines Enbridge's leading North American asset portfolio with an international petroleum terminaling company in Oiltanking, continues to be central to the strength of the Texas COLT proposal," Enbridge stated.


BP Discovers 1 Billion Barrels of Crude in Louisiana Gulf Coast

1 billion barrels of crude was discovered off the tip of Louisiana in the Gulf of Mexico thanks to next-generation technology.

BP, the Gulf of Mexico’s biggest producer, announced the news as well as announcing two new offshore oil discoveries and a major new investment in a nearby field.

The billion barrels of crude was discovered in an existing oilfield and will take BP from 300,000 barrels of oil equivalent per day to an expected 400,000 boepd by the middle of the next decade.

The discovery was made at the Thunder Horse field.


Oxy to Sell Ingleside and Crude Oil Infrastructure to Moda and Lotus Midstream

Moda Midstream, LLC announced on Wednesday that it has entered into a definitive agreement to acquire the Oxy Ingleside Energy Center (IEC) and certain crude oil and LPG infrastructure form Occidental Petroleum Corporation. The transaction is expected to close in the third quarter of 2018, subject to customary closing conditions.

Strategically located in Ingleside, Texas, IEC resides near the mouth of Corpus Christi Ship Channel with minimal transit times to the Gulf of Mexico.

Oxy is also selling the Centurion pipeline system to Lotus Midstream. The pipeline extends from the Permian to an oil storage and transportation hub in Cushing, Oklahoma.

The combined $2.6 billion transaction are part of an effort for Oxy to focus on its growing production in the Permian. Oxy is easily one of the largest producer’s in the Permian.

Chief Executive Vicki Hollub emphasized the company’s focus on the Permian

“The Permian is now the foundation and the growth of our company,” Hollub said. “The bulk of our growth capital will continue to go to the Permian Resources business.”

The transactions by Moda and Lotus are the largest in their companies’ history.

Houston Chronicle
World Pipelines

Federal Officials Work to Clean Up Natural Gas Spill in Gulf

A pipeline leak of natural gas and liquid hydrocarbons in the Gulf of Mexico was reported Wednesday by Fieldwood Energy and is being treated by the U.S. Coast Guard and the Bureau of Safety and Environmental Enforcement (BSEE).

The pipeline, operated by Houston-based Kinetica Partners, spilled an estimated 750 gallons into the Gulf located roughly 30 miles southwest of Cameron, Louisiana. The last reported sheen was about one mile across and 10 miles along.

The BSEE says it plans to fly over the area in attempt to locate the source of the leak and review efforts to shut the pipeline flow.

Houston Chronicle

Enterprise Gas Plant Explosion Curtails Gulf Crude Supply

Two explosions and a resulting fire occurred at a natural gas processing plant in Pascagoula, Mississippi on Monday evening. No employees or surrounding communities were injured or impacted as the fire was restricted inside the facility.

The first explosion occurred around 11:30pm local time on Monday night while the second one followed just a few minutes later, according to Energy Management Director Early Etheridge. The resulting fire from the explosions was extinguished at around 5:00pm local time on Tuesday.

The Pascagoula plant as well as the Destin pipeline, a joint venture of BP and Enterprise that sends gas to Enterprise’s plant from platforms in the Gulf of Mexico, have been shut down while officials investigate the cause of the explosions.

Analysts report the temporary shutdown of the plant and pipeline along with the halt of production at several platforms in the Gulf of Mexico could "significantly" curtail supplies from the Gulf as the offshore platforms have to find another place to send their gas, thus threatening to raise oil and gas prices.

The plant has the capacity of 1.5 billion cubit feet of natural gas per day but was averaging about 400 million cubic feet per day. Officials are uncertain of how long the plant and pipeline will be offline.

Business Wire

Tata Steel Lays Deepest Recorded Pipeline in the Gulf of Mexico

Tata Steel will set an industry record by laying more than 140 kilometers of pipeline at the deepest point recorded in the Mexican section of the Gulf of Mexico.

The project marked the first where a pipeline had been laid at more than 3,000 feet deep into the Gulf.

Tata Steel was chosen for the project because of its experience in the manufacturing of small-diameter and thick-wall deep-water line pipe as well as its recent investments to strengthen technology and increase power efficiency.

The line pipe will be developed at Tata Steel’s invested Double Submerged Arc Welded (DSAW) mill in Hartlepool, UK.

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Economic Times