Two Pipeline Operators Joining Forces to Move Natural Gas from Eagle Ford Shale to Agua Dulce Hub

San Antonio pipeline operator Howard Energy Partners and Florida-based NextEra Energy Partners have announced a joint venture on Wednesday morning with the intention to move more natural gas from the Eagle Ford Shale of South Texas to the Agua Dulce hub in Nueces County, Texas.

New pipeline opportunities in areas of Webb, Duval, Zapata, Dimmit, La Salle, McMullen, Live Oak and Jim Wells counties will be explored by the two companies.

"The synergies between HEP's and NextEra Energy Partners' Eagle Ford assets provide for a compelling footprint, and we are excited about the potential for this joint venture," Howard Energy Partners CEO Mike Howard said in a statement.

A network of gathering pipelines in the natural gas-rich western end of the Eagle Ford Shale is owned by Howard Energy Partners. Eagle Ford Midstream pipeline network, which moves natural gas from the western end of the Eagle Ford to the Agua Dulce natural gas hub is owned by NextEra Energy Partners.

Natural gas reaching the Agua Dulce hub can be shipped on interstate pipelines, to Cheniere Energy's new liquefied natural gas export terminal in Corpus Christi or destination in Mexico.

"While requiring minimal capital investment, this agreement is expected to increase capacity utilization on NEP's EFM system and improve gross margins by giving NEP access to additional producer volumes in an active Eagle Ford region," NextEra Energy Partners President Armando Pimentel said in a statement.


Enbridge’s Largest U.S. - Mexico Pipeline to have Completion Delayed Until Next Year

A large natural gas pipeline from Texas to Mexico has had its completion delayed until April 2019 due to weather conditions that complicated the Mexican portion of the project’s completion.
The 2.6 billion cubic feet a day Valley Crossing Pipeline is being built by Enbridge, who has asked for a six-month extension for putting the Valley Crossing Pipeline into operation. Operations were scheduled to start this month, but the delay will push it back until April 23, 2019.

According to Enbridge, the delay comes from the inability to test the pipeline because of issues with the Mexican side of the pipeline, which connects with the Enbridge section offshore from Brownsville in the Gulf of Mexico. Infraestructura Marina de Golfo, a joint venture between the Canadian Pipeline and storage company TransCanada and Sempra Energy of San Diego, is responsible for the Mexican portion’s construction.

After its completion, the pipeline would be the largest natural gas pipeline flowing from the U.S. to Mexico. Exports by pipeline from the U.S. to Mexico have more than doubled since 2014.

Houston Chron

Tallgrass Energy Partners, Silver Creek Midstream Announce Iron Horse Pipeline Joint Venture

The above map depicts the planned Iron Horse Pipeline and associated Silver Creek and Tallgrass infrastructure. Note: The Silver Creek Midway Terminal, Iron Horse Pipeline, and Tallgrass Guernsey Terminal are under construction. (Graphic: Business Wire)

The above map depicts the planned Iron Horse Pipeline and associated Silver Creek and Tallgrass infrastructure. Note: The Silver Creek Midway Terminal, Iron Horse Pipeline, and Tallgrass Guernsey Terminal are under construction. (Graphic: Business Wire)

Tallgrass Energy Partners and Silver Creek Midstream announced plans to develop the Iron Horse Pipeline, a joint venture to move crude oil from the Powder River Basin to Guernsey, Wyoming.

Iron Horse will connect Silver Creek's developing gathering system to Tallgrass' Guernsey Terminal, which is currently being built, and then to Tallgrass' Pony Express crude pipeline system as well as other pipelines at Guernsey.

Tallgrass has also signed documents to sell its 50-mile Powder River Basin crude oil gathering system to Silver Creek, helping to position Silver Creek as the preeminent crude oil gathering company in that basin.

Tallgrass will own 75 percent of the joint venture and operate the 80-mile, 16" pipeline. Silver Creek will own the remaining 25 percent.

Iron Horse is expected to be in service in the first quarter of 2019 and to have an initial capacity of 100,000 barrels per day with the potential for significant expansion.


Cayenne NGL Pipeline to Commence Full Operation

American Midstream Partners announced Wednesday that its Cayenne Pipeline joint venture with Targa Resources is now complete and that deliveries on the line can begin.

The Cayenne Pipeline will initially have a capacity of 40,000 barrels per day of Y-grade NGL and will be able to expand to 50,000 barrels per day.

The Cayenne Pipeline will begin at the Targa-operated Venice processing plant and end at Enterprise Products Partners' pipeline in Toca, Louisiana for delivery to Enterprise Products' Norco Fractionator.

American Midstream contributed an underutilized natural gas pipeline and converted it into high value, natural gas liquids service as part of the joint venture.

Both American Midstream and Targa Resources have 50 percent economic interest and 50 percent voting rights with Targa serving as the operator of the venture.

BOE Report

Kinder Morgan, DCP Midstream, Targa Resources Move Foward with GCX NatGas Pipeline

Kinder Morgan, DCP Midstream, and Targa Resources today announced a final investment decision to move forward with the $1.7 billion Gulf Coast Express Pipeline Project (GCX Project) that will transport up to 1.92 billion cubic feet daily of natural gas.

The announcement comes after the companies solidified joint venture agreements and secured enough transportation agreements with shippers.

The mainline portion of the GXP Project will run for 447 miles from the Waha Hub in the Permian Basin to Agua Dulce, Texas. An additional 50-mile Midland Lateral portion and associated compression will connect with the GCX Project.

Construction on the project is expected to begin in the first quarter of 2018, and the companies hope to begin service on the pipeline in October 2019. Kinder Morgan will own 50 percent of the project while DCP Midstream and Targa Resources each own 25 percent.

Business Wire

Noble Midstream Forms Joint Venture to Buy Saddle Butte Pipeline for $625 Million

Noble Midstream Partners is forming a new joint venture with Greenfield Midstream to purchase Colorado's Saddle Butte Pipeline for $625 million.

The purchase will help Noble Midstream to expand in Colorado's DJ Basin and capitalize on the region's growing oil production.

Noble Midstream and Greenfield Midstream will split the purchase in half, but Noble will operate the joint venture and own 54.4 percent of it.

The Saddle Butte system includes 160 miles of pipelines in operation with 300,000 barrels per day of crude capacity. It also has about 210,000 barrels of oil storage capacity.

Fuel Fix

American Midstream Announces Cayenne Pipeline Joint Venture

American Midstream announced Tuesday that it has entered into a joint venture agreement with Targa Midstream Services to create Cayenne Pipeline, LLC.

The Cayenne Pipeline will transport Y-grade NGLs from a Targa-operating gas processing plant to Enterprise Products Partners' pipeline in Toca, Louisiana, for delivery to Enterprise Products' Norco Fractionator.

American Midstream is contributing an underutilized natural gas pipeline that will convert into high value, natural gas liquids service. The pipeline will have initial capacity of over 40,000 barrels per day with ability to throughput more than 50,000 barrels per day.

The project is expected to be fully operational by the end of this year.

Both American Midstream and Targa will have 50 percent economic interest and 50 percent voting rights with Targa serving as the operator of the venture.

American Midstream

Howard Energy Enters $563 Million Joint Venture for New Pipeline System in Permian Basin

Howard Midstream Energy Partners announced Tuesday it is entering a $563 million partnership with WPX Energy to build a 50-mile crude oil pipeline and processing system in the Permian Basin.

Once the company completes construction, the pipeline system will have the capacity to transport and process 400 million cubic feet of natural gas per day in the Permian's Delaware Basin.

Calling it the most prolific basin in the nation, Howard Energy CEO Mike Howard said in the release that the joint venture shows that the company can differentiate among its competitors and raise significant capital for large-scale infrastructure projects.

Howard Energy is based out of San Antonio, Texas and owns and operates pipeline and storage infrastructure in both Texas and Pennsylvania.

Houston Chronicle

Crestwood Announces Joint Venture on Texas Natural Gas Pipeline

Crestwood Equity Partners announced Wednesday it is partnering with an investment banking firm in a joint venture to finance a $170 million natural gas pipeline project traveling from New Mexico to Texas.

Crestwood and First Reserve will build a cryogenic gas processing plant in Orla, Texas that is designed to cool and condense natural gas from the Delaware Basin portion in New Mexico.

The plant will connect to a 33-mile pipeline that runs from Eddy County, New Mexico into Texas. The plant will be able to process 200 million cubic feet per day of gas and will also serve gas coming from fields operated by companies like Marathon Corp, Exxon Mobil Corp, and Concho Resources.

The companies estimate the gas processing plant to be in service in late 2018.

Fuel Fix

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

Plains All American, Noble Midstream Team Up in $133 Million Pipeline Purchase

Plains All American Pipeline and Noble Midstream Partners announced today that they are teaming up to purchase a Permian Basin pipeline system owned by Advantage Pipeline for $133 million.

The 50/50 deal includes acquiring 70 miles of crude oil pipeline located in the southern Delaware Basin. The system also includes about 490,000 barrels of combined crude storage at three trucking stations.

Both Noble and Plains will construct separate pipelines to connect the Advantage Pipeline system to their existing systems in the Permian. Noble Midstream will be the lead operator of the project.

Noble Midstream CEO Terry Gerhart said he is excited about teaming up with Plains All American on the Advantage Pipeline system, noting that the transaction will allow Noble to provide its "sponsor and third party producers connections to multiple market centers and Plains' premier pipeline network."

Fuel Fix
Street Insider

Sunoco Logistics, Exxon Mobil to Combine Pipeline Assets in Strategic Joint Venture

Sunoco Logistics Partners is forming a joint venture with Exxon Mobil, which will give more strategic assets to Sunoco near the Dakota Access Pipeline and also help increase its footprint in West Texas.

In the deal, called Permian Express Partners, both companies will contribute assets, and Sunoco will take a stake of 85 percent while Exxon takes the remaining 15 percent.

Sunoco is contributing to the deal its Permian Express 1 and 2 and its Permian Longview and Louisiana Access pipelines. Exxon’s contributions include its Longview and Louisiana Pegasus pipelines, Hawking gathering system, an idle pipeline in Oklahoma, and its terminal in Patoka, Illinois.

This joint venture expands Sunoco’s footprint in the Permian Basin, a hot spot for exploration and production companies as well as midstream operators.

Owning a majority stake in Exxon’s terminal in Pakota, Illinois is an advantage for Sunoco because the terminal connects to the Dakota Access Pipeline, which Sunoco will operate once the pipeline is complete.


Kinder Morgan, Southern Company Close Strategic Venture of SNG Pipeline System

kinder morgan, southern company close strategic venture of sng pipeline

Kinder Morgan and Southern Company announced Thursday the closing of their joint venture of the Southern Natural Gas (SNG) pipeline system, of which Southern Company will now acquire a 50 percent equity interest through its subsidiary Southern Company Gas.

Kinder Morgan will continue to operate the SNG system, and both groups will work together to develop gas infrastructure that is important to the future of the nation’s energy industry.

The 7,000-mile SNG pipeline system connects natural gas supply in Texas, Louisiana, Mississippi, and Alabama to markets in Louisiana, Mississippi, Alabama, Florida, Georgia, South Carolina, and Tennessee. It is the largest natural gas pipeline system to serve the Southeast.

Kinder Morgan will use the proceeds from this transaction to reduce debt.

Business Wire

Plains All American, Phillips 66 Announce Joint Pipeline Project

plains all american and phillips 66 announce joint pipeline project

Plains All American Pipeline and Phillips 66 Partners announced on Tuesday their formed joint venture to expand the STACK oil pipelines in Oklahoma shale fields.

STACK Pipeline LLC, a 50/50 limited liability company, will own and operate a common carrier pipeline that transports crude oil from the Sooner Trend, Anadarko Basin, Canadian, and Kingfisher (STACK) counties shale play in northwestern Oklahoma to Cushing, Oklahoma. 

Plains All American will contribute an existing terminal located in Cashion, Oklahoma with roughly 200,000 barrels of crude oil storage and an approximately 55-mile crude oil pipeline, the STACK pipeline, with a current capacity of nearly 100,000 barrels per day. Phillips 66 will pay $50 million to Plains for 50 percent ownership in the STACK pipeline and the Cashion terminal.

The joint venture will spend $15 million to expand the pipeline laterals, add storage space, and build a truck station.

“Plains is pleased to be entering into this strategic partnership with Phillips 66 Partners in one of the most exciting emerging resource plays in North America,” said Greg L. Armstrong, Chairman and CEO of Plains All American, according to a statement.

Plains All American Pipeline
Fuel Fix

Wood Group Mustang and Grupo Diavaz Form Joint Venture in Mexico

Wood Group subsidiary Wood Group Mustang announced on Thursday that it is partnering with Mexican-based operator and services company Grupo Diavaz to create a joint venture engineering business in order to capitalize on Mexico’s energy reform.

According to Mustang CEO Michele McNichol, the partnership includes opening an engineering training and employment center in Mexico City, where the partnership will be based.

The Mustang Diavaz collaboration is planned to provide engineering, procurement, and construction services to onshore and offshore facilities, and pipelines for the upstream and midstream oil & gas markets in Mexico.

With Grupo Diavaz’s knowledge of the Mexican oil and gas industry along with Wood Group Mustang’s experience in global engineering, Mustang Diavaz will provide unrivaled expertise to companies operating in Mexico, according to McNichol.

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World Oil