Marathon Petroleum to Maximize U.S. Crude in Third Quarter

Marathon Petroleum Corp (MPC.N) said that it plans to “maximize” input of U.S. crude in the third quarter, as bottlenecks have weakened domestic prices.

The company said on a Thursday earnings call that about 32 percent of its total throughput will be crude linked to the U.S. benchmark price.

It is expected that input at the company’s Midwest refineries will jump to 53 percent of total throughput in the third quarter.

U.S. and Canadian producers have been selling crude at a discount compared to global prices because of production outpacing pipeline capacity, helping Marathon report its highest quarterly earnings since 2011.

The U.S. refining outlook continues to remain strong as crude remain discounted.

“I think inventories are going to remain for both gasoline and distillate, inventories are going to remain in check through the year, which bodes very well for the business. But as we look into 2019 and where we believe inventories will end up at the balance of this year, it should put us in a really good position moving into ‘19 as well,” said Chief Executive Gary Heminger.

Source:
Reuters

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."

Source:
Reuters

MPLX Announces Joint Binding Open Season for Ozark, Woodpat Pipeline Expansion

Marathon Petroleum Corporation's midstream company MPLX LP announced Wednesday that two of its subsidiaries have begun a joint binding open season on the combined Ozark and Woodpat pipelines from Oklahoma to Illinois.

The open season, commenced by Marathon Pipe Line LLC and MPLX Ozark Pipe Line LLC, began Wednesday, January 18 and will conclude on February 16, 2018.

The pipelines run from Cushing, Oklahoma to Patoka, Illinois, and the project is designed to further expand the capacity of the pipelines by 15,000 barrels per day as more Midwest markets desire further access to WTI crude.

The Ozark Pipeline runs 433 miles from Cushing, Oklahoma to Wood River, Illinois and will have a capacity of approximately 345,000 barrels per day after the expansion project.

The Woodpat Pipeline runs 55 miles from Wood River, Illinois to Patoka, Illinois and will have a capacity of approximately 345,000 barrels per day after the expansion project.

Source:
PR News Wire

Owners of Capline Pipeline Explore Interest in Pipeline Reversal With Open Season

Pipeline operators Plains All American Pipeline, Marathon Petroleum, and BP Oil Pipeline Co are launching a non-binding open season to receive shipper interest in its proposed reversal of the Capline pipeline that moves crude from St. James, Louisiana to Patoka, Illinois.

If the open season is successful and the operators decide to continue with its proposal, the reverse flow could be operational by the second half of 2022. The reversed Capline pipeline would initially have a capacity of 300,000 barrels per day and would be able to receive crude from connecting carriers at Patoka.

Marathon Pipe Line operates the pipeline and owns the asset along with Plains All American Pipeline and BP Oil Pipeline Co.

The open season will be held through November 17, 2017.

Source:
Oil & Gas Journal

Energy Transfer Completes $2 Billion Stakes Sale in Dakota Access Pipeline

Dakota Access Pipeline builder Energy Transfer Partners completed its $2 billion sale of stakes in the oil pipeline after the U.S. Army Corps of Engineers granted its regulatory approval for the company to complete construction on the line.

Energy Transfer Partners sold a 27.6 percent share of the pipeline to Enbridge and a 9.2 percent share to Marathon Petroleum. The total $2 billion stakes sale for the roughly $4 billion pipeline leaves Energy Transfer Partners with a 38.25 percent stake in the pipeline and Phillips 66 with its 25 percent stake.

The sale had been announced months ago but was put on hold while the Dakota Access Pipeline was halted due to regulatory reviews under the Obama administration. Since then, the Army Corps under the Trump administration has reversed the regulatory holdups, and construction has restarted.

Energy Transfer Partners said it will use the money from the stakes sale for debt reduction.

Source:
Fuel Fix

 

Marathon Petroleum Affiliate to Buy Enbridge Pipeline for $220 Million

Marathon Petroleum's affiliate MPLX announced it is purchasing a 433-mile crude oil pipeline from Enbridge for $220 million.

The 230,000-barrel-per-day Ozark pipeline begins in the Cushing, Oklahoma storage hub where it then runs to refining and pipeline systems in Illinois.

MPLX said it is planning to expand the capacity from 230,000 to 345,000 barrels per day and hopes to complete this by the middle of 2018.

"Ozark Pipeline will expand the footprint of our logistics and storage segment by connecting Cushing-sourced volumes to our extensive Midwest pipeline network," president of MPLX Don Templin said in a statement.

The transaction is expected to close by end of March.

Source:
Fuel Fix

Marathon: Cornerstone Pipeline to Start Deliveries in Ohio

Marathon Refinery in Canton, Ohio (  Marathon Petroleum  )

Marathon Refinery in Canton, Ohio (Marathon Petroleum)

Marathon Petroleum announced Thursday that its Cornerstone Pipeline has completed testing and is now ready to begin transferring natural gas liquids from Scio, Ohio to its Canton Refinery.

The 42-mile pipeline will be used to transfer up to 25,000 barrels per day of natural gas liquids to the refinery where workers will use it to produce gasoline and diesel fuel.

The Cornerstone pipeline runs from Scio, Ohio to a village called East Sparta, near the Canton Refinery. From there a connector runs another eight miles to the refinery.

The pipeline will initially replace over 100 trucks that are being used currently to transport products to the refinery; it will make transportation much safer, more efficient, and it will reduce costs.

Source:
Cleveland Business

Energy Transfer, Sunoco Logistics Sell Stake in Bakken Pipeline to Help Pay Off Debt

Energy Transfer Partners and Sunoco Logistics announced its coming sale of a $2 billion share of the Bakken Pipeline project to another company in order to pay down the debt of the project.

Energy Transfer and Sunoco Logistics will sell nearly 37 percent of their 75 percent stake to an entity jointly owned by Enbridge Energy Partners and Marathon Petroleum Corporation.

Phillips 66 owns 25 percent of the project.

Energy Transfer will continue to oversee construction while Sunoco Logistics will operate the pipeline once construction is complete.

The Bakken Pipeline, which is a collective project of the $3.7-billion Dakota Access Pipeline and the $1-billion Energy Transfer Crude Oil Pipeline, will run for 1,172 from North Dakota to Illinois and connect to an existing, but converted to crude service, pipeline that runs from Illinois to Texas. The Dakota Access Pipeline component is expected to deliver more than 470,000 barrels of crude oil per day.

Enbridge Energy said the Bakken Pipeline deal will help their market access strategy, and Marathon said the deal will be a significant step in its midstream logistics business growth.

The sale is expected to close in the third quarter of this year.

Source:
Wall Street Journal
PennEnergy
Yahoo Finance